ContentsINTRODUCTION...................................................................................................................................3

3PL For Transportation............................................................................................................................7

Analysis of Transportation Cost..............................................................................................................8

Methodology.......................................................................................................................................8

ANALYSIS.........................................................................................................................................8

Cost Saving for Indian Railways.......................................................................................................13

3PL for Warehousing.............................................................................................................................15

Comparison of manpower cost..........................................................................................................15

3PL Tendering.......................................................................................................................................17

Table 1.....................................................................................................................................................9Table 2...................................................................................................................................................10Table 3...................................................................................................................................................10Table 4...................................................................................................................................................10Table 5...................................................................................................................................................11Table 6...................................................................................................................................................14Table 7...................................................................................................................................................14Table 8...................................................................................................................................................16Table 9...................................................................................................................................................16Table 10.................................................................................................................................................17

Figure 1..................................................................................................................................................13Figure 2..................................................................................................................................................13

INTRODUCTION

Typically, a core company providing services or products is considered the first party; the

customer, the second party. A third-party, then, is a firm hired to do that which neither the

first or second party desires to do. A third-party logistics firm is a firm that provides

outsourced or “third party” logistics services to companies for some portion or all of their

supply chain management functions. 3PL typically specializes in custom clearance, Freight

Forwarding, Warehousing, transportation services that can be customized to customer needs

and demand. By outsourcing logistics activities, organisations are able to not only

concentrate on their core business operations, but also achieve cost-efficiency and improve

delivery performance and customer satisfaction.

The 3PL market in India was under-developed and highly fragmented. However, recent

trends show that the Indian market has come of age with small family-run businesses giving

way/progressing to professional-run corporate enterprises. This refreshing change is indeed a

welcome sign for the growth, as professionalism can go a long way in building efficiencies

and reducing costs.

The principle reasons for firms using 3PL services can be attributed as under:

• Globalization of sourcing, manufacturing and distribution leading to an increase in the

complexity of material movement.

• Competition that has forced companies towards more responsiveness and a reduction in

inventories. There is an increased need for small but frequent shipments with 100 percent

reliability, requiring core competence in logistics management.

• Resource constraints that require companies to concentrate only on their core manufacturing

or new product development activities.

3PL firms can provide value-added services. 3PL firms can also contribute to supply chain

integration and performance. In addition, 3PL firms can have a critical role in linking users to

their major vendors and customers, thereby facilitating supply chain integration

Types of 3PL Providers

1. Transportation Based

Services extend beyond transportation to offer a comprehensive set of logistics

offerings.

Leveraged 3PLs use assets of other firms.

Non-leveraged 3PLs use assets belonging solely to the parent firm.

Examples: Ryder, Schneider Logistics, FedEx Logistics, UPS Logistics

2. Warehouse/Distribution Based

Many have former warehouse and/or distribution experience.

Examples: DSC Logistics, USCO, Exel, Caterpillar Logistics, IBM

3. Forwarder Base

Very independent middlemen with forwarder roles. Non-asset owners that provide

a wide range of logistics services. Examples: AEI, Kuehne & Nagle, Fritz, Circle,

C. H. Robinson, Hub Group

4. Financial Based

Provide freight payment and auditing, cost accounting and control, and tools for

monitoring, booking, tracking, tracing, and managing inventory.

Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston

5. Information Based

Significant growth and development in this category of Internet-based, business-to-

business, electronic markets for transportation and logistics services.

Examples: Transplace, Nistevo

Categories of 3 PL Providers

Standard 3PL providers: this is the most basic form of a 3PL provider. They would

perform activities such as, pick and pack, warehousing, and distribution (business) –

the most basic functions of logistics. For a majority of these firms, the 3PL function

is not their main activity.

Service developers: this type of 3PL provider will offer their customers advanced

value-added services such as: tracking and tracing, cross-docking, specific

packaging, or providing a unique security system. A solid IT foundation and a focus

on economies of scale and scope will enable this type of 3PL provider to perform

these types of tasks.

The customer adapters: this type of 3PL provider comes in at the request of the

customer and essentially takes over complete control of the company’s logistics

activities. The 3PL provider improves the logistics dramatically, but do not develop a

new service. The customer base for this kind of 3PL service is quite small.

