project on customer satissfaction in vrl logistics

A Study on Customer satisfaction towards VRL logistics, Bangalore

A Project Report on “A STUDY ON CUSTOMER SATISFACTION TOWARDS VRL LOGISTICS LTD.”

At

Bangalore Submitted To PES College of Business Management Bangalore Submitted in partial fulfillment of the requirements for the Award of Degree of BBM COURSE of BANGALORE UNIVERSITY By PRITAM DAS 07BMC08035 PES College of Business Management Bangalore UNDER THE GUIDANCE OF

Mr. Srikanth Rajath K.G (Faculty Dept.of BBM)

PES COLLEGE OF BUSINESS MANAGEMENT (Affiliated To Bangalore University) 100 Feet Ring Road, BSK III Stage, PES BBM

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CONTENTS

Chapter One

Index

Page No.

1.1

Meaning of Logistics

1

1.2

Definition

1–2

1.3

Gulf War

2

1.4

Reverse Logistics

2

1.5

History of Logistics

2–3

1.6

Logistics Market

3–5

1.7

Role of Logistics in the Economy & Organisation

5–6

1.8

Importance of Logistics

6–8

1.9

Importance of logistics Management in India

8

Chapter Two

Index

Page No.

2.1

A brief introduction to the subject background

9

2.2

Statement of the problem

9 - 10

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2.3

Objective of the study

10

2.4

Scope of the study

10

2.5

Research Methodology

11

2.6

Sample Design

11

2.7

Tools & techniques for data collection

11

2.8

Plan of analysis

11 – 12

2.9

Limitation

12

2.10

An overview of the chapter scheme

12

Chapter Three

Index

Page No.

3.1

History of the company

13 – 15

3.2

Business products & services

15 – 24

3.3

Competitors

24

3.4

Board of directors

24 – 26

3.5

Capital turnover

26 – 28

3.6

Swot Analysis

29 – 31

3.7

Organisation structure

32

Chapter Four

Index

Page No.

1 - 17

Tables & Graphs

33 – 66

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Chapter Five

Index

Page No.

5.1

Findings

67

5.2

Suggestions

67

5.3

Conclusion

68

5.4

Learning and Experience

68

Bibliography Annexure 1.1 Meaning of Logistics A widespread idea prevails that logistics is the ‘movement of goods’ that is narrow concept. Logistics is much more and much wider than mere physical handling of goods. Logistics involves several other functions such as purchasing, plant location, plant layout, etc., and even the disposal of wastes. It covers astonishingly varied professional disciplines. They are: •

Facility location

•

Forecasting and order management

•

Planning

•

Transportation : the mode and the route

•

Inventory management: all inventories

•

Warehousing

•

Protective packaging

•

Information : maintenance and flow

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1.2 Definitions Many definitions are given for ‘logistics’. Here are some: “Logistics is ....... •

Strategically managing the procurement and movement of goods and storage of inventory an all forms.”

•

The process of strategically managing the procurement ,movement and storage of materials, parts and finished inventory (and the related information flows) through the organisation and its marketing channels in such a way that current and future profitability are maximised through the cost-effective fulfilment of orders”

•

The study and management of goods and service flows and associated information that set these in motion”

These definitions give the idea of the wide range of functions that logistics covers. A simple definition is: “Logistics is delivery of the required place, at required time, in required person......efficiently”

1.3 Gulf War The idea of what logistics is, from the fact that, in 1991 Gulf War, the US and the allies airlifted half a million people and over half a million tonnes of materials over 12,000 km and moved additional 2.3 million of equipment by sea, in a short time frame. That kind of movement is more than physical handling. That is logistics.

1.4 Reverse Logistics Another dimension to logistics is ‘Reverse Logistics’ (Rev Log). Goods return from the consumer point to the original and supply point, for various reasons. Bad delivery, oversupply, damage, expiry failing inspection tests at the customer point, goods unsold etc., are some instances where the materials transverses back. That is Reverse Logistics. The material PES BBM

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that has to come back to the original point, or to the original supplier, has also to be handled effectively and efficiently. ‘Maintain a Rev Log’ system.

1.5 History of logistics Logistics can be defined as providing the right type of products and/or services at the right price, time and in the right condition. A quick look at some logistics history may prove very enlightening. The birth of Logistics can be traced back to ancient war times of Greek and Roman empires when military officers titled as ‘Logistikas’ were assigned the duties of providing services related to supply and distribution of resources. This was done to enable the soldiers to move from their base position to a new forward position efficiently, which could be a crucial factor in determining the outcome of wars. This also involved inflicting damage to the supply locations of the enemy and safeguarding one’s own supply locations. Thus, lead to the development of a new system which can be related to the current day system of logistics management. During the Second World War (1939-1945), logistics evolved greatly. The army logistics of United States and counterparts proved to be more than the German army could handle. The supply locations of German armed forces were inflicted with serious damages and Germany was not able to wreak the same havoc on its enemy. The United States military ensured that the services and supplies were provided at the right time and at the right place. It also tried to provide these services when and wherever required, in the most optimal and economical manner. The best available options to do a task were developed. This also gave birth to several military logistics techniques which are still in use, at best in a more advanced form. Logistics has now evolved itself as an art and science. However, it cannot be termed as an exact science. Logistics does not follow a defined set of tables nor it is based on skills inherited from birth. A logistics manager performs his duties and responsibilities based on his educational experiences and intuition. These skills are nourished by a constant application of the same by him for betterment of his organisation. The logistics manager ensures that the company is benefited by an effective and efficient system of logistical management. He also needs to ensure that the right kind of products and services are provided at the right time and PES BBM

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for a right price, whether inside the organisation’s premises or delivery of shipments outside the premises of the organisation. Logistics has come to be kind of relief for many organisations that formerly looked upon it as a burden. Companies nowadays are hiring people with the requisite knowledge to deliver sustainable enhancements in the field of supply chain management. As has been the case throughout most of logistics history, the task of a logistics manager involves a clear vision and a drive within to deliver results under strict deadlines in addition to his usual responsibilities.

