VRL Logistics

Vineeth gatty
I MBA, Logistics and Supply Chain Management,
College of Management and Commerce, Srinivas University, Mangalore, India
Email: gatty.vineeth@gmail.com

ABSTRACT

The study will be helpful to us in understanding what customers think, how they
perceive the service delivered by VRL Courier in terms study will help the company to
take necessary actions to shrink the gap in customer driven service standards and
service delivery For a company it is very important to know what customers expect, and
who are there competitors in local region and how we can improve the services in local
region among the competitors and there services given. The study also helped me in
enhancing my knowledge about the factors involved in studying the perception of the
customers. Gap analysis is a market research technique used to identify and correct
gaps between the customers expected level of service and the actual or perceived
levels of service provided.

Keywords: Customer service, Transportation, Material handling, Inventory

management, Order processing, Delivery, Warehouse, Storage, Packaging, tramping,
trunking and Reverse Logistics, SWOT analysis.

1. Introduction :

VRL was founded in 1976 by DR. Vijay Sankeshwar in Gadag, a small town in North
Karnataka with a single truck and a vision that was way ahead of its time. VRL gradually
expanded its services to Bangalore, Hubli and Belgaum. From this humble beginning
VRL has today grown into a nationally renowned logistics and transport company which
is also currently the largest fleet owner of commercial vehicles in India with a fleet of
4077 Vehicles (Including 373 Passenger Transport Vehicles & 3704 Goods Transport
Vehicles amongst others). VRL finds mention in the Limca Book of Record as the
largest fleet owner of commercial vehicles in India in the Private Sector.

Mr. Vijay Sankeshwar has now been joined by his son Mr. Anand Sankeshwar who
brings in newer strategies to further drive the growth of the Company.3PL &
Warehousing solutions offered by VRL are tailor-made and cater to unique needs of its
diverse customer base. With the largest goods transportation network in India, VRL

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parcel service is indispensable for a large number of Corporate Houses. This network
spans the length and breadth of the country and is supported by strategically located
transshipment hubs. We operate through a network of 1013 Branch and franchisees to
cater our valuable customers and we are now in the process of expanding our services
to reach even the remotest locations of the Country.

2. OBJECTIVES :

1. To know the expectations of customers

2. To know the satisfaction level of customers towards VRL courier service.
3. To compare and evaluate the customers perception towards VRL couriers with
respect to other selected courier service companies

3. Research Methodology :

Research methodology is a technique used to identify, select, process, and

analyze information about a certain topic or study. In a research paper, the methodology
section allows the reader to critically evaluate the overall validity and reliability about the
study.

3.1.Research Design

Descriptive analysis is the study used for this research design. Descriptive
analysis research is defined as a research method which describes the characteristics
of the population being studied.

3.2.Sampling Technique

The primary data is collected by a convenient sampling method. The respondents

for this study are selected systematically. Convenience sampling is a type of non
probability sampling, where the sample is taken from a group of people easy to contact
or to reach.

4. Transportation :

The transport and logistics business is divided into two segments:-

1. Goods transportation
2. Passenger transportation

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4.1. Goods transportation

1. FULL TRUCK LOAD:

They provide FTL service to our customers by leveraging our broad base of select
branches as well as through our network of independent brokerage agents. They
provide door-to-door FTL service to our customers, in which the goods are loaded onto
our vehicle at the premises of the customer and then delivered to the specified
destination. This service is typically used by manufacturers that have large quantities of
goods to be transported and is offered at a predetermined price. In general, we provide
FTL services to optimize capacity utilization of our vehicles or to those customers who
offer attractive margins. They maintain our network of independent brokerage agents
that have partnered with us for a number of years. Brokerage agents complement our
network of our branches by widening access to customers requiring such FTL service.

2. LESS THAN FULL TRUCK LOAD:

VRLs less than full truck load service is categorized into two categories; parcel and
express cargo. Under less than full truck load the customers do not hire the entire truck.

3. Other Capabilities:

Within the goods transport domain, VRL also has capabilities for the transportation of
vehicles (cars) and liquid transportation. VRL owns a fleet of 102 car carrying vehicles
and is a vendor of choice to reputed clientele such as Maruti, Nissan, Hyundai, Toyota,
etc. The Company also operates 23 tankers for transportation of liquids and chemicals.
These are presently being used for transportation of fuel, molasses and the like. Based
on specific client requests, VRL also undertakes the movement of specialized cargo
such as delicate testing equipment, high voltage testing equipment, high voltage control
panels, high voltage circuit breakers, automobile chassis frames, extra wide cabins,
glass, high capacity transformers, etc.

