DTDC Report
DTDC Report
DTDC Report
INTRODUCTION
The word logistics derives from French logistics from the late 19th century, and was used
by Baron de Jomini. It describes logistics since the military technical knowhow
department contributes to the procurement, acquisition and shipment of materials,
workers and centres. And the new oxford American vocabulary describes logistics as 'the
full organisation of a complicated project with respect to quite a few individuals, quarters
or components.
Ident with the logistics specialist supply chain management group. is a system to prepare
for the successful and productive carriage and garage area of goods and to enforce and
manage the process from the outset of deals and relevant information. Origin to point of
usage for the purposes of compliance with consumer standards which includes sport in, out,
intern which intra.
The incoming logistics system is one of the logistics policy number one for the
purchase and distribution of incoming products, parts or incomplete inventory
shipment from suppliers to container, warehouse or retail production or assembly
arrangements.
Procurement logistics: - The whole process was used to select vendors and discuss products or
services distribution agreements. It involves tasks such as market research, preparing needs,
purchasing or making choices, dealer management, ordering and order management.
Distribution logistics: -
They're involved with the delivery of finished products to the patron. It consists of order processing,
warehouse and transportation. The principle sub-sectors consist of air, rail, water, and truck
transportation. Logistics have interaction within the integration of these sub sectors counting
statistics, stock, warehousing, cloth-dealing with and packaging.
Disposal logistics: -
It is also known as the opposite logistics that it serves for all reuse-related operations of
goods and substances. The primary reason for this area is to lower the logistics price,
improve service and maintain herbal sources.
Production logistics: -
The process of this logistics is to streamline and control the flow through the supply chain.
Production logistics activities are linked to organizational concepts, layout planning, planning and
control of production.
Construction logistics: -
This logistics process is to streamline and control the supply chain flow. Production
logistics activities are linked to the concepts of organization, layout planning, production
planning.
Digital logistics: -
Is driven by a new generation of web-based, enterprise applications that enable
collaboration and optimization leveraging a central logistics information back bone that
provides visibility across the venture and extend supply chain.
Customers
Collecting branches
Collecting hubs
Consignee
Archives and goods can either be transported by demand vehicles or by licenced vehicles
in the Region. The vast majority of quick transit administrations use leased vehicles for
surface shipments and private aircraft for air-express shipments.
An Express Association must ensure that the exactness of its task preparations are carried
out for quick shipments and that it conducts daily preparation. The benefit players in
transport keep the products through the entire chain consistent and observable
continuity. The key phase of the express sector is discretionary investment.
Express manufacturers use their own trucks to deliver products to the main centre and
stack them. The emphasis is where all the numerous branch dispatches are created. The
shipping is split into four pieces from the middle, for example. Based on the location of
shipments and parcels the consignments are split North Zone, South Zone, Near & Global
resulting in free movement of shipments from place of birth to location.
Chapter-2
ORGANISATIONAL PROFILE
i. Background
DTDC entered in 1990 clearly capped. Sub Hashish is the leader and owner of DTDC
express ltd. DTDC is one of the most important aspects of the market sector within 28
years and is the field of which DTDC is active of work area messaging.
The world's largest express transport companies serving national as well as local administrations.
DTDC is also extending its business mission to include the nation's duration and expansiveness.
Today DTDC is one of the rumoured dispatch organisations in India as well as abroad and more
than 270crores are valued by the organisation.
For domiciliary and global shipping and packing in India, DTDC Express Ltd provides
benefits. The Company offers air freight, surface mail, express traffic, excess and
intercity transportation services through its franchisee.
In the areas of media transition, data innovation, finance, defence, personnel, automobiles, US
innovation, the Joined Kingdom, the UAE, Bangladesh, India, Silence, Nepal and Bhutan, the
Company provides and offers its services. The company has been integrated with Bangalore as
its headquarters.
PROMOTERS OF THE COMPANY
Mr Subhasish Chakraborty
Mr Suresh Bansal
Mr Abhishek Chakraborty
ii. Nature
DTDC Express Limited is India’s leading express parcel service provider. DTDC is the pioneer of
the franchising concept in the industry and operates one of the largest parcel delivery networks
in India through its strategic partnership with Europe’s DPD group which is backed by Le Groupe
La Poste – the French Postal organization. DTDC’s global network and reach offers end-to-end
solutions for parcels, delivering across India and to 220+ global destinations.