1.6 Logistics Market India’s railways carry daily an average of twelve million passengers and over a million tonnes of freight traffic on a network spread over 62,725 km, covering 7,068 stations. It operates on three gauges i.e. broad gauge (1676 mm), meter gauge (1000mm), and narrow gauge (762 and 610mm). Although broad gauge forms only 64.5% of the route, it generated 96% of freight output and 89.6% of the passenger output during 2007-08. In the same year, total passenger traffic was 4,018 million. 19.5% (12,306 Km) of the total network and 30% of the broad gauge network is electrified. The railways are the largest employer in the country, with over 1.6 million employees. Operating revenue in 2007-08 was approximately 3.7 billion. The 6000 km long Indian coastline has eleven major ports (managed by the port trust of India under central government jurisdiction) & 163 intermediate ports (under the jurisdiction of their respective state governments) however, as regards capacity, productivity and efficiency Indian ports do not compare well with some of the international ports. In 2007-08, the total cargo handled at major Indian ports was 251.39 million tonnes, and growing demand has meant that the average ship turnaround time at these ports is increasing. dry & liquid bulk account for around 80% of the port traffic in volume, while general cargo constitute the remaining traffic. India’s road network of almost 3 million km is one of the largest in the world. With the staggering increase in the motor vehicle population in recent years, the Indian government PES BBM

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recognised the urgent need to develop adequate road networks across the country, and has introduced a series of far-reaching measures investment in the network. The reduction of trade barriers, both on the domestic as well as international front, has led to a rapid growth of the logistics market throughout the world. Items such as Swiss cheese, Chinese gadgets and Italian fashion goods that were earlier limited only to the place of manufacture have now crossed the geographical boundaries to take their place in the international market. This has indeed globalised the area of operations and has benefited several economies. How that is made possible? Obviously, apart from favourable governmental policies, it is the growth of logistics that has made all this possible. The boundaries have been minimised due to advances in the modes of transportation. Logistics not only deals with delivery of goods at the right time, for right price, and in right condition, but also has extended its role in globalising the sphere of the products and services. The growth is eminent in the Asia- Pacific region with China emerging as a global economic power with a seismic effect on the global market of logistics. India is steadily following china’s footprints by consistent marching into the field of logistics due to favourable market trends, outsourcing and government policies. Developed nation like the United Kingdom and the United States already have strong logistics policies and are keen to outsource from China, India and Asia-Pacific due to the cost factor. In the current business scenario, there are ample job opportunities for people in the field of logistics and slowly and steadily the area and scope of logistics is on the upswing. With the increase in demand for logistics professionals, logistics organisations are raising their sphere of influence to unparallel heights. The growth and development witnessed in the logistics sector is likely to fuel further growth for many more years to come. Thus it would be right to conclude that the logistics market finally has its due share with ample job opportunities available and logistics being considered as an integral part of most savvy organisations.

1.7 Role of Logistics are as follows PES BBM

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Role of logistics in supply chain management: A supply chain refers to the way that materials flow through different organisations, starting with raw material and ending with finished products delivered to the ultimate consumer. Supply Chain Management can be viewed as a pipelines or conduit for efficient and effective flow of products, services, information from suppliers through the various intermediate organisations out to the customers. Thus logistics plays important role in Supply Chain Mgmt.

Role of Logistics in the Economy It is important since, (i)

It is important expenditure of businesses.

(ii) It supports movement and flow of many economic transactions.

Logistics adds value by creating time utility and place utility. Mainly it supports the time and place utility. Time utility is the value added by having an item when it is needed, whereas place utility is having the item or services available where it is needed.

Role of Logistics in the Organisation In recent years, effective logistics management has been recognised as a key opportunity for the improvement of both the profitability and competitiveness of the organisations. Because of the importance of customer service, many organisations are adopting it and are making their approach as customer driven There is a strong relationship between Logistics and the three critical concepts of marketing i.e. the Customer Satisfaction, Integrated Effort an Adequate Corporate Profit.

1.8 Importance of Logistics Logistics is the one important function in the business today. No marketing, manufacturing or project execution can succeed without logistics support. For companies, 10 percent to 35 percent of gross sales are logistics cost, depending on the business, geography and weight/value ratio. PES BBM

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Logistics is comparatively a new term, but not the operation. Logistics has existed since the beginning of civilisation. Raw material and finished products had always to be moved, through on a small scale. Things began changing with the advance in transportation. Population began moving from rural to urban areas and to business centres. No longer did people live near production centres, nor did production take place near residence centres. The geographical distance between the production point and consumption point increased. And logistics gained importance. Another factor has come into play recently. Since the early 1990’s, the business scene has changed. The globalisation, the free market and the competition has required that the customer gets the fight material, at the right time, at the right point and in the right condition....at the lowest cost.

1. Logistics is the bed rock of trade and business, without selling and or buying there can be

no trade and business. Buying and or selling takes place only when goods are physically moved into and or away from the market. Take away logistical support trade and business will collapse.

2. Leads to customer satisfaction through superior customer service. Organisational

objectives of P [Productivity], Q [Quality], C [Cost], D [Delivery],E [Employee Morale], F [Flexibility], S [Safety], H [Health], E [Environment] are set to meet customer expectations of P,Q,C,D,E,F,S,H,E are parts of must be quality that a customer expects. Logistics addresses D, F objectives which lead to satisfaction through superior customer service.

3. Integrates logistical activities in a conventional management environment, various

activities of logistics work is isolation under different management functions. Each pocket trying to sub optimizes its objectives at the cost of overall organizational objectives. Purchasing trying to purchase at minimum price at the cost of what is needed by operations. Operations produce large quantities at minimum production cost ignoring demand leading to doom inventory. Logistics function of management brings all such functions under one umbrella pulling down inter departmental barriers.

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A Study on Customer satisfaction towards VRL logistics, Bangalore 4. Competitive edge: In the fiercely competitive environment logistics provides the edge.

Due to technological revolution most of the products are moving into commodity markets. In a commodity market where price is controlled by competition, where there is no product differentiation in terms of quality parameters like performance & reliability, where brands are almost irrelevant, competitive edge is that of availability of product and service in terms of time, place and quantity.

