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TRANSCRIPT
ContentsINTRODUCTION...................................................................................................................................3
3PL For Transportation............................................................................................................................7
Analysis of Transportation Cost..............................................................................................................8
Methodology.......................................................................................................................................8
ANALYSIS.........................................................................................................................................8
Cost Saving for Indian Railways.......................................................................................................13
3PL for Warehousing.............................................................................................................................15
Comparison of manpower cost..........................................................................................................15
3PL Tendering.......................................................................................................................................17
Table 1.....................................................................................................................................................9Table 2...................................................................................................................................................10Table 3...................................................................................................................................................10Table 4...................................................................................................................................................10Table 5...................................................................................................................................................11Table 6...................................................................................................................................................14Table 7...................................................................................................................................................14Table 8...................................................................................................................................................16Table 9...................................................................................................................................................16Table 10.................................................................................................................................................17
Figure 1..................................................................................................................................................13Figure 2..................................................................................................................................................13
INTRODUCTION
Typically, a core company providing services or products is considered the first party; the
customer, the second party. A third-party, then, is a firm hired to do that which neither the
first or second party desires to do. A third-party logistics firm is a firm that provides
outsourced or “third party” logistics services to companies for some portion or all of their
supply chain management functions. 3PL typically specializes in custom clearance, Freight
Forwarding, Warehousing, transportation services that can be customized to customer needs
and demand. By outsourcing logistics activities, organisations are able to not only
concentrate on their core business operations, but also achieve cost-efficiency and improve
delivery performance and customer satisfaction.
The 3PL market in India was under-developed and highly fragmented. However, recent
trends show that the Indian market has come of age with small family-run businesses giving
way/progressing to professional-run corporate enterprises. This refreshing change is indeed a
welcome sign for the growth, as professionalism can go a long way in building efficiencies
and reducing costs.
The principle reasons for firms using 3PL services can be attributed as under:
• Globalization of sourcing, manufacturing and distribution leading to an increase in the
complexity of material movement.
• Competition that has forced companies towards more responsiveness and a reduction in
inventories. There is an increased need for small but frequent shipments with 100 percent
reliability, requiring core competence in logistics management.
• Resource constraints that require companies to concentrate only on their core manufacturing
or new product development activities.
3PL firms can provide value-added services. 3PL firms can also contribute to supply chain
integration and performance. In addition, 3PL firms can have a critical role in linking users to
their major vendors and customers, thereby facilitating supply chain integration
Types of 3PL Providers
1. Transportation Based
Services extend beyond transportation to offer a comprehensive set of logistics
offerings.
Leveraged 3PLs use assets of other firms.
Non-leveraged 3PLs use assets belonging solely to the parent firm.
Examples: Ryder, Schneider Logistics, FedEx Logistics, UPS Logistics
2. Warehouse/Distribution Based
Many have former warehouse and/or distribution experience.
Examples: DSC Logistics, USCO, Exel, Caterpillar Logistics, IBM
3. Forwarder Base
Very independent middlemen with forwarder roles. Non-asset owners that provide
a wide range of logistics services. Examples: AEI, Kuehne & Nagle, Fritz, Circle,
C. H. Robinson, Hub Group
4. Financial Based
Provide freight payment and auditing, cost accounting and control, and tools for
monitoring, booking, tracking, tracing, and managing inventory.
Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston
5. Information Based
Significant growth and development in this category of Internet-based, business-to-
business, electronic markets for transportation and logistics services.
Examples: Transplace, Nistevo
Categories of 3 PL Providers
Standard 3PL providers: this is the most basic form of a 3PL provider. They would
perform activities such as, pick and pack, warehousing, and distribution (business) –
the most basic functions of logistics. For a majority of these firms, the 3PL function
is not their main activity.
Service developers: this type of 3PL provider will offer their customers advanced
value-added services such as: tracking and tracing, cross-docking, specific
packaging, or providing a unique security system. A solid IT foundation and a focus
on economies of scale and scope will enable this type of 3PL provider to perform
these types of tasks.