The customer developers: this is the highest level that a 3PL provider can attain with

respect to its processes and activities. This occurs when the 3PL provider integrates

itself with the customer and takes over their entire logistics function. These providers

will have few customers, but will perform extensive and detailed tasks for them.

3PL Pyramid

The concept of 3PL has been developed from the need to extend transportation services by

transportation companies to its customers. Basically, 3PL might be defined as outsourcing of

transport and logistics activities to outside companies that are neither consignors nor

consignees. Usually there is outsourced more than one activity, including storage,

warehousing, and transportation. The PL Pyramid (8) below from 1PL to 5PL might be

described as a downstream change of functions in terms of transport/logistics services

Most small businesses buying and selling in the same location are 1PL. As the business

expands geographically, the manufacturer’s logistics border extends, a 2PL provider is

generally a commodity capacity provider, such as a trucking company or a warehouse

operator, a 2PL provides service for a single or a small number of functions in the supply

chain. They face low returns, with high levels of asset intensity but low barriers of entry.

With the increasing demand for one-stop solutions, many 2PLs have evolved into 3PLs by

adding new logistics capabilities and integrating their operations. It may or may not involve

asset ownership. 3PL is a broader term that is frequently used to cover businesses in freight

forwarding or contract logistics. It performs all or a large portion of a client’s supply chain

logistics activities and its value adding is based on information and knowledge versus a non

differentiated transportation service at the lowest cost. 3PL tends to be asset light with high

returns. The 4PL provider is essentially a logistics integrator or a one-point contact for the

manufacturer’s logistics outsourcing requirements. They are responsible for contracting

various 2PL and 3PL providers, and for assembling and managing those end-to-end solutions.

The 4PL provider, with its complete overview of the supply chain as well as strong logistics

and IT capabilities, can also offer high value added advisory services to the manufacturer.

Most 2PLs companies strive to become 3PLs for higher returns. While 3PLs do own some

assets such as key distribution centers in strategic locations or a small trucking fleet to fill

emergency needs, they may have outsourced most of their capacity needed by 2PLs.Hence

the terms 3PLs focus on logistics solutions and look for the optimal combination of assets

available from capacity providers (i.e. 2PLs), 3PLs are less asset intensive. Their logistics

management expertise makes them increasingly counter-cyclical – the worse the cycle, the

more companies need to optimize their supply chains. Moreover, the more integrated the

service of 3PLs, the closer they are to the customer’s operation. This closeness makes 3PLs

indispensable to the customer, as the 3PL provider becomes more a partner than a supplier. A

customer is more reluctant to change its 3PL provider than a 2PL. [9, 10]The services of 3PL

sometimes overlap with the 4PLs. The 4PL segment is more lucrative because these

companies charge consulting fees. Currently, 3PL companies are trying to turn themselves

into 4PL companies in providing better service satisfaction to their related customers. We can

say that 4PL is based on the development of 3PLs and as it is an extension of 3PL, it provides

value added service such as planning, information technology integration, transport planning,

order tracking and tracing, logistics consulting, application solution, and financial services.

But all these functions focus on improving a close linkage with its served customer. From the

logistics company to its consigners, as a 3PL company its task is to transport the goods from

consigner to consignee, and to be a 4PL provider, 3PLs need to find ways to build strong

relations between themselves and their customers, with the above mentioned supporting

function to reach the highest level of service efficiency i.e., 4PL is integrated logistics

management. [9, 10]There is also a new approach of logistics concept that might be defined

as 5PL. The 5PL solutions focus on providing overall logistics solutions for the entire supply

chain. Supply Chain Management (SCM) is the integration of the activities associated with

the flow and transformation of goods in the respective logistics networks through improved

supply chain relationships based on a common collaborative performance measurement

framework for attaining close, collaborative and well coordinated network relationships to

achieve a competitive edge.

3PL For Transportation When a 3PL provider is being hired, the benefits accrue from such a process is many. Some of them

are highlighted below.

i. sophisticated IT platforms, and state-of-the-art transportation networks

ii. Cost. By outsourcing logistics, organizations can reduce both fixed and variable costs as the

3PLs can leverage on their economies of scale which is sometimes not available to mid-sized

regional manufacturers.

iii. Customer satisfaction. Ideally, logistics outsourcing improves the cycle time and delivery

performance, thereby increasing customer satisfaction throughout the chain.

iv. Value-added services. Since 3PLs now offer a range of value-added services, , channel

management, after sales services, and life cycle management, organizations can benefit from

the richness of such services.