Mission
As the largest Express and Cargo Distribution Company in India by 2017-18 DTDC is trying to
expand.
To carry out this goal, the organisation has taken on the main components that accompany
it
Quality Policy
DTDC Lite
Domestic express services for Delivering documents and small parcels. Domestics
cargo services for delivering heavier Consignment.
DTDC Plus/Blue/Green
DTDC Plus assures Next Business Day (NBD) delivery on priority in all metros and
major cities. DTDC Blue provides assured Second Business Day (SBD) delivery to
remote destinations with limited connectivity, where cargo cannot be delivered at
the next business day.
DTDC International
DTDC has successfully transformed itself from a domestic courier company to a full-
scale supply chain solutions provider offering domestic and international express,
freight, transportation, logistics management, warehousing and distribution
services.
Chapter-3
MCKENSY’S 7S FRAMEWORK
A 7-s model is a tool for managerial analysis and action that provides a structure with which to
consider a company as a whole so that the organization’s problem may be solved and a strategy may
be developed and implemented. The 7-s is a frame for analysing organization and effectiveness. It
looks at the seven key elements that make the organizations and their effectiveness.
HARD VARIABLES:
SOFT VARIABLES:
1. STRATEGY
Strategies are the actions a company plans in response to or anticipations of changes in its external
environment. It also includes purpose, missions and objectives, goals, and major action plans and
policies.
2. STRUCTURE
The organizational structure of the company is based on the functional departments and the
decision taken from the top-level management of the company. For analysis and taking decisions,
the top management will consult the functional managers, performance of the various departments
will be assigned by the functional head.
An organization chart, which shows the reporting structure and divisions of tasks for successful
integration.
Executive Director
Abhishek Chakraborty
National National
Human Customer
Channel
V.P Operations Resources Finance Head Support Service IT Manager
Director
Management
Tushar kudalkar Subhash Radhika
Mrinal
Shivrawath
Chakraborty
3. SYSTEM
- Finance
- Information Technology
- Operations
DTDC also has special processes and methods for ensuring that all departments and systems
within the organization are aligned and working in harmony towards the greater business goals and
targets. This is made possible through ensuring that all systems are designing and working towards
goals and targets specific to their expertise under the broader business vision and strategy.
Soft Elements
1. Style
Management/leadership style
DTDC has a participative leadership style. Through a participative leadership style, DTDC is able to
engage and involve its employees in decision-making processes and managerial decisions. This also
allows the leadership to regularly interact with the employees and different managerial groups to
identify any potential conflicts for resolution, as well as for feedback regarding strategic tactics and
operations. Through its participative leadership, DTDC is able to enhance employee motivation, and
increase organizational commitment and ownership amongst employees as well as other stakeholders.
Effectiveness of leadership style
The participative leadership style is highly effective in achieving the business goals and vision of the
organization. Employees feel to be active members of the organization who are valued for their
suggestions, feedback, and input. Moreover, through participative leadership, leaders and managers
are able to identify current and potential conflicts within the DTDC organization, and actively work to
resolve them as soon as possible.
Cooperation vs competition – internally
With its supportive and encouraging organizational culture, DTDC gives way to internal collaboration
and cooperation between employees, systems, teams, and departments. This cooperation and
collaboration at DTDC is important since its operations are spread globally, and also because tasks
and responsibilities within the company often require inter-departmental feedback and input.
Moreover, with increased expansion, and synergy, the business also regularly forms project teams –
which function effectively because of the cooperative and collaborative culture within the DTDC
organization.
Team vs groups
DTDC has effective and functional teams and works with them internally to achieve its various
business goals and objectives, and complete tasks. The company’s management is encouraging and
supportive, and the leadership provides a motivating and pragmatic vision toad achieve. The human
resource management system, as well as the organizational training, supports all employees in their
growth fairly and transparently. This leads to effective team formation instead of nominal groups
within the organization for various projects, as well as department-specific tasks and roles.
2. Staff
Employee skill level vs business goals
DTDC has a sufficient number of employees employed across its global operations. Employees for
different job roles and positions are hired internally as well as externally – depending on the urgency
and the skill levels required. Learning is the new “constant” in the VUCA (Volatility, uncertainty,
complexity, and ambiguity) world of business dynamics. Learning is essential for development and
development is synonymous to progress. At DTDC, learning is a perpetual practice.