The customer adapters: this type of 3PL provider comes in at the request of the
customer and essentially takes over complete control of the company’s logistics
activities. The 3PL provider improves the logistics dramatically, but do not develop a
new service. The customer base for this kind of 3PL service is quite small.
The customer developers: this is the highest level that a 3PL provider can attain with
respect to its processes and activities. This occurs when the 3PL provider integrates
itself with the customer and takes over their entire logistics function. These providers
will have few customers, but will perform extensive and detailed tasks for them.
3PL Pyramid
The concept of 3PL has been developed from the need to extend transportation services by
transportation companies to its customers. Basically, 3PL might be defined as outsourcing of
transport and logistics activities to outside companies that are neither consignors nor
consignees. Usually there is outsourced more than one activity, including storage,
warehousing, and transportation. The PL Pyramid (8) below from 1PL to 5PL might be
described as a downstream change of functions in terms of transport/logistics services
Most small businesses buying and selling in the same location are 1PL. As the business
expands geographically, the manufacturer’s logistics border extends, a 2PL provider is
generally a commodity capacity provider, such as a trucking company or a warehouse
operator, a 2PL provides service for a single or a small number of functions in the supply
chain. They face low returns, with high levels of asset intensity but low barriers of entry.
With the increasing demand for one-stop solutions, many 2PLs have evolved into 3PLs by
adding new logistics capabilities and integrating their operations. It may or may not involve
asset ownership. 3PL is a broader term that is frequently used to cover businesses in freight
forwarding or contract logistics. It performs all or a large portion of a client’s supply chain
logistics activities and its value adding is based on information and knowledge versus a non
differentiated transportation service at the lowest cost. 3PL tends to be asset light with high
returns. The 4PL provider is essentially a logistics integrator or a one-point contact for the
manufacturer’s logistics outsourcing requirements. They are responsible for contracting
various 2PL and 3PL providers, and for assembling and managing those end-to-end solutions.
The 4PL provider, with its complete overview of the supply chain as well as strong logistics
and IT capabilities, can also offer high value added advisory services to the manufacturer.
Most 2PLs companies strive to become 3PLs for higher returns. While 3PLs do own some
assets such as key distribution centers in strategic locations or a small trucking fleet to fill
emergency needs, they may have outsourced most of their capacity needed by 2PLs.Hence
the terms 3PLs focus on logistics solutions and look for the optimal combination of assets
available from capacity providers (i.e. 2PLs), 3PLs are less asset intensive. Their logistics
management expertise makes them increasingly counter-cyclical – the worse the cycle, the
more companies need to optimize their supply chains. Moreover, the more integrated the
service of 3PLs, the closer they are to the customer’s operation. This closeness makes 3PLs
indispensable to the customer, as the 3PL provider becomes more a partner than a supplier. A
customer is more reluctant to change its 3PL provider than a 2PL. [9, 10]The services of 3PL
sometimes overlap with the 4PLs. The 4PL segment is more lucrative because these
companies charge consulting fees. Currently, 3PL companies are trying to turn themselves
into 4PL companies in providing better service satisfaction to their related customers. We can
say that 4PL is based on the development of 3PLs and as it is an extension of 3PL, it provides
value added service such as planning, information technology integration, transport planning,
order tracking and tracing, logistics consulting, application solution, and financial services.
But all these functions focus on improving a close linkage with its served customer. From the
logistics company to its consigners, as a 3PL company its task is to transport the goods from
consigner to consignee, and to be a 4PL provider, 3PLs need to find ways to build strong
relations between themselves and their customers, with the above mentioned supporting
function to reach the highest level of service efficiency i.e., 4PL is integrated logistics
management. [9, 10]There is also a new approach of logistics concept that might be defined
as 5PL. The 5PL solutions focus on providing overall logistics solutions for the entire supply
chain. Supply Chain Management (SCM) is the integration of the activities associated with
the flow and transformation of goods in the respective logistics networks through improved
supply chain relationships based on a common collaborative performance measurement
framework for attaining close, collaborative and well coordinated network relationships to
achieve a competitive edge.
