Meaning and evolution of logistic

8/7/2019 Meaning and evolution of logistic

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Meaning and evolution of logistic

The word logistics comes from Greek logistike, which translates as the art ofcalculating using concrete items, in contrast with airethematic, which was the art of calculating

using abstract concepts. The later eventually evolved into the modern concept of arithmetic and

algebra. The term logistic has evolved into the art and science of determining eminently

concrete aspects of business management, from transportation and packaging, to warehousing

and inventory management,

The first international traders were involved in logistics; they calculated how much their

ships-or beasts-could carry, how much food to bring along, and how best to package the goods

while in transit, decision which parallel exactly what a modern logistics manager does. They had

to decide which payment method was most appropriate, just as modern exporter must determine

what the best way of ensuring it will get paid. While many aspects of international logistics have

changed, the main concerns of people involved in this field remain similar; they have to ensure

that goods manufactured in one part of the world arrive safely to their destination.

However the modern interpretation of the term logistics has its origins in the military,

where it was used to describe the activities related to the procurement of ammunitions and

essential supplies to troops located the front. It gave birth to the title of MARECHAL DES

LOGIS in the French military, which is given to a sergeant in-charge of units supplies and

housing. Interesting enough, when the term applies to the branch of the military in charge of

logistics on a large scale, the French use different word altogether, LE TRAIN.

First, therefore, what was understood as business logistics was based on the military

concept and encompassed mostly the physical movement of goods. The term is now much

broader and includes not only all the activities related to the physical movement of goods, both

upstream (procurement activities) and downstream (sales) activities, but also the management

relationships with suppliers and customers. As it stands today, the term logistics is defined by

the council of logistic management as:

Logistics is that part of supply chain process that plans,

implements, and controls the efficient, effective forward and reverse flow and storage of goods

services, and related information between the point of origin and the point consumption in order

to meet customers requirements.


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Contrast this definition to what the council thought the term meant in 1986:

Logistics is the process of planning, implementing and

controlling the efficient, cost effective flow and storage of raw materials, in-process inventory,

finished goods and related information from point of origin to point of consumption for the

purpose of conforming the customer requirements.

It becomes very evident that the term is quite fluid and increases in scope; services and

reverace logistics were added and the concept of supply chain yet a broader term was

incorporated.


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Importance Of logistic industry

In a yearly study of logistics it is calculated that the percentage of the united states GDP

that is spent on logistical activities (transportation, inventory, and other administrative costs

linked to logistical activities) was 10.1% in 2000and 9.5% in 2002. Collectively American

businesses have spent approximately US$ 1 trillion on domestic logistical activities.

As a percentage of GDP, though, logistical costs have been steadily decreasing; while

their share of the GDP was traditionally in mid-teens in the 1960s and 1970s with a high of

16.2% in 1982 they have steadily declined in the 1990s this decrees is mainly due to

corporations becoming more efficient in their use of inventory the advent of just in time,

manufacturing resource planning, and their subsequent derivative have decreased inventory level

from 24% of united states GDP to 13% from 1981 to 2001. Some of the decrees can also be

attributed to more efficient means of transportation.

While there are no comprehensive data illustrating the total value of international

logistics activities, it can be conservatively estimated that the percentage spent on international

logistics activities would be around 15% of the total volume of international trade, approximately

US$ 1.2 trillion. And every year logistical activities generate lot of revenues to the government

as most of the imports are subjected to duties.


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GLOBAL SCENARIO

A well developed transport system supports an economy in several ways ; supports the industry

by increasing the efficiency of production, raises the demand through movement of production ,

facilitates the location, helps the development of urbanization, movement of manpower, better

standard of living, better education etc, contribution of transport to the global economy is very

significant.

When it comes to a developed countries like united states, European nations or countries

like Australia, and some of the developing countries, they have very good infrastructure for

transportation of goods within the country, where the country like Australia is mainly known for

its big wide strait roads where they have worlds longest operating trucks, where European

countries and united states are known for their long network transport system within the country,

and when it comes trains Germany and Japan are known for their world class advanced

technological fast trains.

NATIONAL SCENARIO

Indian transport sector comprises of all forms of transports; railways, roadways,

water, and air transport. Indian railways, largest Indian public sector undertaking and largest

railway system in Asia run 12000 trains a day, with over 63000 route kms of track.

Its importance to Indian economy cannot be neglected. Road transport is vital for the

movement of agriculture products and also for industrial development. Thus roads quicken the

rate of growth, further road transport function a supportive system to railways. Railways can

reach only certain location, and the rest of the link is taken care by road transport. At the time of

independence India had only 3, 88,000 kms of road length.

The cheapest mode of transport is water transport, since waterways provide readymade

routes and thus no infrastructure coasts are involved in developing journey routes, compared to

railways or road transport.