In the proceeding chapter, we have done a mathematical analysis of the cost implications while

hiring a 3PLservice provider.

Analysis of Transportation Cost

One of the benefits of having a 3PL service Provider is to have an economical transportation. To

analyse the practical scenario, we have obtained mathematically unit freight cost of 2 items procured

in railways and compared it with the lowest quoted freight charges. A graph was plotted to ascertain

the rate comparison.

MethodologyStep 1: Analyse the tabulation sheet of the item and obtain the freight per unit quoted.

Step 2: Obtain the per MT rate for transporting the material by truck.

Step 3: Obtain the per Kg rate from the rate obtained above.

Step 4: Obtain the per unit weight of the item. (This was determined by weighing the item in a depot)

Step 5: Calculate the unit freight rate by multiplying Value obtained in step 3 and 4.

Step 6: Compare the estimated cost and quoted rate.

Step 7: Repeat steps 1 to 6 for Item 2.

Step 8: Plot separate graph indicating the variation in prices for both items.

ANALYSISItem 1: NON ASBESTOES BASED K TYPE HIGH FRICTION COMPOSITE BRAKE BLOCK

(PL No: 30316121)

Step 1: Analysing the Tabulation Sheet of the item in various Railways the following is obtained.

Name of the bidder: DAULAT RAM BRAKE MANUFACTURING COMPANY, BHOPAL

Table 1 Freight rate quoted for Brake Block per Unit for various Consignees

Consigne

e

Unit

Freight

Rate Unit Cost

CNB 10 307

JHS 10 307

BZA 10 305

BPL 3 312

BBQ 12 312

QLN 12 312

Step 2&3: The Following rates per Metric Tonnes for the various consignees was obtained from

commercial transporter company.

Table 2 Freight rate of commercial transporter for various consignee

Consignee

Per MT

rate

Per kg

Rate

GOC 5167.8 5.168

Chennai 4289.1 4.289

Kollam 6133.5 6.134

JHS 983.1 0.983

CNB 1687.8 1.688

BPL 2.9 0.003

BZA 3265.4 3.265

Step 4: One Brake Block weighed 2.5Kgs

Step 5: Unit Freight Rate = 2.5*per Kg rate for each Consignee (Obtained in Step 3)

Table 3 Unit Rate as per Commercial Rate

Consignee Unit Rate

GOC 12.9195

Chennai 10.72275

Kollam 15.33375

JHS 2.45775

CNB 4.2195

BPL 0.00725

BZA 8.1635

Step 6:

Table 4 Comparison of quoted and estimated Freight Cost for Brake Block

Consignee Unit Rate

Quoted Unit

Rate

GOC 12.9195 12

Chennai 10.72275 12

Kollam 15.33375 12

JHS 2.45775 10

CNB 4.2195 10

BPL 0.00725 3

BZA 8.1635 10

Step 7: The above 6 steps were done for Item 2 (Coupler Body with shank wear plate).

Name of the Bidder: SIENNA ENGG PVT LTD, INDORE

Table 5 Comaprison of Estimated and Quoted Rate for Coupler Body with Shank Wear Plate

Consignee

Per MT

rate

Per kg

Rate Unit Rate

Quoted

Unit

Rate

GOC 6316.2 6.3162 1263.24 1200

PER 6324.9 6.3249 1264.98 1200

AJNI 1322.4 1.3224 264.48 500

PAREL 1690.7 1.6907 338.14 500

BRCY 1006.3 1.0063 201.26 500

BL 1006.3 1.0063 201.26 500

PRTN 1006.3 1.0063 201.26 500

Step 8: Bar Graphs were plotted for the values obtained in step 6 and 7.