4.2.Passenger transportation

1. Relief buses in case of en-route breakdown:

VRL has relief buses for en route breakdowns and accidents. These relief buses are
available at the route of Hubli, Mumbai, Bagalkot, Bijapur, Gulbarga, Chitradurga, Sirsi,

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Bangalore and Pune. The relief busses are kept across the routes to ensure fast
arrangement of alternate buses in case of en-route breakdowns / accidents.

2. Online reservation:

Company provides an online reservation facility. Passengers can book their ticket
through the website i.e. www.vrl logistics.com. It has also integrated its software with
the agents so as to ensure availability of booking facilities throughout India. VRL also
conducts surprise checks to ensure that their operations are carried out in an
appropriate manner and as per the principles of our Company. VRL bus drivers are
provided with a trip sheet for all the points of stoppage, which are pre-determined for
fuel, refreshments etc.

4.3.Air charting

In 2008, VRL Logistics Ltd. ventured into the Indian Air Chartering Industry. It was a
gradual progression for the company, from Surface Transport / Passenger travel to Air
Chartering. The Indian Aviation Industry has experienced tremendous growth in the last
few years, more so in the Private Aviation Sector. Keeping in mind the emerging market
demand, VRL decided to enter the Air-charter Industry and serve VVIPs, VIPs &
Corporate India. To this end, the Company had acquired a brand new, Premier Jet 1A
aircraft, manufactured by Hawker Beechcraft Inc, USA. We offer the Jet aircraft on
charter basis to the Corporate sector, Leisure and Tourism sector, Special Mission
charter, Event Management, Advertisement Agencies and VIP flights. During the 2013-
14 financial year, the Company acquired another second hand aircraft of similar make
from Force Motors Ltd.

5.Transportation costs:

Transportation system is the basic activity among the business logistic system.
Around one third to two thirds of the expenses of the business logistics costs are spent
on transportation. The transportation cost here includes the means of transportation,
corridors, containers, pallets, terminals, labors, and time. Transportation occupies an
important ratio in logistics activities. The improvement of the item of higher and larger
operations costs can get better effects. Hence, logistics managers must comprehend
transport system operation thoroughly. The transportation system makes goods and
products movable and provides timely and regional efficiency to promote value-added
services under the least cost principle. Transport affects the results of logistics activities
and, of course, it influences production and sale and services. In the logistics system,
transportation cost plays a vital role in the objective market. Value of transportation
varies with different industries. The transportation cost will be less for small volume, low

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weight and high value products. It is less regarded. The transportation cost will be
higher for heavy volume, heavy weight and low valued products. It is more regarded.

1. Charges of VRL courier service in Karnataka:

In Karnataka for document Rs 20/- up to 250 grams and for every additional 250 grams
Rs15/-

2.FOR PARCELS:

The parcels are like tablets, medicinal equipment and gift items and also electronics
goods etc. for 1kg Rs40/- and in local Rs 20/- for documents (250kg) and for non
document Rs 20/- per kg this is within Karnataka.

3.OUT OF STATES:

SOUTH------ Rs 50/- for document (250 grams) and every additional 250 grams Rs 20/-
and for non document Rs 40/- NORTH------Rs 55/- for document (250grams) and for
every additional 259grams Rs 25/- And for non document is Rs 69/-. They have started
national and international level courier service on 14 th July 2009. The international
levels like Colombo, Dhaka, Dubai, Kathmandu Singapore etc.

4.INTERNATIONAL LEVEL:

1.Colombo --- for 500 grams Rs 350/-

2.Dhaka ---for 500 grams Rs 390/-
3.Dubai --- for 500 grams Rs 290/-
4.Katmandu --- for 500 grams Rs 210/-
5.Singapore --- for 500 grams Rs 390/-

For every additional 500 grams they have different prices for different countries.
The prices are as follows:
1.Colombo --- Rs 190/-
2.Dhaka ---Rs 120/-
3.Dubai --- Rs 100/-
4.Katmandu --Rs 100/-
5.Singapore ---Rs 100/-

6.Warehousing and 3PL solutions :

“Tailor-Made Multi-Locational Service”

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Seamless logistics solutions organisation encompassing various components like
supply chain management, inventory control management, warehousing management,
JIT movement with an emphasis on CRM.
● Integrated 3pl solution.
● Inventory Management.
● Warehousing facility at various locations.
● Communication & IT service.
● Intra-city & re-distribution services.
● SKU management. Vendor management.
● Order management.