Transport has, no doubt, recorded a substantial growth in the post independence period both in the spread of network as well as in the output of the system. Despite an impressive

growth in the spread of the transport network, there exists a wide gap between supply and

demand in the principal mode system; rail and road infrastructure even after more than four

decades of planning, the fruits of economic development have yet to reach the people living in

far flung, rural and tribal areas of India.


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COMPANY PROFILE

VRLLOGISTICS LIMITED:

VRL Logistics Limited (VRL) was founded in 1976 by Vijay Sankeshwar,

Chairman in Hubli a small town in North Karnataka, the southern state in India, with a

single truck and a vision that was way ahead of its time. Starting its operations in the

General Cargo transportation, VRL has grown into a renowned, pan-India, Logistics and

passenger Transport Company, which is currently the largest private sector fleet owner in

India, with a fleet strength of over 2800 vehicles, which is the Limca book of records.

Mr. Vijay sankeshwar, the promoter commenced the business of transportation in

the state of Karnataka, as a proprietary concern in the year 1976. The proprietary

concern subsequently converted into a partnership firm by the name of M/s Vijaynand

Road lines in the year 1978. This partnership firm was then converted into a privatelimited company under part IX of the Companies Act, 1956 under the name of

Vijaynand Road lines private Limited and a Certificate of Incorporation dated March 31,

1983 was issued by the Registrar of Companies, Bangalore, and Karnataka. The

Company became a deemed public Limited Company in the year 1994 and an

endorsement to this effect was made by the Registrar of Companies, Bangalore,

Karnataka on July 1, 1994, on the Original Certificate of Incorporation dated March 31,

1983. Pursuant to a special resolution passed by the Shareholders in the Extraordinary

General Meeting held on February 14, 1997 the status of our Company was subsequently

changed from a deemed public Limited Company to a public limited Company. The

name of our company was changed to VRL Logistics limited and the RoC Karnatakagranted a fresh certificate of incorporation, consequent on change of name, to our

company on August 25, 2006.

The Company was initially in the business of transportation of goods and parcels,

subsequently it commenced the business of courier service in the year 1992. In the year

1996 the Company acquired passenger busses and entered into an agreement with

Vijayanand travels a proprietary concern started by Mrs. Lalita Sankeshwar in November

1996 for giving the said vehicles on hire, to carry on the business of passenger service.

Initially Vijayanand travels was operating within the state of Karnataka only. Over a

period of time with the growth of it business, it began operating busses betweendestination in Karnataka, Maharashtra and Tamil Nadu. The Company acquired the

business of Vijayanand travels on June 30, 2004 for a total consideration of Rs

50,00,000. The Company continued with the same business as a separate division. Mrs.

Vani Sankeshwar, wife of Mr. Anand Sankeshwar in August 2001, started Maruti parcel

carriers as a proprietary concern. Taking vehicles on hire basis from the Company

started this business. On june 30. 2004, the Company acquired the business of Maruti


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parcel carriers for a total consideration of Rs 50,00,000 and continued it in the name of

Maruti parcel carriers which operates as a division of the Company. A Shiva Road line

was started in the year 2003 as a separate division by our Company. A Shiva Road line

provides service only in the state of Karnataka covering 6 cities. A Shiva Road line has 7

dedicated branches. It provides door-to-door services without routing it through our

transshipment hubs. It carries goods weighing more than two tones. The Company is also

in the business of Express cargo service. The Company has recently diversified in the

wind power business in September 2006 and air charter business in 2007. Recently,

Company has purchased premier 1A air craft from Hawker Beech craft Incorporation,

USA. Premier 1A is 2 pilots and 6 passengers seat aircraft (with 4 club configuration

seats). It has also entered into MOU dated November 1, 2007 with Indamer Company

Private Limited for the maintenance of the aircraft.

Over the years VRL has evolved itself as providers of safe, reliable and timely

delivery network, in the field of parcel services. It has now expanded its operations into

express cargo to meet growing demand for quicker and speedier and deliveries of

parcels. Currently VRL handles over 6000 MT of parcels every day adding up to a

staggering 216,000,000 MT of cargo per annum. A part from its core business of cargo

transportation. The company has diversified into passenger transportation. Today VRL is one

of the leading companies in the Indian surface transport industry.

In 2007, VRL logistics LTD. Provide its way into the Indian Aviation industry. It

is a gradual progression for the company, from surface transport to Air transport. The

Indian Aviation industry has experienced a tremendous growth in the last two years,

more so in the private Aviation sector. Keeping in mind the market demand VRLdecided to enter the Air-Charter industry and serve the VVIP, VIP and Corporate India.