3PL For Transportation When a 3PL provider is being hired, the benefits accrue from such a process is many. Some of them
are highlighted below.
i. sophisticated IT platforms, and state-of-the-art transportation networks
ii. Cost. By outsourcing logistics, organizations can reduce both fixed and variable costs as the
3PLs can leverage on their economies of scale which is sometimes not available to mid-sized
regional manufacturers.
iii. Customer satisfaction. Ideally, logistics outsourcing improves the cycle time and delivery
performance, thereby increasing customer satisfaction throughout the chain.
iv. Value-added services. Since 3PLs now offer a range of value-added services, , channel
management, after sales services, and life cycle management, organizations can benefit from
the richness of such services.
In the proceeding chapter, we have done a mathematical analysis of the cost implications while
hiring a 3PLservice provider.
Analysis of Transportation Cost
One of the benefits of having a 3PL service Provider is to have an economical transportation. To
analyse the practical scenario, we have obtained mathematically unit freight cost of 2 items procured
in railways and compared it with the lowest quoted freight charges. A graph was plotted to ascertain
the rate comparison.
MethodologyStep 1: Analyse the tabulation sheet of the item and obtain the freight per unit quoted.
Step 2: Obtain the per MT rate for transporting the material by truck.
Step 3: Obtain the per Kg rate from the rate obtained above.
Step 4: Obtain the per unit weight of the item. (This was determined by weighing the item in a depot)
Step 5: Calculate the unit freight rate by multiplying Value obtained in step 3 and 4.
Step 6: Compare the estimated cost and quoted rate.
Step 7: Repeat steps 1 to 6 for Item 2.
Step 8: Plot separate graph indicating the variation in prices for both items.
ANALYSISItem 1: NON ASBESTOES BASED K TYPE HIGH FRICTION COMPOSITE BRAKE BLOCK
(PL No: 30316121)
Step 1: Analysing the Tabulation Sheet of the item in various Railways the following is obtained.
Name of the bidder: DAULAT RAM BRAKE MANUFACTURING COMPANY, BHOPAL
Table 1 Freight rate quoted for Brake Block per Unit for various Consignees
Consigne
e
Unit
Freight
Rate Unit Cost
CNB 10 307
JHS 10 307
BZA 10 305
BPL 3 312
BBQ 12 312
QLN 12 312
Step 2&3: The Following rates per Metric Tonnes for the various consignees was obtained from
commercial transporter company.
Table 2 Freight rate of commercial transporter for various consignee
Consignee
Per MT
rate
Per kg
Rate
GOC 5167.8 5.168
Chennai 4289.1 4.289
Kollam 6133.5 6.134
JHS 983.1 0.983
CNB 1687.8 1.688
BPL 2.9 0.003
BZA 3265.4 3.265
Step 4: One Brake Block weighed 2.5Kgs
Step 5: Unit Freight Rate = 2.5*per Kg rate for each Consignee (Obtained in Step 3)
Table 3 Unit Rate as per Commercial Rate
Consignee Unit Rate
GOC 12.9195
Chennai 10.72275
Kollam 15.33375
JHS 2.45775
CNB 4.2195
BPL 0.00725
BZA 8.1635
Step 6:
Table 4 Comparison of quoted and estimated Freight Cost for Brake Block
Consignee Unit Rate
Quoted Unit
Rate
GOC 12.9195 12
Chennai 10.72275 12
Kollam 15.33375 12
JHS 2.45775 10
CNB 4.2195 10
BPL 0.00725 3
BZA 8.1635 10
Step 7: The above 6 steps were done for Item 2 (Coupler Body with shank wear plate).