5. Logistics wins or loses wars; British lost American of Independence due to poor logistic

Rommel was beaten in the desert by superior logistics of Allies. Supports critical functions like operation and marketing strong logistics support enables a company to move towards JUST IN TIME production system for survival in a highly competitive market.

1.9 Importance of Logistics Management in India ➢ Liberalisation and opening our door to door competition. ➢ Global business has long supply &distribution lines. ➢ Changing Indian customer, aware, demanding and less brand loyal. ➢ Competition ensures that product differentiation in terms of quality is difficult.

➢ Product life cycles are shrinking. ➢ Our markets are shifting from ‘sellers to buyers’. ➢ Many consumer products are moving into commodities market. ➢ India is a large country. Large distances separate production and consumption centres. Essential commodities have to travel from Food Corporation warehouses to consumers through PDS.

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➢ Logistics performance has not been impressive. ➢ Fruits and vegetables are grown at various places but do not enjoy access to market.

2.1 A Brief Introduction To The Subject Background Logistics A wide spread idea prevails that logistics is movement of goods. That is a narrow concept. Logistics is much more & much wider and mere physical handling of goods. Logistics involves several other functions such as purchasing plant location, plant layout, etc. And even the disposable of wastes. It covers astonishingly varied professional disciplines. They are:•

Facility location.

•

Planning.

•

Forecasting and order management.

•

Transportation: the mode & the route.

•

Inventory Management: all inventories.

•

Warehousing.

•

Protective Packaging.

•

Information ; Maintenance & flow

Definition The process of strategically managing the procurement, movement and storage of material, parts and finished inventory (and related information flows) through the organisation and its PES BBM

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marketing channels in such a way that current and future profitability are maximised through the cost effective fulfilment of orders.

2.2 Statement of Problem Logistics occupy an integral role in the marketing of a product good logistics ensure the quality of the product is safeguarded and the product is delivered at the right time, right place and to the target customers. This project is undertaken to study the importance of logistics as a part of marketing strategy and to find out the competitors services that are having a greater percentage of profit in the market, in which VRL Logistics is going to give the good services and aim to know their strategies so that the company can target on those concerned areas and can acquire a greater market in the field of logistics management.

2.3 Objective of The Study 1. 2.

To understand customer preferences. To study the relationship between the customer & transporter and the factors of perception.

3.

To identify the problems if any in the field of customer satisfaction in the logistics sector and to come out with solution for the problem.

4.

To give feasible suggestion to the company about the improvement in quality of services.

2.4 Scope of The Study

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•

This study is restricted to the logistics services offered by VRL services & the time period of the study is between Feb to May.

•

The study provides the impact of the level of logistics service in the market.

•

The project determines the trade and logistics management facility.

•

The project deals with measurement of service, and links with internal performance appraisal and improvement process of trade industry.

2.5 Research Methodology Surveys Sources of Data 1. Primary Data 2. Secondary Data Primary Data The Primary data is collected through questionnaires administered to a sample of 100 customers selected from Bangalore city, the questionnaire before it was administered. Secondary Data Secondary data was collected through various publications of newspapers, annual reports, websites, and magazines.

2.6 Sample Design A total of 100 customers were selected from the Bangalore city for this study to analyze the customer satisfaction with reference to VRL Logistics Ltd.

2.7 Tools & Techniques For Collection Of Data PES BBM

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Empirical field studies require collection of first hand information on data pertaining to the unit of study from the field. The sampling plan is effective in getting the first hand information i.e. primary data, which has been required for the study by the research.

2.8 Plan of Analysis The information gathered was tabulated and various graphs are prepared to analyze.

2.9 Limitation •

The study confined to Bangalore and may not be relevant to other counter parts.

•

Since only 100 samples were taken for study the generalization made for the entire population may not be true.

•

The study is targeted to the small business and so acceptance of VRL services by corporate and individuals have not been covered under the study, because they form major source of revenue for VRL.

2.10 An Overview of Chapter Scheme Chapter I: This deals with the general introduction and theoretical background of the study.

Chapter II: This chapter gives the description of a brief introduction to the chapter scheme, statement of the problem, objective of the study, research methodology, sample design, tool and techniques for collection of data, plan of analysis, limitations and overview of report.

Chapter III: This chapter contains the company profile, business products on services, competitions, capital structure of organisation structure of the company. PES BBM

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Chapter IV: This chapter includes classification & tabulation of data, analysis and interpretation of data.

Chapter V: This chapter includes findings, conclusions & suggestions.

3.1 History of the Company Founded in 1976 by Mr. 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 soon expanded its service to Bangalore, Hubli and Belgaum. From this humble beginning VRL has grown into a nationally renowned logistics and transport company which is currently the largest fleet owner in India with a fleet of 2691 Vehicles (Including 196 hi-tech tourist buses &2495 Trucks) as of 15th August 2008.as published in the Limca Book of Records. Over the years VRL has pioneered in providing a safe and reliable delivery network in the field of parcel service. It has spread its operations to Courier Service, Express Cargo & Aviation to meet the growing demand of the burgeoning customer base. 3PL & Warehousing solutions offered by VRL are tailor-made and cater to unique needs of various customers of the industry. With the largest network in India, the VRL parcel service is indispensable for large number of corporate houses. This network spans the length and breadth of the country and is supported by large number of transhipment hubs. VRL operates through a network of 2629 Locations & 911 Branches, franchisees and our valuable customers. VRL is now expanding its service to reach even the remote locations of the Country. The efficiency of our fleet of vehicles hinges on our all inclusive state-of-the-art workshop cum service complex at Hubli (Karnataka). Every vehicle of our fleet passes through this master service facility so that they are at peak levels of performance, leading to better cost efficiencies and time management.