In the first phase, VRL has acquired a brand new, premier Jet 1A Aircraft,

manufactured by Hawker Beech craft Corporation, USA. The company has future

expansion plans to add more Air craft and Helicopters, based on the market feedback and

demand. Initially we wish to offer the Jet Aircraft on charter basses to the corporate

sector, Leisure and Tourism sector, Medical Evacuation, Special Mission charter, Event

Management, Advertisement Agencies and VIP Flights.


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The Business:

VRL is into the business of transportation and logistics service of goods and

transportation of passengers by road. We have a long operating truck record of more

than two decades in this business. Our chairman Mr.Vijaya sankeshwar has over three

decades of experience in the transportation industry. It has also recently forayed into

wind power generation and Air charter business. It offers following services which are

summarized below-

y Goods transportationA. Full truck loadB. Less than full truck load (parcel)

y General parcely Express cargoy Couriery Passenger travelsy Wind power generation

The Goods Transportation and distribution business is carried across 17 states and

7 Union i.e. Pondicherry, Daman, Silvassa, Chandigarh, Karaikal, Yaman Mahe covering

649 cities throughout India. It covers the states of Karnataka, Andhra Pradesh, Tamilnadu,

Kerala, Maharashtra, Goa, Gujarat, Rajasthan, Punjab, Haryana, Delhi, Himachal Pradesh,

Uttar Pradesh, Chhattisgarh, Madhya Pradesh, West Bengal (Kolkatta) and Uttarakhandunder this business. The passenger transport business is carried on under the name of

Vijayanand Travels. We carry on this business within the state of Karnataka,

Maharashtra, and Tamilnadu covering 56 cities in all. It has 40 branches and 466

franchisees across the states of Karnataka, Maharashtra and Tamilnadu for our passenger

transport business. Its fleet strength as on February 29, 2008 comprises of 2,683

vehicles, all of which are owned by our Company. Its fleet comprises of 2,446 vehicles

for goods transportation, 197 vehicles for passenger travels and 40 vehicles for internal

use which includes fork lifts, cranes, staff buses, water tankers, diesel tanker, tractors etc.

the Companys network of Transshipments/branches/offices for our goods transport

business covers 17 states and 7 Union Territories in india. It has its Head Office atVarur, Corporate Office at Hubli, 5 Administrative Offices, 43 transshipment hubs, 799

owned branches and 1387 franchisees, which enables the smooth flow of goods and

services. The Booking and delivery is transacted through its transshipment hubs, which

are connected to our respective branches. It also possesses key in-house competencies in

body designing for trucks, vehicle repair and maintenance. It also has a dedicated

research and development unit and a software development center, which enables us in


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cutting, cost and increase vehicle efficiency and performance. In September 2006, it

commenced our wind energy business in southern India at Kappatgudda, Gadag district

in the state of Karnataka. It had issued various purchase and work order to various

Suzlon entities for the supply, commissioning and erection of 34 Wind Turbine

Generators (WTGs). It has also entered into power purchase agreement with Hubli

Electricity Supply Company Limited (HESCOM), for sale of entire power generated by

it.

It has also entered into air charter business for providing services to individuals

and corporate passengers. Recently, the Company has purchase premier 1A aircraft from

Hawker Beech craft Incroporation, USA. Premier 1A is a 2 pilot and 6 passenger seat

aircraft (with 4 club configuration seats). It will operate on an all India basis subject to

necessary government approvals. It has also entered into an Operation and Maintenance

agreement with M/s Indamer Company Private Limited.


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Board Of Directors

Chairman and Managing Director Mr. Vijay Sankeshwar

Managing Director Mr. Anand Sankeshwar

Director (Finance) and Company Secretary Mr. R.P..Raichur

Director Mr. Sudhir Ghate

Director Mr. C.Karunakara Shetty

Director Mr.Mallesh Budihal

Director Mr. R.S.Hugar

Director Mr. Suresh Angadi


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VRLLOGISTICS LIMITED

THE VISION

To become the premier company in transport of goods, parcels, passengers and print

media.

THE MISSION

To provide highest quality services to its customers for maximum satisfaction

Continuously reducing cost and increasing efficiency continuously promote team work and

excellence in all business and provide a good environment to our employee.

THE VALUES

Punctuality, integrity, honesty, Loyalty and Credibility


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Awards

Looking into the massive growth of the company the following institution has conferred tomanaging director of the company.

UDYOG RATANA:

In 1994 INSTITUTION OF ECONOMICS STUDIES, NEW DELHI has conferred the MD of the

company with UDYOG RATANA.

SARIGE RATANA

The Bangalore city lorry-transporting agent, association has conferred MD of the company with

SARIGE RATNA in June 28th 1998.

Documents

Meaning and evolution of logistic