Name of the Bidder: SIENNA ENGG PVT LTD, INDORE
Table 5 Comaprison of Estimated and Quoted Rate for Coupler Body with Shank Wear Plate
Consignee
Per MT
rate
Per kg
Rate Unit Rate
Quoted
Unit
Rate
GOC 6316.2 6.3162 1263.24 1200
PER 6324.9 6.3249 1264.98 1200
AJNI 1322.4 1.3224 264.48 500
PAREL 1690.7 1.6907 338.14 500
BRCY 1006.3 1.0063 201.26 500
BL 1006.3 1.0063 201.26 500
PRTN 1006.3 1.0063 201.26 500
Step 8: Bar Graphs were plotted for the values obtained in step 6 and 7.
GOC
Chennai
Kollam JHSCNB BPL
BZA0
2
4
6
8
10
12
14
16
18Unit Freight Cost of BREAK BLOCK
Quoted Rate per UnitCommercial Rate per Unit
Depot
Unit
Rate
Figure 1 Comparison of quoted and estimated Freight Cost for Brake Block
GOC PER AJNI PAREL BRCY BL PRTN0
200
400
600
800
1000
1200
1400
Unit Rate of Coupler Body with shank wear plate
SIENNA ENGG INDORECOMMERCIAL RATE
Depot
Unit
Rate
Figure 2 Comaprison of Estimated and Quoted Rate for Coupler Body with Shank Wear Plate
Inferences
On analysing the above two it is clear that the rate quoted for unit freight is lesser than the
estimated cost for Southern Railway
For Central, Western and South Central the quoted rate is very high.
It is clearly evident that in addition to the benefits promised by 3PL like saving of time, better
tracking etc., there will be a considerable saving of money in transportation cost as well. This can
help us efficiently utilise the public money.
Cost Saving for Indian Railways
Item 1:
Table 6 Estimation of Proft for Railways in Total Purchase if 3PL is implemented for Brake Block
LOCATIONQuoted Unit Freight Cost
Estimated Unit rate (Pvt
Transporter) % Profit
All Inclusive
Unit Rate
% of Freight
FORMULA A B (A-B)/A C A/CGOC 12 12.9195 -7.66% 312 3.85%
Chennai 12 10.72275 10.64% 312 3.85%Kollam 12 15.33375 -27.78% 312 3.85%
JHS 10 2.45775 75.42% 307 3.26%CNB 10 4.2195 57.81% 307 3.26%BPL 3 0.00725 99.76% 312 0.96%BZA 10 8.1635 18.37% 305 3.28%
AVERAGE 32.36% 3.18%
Total Profit = 32.36% of 3.18%=1.03% of Purchase Value
Item 2:
Table 7 Estimation of Proft for Railways in Total Purchase if 3PL is implemented for Coupler Body
LOCATIONQuoted Unit Freight
Cost
Estimated Unit rate
(Pvt Transporter
) % Profit
All Inclusive Unit Rate % of Freight
FORMULA A B (A-B)/A C A/CGOC 1200 1263.24 -5.27% 23070 5.20%PER 1200 1264.98 -5.42% 23070 5.20%AJNI 500 264.48 47.10% 17,547.82 2.85%
PAREL 500 338.14 32.37% 17,547.82 2.85%BRCY 500 201.26 59.75% 19400 2.58%
BL 500 201.26 59.75% 19400 2.58%PRTN 500 201.26 59.75% 19400 2.58%
AVERAGE 35.43% 3.40%
Total Profit = 35.43% of 3.40% =1.20% of Purchase Value
On analysing the above two we can see that there is a minimum profit of approximately 1% in
total purchase value for Indian Railways if we hire a 3PL service Provider. On extrapolating the
same to the total purchase of Indian Railways (Rs 35,000 Crore) we can save approximately
Rs.350 Crores.
3PL for Warehousing
In order to analyse the 3PL services rendered in Warehousing, a firm visit was conducted to BOSCH,
Bangalore. The company has established its warehouse in Nellamangala in Bangalore to cater to the
need of the various manufacturing units of BOSCH in Bangalore. The assets were owned by Bosch
itself. The Operations and the manpower of the warehouse were outsourced to Menlo Worldwide
Logistics. On the basis of interaction with the officials and warehouse manager regarding comparison
of the warehouse and a depot managed by railways , the following conclusions can be obtained.