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Centralised Operations: At the core of the groups transport business is its 43 acre transport cum warehouse complex in Varur, Hubli. This unique facility has all the essential back up services under one roof. The total built up area of complex is 25,00,000 sq. ft. with an additional 1,00,000 sq. ft. of land utilized for sheds and vehicle parking, This complex contains the Head office Building, Transhipment Godown, Workshop, Canteen, Drivers Rest Room, own Diesel Bunk etc. Our Mission : To provide the highest quality service to our customers by continuously increasing cost efficiency and maintaining delivery deadlines.To encourage our employees / workforce to strive for quality & excellence in everything they do.To promote team work and create a work environment that takes care of talent and bring out the best in our employees.

Vision : To become the premier company that cuts accross various segments and emerges as the torchbearer of each segment that the Group ventures into.

Corporate Social Responsibility : Our corporate integrity is a critical asset and we are committed to upholding it in everything we do. We share our expectations and opinions and strive to maintain a workplace built on mutual values, trust and goodwill & we continue to embed these ethical standards in our business environment. Noteworthy is the Vignyan Yog Shivir that we organized that was conducted by Param Pujya Ramdevji Maharaj which was attended by more than 10,000 people across the state The efficiency of our fleet of vehicles hinges on our all inclusive state-of-the-art workshop cum service complex at Hubli (Karnataka). Every vehicle of our fleet passes through this master service facility so that they are at peak levels of performance, leading to better cost efficiencies and time management.

Centralised Operations At the core of the groups transport business is its 43 acre transport cum warehouse complex in Varur, Hubli. This unique facility has all the essential back up services under one roof. The PES BBM

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total built up area of complex is 25,00,000 sq. ft. with an additional 1,00,000 sq. ft. of land utilized for sheds and vehicle parking, This complex contains the Head office Building, Transhipment Godown, Workshop, Canteen, Drivers Rest Room, own Diesel Bunk etc.

Corporate Social Responsibility The corporate integrity is a critical asset and vrl is committed to upholding it in everything to do.VRL share our expectations and opinions and strive to maintain a workplace built on mutual values, trust and goodwill & we continue to embed these ethical standards in our business environment. Noteworthy is the Vignyan Yog Shivir that we organized that was conducted by Param Pujya Ramdevji Maharaj which was attended by more than 10,000 people across the state.

Mission To provide the highest quality service to our customers by continuously increasing cost efficiency and maintaining delivery deadlines. To encourage our employees / workforce to strive for quality & excellence in everything they do. To promote team work and create a work environment that takes care of talent and brings out the best in our employees.

Vision To become the premier company that cuts across various segments and emerges as the torchbearer of each segment that the Group ventures into.

Objectives Of The Organisation •

To gain all around views of management operations

•

To understand the work culture

•

To integrate practical experiment with theoretical concept

•

To assimilate and understand the function of each department in the organisation

•

To develop necessary interpersonal and managerial skill

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Business Ethics VRL has very strongly believe that “rules are not meant to be broken” but “rules are meant to be followed”. This belief of ours strengthens our commitment to offer services that put our clients and us in a “win-win” situation. We believe, it is better to be “Fair” than to be “Good”.

3.2 Business Product & Services Vrl Express Cargo “Anywhere Anytime” Delivery on time zero excuses. This mantra is driving force behind the success of VRL Express Cargo.

➢ Surface, Train & Cargo mode services. ➢ Dedicated company owned vehicles. ➢ Door pick-up and delivery. PES BBM

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➢ On-time delivery. ➢ Online track & trace facility. ➢ 24X365 days operations. ➢ Dedicated and well-groomed customer care windows. ➢ Extensive nation-wide network.

Vrl Courier Service “On Time Every Time” Capitalising on the synergy of our transport network that connects all over Karnataka, we are into Courier Services focusing on delivering documents and small parcels in a time bound manner. •

Strong & Dedicated Operating Team.

•

Time Bound Delivery With An Emphasis “On Time Every Time”

•

Delivery Schedules ranging From 24/48/72/96 hours.

•

Dedicated Route Vehicles.

•

Online Track and Trace Facility.

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Warehousing & 3pl Solutions “Tailor-Made Multi-Locational Service” 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.

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Vijayanand Travels “At the forefront of passenger Transport” •

200Plus routes covering more than 50 destinations everyday.

•

Market leader in Karnataka in private tourist operator segment.

•

Areas of Operation : Karnataka & Maharastra states with 60-plus branches and widespread network of 1000-plus agents.

•

Vijayanand Travels is the premier operator to extend service by hi-tech & sleeper coaches even to remote places.

•

Onwards & return journey booking facility.

•

Punctuality in timing and separate seating arrangement for ladies.

•

Well-maintained coaches with latest seating arrangement.

•

Double drivers on-board for safe & comfortable journey.

•

Relief bus facility on all routes in case of any unforeseen incidents.

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Vijayanand Travels, the tour operation division of VRL, is the market leader among tourist bus operators in Karnataka and Maharastra. It operates a huge fleet of buses on more than 200 routes and is supported by a network of 60 branches and 1000 agents. It has pioneered the introduction of Hi-Tech buses on routes leading to remote parts of Karnataka, separate seating arrangements for women on board, a choice of buses from ordinary buses to super luxury A/C buses, check point to monitor vehicle movement, two drivers on the buses to prevent driver fatigue on long routes and enhance passenger safety and E-ticketing facility too.

Online Ticket Booking VRL Online Ticket booking is Secured Fast And easy way to reach your destination. Please check your exact Bus schedule & Fare for your date/place of travel. Please refer to terms & conditions for further details on bookings. The lowest price does not always mean the best deal.

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Vrl Aviation From the taemac to the skies.....VRL has set off a new journey. In the primary phase, VRL has acquired a brand new, Premier Jet 1A aircraft, manufactured by Hawker Beechcraft Corporation, USA. It will offer luxurious comfort and the freedom to fly at a whim. This coupled with the legendary VRL lineage, this venture will certainly touch the skies.

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Non- Conventional Energy A wind farm, when installed on agricultural land, has one of the lowest environmental impacts of all energy sources: 

Wind power occupies less land area per kilowatt-hour (kWh) of electricity generated than any other energy conversion system, apart from rooftop solar energy, and is compatible with grazing and crops.