All job roles and positions are designed to facilitate the achievement of business goals, and as such,
employee skill level at DTDC is sufficient to achieve the business goals of the company.
Number of employees
DTDC has employed a large number of employees. The number of employees varies from country to
country as per the requirements and needs of the business and operations. The global team of DTDC
is an inclusive one that accepts, and encourages diversity, and works in synchronization with
members to ensure attainment of business goals. The team member sand employees are the most
important part of business success for DTDC.
Gaps in required capabilities and capacities
DTDC has a well-defined system for identifying potential needs of capabilities and capacities for the
organization. The human resource function of the business has a systematic process that aligns all
other departments to identify potential vacancies or skill gaps. Based on the nature of the need, the
human resource department arranges for recruitments which may be permanent or contractual in
nature, as well as arranges training sessions if need be for the current workforce.
3. Skill.
Employee skills
DTDC has a commendable workforce, with high skills and capacities. All employees are recruited
based on their merit and qualifications. DTDC prides itself on hiring the best professionals and
grooming them further to facilitate growth and development.
Employee skills vs task requirements
DTDC has defined tasks and job roles and hires and trains employees for skill levels accordingly with
respect to those. The company ensures that all its job requirements are met and that employees have
the sufficient skills to perform their respective jobs in accordance with the values and culture as well
as the business goals and strategy of DTDC.
Skill management
DTDC believes in excellence and leadership profoundly and we contemplate to achieve these virtues
by simply investing in the intellectual capabilities of all our employees. There are various continuous
as well as sporadic learning interventions throughout to educate and engage DTDCians like:
Process Trainings
Systems Trainings
Self-Development sessions
Soft-skill Trainings
Project-based Trainings
Coaching & Mentoring
On-the-Job Training
Company’s competitive advantage
The human resource is one of the core competitive advantages of the company. The skills of
employees are developed specifically for job roles and requirements at DTDC and provide a
competitive benefit to the company – where players cannot imitate employee skills or training. This
creates a unique and non-substitutable competency for DTDC.
4. Shared Values
Core values
The core values at DTDC are defined and communicated to foster a creative and supportive
organizational structure that will allow employees to perform optimally, and enhance their
motivation and organizational commitment. The core values at DTDC include, but are not limited to:
- Creativity
- Honesty
- Transparency
- Accountability
- Trust
- Quality
The DTDC business also ensures that all its activities and operations are conducted with high ethical
and moral standards that redefined and benchmarked against international criteria.
Corporate culture
DTDC encourages an inclusive culture that celebrates diversity. The company has an international
presence, and production units that are spread across different countries, as such, DTDC ensure that
its organizational culture is supportive of diversity, and has internal policies to reduce incidences of
discrimination.
The corporate culture at DTDC also encourages innovation and creativity by allowing independence
for growth to individuals and teams –thus helping them refine their careers as well as personalities.
Lastly, the corporate culture at DTDC also has a supportive leadership which works towards
increasing employee motivation and job satisfaction by giving way to visibility and accessibility.
Task alignment with values
DTDC ensures that all its job tasks and roles are aligned with the core values that the company
propagates. This means that all activities, tactics, and strategic tactics employed by DTDC will reflect
its core values, and will not deviate away from these. This is to ensure a consistent, and reliable
brand image, as well as an honest organizational culture. In the event of organizational change, the
company will continue to ensure that all change management processes and methods incorporate
the core values so that the organizational culture is consistently maintained, and systematically
changed if need be.
Porter’s five forces tool is a simple but powerful tool for understanding where power lies in a
business situation. This is useful because it helps you understand the strength of your current
competitive position and the strength of a position you are considering moving into.
Conventionally, the tool is used to identify whether new products, services, or businesses have the
potential to be profitable. However, it can be very illuminating to understand the balance of power
in other situations
1] THREAT OF NEW ENTRIES – The courier service industry necessitates significant fixed
capital expenditures on vehicles, storage facilities, and personnel. The threat of new entrants will be
minimal due to the significant, fixed capital expenditure. Additionally, long-standing competitors like
Shree Maruti Courier, DHL, The Professional Couriers and others have been in business. They have all
of their activities optimised to run efficiently and profitably. Any new player will find it extremely
difficult to match their enormous distribution reach and develop a pricing structure that is
competitive. The big domestic courier services like delhivery, Blue Dart in India, and other
competitors may face competition from firms operating at the local level with less financial
investment. However, they might not be able to compete on a global scale.