Table 8 Comparison of Warehousing activity done by Railways and a Private firm Hiring a 3PL
3PL Railways
Assets Owned By Parent Company Owned by Parent Company
Manpower Outsourced Railway Employees
Handling Equipment Owned by 3PL company or
Parent Company
Owned by Railway
Stacking & Storing Clean and properly Maintained Scope for improvement
Vertical Stocking Properly utilised Used only in Pus
IT Enabled Book Keeping Completely digitalised MMIS used. Still Book keeping
is being followed
Approachability Excellent Certain wards are located at far
from the point of unloading
Comparison of manpower costThe staff strength and their respective salary of DLS Ernakulam are as shown below:
Stocking Area: 10000 sqft of storage area.
Items Stocked: 882
Table 9 Estimation of Total Salary of employees in DLS,ERS
Designation Working Salary (Approx) in Rs
AMM 1 45000
CDMS 2 30000*2=60000
Chief OS 2 30000*2=60000
OS 4 26000*4=104000
Sr. Clerk 2 18000*2=36000
Khalasi 3 14000*3=42000
Sr. Store Khalasi 1 14000
Total 3,61,000
In case the same depot is to be managed by a 3PL provider, the following staff strength is to be
deployed in single shift.
Table 10 Estimation of Salary of employees to be deployed if DLS,ERS has to be operated by a 3PL
Designation Working Salary (Approx) in Rs
Warehouse Manager 1 30000
Sr. Supervisor 2 20000*2=40000
Supervisor 2 15000*2=30000
Data Entry Clerk 2 12000*2=24000
Loading/Unloading/Movement 6 10000*6=60000
Total 1,84,000
The above analysis shows that it is profitable to outsource depot activities to a 3PL. However, we
already are having a heavy employee strength which cannot be redeployed elsewhere. Hence, for the
time being 3PL in warehousing is not feasible in Indian Railways.
3PL Tendering
Generally in 3PL a two bid tendering process is used i.e. Technical Bid and Financial Bid. While
inviting the tender the following has to be specified.
i. Scope of work
ii. Estimated Qty.
iii. Estimated Cost
iv. Execution Period
v. EMD
vi. Minimum eligibility criteria
a. Total contract amount received during the last three financial years and in the current
financial year should be a minimum of 150 % of advertised value of work.
b. The tenderer should have physically completed in the last three financial years ( i.e.
current year and three previous financial years) atleast one similar single work for a
minimum value of 35% of advertised tender value.
c. Service provider should be registered - member of IBA or Bank approved
transporter.
vii. . Validity offer Tender Selling office
viii. Tender Sale deadline.
ix. Tender Closing Time
x. Tender opening
xi. Date of Pre-bid meeting
xii. Cost of Tender
The tender document should also have the following essential instructions.
i. Scope, Nature and Estimate of work: Includes providing and maintaining web based interface
where authorized indenter can place their indent for transportation of material from one
destination to another through common portal which is also integrated with central railway
materials management MMIS, material transportation will be from a) Depot Transfers & to
RWF Bangalore(axle wheel & bogie items) ; b) depots/divisions to end users.; c) Inter depot
sale ; d) and imported consignment arriving at Port to various locations on Indian Railway. e)
Web portal will show the freight charges between the two locations.
ii. Type of materials to be transported.
iii. Conditions of loading and unloading
iv. A rough estimate of the qty. (this is only an approximation & does not bind Railway in any
way) to be transported during contracted
v. The unit of rates to be quoted eg: ________Rs. per Metric tonne per Km. The minimum
chargeable weight can also be mentioned.
vi. Permissible transit time:
a. The transit time shall be calculated from the day when indent is placed on common
portal with reference to a specified time.
b. The penalty of x % of freight value per day (one unit is minimum chargeable rate or
its part) shall be imposed for delays without sufficient cause, beyond the permissible
transit time laid down in above.
vii. Requirement of vehicles :
a. Since consolidation is to be done by service provider size of vehicle should be as
deem necessary by him without violating any rules.