GOC

Chennai

Kollam JHSCNB BPL

BZA0

2

4

6

8

10

12

14

16

18Unit Freight Cost of BREAK BLOCK

Quoted Rate per UnitCommercial Rate per Unit

Depot

Unit

Rate

Figure 1 Comparison of quoted and estimated Freight Cost for Brake Block

GOC PER AJNI PAREL BRCY BL PRTN0

200

400

600

800

1000

1200

1400

Unit Rate of Coupler Body with shank wear plate

SIENNA ENGG INDORECOMMERCIAL RATE

Depot

Unit

Rate

Figure 2 Comaprison of Estimated and Quoted Rate for Coupler Body with Shank Wear Plate

Inferences

On analysing the above two it is clear that the rate quoted for unit freight is lesser than the

estimated cost for Southern Railway

For Central, Western and South Central the quoted rate is very high.

It is clearly evident that in addition to the benefits promised by 3PL like saving of time, better

tracking etc., there will be a considerable saving of money in transportation cost as well. This can

help us efficiently utilise the public money.

Cost Saving for Indian Railways

Item 1:

Table 6 Estimation of Proft for Railways in Total Purchase if 3PL is implemented for Brake Block

LOCATIONQuoted Unit Freight Cost

Estimated Unit rate (Pvt

Transporter) % Profit

All Inclusive

Unit Rate

% of Freight

FORMULA A B (A-B)/A C A/CGOC 12 12.9195 -7.66% 312 3.85%

Chennai 12 10.72275 10.64% 312 3.85%Kollam 12 15.33375 -27.78% 312 3.85%

JHS 10 2.45775 75.42% 307 3.26%CNB 10 4.2195 57.81% 307 3.26%BPL 3 0.00725 99.76% 312 0.96%BZA 10 8.1635 18.37% 305 3.28%

AVERAGE 32.36% 3.18%

Total Profit = 32.36% of 3.18%=1.03% of Purchase Value

Item 2:

Table 7 Estimation of Proft for Railways in Total Purchase if 3PL is implemented for Coupler Body

LOCATIONQuoted Unit Freight

Cost

Estimated Unit rate

(Pvt Transporter

) % Profit

All Inclusive Unit Rate % of Freight

FORMULA A B (A-B)/A C A/CGOC 1200 1263.24 -5.27% 23070 5.20%PER 1200 1264.98 -5.42% 23070 5.20%AJNI 500 264.48 47.10% 17,547.82 2.85%

PAREL 500 338.14 32.37% 17,547.82 2.85%BRCY 500 201.26 59.75% 19400 2.58%

BL 500 201.26 59.75% 19400 2.58%PRTN 500 201.26 59.75% 19400 2.58%

AVERAGE 35.43% 3.40%

Total Profit = 35.43% of 3.40% =1.20% of Purchase Value

On analysing the above two we can see that there is a minimum profit of approximately 1% in

total purchase value for Indian Railways if we hire a 3PL service Provider. On extrapolating the

same to the total purchase of Indian Railways (Rs 35,000 Crore) we can save approximately

Rs.350 Crores.

3PL for Warehousing

In order to analyse the 3PL services rendered in Warehousing, a firm visit was conducted to BOSCH,

Bangalore. The company has established its warehouse in Nellamangala in Bangalore to cater to the

need of the various manufacturing units of BOSCH in Bangalore. The assets were owned by Bosch

itself. The Operations and the manpower of the warehouse were outsourced to Menlo Worldwide

Logistics. On the basis of interaction with the officials and warehouse manager regarding comparison

of the warehouse and a depot managed by railways , the following conclusions can be obtained.

Table 8 Comparison of Warehousing activity done by Railways and a Private firm Hiring a 3PL

3PL Railways

Assets Owned By Parent Company Owned by Parent Company

Manpower Outsourced Railway Employees

Handling Equipment Owned by 3PL company or

Parent Company

Owned by Railway

Stacking & Storing Clean and properly Maintained Scope for improvement

Vertical Stocking Properly utilised Used only in Pus

IT Enabled Book Keeping Completely digitalised MMIS used. Still Book keeping

is being followed

Approachability Excellent Certain wards are located at far

from the point of unloading

Comparison of manpower costThe staff strength and their respective salary of DLS Ernakulam are as shown below:

Stocking Area: 10000 sqft of storage area.