1. Warehouse services

The outstanding warehouse service will only attract customers. The enough space
should be provided for complete warehousing facilities to the clients for storage of
goods. The logistics management should provide assistance in insuring goods, so that
during transportation if any mis-happening occurs then clients can get indemnity for the
same.

2. 3PL

3PL is a service that allows us to outsource operational logistics from warehousing, all
the way through to delivery, and ultimately enables you to focus on other parts of your
business. This includes transportation, warehousing, picking and packing, inventory
forecasting, order fulfillment, packaging and freight forwarding.

7.Effects of transportation in logistics activities :

Transportation plays a connecting role among several steps that gives the result as the
conversion of resources into useful goods in the name of an ultimate consumer. It is the
planning for all the functions and sub-functions into a system of goods movement in
order to minimize cost and maximize services to the customers that constitutes the
concept of business logistics. The system, once put in place, must be effectively
managed. Traditionally these steps involved separate companies for production,
storage, transportation, wholesale, and for retail sale. However basically, the
production/manufacturing plants, warehousing services, and merchandising
establishments are all about doing transportation. Production or manufacturing plants
required the assembly of materials, components, and suppliers, with or without storage,
processing and material handling within the plant and inventory. Warehousing services

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between plants and marketing or machinery outlets involve separate transport facilities.
Merchandising establishments completed the chain with delivery to the consumers. The
manufacturers limited themselves to the production of goods, leaving marketing and
distribution to other firms. Warehousing and storage can be considered as the terms of
services for the production process and for the product distribution. There have been
major changes in the location of facilities with the closure of many single-user
warehouses and an expansion of consolidation facilities and distribution centres. These
developments reflect factors such as better transportation services and pressures may
improve logistics performance.

1.Direct store delivery (DSD)

Direct store delivery is a method of distribution of products from a distributor to a retail

store, thereby passing a retailer’s distribution center. DSD products are typically fast-
turning, high velocity and high consumer demand merchandise.

2.Centralized distribution structure

The centralized distribution structure describes the flow of goods from the
manufacturer’s distribution network through to the wholesaler, whereby the wholesaler
distributes the goods or merchandise to the customers or stores. The centralization
causes an increase in transport work, this must not necessarily mean that emissions
increase.

Features of Centralized distribution structure

● Increase in tonnes kilometres
● Decrease in emergency deliveries

The centralized distribution structure is responsible for the flow between the production
unit and central warehouse. It has the possibility to improve the fill rate and multimodal
transports.

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8.Customer perception :

Customer perception is the identification, and interpretation of sensory

information in order to represent and understand the environment. A marketing
concept that encompasses a customer‘s impressions, awareness and or
consciousness about a company or its offerings. Customer perception is typically
affected by advertising, reviews, public relations, social media, personal
experiences and other channels.

Perception can be split into two processes:

Firstly processing sensory input which transforms these low-level information to

higher level information (e.g., extracts shapes for object recognition)

Secondly processing which is connected with a person's concept and

expectations (knowledge), and selective mechanisms (attention) that influence
perception.

Psychologists have developed a model of perception. Accordingly the people go

through the following process to form opinions:

1. When we encounter an unfamiliar target we are open to different informational

cues and want to learn more about the target.

2. In the second step we try to collect more information about the target.
Gradually, we encounter some familiar cues which help us categorize the target.

3. At this stage, the cues become less open and selective. We try to search for
more cues that confirm the categorization of the target. We also actively ignore
and even distort cues that violate our initial perceptions. Our perception becomes
more selective and we finally paint a consistent picture of the target

There are three components to perception.

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 1. The Perceiver, the person who becomes aware about something and
comes to a final understanding. There are 3 factors that can influence his
or her perceptions: experience, motivational state and finally emotional
state. In different motivational or emotional states, the perceiver will react
to or perceive something in different ways. Also in different situations he or
she might employ a "perceptual defence" where they tend to "see what
they want to see".

2. The Target. This is the person who is being perceived or judged.

"Ambiguity or lack of information about a target leads to a greater need for
interpretation and addition."