2] COMPETITIVE RIVALRY – The courier industry is highly competitive among big players
like Professional couriers, Shree Maruti Courier, DHL, Blue Dart, Delhivery etc. They have invested a
large amount of fixed capital in the infrastructure and offer a unique set of value to the customers
for a different courier mode. The market is growing due to the e-Commerce sector and higher
demand of goods worldwide due to globalization and decrease in trade restrictions and tariffs, and
this market will continue to be led by big players who can offer competitive prices at a faster delivery
time. The big players like DTDC Express Ltd aggressively try to grab each other customers by
providing a quality experience and good relationship experience. With the onset of the internet, the
courier industry is touching new heights, providing details of the courier at every step and making
the companies optimize more and more to attract customers. But all the carriers have expertise in
one area or other, decreasing chances of losing their customers. So, the intensity of rivalry within the
industry is medium to high.
3] POWER OF BARGAINING SUPPLIERS – Partners for Air Cargo Carriers and Co-Loaders
can be suppliers in the courier sector. For air freight DTDC has to rely on Airlines major players like
Air Indigo, Air Asia and other airlines for cargo movement through Airlines. DTDC pricing is
completely depending on the freight rates fixed by Airlines. Limited airlines and due to government
regulations and lack of infrastructure facility for it is not cost effective to own private Cargo Aircrafts.
This gives major bargaining power to the Airlines.
5] THREAT OF SUBSTITUTION- The direct substitutes for courier companies like DTDC are
facilities like email, online communication, fax, telephone etc. Online document sharing has replaced
the need for courier delivery for all documents. Additionally, because to the expansion of e-
commerce, customers can now purchase new goods rather than paying a courier to deliver their
used ones. A replacement in both domestic and international markets, sea and rail networks are
other options for the international transportation of a big number of items. Strong domestic players
with low fixed costs are another choice for the consumer, who can select them for local parcel
deliveries. Consumers are resistant to switching courier services because they expect to develop a
relationship with their courier relationship manager and are extremely loyal to a particular service
until their products are transported safely and at a comparable cost.
CHAPTER -4
SWOT ANALYSIS
SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are
internal factors and opportunities and threats are external factors. A SWOT diagram analyses a
project or business venture by focusing on each of these factors. It typically consists of four boxes,
one for each area, but the exact shape may vary depending on the design.
DTDC Strengths
The strengths of DTDC looks at the key aspects of its business which gives it competitive advantage
in the market. Some important factors in a brand's strengths include its financial position,
experienced workforce, product uniqueness & intangible assets like brand value. Below are the
Strengths in the SWOT Analysis of DTDC:
1. Good delivery service in over 3700 Indian locations and 240 international locations
2. Pioneers through Franchise Business
3. Good Sales and customer support
4. Web based tracking
5. Delivers approx10 million Parcels a month
DTDC Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its
position further. Certain weaknesses can be defined as attributes which the company is lacking or in
which the competitors are better. Here are the weaknesses in the DTDC SWOT Analysis:
1. New in e-commerce businesses and retail stores that will sell air tickets and phone recharges
2. Company finds it difficult to set up retail stores and logistics networks simultaneously
3.Lack of awareness among the Indian shippers
DTDC Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's
opportunities can lie in geographic expansion, product improvements, better communication etc.
Following are the opportunities in DTDC SWOT Analysis:
1.Few players in the organized sector
2.It is a debt free company which can be help for rapid expansion
3.Acquiring stake in other companies can be utilized to penetrate and consolidate its presence all
over Asia
DTDC Threats
The threats for any business can be factors which can negatively impact its business. Some factors
like increased competitor activity, changing government policies, alternate products or services etc.
can be threats. The threats in the SWOT Analysis of DTDC are as mentioned:
1.Taxes across the border can impede DTDC’s growth plans
2.Service complains of customers can portray bad image
3.Local companies with very low charges
DTDC Competitors
There are several brands in the market which are competing for the same set of customers. Below
are the top 4 competitors of DTDC:
1.FedEx
2.UPS
3.TNT
4. DHL
Hence this concludes the DTDC SWOT analysis.