Items Stocked: 882

Table 9 Estimation of Total Salary of employees in DLS,ERS

Designation Working Salary (Approx) in Rs

AMM 1 45000

CDMS 2 30000*2=60000

Chief OS 2 30000*2=60000

OS 4 26000*4=104000

Sr. Clerk 2 18000*2=36000

Khalasi 3 14000*3=42000

Sr. Store Khalasi 1 14000

Total 3,61,000

In case the same depot is to be managed by a 3PL provider, the following staff strength is to be

deployed in single shift.

Table 10 Estimation of Salary of employees to be deployed if DLS,ERS has to be operated by a 3PL

Designation Working Salary (Approx) in Rs

Warehouse Manager 1 30000

Sr. Supervisor 2 20000*2=40000

Supervisor 2 15000*2=30000

Data Entry Clerk 2 12000*2=24000

Loading/Unloading/Movement 6 10000*6=60000

Total 1,84,000

The above analysis shows that it is profitable to outsource depot activities to a 3PL. However, we

already are having a heavy employee strength which cannot be redeployed elsewhere. Hence, for the

time being 3PL in warehousing is not feasible in Indian Railways.

3PL Tendering

Generally in 3PL a two bid tendering process is used i.e. Technical Bid and Financial Bid. While

inviting the tender the following has to be specified.

i. Scope of work

ii. Estimated Qty.

iii. Estimated Cost

iv. Execution Period

v. EMD

vi. Minimum eligibility criteria

a. Total contract amount received during the last three financial years and in the current

financial year should be a minimum of 150 % of advertised value of work.

b. The tenderer should have physically completed in the last three financial years ( i.e.

current year and three previous financial years) atleast one similar single work for a

minimum value of 35% of advertised tender value.

c. Service provider should be registered - member of IBA or Bank approved

transporter.

vii. . Validity offer Tender Selling office

viii. Tender Sale deadline.

ix. Tender Closing Time

x. Tender opening

xi. Date of Pre-bid meeting

xii. Cost of Tender

The tender document should also have the following essential instructions.

i. Scope, Nature and Estimate of work: Includes providing and maintaining web based interface

where authorized indenter can place their indent for transportation of material from one

destination to another through common portal which is also integrated with central railway

materials management MMIS, material transportation will be from a) Depot Transfers & to

RWF Bangalore(axle wheel & bogie items) ; b) depots/divisions to end users.; c) Inter depot

sale ; d) and imported consignment arriving at Port to various locations on Indian Railway. e)

Web portal will show the freight charges between the two locations.

ii. Type of materials to be transported.

iii. Conditions of loading and unloading

iv. A rough estimate of the qty. (this is only an approximation & does not bind Railway in any

way) to be transported during contracted

v. The unit of rates to be quoted eg: ________Rs. per Metric tonne per Km. The minimum

chargeable weight can also be mentioned.

vi. Permissible transit time:

a. The transit time shall be calculated from the day when indent is placed on common

portal with reference to a specified time.

b. The penalty of x % of freight value per day (one unit is minimum chargeable rate or

its part) shall be imposed for delays without sufficient cause, beyond the permissible

transit time laid down in above.

vii. Requirement of vehicles :

a. Since consolidation is to be done by service provider size of vehicle should be as

deem necessary by him without violating any rules.

b. In case of materials which are bulky or voluminous in nature, the vehicle may get

loaded with less than the carrying capacity but payment will be as per indent placed.

c. The records maintained at the consignor depot with regard to the chargeable weight

for payment shall be taken as final and conclusive in the matter.

viii. Indenting of vehicles and detention charges:

a. Indent for vehicle of the required capacity shall be made by the gazetted/designated

officer of consignor through common portal provided by 3PL provider.

b. One day shall imply one working day.

c. Normally the vehicles shall not be desired for Sundays or holidays. However, in

extraordinary circumstances, Railway reserves the discretionary right to, indent the

vehicles on Sundays or holidays also and the transporter shall provide no alibi (vague

reasons) for non-provisioning of the vehicles.

d. Detention charges, in case if the trucks/trailers are detained for more than 24 Hrs. at

loading/unloading point. If the trucks/trailers are detained due to failure of

transporter, no detention charges will be paid. If the vehicle reaches destination on

Sunday/holiday same shall be placed in the depot for unloading on the next working

day. Detention charges on this account are not payable.

