The document provides an overview of the logistics industry. It discusses key concepts in logistics like order processing, inventory management, transportation, and warehousing. It then performs a PESTLE analysis to examine the political, economic, social, technological, legal and environmental factors affecting the industry. Three major companies are profiled - FedEx, GATI and Allcargo Logistics. Their business models and financials are analyzed. Finally, SWOT analyses are presented for each company to identify their strengths, weaknesses, opportunities and threats.

1. Logistics
Industry
Presented by:
Anubhav tiwari (07)
Ajit thakur (04)
Pratik louhar (41)
Jignesh kuhada (24)
Deepak soni (11)

2. Flow of presentation
Logistics
Industry
Introduction
PESTLE
Analysis
7 P’s of
Marketing
Mix
Companies
Financials
SWOT
Analysis

3. What is Logistics..?
• Order Processing
• Inventory Management
• Transportations
• Warehousing, Storage, Material
Handling, Packaging
• Facilitate Network Design
• Information and Inventory Flow
Work of
Logistics
Design,
Administer
and
Control the
systems
Movement
and Global
Positioning
Raw
materials,
Work-in-
progress,
Finished
Goods
Logistics

5. Political
• Implementation of Tax Reforms in different
countries
• Variation in commodity prices due to
political reasons, fuel prices variations, oil
rates.
• Political inferences and instabilities.
• GST

6. Economical
• Relationships between variable economic
factors and transportation costs
• Fluctuation in commodity prices.
• Economic growth rates, Manufacturing
sectors, Industrial Environment.
• Commodity rates in Different geographical
regions.

7. Social
• Social impacts:
• Purchasing
• Discrimination for minority suppliers
• Labour use
• Transportation
• Social issues with drivers
• Warehousing

8. Technological
• Development of Common and Consistent
Database Systems, ERPs
• Adaptation to technological Advancements
• Real Time Data management, Trackers, Dish
Antenna.
• Information flow process

9. Legal
• Price Discrimination
• Compliance of Legal Documentation and
Contractual Obligations.
• Dealing with Issues of goods which are restricted
in different countries.
• Merger and Acquisition Regulations

10. Environmental
• Transportation via heavy load vehicle
affects Air Quality, Create Noise, Global
Warming effects
• CO2 emissions during transportations,
warehousing and material handling
• Combined effects of Logistics firms
globally.
• Oil spills: Impacts on the ocean lives.
• Introducing Eco-friendly vehicles
• Paper less Systems for mode of
transportation

11. Company Introduction

12.  TYPE : Public
 INDUSTRY : Courier (logistics)
 FOUNDED : 1971
 KEY PEOPLE : Frederick W. Smith (CEO
, Chairman)
 Headquarters : Memphis, U.S.
 Employees : 4,00,000 (2016)
 Revenue :US$47.453 Billion (2015)
 Tagline : “The world of time”

13.  INDUSTRY : Courier (logistics)
 FOUNDED : 1989
 HEADQUATER : Singapore
EMPLOYEES : 3500
 KEY PEOPLE : Mr. Mahendra
Agarwal,( MD & CEO),
 PARENT INDUSTRY : Gati Coast to Coast
(GCTC)
 Revenue : Rs. 485.64 crore
 Tagline : “Ahead in reach”

14.  INDUSTRY : Logistics and
transportation
 FOUNDED : 1993
 KEY PEOPLE : Shashi kiran Shetty
 Employees : 12000
 Revenue : USD 900 Million.
 Headquarters: Mumbai
 Tagline : “Geography simplified”

15. Marketing
Mix
Product
Price
Place
Promotion
People
Process
Physical
Evidence

16. GATI FedEx All cargo logistics
ltd.
Products
.
 Global Shipping and
Freight
 Air, Water, Road, Critical
Freight
 Customs Brokerage
Package Shipments
 Logistics solutions
 Supply chain services
 Global Shipping and
Freight
 Export and Import
Shipping, Global
Returns
 Globally Heavyweight
Shipments
 Domestic Shipping
 Custom Clearance
Solution Expertise
 NVOCC(non- Vessel
Operating Carrier)
 Project and engineering
solutions
 E- commerce logistics
 Coastal shipping
 Contract logistics
Price  Industry wise Discount
Pricing
 Premium Pricing for
Specialised Products
 Low Pricing
 Competitive Pricing
 Premium Pricing
 Seasonal Pricing
 Student Offers
 Professionals Offers
 Premium Pricing
 Varied Pricing in
Different countries as
per Weight and
Distance
Place  Head office: Singapore
 Offices In more than 60
countries
 Approaching more than
200 countries
 Across 672 district in
India
 Head office:
Memphis(U.S.)
 Approaching more than
220 countries
 Across all the
metropolitan cities and
one tier and two tier
cities
 Head office: Mumbai
 Offices: 30 offices in
India
 Approaching across 90
countries of the globe