b. In case of materials which are bulky or voluminous in nature, the vehicle may get
loaded with less than the carrying capacity but payment will be as per indent placed.
c. The records maintained at the consignor depot with regard to the chargeable weight
for payment shall be taken as final and conclusive in the matter.
viii. Indenting of vehicles and detention charges:
a. Indent for vehicle of the required capacity shall be made by the gazetted/designated
officer of consignor through common portal provided by 3PL provider.
b. One day shall imply one working day.
c. Normally the vehicles shall not be desired for Sundays or holidays. However, in
extraordinary circumstances, Railway reserves the discretionary right to, indent the
vehicles on Sundays or holidays also and the transporter shall provide no alibi (vague
reasons) for non-provisioning of the vehicles.
d. Detention charges, in case if the trucks/trailers are detained for more than 24 Hrs. at
loading/unloading point. If the trucks/trailers are detained due to failure of
transporter, no detention charges will be paid. If the vehicle reaches destination on
Sunday/holiday same shall be placed in the depot for unloading on the next working
day. Detention charges on this account are not payable.
ix. Validity of offer
x. Earnest Money Deposit (EMD)
xi. Security Deposit
Security Deposit (SD): SD equivalent to certain percentage of the transport contract value
shall be collected to ensure they undertake the contract. This should include validity of SD.
xii. Eligibility Criteria
a. Similar work
b. Service provider should have all India network and holding of minimum 20 trucks.
c. Relevant Rules and Regulations of concerned State Road Transport Authorities shall
be complied with by the Transporter
d. Auto Tempo / Trucks owned by the applicant along with their make and registration
number and copy of the national permits.
e. Name of the regular client along with copy of their contract.
f. Name of Govt. Semi Govt./Public undertaking for which the applicant has handled
transport during last 3 years.
g. Performance Certificate, if any.
h. Necessary documents such as Pollution under Control, Vehicle Insurance etc. and
should also comply with any other legal compliance required in Mumbai or transit
and destination City/States.
xiii. The driver provided with the Auto tempo / truck must possess the requisite valid Driving
License and should not be legally barred from driving
xiv. Price variation clause, if any
xv. Special conditions governing the centralised transport contract for railway materials
The Special Conditions governing the centralized transport contract for Railway materials
will be in addition to the General Conditions of Contract (GCC). However, where the Special
Conditions contradict the GCC, the former shall prevail.
xvi. Performance Guarantee (PG) :
PG for due and proper performance of the transport contract equivalent to certain
percentage of the value of the transport contract should be included.
xvii. Procedure of bills
Detailed procedure for claiming the bill and in how many copies each form should be made
must be included in the instruction to avoid ambiguity in handling the payment and for
necessary book keeping.
xviii. Claims
The liability of the transporter shall be mentioned to ensure smooth handling in cases of theft,
shortage, damages etc.
xix. Arbitration
The various conditions in arbitration shall be properly laid out so that the service provider
recourse in case of any contestation shall be in accordance with the clauses mentioned
therewith.
Logistic model of E-bay
POWERSHIP PROGRAMME:
PowerShip is eBay India’s intermediated Shipping program. To enable PowerShip as a
service, sellers are required to complete one time registration and activation for each seller
account on eBay.in. Once activated, all sellers are required to do is package the item in eBay
packing material and hand over the package to the assigned Logistic Service Provider at the
time of Pick-up. PowerShip is fully integrated with PaisaPay and allows sellers to view
PowerShip assigned orders, assigned Logistics Service Provider and print labels online.
PowerShip includes Air mode, enabling quicker delivery of items to Buyers, Surface mode to
manage volumetric and large size shipments and enhanced Cash On Delivery enabled
through BlueDart in addition to Aramex for buyers who wish to pay for items on delivery.
Step 1 – Seller sign-up for PowerShip by accepting the Terms & Conditions of the
PowerShip Program. Once enabled, Seller will be able to offer PowerShip on either all his
listings or just for certain listings. He will also be able to offer items through Cash On
Delivery.