CHAPTER – 5
Financial Analysis is the process of identifying the financial strength and weaknesses of the firm
by properly establishing relationships between items of financial statements. A financial
statement is an organized collection of data according to a logical and conceptual framework.
Financial performance refers to the act of performing a financial activity. In a broader sense,
financial performance refers to the degree to which financial objectives are being or has been
accomplished. It is the process of measuring the results of a firm’s policies and operations in
monetary terms. It is used to measure a firm's overall financial health over a given period.
Financial statement analysis embraces the methods used in assessing and interpreting the result
of past performance and current financial position as they relate to particular factors of interest
in investment decisions. It is an important means of assessing past performance and forecasting
and planning future performance.
Ratio analysis has been done to analyse the company from various perspectives. Ratio analysis is
very important to know about the risk, solvency and payable capacity, liquidity, performance
and also the effectiveness of operations of a company.
· To compare the company performance with the similar competitors in the market
NRS
3
2.5
1.5
0.5
0
2018-19 2019-20 2020-21
Interpretation:
DTDC is performing positive during the period of 2018-19 I.e., 1.376228322 and during Next year
NPS as increased to 2.793795365 and in 2020-21 NPS started decreasing to 0.264082983
2.Return on Capital Employed (EBIT/CAPITAL EMPLOYED)
This ratio is to know about the rate of return on the capital invested. It also acts as an indicator of
the capital required and its worth so that the returns should be satisfactory.
ROCE
0.25
0.2
0.15
0.1
0.05
0
2018-19 2019-20 2020-21
Interpretation:
The return on capital employed is during 2018-19 and 2019-2020 was better as compared to 2020-
2021 it is 0.042281485 as per the above chart. So, the performance of company was not so good as
compare to 2019=2020
3. Return on Assets (Net Income/Total Assets)
It indicates how much the company’s assets are and how much they contribute towards the
profitability of a company.
ROA
0.1
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
2018-19 2019-20 2020-21
Interpretation:
Return on assets is better here as we see the trendline which is positively growing year by year and
in the year 2020=21 it is declined to 0.016559744
4. Current Ratio (Current Assets/ Current Liabilities)
The Current Ratio helps to know whether the assets a company holds is enough to meet its
obligations. There is the ideal ratio as 2:1 which is considered as a healthy ratio a company should
have.
CR
1.2
1.18
1.16
1.14
1.12
1.1
1.08
1.06
1.04
1.02
1
2018-19 2019-2020 2020-2021
Interpretation:
Current Ratio which is above 1 is a healthy one. A healthy current ratio will be between 1 & 3. So
here we can see that DTDC has the current ratio above one which gives the meaning that the assets
are more than the liabilities. In the year 2020-21, the ratio was quite improved, though they need to
work on the above taking into serious consideration to reach the level of ideal ratio that is 2:1.
5. Earnings Per Share Ratio
This ratio measures the company’s net income which is available for the payment to the holders of
its common stocks or shares. This indicates how much money a company earns per share.
EPS
16
14
12
10
0
2018-19 2019-2020 2020-2021
Interpretation:
Earning per equity share shows the capacity of earnings of an organization. DTDC earning per equity
share has been shown in the above chart which visualizes the performance over the three
consecutive years. As we see, in the year 2018-19 which was the incorporated year for the company
shows Positive EPS which depicts the company was in Gain. But the company declined in the next
year as the EPS is 2.66. Again, in the year 2020-21, we can see the EPS has been remain consistency.
LEARNING EXPERIENCE
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http://www.dtdc.in/
https://www.owler.compa ny/dtdc
https://en.wikipedia.org/wiki/DTDC
8.Annexure
Balance Sheet as on ending of the year for three consecutive years starting
from 2019 to 2021 –
Balance sheet
Minority interest 51 48 36
Non-current liabilities
Long-term borrowings 2,317 597 617
Current liabilities
Short-term borrowings 4,802 2,519 2348
Fixed assets
Tangible assets 7,172 7,971 7,015
Inventories 0 0 0
Other expenses
(A) 1,00,026 1,09,711 1,01,710
Total profit before extraordinary items and tax 937 3,972 3,381