3. The Situation also greatly influences perceptions because different

situations may call for additional information about the target.

8.1.Factors of perception:

Consumer perception has implications for a marketer. Marketers should understand that
people perceive things differently because of the perceptual mechanism that differs
between people. Every person is unique in himself with unique backgrounds,
experiences, expectations, etc, and so the resultant perceptions are also unique.

8.2.Perceptual selectivity:

Human beings are simultaneously exposed to various stimuli in his/her environment.

The choice of the stimuli that they select would depend on what they feel is relevant for
them and or appropriate for them. In the field of marketing, stimuli could include the
product, the brand name, the features and attributes, the packaging, the advertisement,
etc. The marketer should give attention to factors external and related to the stimuli, as
well as to factors, internal and related to the perceiver

8.3.Perceptual Interpretation:

Perceptual interpretation is also influenced by the forces external and related to the
stimuli, as well as forces internal and related to the perceiver. It is also affected by the
situation under which perception takes place.People have a tendency to perceive things
which they feel are relevant for them (Selective perception).People often make
judgments on the basis of the first impression. A new product should never be
introduced in the market before it has been market tested.

8.4.Product and service offering and Imagery:

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While making purchase decisions, consumers are faced with numerous alternatives,
and purchase decisions is often made on the basis of the image that the product/service
offering or the brand holds
8.5.Perceived price and Imagery:

The manner in which a marketer prices a product and creates an image also has an
impact on consumer decision making. Marketers must identify appropriate reference
prices (from a consumer‘s perspective), and estimate those levels (higher/lower) that
are regarded as uncomfortable and unacceptable by consumers. They must price their
offerings accordingly.

Consumers consciously or subconsciously, give a lot of importance to fairness of price.

8.6.Perceived quality and Imagery:

Marketers must communicate product or service features in a manner that develops

perceptions of product or service quality. Consumers judge the quality of the product
offering on the basis of internal and external cues; internal cues refer to the physical
characteristics internal to the product or service, like size, color, etc. while extrinsic cues
refer to cues that are external to the product or service, like price of the product, brand
image, retail store image, or the country of origin.

8.7.Brand Image:

Consumers tend to form images of a brand; brand image is defined as the manner in
which a consumer forms perception about a brand. Marketers should aim at creating
and maintaining a positive image about their brands. Such an image gets created by
product features, attributes, quality as well as the satisfaction.

8.8.Perceived risk:

This state known as ―perceived risk‖; it refers to a feeling of uncertainty that arises
within an individual when he fails to predict the consequences of product choice, usage
and resultant experience. Perceive risk can be lessened or even ignored, thereby
ending the state of tension and anxiety. Marketers must identify consumer's perception
of risk and help reduce the perception of risk through risk reduction strategies. Some
risk reduction measures that can be taken by the marketer are as follows:
i) providing information; ii) building and maintaining brand loyalty and/or Store loyalty; iii)
creating a favorable brand image and/or Store image.

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9.Analysis Features:

9.1.SWOT Analysis
SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats, is an
analytical framework that identifies the internal and external factors that are favorable
and unfavorable for a company.

After keen observation over the organisation and the various departments of VRL
logistics the following strengths ,weaknesses ,opportunities and threats are found.

Strengths:

● There are dedicated workers who increase their turnover.

● They provide good service that leads to customer satisfaction.
● The company is recommended by indian books association mumbai.
● They provide training facilities.
● They have a good brand image.
● They provide direct and indirect employment to many people.
● They did not undergo any lockout, strike etc.
● They have their own in-house body building of vehicles.
● They have a new courier service called CARGO EXPRESS which refers to the
24 hours of service.

Weakness:

From the analysis of performance of vrl logistics we found following weakness:

● The garage is centralized and all the vehicles must have to come varur for repair
and maintenance .
● They are highly depend on economic scenario
● They only concentration rich class of peoples
● There is heavy workload
● Low advertisement compared to competitor advertisement
● Limitations of drivers
● Cost of VRL logistics is high compared to local logistics

Opportunities:

The company is having following opportunity in the market ,they are:

● They can decentralize their garage and office
● They can concentrate on remote rural areas

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 ● They can enter into international courier and cargo express service
● Extending the service to other states like Goa and kerala.
● Consumer awareness over the service of VRL brand has been increasing over
the years
● Diversification towards aviation sector and doing business,acquiring or renting
aircrafts

Threats:

The company is having following threats in the market,they are:

● Unethical marketing practices of private brands

● Competitors higher commission rates
● A rise in fuel prices would adversely affect their operations and profitability
● Significantly affect their profit

9.2.PESTLE Analysis

PESTLE (also termed as PESTLE) is an ideal tool to strategically analyze what

influence different outside factors – political, economic, sociocultural, technological,
environmental and legal – exert on a business to later chart its long term targets.