It generates the energy used in its construction in just 3 months of operation, yet its operational lifetime is 20–25 years.



Greenhouse gas emissions and air pollution produced by its construction are low and declining. There are no emissions or pollution produced by its operation.

 In substituting for base-load coal power, wind power produces a net decrease in greenhouse gas emissions and air pollution, and a net increase in biodiversity. 

Modern wind turbines are almost silent and rotate so slowly (in terms of revolutions per minute) that they are rarely a hazard to birds.

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The journey over the last three decades was challenging and have become more innovative. The Wind Energy project of 42.5 M.W. has been successfully commissioned.

Financial Services Fixed Deposits Inviting Fixed Deposits From Public with an Attractive rate of Interest at !!!

14.19%* SCHEME-A : NON CUMULATIVE DEPOSITS INTEREST PAYABLE QUARTERLY PERIOD

PES BBM

MINIMUM AMOUNT (Rs.)

Money... RATE OF INTEREST (p.a.)

INTEREST PAYABLE

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A Study on Customer satisfaction towards VRL logistics, Bangalore 1 YEAR

10,000

11.00%

Quarterly

2 YEARS

10,000

11.50%

Quarterly

3 YEARS

10,000

12.00%

Quarterly

SCHEME-B : CUMULATIVE DEPOSITS INTEREST PERIOD COMPOUNDED QUARTERLY

MINIMUM AMOUNT (Rs.)

RATE OF INTEREST (p.a.)

MATURITY VALUE (Rs.)

EFFECTIVE YIELD (p.a.)

1 YEAR

10,000

11.00%

11146

11.46%

2 YEARS

10,000

11.50%

12545

12.73%

3 YEARS

10,000

12.00%

14258

14.19%

 Interest and maturity value payments are subject to deduction of tax at source, wherever applicable.  Deposits are accepted from Individuals, minors (through natural Guardians), HUFs, Association of Persons, Registered, Societies and Registered Trusts.  Interest on fixed deposits will commence from the date of realisation of cheque/demand draft by the Company.  0.5% per Annam additional interest for Senior Citizen/Shareholders/Employees.

 Additional amount of deposits will be accepted in multiples of Rs. 1000/- only. PES BBM

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Cheques / Demand Drafts can be deposited at designated branches all over India. Maturity value is calculated without considering any deduction of tax at source. Interest will be compounded on quarterly basis after deducting Income Tax, wherever applicable.

3.3 Competitors The Vijayanand Travels is facing stiff competition from following players •

KSRTC

(competitor for throughout Karnataka state)

•

Sharma travels

(competitor for throughout Maharashtra state)

•

Diwakar travels

(competitor for only Davanagere route)

•

KPN travels

(competitor for only Maharashtra state)

•

Seagate travels

(competitor for all routes)

•

Blue line travels

(competitor for all routes)

3.4 Board Of Directors Board Of Directors Of Vijayanand Travels

MR. VIJAY SANKESHWAR

Chairman of Vijayanand travels and Managing director business.

MR.ANAND SANKESHWAR PES BBM

Managing director, JAN-MAY2O10 Page 28


Vijayanand travels

MR.R.P. RAICHUR

Executive director service, Vijayanand travels.

MR.SUDHIR GHATE

Independent director Business, Vijayanand travels.

MR.C.KARUNAKARA SHETTY


MR.MALLESH BUDIHAL


MR.R.S. SAGAR


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MR.SURESH ANGADA


MR.H.K. VEERABADHRAPPA


3.5 Capital Turnover Balance sheet Of The Company Vijayanand Travels

Balance sheet of the company Vijayanand travels as on year ending 31st March, 2008 PARTICULARS

Six months

Year ended

ended

march 31st,

September

2008

30th, 2008 1

PES BBM

FIXED ASSETS Gross block

59767.39

55988.83

Less: depreciation

10595.21

8852.55

Net block

449172.18

47136.28

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A Study on Customer satisfaction towards VRL logistics, Bangalore Less: revaluation reserve Net

block

_

after 49172.18

adjustment

_ 47136.28

for

revaluation reserve Capital WIP

1857.60

NET FIXED ASSETS

51029.78

48425.60

2

INVESTMENTS

11.11

7.87

3

CURRENT

inventoty

999.50

960.29

Sundry debtors

4033.21

2371.32

Cash and bank balances

2415.65

1515.85

Loans and advances

3578.91

3829.98

TOTAL

11027.27

8677.44

Secured loans

42237.33

39042.20

Unsecured loans

_

_

Current liabilities

3106.56

2802.67

provisions

321.46

280.43

ASSETS

LOAN & ADVANCES

4

LESS:LIABILITIES AND PROVISION

Deferred

tax 5985.82

5500.55

liability(net)

5

TOTAL

51651.17

47625.85

NET

10416.99

9485.06

WORTH(1+2+3+4) Net worth represented by: PES BBM

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A Study on Customer satisfaction towards VRL logistics, Bangalore 6

Equity share capital

7070.00

7000.00

7

Share application money

_

700.00

8

Reserves and surplus General reserve

1150.00

1150.00

Share premium

630.00

Profit and loss account

1566.99

635.06

TOTAL

3346.99

1785.06

Less revaluation reserve

_

_

Reserve(net

of 3346.99

1785.06

revaluation reserves) 9

PES BBM

Net worth(6+7+8)

10416.99

9485.06

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3.6 Swot Analysis After the keen observation over the organizations and the various departments of Vijayanand travels the following strengths, weakness, opportunities & threats are found.

STRENGTHS: 1. The various strengths that made the company to increase the market share are as follows. 2. The company is having the very good brand image in customers mind. 3. It is maintaining very good service in the form of providing adequate bus facility with pre

determined time schedules. 4. The company is having a very Effective internal management system. 5. Employees, as well as customer’s suggestions are considered with special care, this made the company to get loyal customers as well as employees.

6. It is having the more network branches compared to the other competitors. 7. It is having the more pick-up points compared to the other competitors. 8. It maintains competitive pricing. Because of this advantage it is charging 10% less than the charges of KSRTC. This made the increase in consumer awareness regarding services of the company.