17. GATI FedEx All cargo logistics
ltd.
Promotion  Promoting events
 CSR activity
 Outdoor Advertising
 Hording
 Money Back Guarantee
 Sports Sponsorships
 FedEx Branding
 Television Advertising
 Hording
 All cargo logistics packaging
 Sports Sponsorships
 CSR activity
 Hording
People  More than 8000 employees  More than 400000  More than 12000 employees
Process  Average express transit
time: 17 hours 51 minutes
 Door to Door Collection and
Drop off services
 Real Time Tracking
 Average Express Transit
time: 17 hours 21 minutes
 Tie ups with Local Delivery
Firms
 Door to Door Collection
and Drop off services
 Real Time Tracking
 43000 shipments a day
 Door to Door Collection and
Drop off
 Real Time Tracking
Physical Evidence
.
 Brand logo on Airlines
 Brand logo on Containers
 Brand logo on Employee
Uniforms
 Brandi logo on Vehicles
 Brand logo on throughout
the stores
 Brand logo on Air fleets
 Brand logo on Cargos
 Brand logo on Employee
Uniforms
 Brand logo on Vehicles
 Brand logo on Cargos
 Brand logo on Packaging
Materials
 Brand logo on vehicles

18. The current ratio is a liquidity ratio that
measures a company's ability to pay short-
term.
Current Ratio
Ideal ratio = 2:1
Current Ratio = Current Assets / Current Liabilities

19. 1.82 1.84
1.5
0.87
1.48
1.24
1.33
1.06
3
0
0.38
0.5
0
1
2
3
4
5
6
7
2014 2015 2016
Fed Ex Allcargo GATI OVERALL INDUSTRIES
Current Ratio

20. The Asset Turnover ratio can often be used as an indicator
of the efficiency with which a company is deploying its
assets in generating revenue.
Assets Turnover Ratio
FORMULA:-
Asset Turnover = Sales or Revenues / Total Asset

21. 1.38 1.28
1.09
0.7 0.78
0.82
0.27 0.52
3
0
0.5
1
1.5
2
2.5
3
3.5
2014 2015 2016
Fed Ex Allcargo GATI Overall industries
Assets Turnover Ratio

22. FORMULA:-
Interest Coverage=EBIT/Interest Expense
Interest Coverage ratio
The interest coverage ratio is a debt ratio and profitability
ratio used to determine how easily a company can pay
interest on outstanding debt.

23. 21.56
7.92
9.15
3.46 4.3
6.88
3.74 3.06 2.27
18.31
13.8
0
5
10
15
20
25
2014 2015 2016
Fed Ex Allcargo GATI Overall Industries
Interest coverage ratio

24. Debt-Equity ratio
The D/E ratio indicates how much debt a company is using to
finance its assets relative to the amount of value represented in
shareholders’ equity.
FORMULA:-
Debt-Equity Ratio= Total Liabilities / Shareholders' Equity

25. 0.31
0.48
1.01
0.06 0.18
0.15
0.29
0.39 0.4
0
0.2
0.4
0.6
0.8
1
1.2
2014 2015 2016
Fed Ex Allcargo GATI Overall Industries
Debt-Equity ratio

27. SWOT Analysis : Fed Ex
Positive Negative
Strengths
• Global network more than 200
countries.
•High investment in IT. First company
to introduce using www.tracking
products in transit.
•Large market share in airborne
services, three decades experience
in logistics.
Weakness
•More depended on US market.
•Rising fuel prices.
•World expansion is weak compare to
competitors.
•Many companies cannot incorporate
their software.
Opportunity
• Increases number of world wide
hub.
•Larger variety of shipping services.
•Challenging competitors with
merger or acquisition.
•Rapid Growth of logistic market.
threats
•Varying market demand.
•Rising fuel prices.
•Increases in competitors.
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28. SWOT Analysis : GATI
Positive Negative
Strengths
•Dominant player in the cargo
segment in India more tan 55%
market share.
•Hi-tech warehouses and distribution
infrastructure.
•Advanced it solutions to backup its
services.
•It provide multi modal connectivity.
Weakness
•Insufficient regional and global
presence.
•Neglecting courier segment.
Opportunity
•Expanding economy, WTO
agreements.
•Improved infrastructure.
•Entry of large global retailers
•Increases in investment, booming
manufacturing provides business
potential to express industry.
threats
•Global competitors.
•Direct competitions with unorganized
sectors.
•Space limitations.
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29. SWOT Analysis : ALL CARGO LOGISTICS
LTD
Positive Negative
Strengths
•2nd rank industry in India.
•Scale of operations across 62
countries and 400 ports.
•Robust distribution network.
•Superior performance and
innovative.
Weakness
•Strong dependency on weak
infrastructure .
•Taxes policies in India.
•Lack of adoption of new technology
compare with foreign competitors.
Opportunity
•To start 3PL its give more strong to
the company.
•Company utilize their fund to
expansions.
•Diversify new product portfolio to
enter in new service provided.
threats
•Competitors like DHL,TNT,UPS,BLUE
DART.
•Government t rules and regulations .
•Restriction on export and import
procedure.
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