Step 2 – During checkout eBay will verify the PIN code serviceability and consequently
allocate a Logistic Service Provider to service the order.
Step 3 – The transaction will appear in your PaisaPay account. PowerShip transaction will
indicate the Logistic Service Provider assigned. When the package is ready to be delivered,
Seller click on ‘Mark Ready to Ship’. This will intimate the Logistic Service Provider to pick
the item from the address indicated in the Registration section of Seller eBay account.
Step 4 – eBay will coordinate with the Logistic Service Provider to track the item. During
pickup, LP will review the documents Seller need to provide which includes – Order
Statement, Invoice, Declaration letter and Manifest. He may be required to provide 3 copies
of invoice. Seller ensure collecting a counter signed Manifest from the personnel after
submitting his consignments.
Step 5 – Item will be scanned and weighed at the LP branch and this information will be
updated to Seller My PaisaPay account the following morning. Sellers will no longer be
required to manually enter the AWB number in their account.
Step 6 – The consignment will be scanned using the barcoded AWB number and dispatched.
The order will be moved to ‘PowerShip Shipped’ Status on My PaisaPay. Buyers will receive
an SMS indicating that the item is shipped.
Step 7 – Consignment tracking will be automatically updated on eBay until Delivery. Upon
Delivery and after further checks, remittance will be released to you. Sellers under ER will
receive their remittance after the item is picked up and scanned.
PowerShip Rate for Sellers
ASP (Rs.) LocalNon Local Metro / Rest
of India
250 gms (Prepaid) 0 to 500Rs.
34Rs. 38
500 gms (Prepaid &
COD)0 to 500
Rs.
35Rs. 47
500 to 1000 Rs.
40
Rs. 49
1K to 10KRs.
40Rs. 55
Pricing per KG
10K to 25KRs.
49Rs. 60
>25KRs.
73Rs. 117
SurfacePer KG, minimum chargeable
weight of 5 KG
Rs.
16Rs. 19
.
eBay Seller Protection for Lost / Damaged items during transit:
Lost In Transit - 100% for items shipped through PowerShip.
Damaged in Transit - All damaged in transit claims is investigated by eBay and Logistics
Service Provider before a claim is settled.
Advantages
Great rates from top LSPs companies in India and hence building loyalty with
consumers through a consistent experience
Provision of eBay branded packing bags and tapes
Automated and accurate shipping and tracking information through predetermined
AWBs from LSPs
Reducing item transit times to buyers resulting in a delightful shopping experience on
eBay.
No commitment on volume / number of shipments to LSPs
Most trusted services from LSPs
Shipping fees debited from PaisaPay balance before remittance
Dedicated Customer Service for PowerShip
All in all, a great peace of mind and ease of managing business!
Important feature:
Blue dart, FedEx, Aramex and DotZot (DTDC) enabled on PowerShip. Assigned
LSPs are responsible in providing services to sellers and buyers through shipping
process.
Once PowerShip is enabled, existing LSP personnel to collect eBay PowerShip
packages.
Sellers are required to provide required Shipping documents at the time of pickup
including Invoice, forms as required by the buyer state, Shipping manifest, label etc.
Labels and declaration printed from My PaisaPay panel contain estimated weights.
Actual weight charged will be as per LSP weighing process.
eBay provided packing material to be used only for PowerShip transactions and one
bag per transaction / item shipped. Use of multiple bags for one package is not
allowed
Packing material supply to be provided once a month and basis sellers preference
Liquids / Deos and similar volatile substances are restricted on PowerShip due to LSP
limitations.
How does the weight process work?
After the packages are collected, LSPs are required to weigh the packages as relevant and
sometime use the ebay provided estimated shipping weight. Sellers are charged basis the
weight of the package, actual or volumetric whichever is higher, and the destination city /
region.