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WEAKNESS: From the analysis of performance of Vijayanand travels we found following weakness: 1. Delay In Departure Some of the buses of Vijayanand travels are not departure at scheduled timings. There may be delays in timings that cause lot of inconvenience to the passengers.

2. Insufficient Sleeper Coaches In Buses Only few buses are having sufficient sleeper coach facilities as all the buses.

3. Very Limited Staff Vijayanand travels is having very limited staff, because of which, the staff is overburdened with work. 4. Less Commission Structure The commission structure of the agents is less when compared to that paid by other competitors. 5. Low Advertisements Compared to competitor’s advertisements.

OPPORTUNITIES: The company is having following opportunities in the market, they are: 1. Extending The Service PES BBM

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Extending the service to other states like Goa and Kerala.

2. Introduction Of More Volvo Buses Because of less competition in market the company is able to introduce more Volvo buses in its product profile. 3. Consumer Awareness Consumer awareness over the services of ‘VRL’ brand has been increasing over the years. 4. The existing infrastructure can be utilized for a larger capacity 5. Diversification towards Aviation sector and doing business, acquiring or renting aircraft. 6.

Apart from Aviation sector they are aiming to step into garments, dairy, and steel

business. 7. Company officials have been studying locations across the country for identifying various investment destinations.

THREATS: 1. Unethical marketing practices of private brands. 2. Competitors higher commission rates. 3. A rise in fuel prices would adversely affect their operations and profitability. 4. Their goods and passenger transport business are subject to various taxes, which may Significantly affect their profit.

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3.7 ORGANISATION STRUCTURE

CHAIRMAN

MANAGING DIRECTOR

PES BBM

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ASSISTAN GM GM ASSISTAN COURIER TRAVELS (MIS) (IT) GM (HRM) GM (MARKETIN (FINANCE) TT G)

MPC

ROADLINES

TABLE #1 PES BBM

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How did you come to know about V.R.L Logistics

Basis

No. of Respondents

%

TV

2

2

Newspaper

5

Magazine

8

Word of Mouth

65

Others

20

TOTAL

100

5

8

65

20

100

ANALYSIS: From the above table it is analysed that , 65% of the respondents say they got to know about VRL logistics through word of mouth, 20% of them got to know through others, 5% through newspaper , 8% through magazine and 2% through TV.

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GRAPH #1

How did you come to know about V.R.L Logistics

INFERENCE: From the above graph, it is inferred that majority of the respondents said that they came to know VRL through word of mouth. Therefore the advertisement costs are minimal.

TABLE #2

For how long you have been using V.R.L services

Basis

PES BBM

No. of Respondents

%

JAN-MAY2O10 Page 39


0-6 months

5

1-2 years

14

2-3 years

25

3 yrs and above

56

TOTAL

100

5

14

25

56

100

ANALYSIS: From the above table it is analysed that , 56% of the respondents say they have been using VRL services more than 3 years, 25% of them are using it from 2-3 years, 14% of them are using it from 1-2 years and 5% from 0-6 months.

GRAPH #2

PES BBM

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For how long you have been using V.R.L services

INFERENCE: From the above graph, it is inferred that more than 50% of the customers have been loyal to the company for more than 3 years. This speaks high about the good quality of service provided.

TABLE #3

What made you use V.R.L services Basis

No. of Respondents

%

Cost

12

12

Time

8

Quality

7

Service

72

PES BBM

8

7

72 JAN-MAY2O10 Page 41


Packaging

1 1

Others

0 0

TOTAL

100

100

ANALYSIS: From the above table it is analysed that, 72% use it for its services, 12% of the respondents use VRL services for its cost, 8% use it for its time, 7% use it for the quality and 1% for its packaging.

GRAPH #3

What made you use V.R.L services PES BBM

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INFERENCE: From the above graph, it is inferred that most of the respondents use the VRL services for the services provided by them. Hence the services provided by VRL are very well enriched.

TABLE #4

How often do you transport your goods Basis

No. of Respondents

%

Everyday

10

10

2-3 days

32

Weekly

39

Fortnight

15

Monthly

4

PES BBM

32

39

15

4

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TOTAL

100

100

ANALYSIS: From the above table it is analysed that, 39% of the respondents transport their goods weekly, 32% transport it 2-3 days, 15% transport it every fortnight, 10% of them transport it every day & 4% of them transport it monthly once.

GRAPH #4

How often do you transport your goods

INFERENCE: From the above graph, it is inferred that majority of the customers use the services weekly. This means they often make use of VRL services. PES BBM

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TABLE #5

How was the delivery schedule of the vehicle kept up Basis

No. of Respondents

%

On time

64

64

Before time

19

After time

10

Very late

7

TOTAL

100

19

10

7

100

ANALYSIS:

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From the above table it is analysed that, 64% percent of the respondents say that the delivery of goods was on time, 19% say that the delivery was before time, 10% of the respondents say that the delivery was after time and 7% say it was very late from the schedule delivery.

GRAPH #5

How was the delivery schedule of the vehicle kept Up

INFERENCE: From the above graph, it is inferred that the delivery was often before time and at time to the schedule delivery which denotes a good remarks. Hence it is clear that there is little area of improvement.

TABLE #6

How would you rate VRL Logistics in terms of Price PES BBM

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Basis

No. of Respondents

%

Excellent

39

39

Average

32

Good

19

Poor

10

TOTAL

100

32

19

10

100

ANALYSIS; From the above table it is analysed that,39% of the respondents rated the pricing as excellent, 32% respondents were average, 19% of the very respondents quoted as the pricing style to be good and the rest 10% stated as the price to be poor.

GRAPH #6 PES BBM

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How would you rate VRL Logistics in terms of Price

INFERENCE: From the above graph, it is inferred that quite a majority of the customers were satisfied with pricing strategy offered by VRL. Hence it can be said that the service provided in respect of price is satisfactory.