Being part of the external analysis when carrying out a strategic assessment or
performing a market study, PESTEL gives an overview of diverse macro-environmental
factors that any company should thoughtfully consider. By perceiving these outside
environments, businesses can maximally benefit from the opportunities while minimizing
the threats to the organization.

10.Findings:

● It is found that most of the customers are occasional (36%) and monthly (28%)
customers prefer VRL couriers Though it is occasional customers prefer VRL.
This shows that the company is making an impact on customers to come back to
them in future.
● It is found that 38% of the respondents viewed the VRL courier charging high and
competitive prices to customers. Therefore the company is losing its customers
due to competitive prices in the hubli region.
● Most of the respondents (50%) agreed that the VRL courier shows sincere
interest in problem solving and (30%) agreed on average. This shows the
company gives much preference to its customers and gets their problems solved.

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 ● It is found that 12% of the respondents strongly agree with the time schedule and
delivery timings are maintained by the VRL, 40% of them agreed, 32% say its
average and 16% of them disagreed. Some of the customers are not satisfied
with the time schedule. Thus the company is not giving much chance to its
customers for complaints.
● The customers are not happy with the price as (30%) of them are highly
dissatisfied and (15%) of them are dissatisfied, even many of the customers are
neutral.
● 64% of the respondents are happy with the overall services provided by VRL
couriers.

11.Suggestions:

● Most of the customers are monthly and occasional courier users and hence
company is losing the customers day by day and profit is getting low to the
company, so I would suggest to bring out few schemes, offers to which
customers can get attracted to courier with VRL rather than choosing some other
courier service like speed post, professional couriers and some private company
like gati couriers. Customers can be loyal to the company only when they get
desired service.
● Many of the respondents are not happy with the timings, and also said that it was
very difficult for them to wait a long time for the courier delivery. It also takes a
long halt time during the journey to which the customers cannot wait for the
delivery, So I suggest it would be good if the company follows a proper time and
satisfies their customers and follows a proper schedule and maintains the brand
image in the minds of customers.
● The respondents complained that the price is competitive and not reasonable, so
the company is losing its loyal customers due to the hike in price. It is suggested
to the company to decrease the price level of the different courier service as
many of the respondents complained about the affordability.
● I would also suggest the company to maintain the safety of packages so that the
customers don‘t feel dissatisfied while they receive the packages as many of the
respondents were dissatisfied about the safety
● Company should keep in touch with the customer after the service so that it helps
in identifying the problems faced by the customers if any

12.Conclusion:

This study has helped me to learn how the courier industry works and supply
chain processes take place to make available things from consigner to consignee. The

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study helped me to gain valuable insights of customer satisfaction towards VRL courier
service. This project title has been a knowledge gaining experience for me. By
interacting with the respondents I have been able to understand customer perception
towards VRL courier service.

This project survey has identified that the company is doing its best to satisfy its
customers and know their expectations, here customers are happy with the service. I
interacted with the customers and that is where the real learning took place. My
interaction with the respondents will be a lifelong remembrance for me. I studied their
behaviors regarding the service, what they think about the service.

The company has positioned the brand image into the minds of the customers
by giving the quality of service and by fulfilling the promises. The company is keeping
the promises which are made to the customers by giving its quality service, it‘s very
important for any service oriented company to keep the promises. Any service to excel it
should understand the specific needs of their customers. Services are intangible in
nature and the employees are the main factor which affects the service delivery since
they are the one who encounter with the customers. Company has good employees
who show sincere interest to solve the customer‘s problem, who responds to the
customer‘s request, who helps the customers. Majority of the customers are happy with
the overall service provided by the VRL and want to give good courier service with VRL
in the future and this shows that the company has a good prospective future. There are
also many customers who are not happy with the VRL couriers related to time
management, price, etc. it is very important to a company to give a quality of service to
their customers and hence it should be provided on time.

13.References :

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