Proposed model for Indian railways
Today, successful companies rely on the skills of supply chain management professionals to
keep their goods and services flowing to the marketplace quickly, efficiently, and as cost-
effective as possible. Supply chain management includes all the activities a business employs
to keep its products flowing, from sourcing raw materials, to delivering finished goods at the
point of purchase. The project group has studied mainly the logistic system providers and its
application in present system. It has been studied the concept of 3PL system, presently used
by e-commerce stores, for providing a wide rage of product to its customers with very fast
and efficient mode of transportation with real time traceability. The proposed model is
based on e-bay logistic service. This project idea can help railways to control expenditure
involved in bulk material movement which further improve the overall supply chain of
railways.
Implementation of 3PL system:
It is proposed that it can be implemented by outsourcing logistics activities to the 3PL service
providers for receiving of material from supplier and inter depot transfer or inter railway
transfer of material. By outsourcing logistics activities, organisations are able to not only
concentrate on our core business operations, but also achieve cost-efficiency and improve
delivery performance and customer satisfaction. The 3PL market in India was under-
developed but recent trend shows that 3PL industry is experiencing a rapid growth after year
2000 due to the liberalization of policy and opening up of Trade. The number of participants
in this industry had grown to be more than 1200 by year 2010 so we can find a good
competition amongst 3pl service provider.
This system of materials logistic management by 3PL can be escalated for materials
collection from vendors and distribution to various consignee in zonal railways.the proposed
system can be implemented as follows:
1. It is crucial to select the right 3PL partner that can meet our particular requirements so best
suitable 3PL provider shall be chosen through open competition. It should provide web based
integrated logistic support and service provider.
2. 3PL provider should provide and maintain web based interface where authorized indenter
can place their indent for transportation of material from one destination to another through
common portal which is also integrated with MMIS, material transportation will be from
a) Depot to depot
b) depots/divisions to end users .;
c) from supplier’s various locations to various depots of indian railways, including in transit
trekking of consignment;
d) and imported consignment to various locations on Indian Railway.
Detailed tender document will be prepared as per our requirements .
3. 3 PL provider web based program should also be integrated with IMMIS of indian
railways.
4. After setting up the web based system purchase order can be processed as follow
Step 1: Source purchaser place purchase order on supplier and one copy is sent to
3PL service provider.
Step 2: On receipt of PO supplier will acknowledge on 3PL web based programme so
that 3PL provider can inform their nearest logistic partner to arrange the vehicle to
service the order.
Step 3: When the material consignment is ready supplier shall change the status of
material to “ready to dispatch”. Then assigned logistic provider will collect the
material from supplier doorstep. supplier will provide the dispatch documents.
Step 4: Since Web based programme is linked with IMMIS so the movement of
consignment can be seen throughout the railway.
Step 5: The consignment will be scanned and weighed at the logistic provider branch
and this information will be updated to web based programme.
Step 6: The consignment will be scanned using the barcoded waybill number and
dispatched. The order status will be changed to “ Consignment dispatched”.
Step 7: Consignment tracking will be automatically updated on web based
programme as well as MMIS until Delivery. When the material is delivered to
consignee the cycle completes and status updated as “Consignment delivered”.
5. Liability insurance of the material should also be given to 3PL provider and get quotation
on insuring goods from supplier’s door to final consignee door.
6. we should implement a feedback program to insure that our system is happy with the
3PL’s service via a questionnaire. Someone has to be responsible for managing this
feedback program and feed this information back to the 3PL.
7. It is also proposed to integrate the IPAS (accounting information management
system) through MMIS link of 3PL service so that bills of supplier and 3PL provider
can be processed online. It will reduce paper use and become environment friendly .
Flow chart of 3PL proposed system
1. purchaser place PO on supplier
2. one copy of PO is sent to 3PL so that they can arrange vehicle for transportation in that
area.
when material is ready supplier marks the order as "Ready to
ship".
3PL coordinate with their local transporter to pickup the material. LP collects the material from supplier premises.
Local transporter confirms pickup with
3PL through direct integration.
material delivered at consignee and tracked end to end on 3PL web
system as well as MMIS.
payment will be done by railway account
deptt.web based program of
3pl