TABLE #7

How would you rate VRL Logistics in terms of Staff Basis

No. of Respondents

%

Excellent

29

39

Average

32

Good

29

PES BBM

32

19

JAN-MAY2O10 Page 48


Poor

TOTAL

10

10

100

100

ANALYSIS; From the above table it is analysed that, 32% of the staff were co-operative towards the customer, 29% as good and 29% rating as excellent was given by the respondents & 10% of the respondents said there was improvement to be made in them.

GRAPH #7

How would you rate VRL Logistics in terms of Staff

PES BBM

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INFERENCE: From the above graph, it is inferred that the quality of the behaviour was average and there was an equal response as excellent and good. Hence in an overall it can be said there is a little to improve in behavioural aspects.

TABLE #8

How would you rate V.R.L Logistics in terms of Service Basis

Excellent

No. of Respondents

%

69

69

21

Good

6

Average

4

Poor

TOTAL

PES BBM

100

21

6

4

100

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ANALYSIS: From the above table it is analysed that, 69% of the respondents say that the service of VRL are excellent, 21% say it is good, 6% were average respondents and 4% respondents say it is poor.

GRAPH #8

How would you rate V.R.L Logistics in terms of Service

INFERENCE: From the above graph, it is inferred that 91% of the respondents say that the services of VRL are excellent & good. So the services provided by VRL are very good and the customers make use of VRL for its services.

PES BBM

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TABLE #9

How would you rate V.R.L Logistics in terms of Packaging Basis

Excellent

No. of Respondents

%

9

9

86

Good

5

Average

0

Poor

TOTAL

100

86

5

0

100

ANALYSIS: From the above table it is analysed that, 90% of them think it is excellent,86% of the respondents think that the packaging of VRL is good and & 5% think it is average. PES BBM

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GRAPH #9

How would you rate V.R.L Logistics in terms of Packaging

INFERENCE: From the above graph, it is inferred that most of the respondents think that the packaging is very good. Therefore the packaging of the goods is given a lot of importance at VRL.

TABLE #10

How would you rate V.R.L Logistics in terms of Handling of Goods PES BBM

JAN-MAY2O10 Page 53


Basis

Excellent

No. of Respondents

%

36

36

64

Good

0

Average

0

Poor

TOTAL

100

64

0

0

100

ANALYSIS: From the above table it is analysed that, 64% of the respondents say that the handling of goods is good and 36% of them say it is excellent.

GRAPH #10

PES BBM

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How would you rate V.R.L Logistics in terms of Handling of Goods

INFERENCE: From the above graph, it is inferred that the handling of the goods by VRL seems to be very good as of all the respondents say it’s good & excellent. VRL seems to take the utmost care of the goods.

TABLE #11

How would you rate V.R.L Logistics in terms of Vehicle Condition Basis

Excellent Good

Average

Poor PES BBM

No. of Respondents

%

23

23

69

8

0

69

8



TOTAL

100

100

ANALYSIS: From the above table it is analysed that, 69% of the respondents say that the vehicle condition of VRL is good, 23% of the respondents say its excellent & 8% say it is average.

GRAPH #11

How would you rate V.R.L Logistics in terms of Vehicle Condition

INFERENCE:

PES BBM

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From the above graph, it is inferred that more than 50% of the respondents think that the vehicle condition is good, therefore the maintenance of the vehicle by VRL seems to be very good.

TABLE #12

How would you rate V.R.L Logistics in terms of Branch and Warehouse Basis

Excellent

No. of Respondents

%

76

76

24

Good

0

Average

0

Poor

TOTAL

PES BBM

100

24

0

0

100

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ANALYSIS: From the above table it is analysed that, 76% of the respondents say that the branches and warehouses of VRL are excellent & 24% say they are good.

GRAPH #12

How would you rate V.R.L Logistics in terms of Branch and Warehouse

INFERENCE: From the above graph, it is inferred that it has excellent branches and warehouses which satisfies their customers a lot. The branches and warehouses are well maintained.

TABLE #13 PES BBM

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Are you informed about the breakdown of the Vehicle Basis Immediately After sometime

Very late

No. Of Respondents

%

21

21

32

17

Never informed

TOTAL

30

100

32

17

30

100

ANALYSIS: From the above table it is analysed that, 32% of the respondents say that they are informed about the breakdowns, 30% say they are informed after sometime, 21% say they are informed immediately and 10% say they are informed very late.

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GRAPH #13

Are you informed about the breakdown of the Vehicle

INFERENCE: From the above graph, it is inferred that the breakdown are informed to the customers quite late, there must be well connected communication with the customers.

TABLE #14

How close was the branches, warehouse, booking points and delivery spots from your place Basis

PES BBM

No. Of Respondents

%

JAN-MAY2O10 Page 60


Near

43

Close by

55

Far

2

Very Far

0

TOTAL

100

43

55

2

0

100

ANALYSIS: From the above table it is analysed that, 55% of the respondents say that the branches, warehouses, booking points and delivery spots were close by, 43% say near and 2% say they are far.

GRAPH #14

PES BBM

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How close was the branches, warehouse, booking points and delivery spots from your place

INFERENCE: From the above graph, it is inferred that the VRL branches are close to customer’s place of work. This ensures easy accessibility to the customers to the services of VRL.

TABLE #15

What do you feel about the distribution system of VRL Basis

PES BBM

No. Of Respondents

%

JAN-MAY2O10 Page 62


Strongly satisfied Neither satisfied nor dissatisfied

21 42

33

Satisfied

Dissatisfied

TOTAL

4

100

21

42

33

4

100

ANALYSIS: From the above table it is analysed that, 42% of the respondents said that they were neither satisfied nor dissatisfied, 33% were satisfied with VRL, 21% respondents are strongly satisfied and 4% dissatisfied at the VRL distribution system.

GRAPH #15

PES BBM

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What do you feel about the distribution system of VRL

INFERENCE: From the above graph, it is inferred that there was a mixed view of respondents and from the satisfaction level it is successfully interpreted that the VRL has achieved a average level of customer satisfaction.

TABLE #16

Do you expect any improvement in V.R.L Services Basis

Yes

No. Of Respondents

%

57

57

43 No

TOTAL PES BBM

100

43



ANALYSIS: From the above table it is analysed that, 57% of respondents wants improvement in the services offered by VRL Logistics and 43% expects no improvement in the end service.

GRAPH #16

Do you expect any improvement in V.R.L Services

INFERENCE:

PES BBM

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From the above graph, it is inferred that majority of the respondents wants improvement in services and the remaining others are satisfied. Therefore it can be diagnosed that there are improvement to made for V.R.L services to achieve customer satisfaction.

TABLE #17

If yes, what improvement are you looking for Basis

Delivery of goods No. of branches

Behaviour of the staff

Condition of the Vehicles

No. Of Respondents

%

27

27

2

1

4

15

Others

TOTAL

PES BBM

100

2

1

4

15

100

JAN-MAY2O10 Page 66


ANALYSIS: From the above table it is analysed that, 55% of the respondents need improvement in delivery of the goods, 31% say others, 8% wants improvement in condition of vehicle, 4% need in no. of branches and 2% in behaviour of the staff.

GRAPH #17

If yes, what improvement are you looking for

INFERENCE: From the above graph, it is inferred that the delivery of goods is not to satisfying to the respondents and there are many other improvements the customers are looking for.

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5.1 FINDINGS The findings of the study are as follows. 1. Vijayanand travels is service motive organization. 2. Some departments are not computerized but finance department is computerized. 3. Vijayanand travel maintains its day to day transaction on the books or records or kept manually that influences its business activity. 4. Communication is made through phone and internet facility. 5. It is found that organisation values their employee’s opinion & ideas and shares their information with their employer. 6. After the analysis of collected data it can be interpreted that the organisation’s culture is shaped by internal factors.

5.2 SUGGESTIONS Following suggestions should be taken into consideration in regarding to VRL Company… •

The company must improve its current service facilities.

•

The company must introduce more new buses, as present buses are not so much technologically advanced.

•

The company should introduce its services in new routes also.

•

To retain the employees by providing them incentives as to motivate and encourage for their contribution.

•

A proper blend of quality, time of work as well as inter-personal relationships should account for the appraisal system as each one of them is equally important.

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5.3 CONCLUSION Based on the overall study of the company the financial position of the company is sound. Vijayanand travels is one of the nationally renowned and transport company in south India. The company is having the very good brand image in the customers mind. And it is marketing its product under the brand name of “VRL”. The employees in Vijayanand travels are hardworking and dedicated. The company has increasing profit and net worth .Thus, company performed very nicely from its birth. All the departments play a vital role in every organization. The overall study that emerges in this firm has maintained well and efficient department in the management. It’s all sections are working efficiently. The overall capacity of all the departments is well systematic. In the course of study I have not only acquired theoretical knowledge and also practical knowledge in this firm. I conclude that all the departments functions should have modern techniques towards other departments.

5.4 LEARNING EXPERIENCE An organization study at Vijayanand travels, as an in plant training during the MBA course of Bangalore University has really enabled me to understand the organizational structure of the corporate world to an extent and the ways and means how functions. As Vijayanand travels is one of the leading industry in travel sector. This organization has a large investment and a good number of people working in it. Here, is a well established organizational structure with the top level management, middle level management, and the bottom level management.

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QUESTIONNAIRE

I

would like to introduce myself as a BBM Student PRITAM Ch. DAS of PES Institute of

Business Management, Bangalore. I am doing a project on topic “A Study on Customer Satisfaction with Reference to VRL Logistics.” This project is to be submitted to the Bangalore University for the award of Bachelor of Business Management (BBM). Hence I request you to kindly spend a few minutes in answering this:Name

:

Age

:

Sex

:

Ph. No

:

Address

:

E-mail

:

1.

2.

3.

4.

How did to come to know about V.R.L Logistics? [

] T.V

[

] Newspaper

[

] Magazines

[

] Word of mouth

[

] Others From how long you have been using V.R.L Services? [

] 0-6 months

[

] 1-2 years

[

] 2-3 years

[

] 3 years & above

What made you use V.R.L services? [

] Cost

[

] Time

[

] Quality

[

] Service

[

] Packaging

[

] Others

How often do you transport your goods by V.R.L?

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5.

[

] Everyday

[

] 2-3 days

[

] Weekly

[

] Fortnight

[

] Monthly

How was the delivery schedule of the vehicle kept up?

6.

[

] On time

[

] Before time

[

] After time

[

] Very late

How would you rate VRL logistics in terms of : -

Sl.

Basis

Excellent

Good

Average

Poor

No. 1.

Price

2.

Staff

3.

Service

4.

Packaging

5.

Handling

of

Goods 6.

Vehicle Condition

7.

Branches

&

Warehouse

7.

8.

Are you informed about the breakdown of the vehicle? [

] Immediately

[

] After sometime

[

] Very late

[

] Never informed

How close was the branch, warehouses, booking points & delivery spots from your place?

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9.

[

] Near

[

] Close by

[

] Far

[

] Very far

The details of the information provided to you were sufficient or not? [

] All the information was provided.

[

] Need some more information.

[

] Not happy with the information.

[

] Very less information was provided.

10. Do you expect any improvement in V.R.L services? [

] Yes

[

] No

11. If yes, what improvement are you looking for? [

] Delivery of good

[

] Behaviour of staff

[

]...............................

[ [

] No. of branches

] Condition Of vehicles

............................... 12. What do you feel about the distribution system of VRL? [

] Strongly satisfied

[

] Neither satisfied nor dissatisfied

[

] Dissatisfied

[

] Satisfied

13. State the service of VRL Logistics Pvt. Ltd.? [

] Excellent

[

] Good

[

] Fair

[

] Poor

BIBILOGRAPHY PES BBM

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BOOKS: Marketing management V.S.Ramaswamy Third edition Macmillan India ltd. Business Research Methods O.R Krishnaswami B.G Satyaprasad Third Edition Himalaya Publication House

WEB SITES: WWW.VRLLOGISTICS.COM SCRIBD.COM WIKIPEDIA.COM GOOGLE.COM

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project on customer satissfaction in vrl logistics

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