ix. Validity of offer

x. Earnest Money Deposit (EMD)

xi. Security Deposit

Security Deposit (SD): SD equivalent to certain percentage of the transport contract value

shall be collected to ensure they undertake the contract. This should include validity of SD.

xii. Eligibility Criteria

a. Similar work

b. Service provider should have all India network and holding of minimum 20 trucks.

c. Relevant Rules and Regulations of concerned State Road Transport Authorities shall

be complied with by the Transporter

d. Auto Tempo / Trucks owned by the applicant along with their make and registration

number and copy of the national permits.

e. Name of the regular client along with copy of their contract.

f. Name of Govt. Semi Govt./Public undertaking for which the applicant has handled

transport during last 3 years.

g. Performance Certificate, if any.

h. Necessary documents such as Pollution under Control, Vehicle Insurance etc. and

should also comply with any other legal compliance required in Mumbai or transit

and destination City/States.

xiii. The driver provided with the Auto tempo / truck must possess the requisite valid Driving

License and should not be legally barred from driving

xiv. Price variation clause, if any

xv. Special conditions governing the centralised transport contract for railway materials

The Special Conditions governing the centralized transport contract for Railway materials

will be in addition to the General Conditions of Contract (GCC). However, where the Special

Conditions contradict the GCC, the former shall prevail.

xvi. Performance Guarantee (PG) :

PG for due and proper performance of the transport contract equivalent to certain

percentage of the value of the transport contract should be included.

xvii. Procedure of bills

Detailed procedure for claiming the bill and in how many copies each form should be made

must be included in the instruction to avoid ambiguity in handling the payment and for

necessary book keeping.

xviii. Claims

The liability of the transporter shall be mentioned to ensure smooth handling in cases of theft,

shortage, damages etc.

xix. Arbitration

The various conditions in arbitration shall be properly laid out so that the service provider

recourse in case of any contestation shall be in accordance with the clauses mentioned

therewith.

Logistic model of E-bay

POWERSHIP PROGRAMME:

PowerShip is eBay India’s intermediated Shipping program. To enable PowerShip as a

service, sellers are required to complete one time registration and activation for each seller

account on eBay.in. Once activated, all sellers are required to do is package the item in eBay

packing material and hand over the package to the assigned Logistic Service Provider at the

time of Pick-up. PowerShip is fully integrated with PaisaPay and allows sellers to view

PowerShip assigned orders, assigned Logistics Service Provider and print labels online.

PowerShip includes Air mode, enabling quicker delivery of items to Buyers, Surface mode to

manage volumetric and large size shipments and enhanced Cash On Delivery enabled

through BlueDart in addition to Aramex for buyers who wish to pay for items on delivery.

Step 1 – Seller sign-up for PowerShip by accepting the Terms & Conditions of the

PowerShip Program. Once enabled, Seller will be able to offer PowerShip on either all his

listings or just for certain listings. He will also be able to offer items through Cash On

Delivery.

Step 2 – During checkout eBay will verify the PIN code serviceability and consequently

allocate a Logistic Service Provider to service the order.

Step 3 – The transaction will appear in your PaisaPay account. PowerShip transaction will

indicate the Logistic Service Provider assigned. When the package is ready to be delivered,

Seller click on ‘Mark Ready to Ship’. This will intimate the Logistic Service Provider to pick

the item from the address indicated in the Registration section of Seller eBay account.

Step 4 – eBay will coordinate with the Logistic Service Provider to track the item. During

pickup, LP will review the documents Seller need to provide which includes – Order

Statement, Invoice, Declaration letter and Manifest. He may be required to provide 3 copies

of invoice. Seller ensure collecting a counter signed Manifest from the personnel after

submitting his consignments.

Step 5 – Item will be scanned and weighed at the LP branch and this information will be

updated to Seller My PaisaPay account the following morning. Sellers will no longer be

required to manually enter the AWB number in their account.

Step 6 – The consignment will be scanned using the barcoded AWB number and dispatched.

The order will be moved to ‘PowerShip Shipped’ Status on My PaisaPay. Buyers will receive

an SMS indicating that the item is shipped.

Step 7 – Consignment tracking will be automatically updated on eBay until Delivery. Upon

Delivery and after further checks, remittance will be released to you. Sellers under ER will

receive their remittance after the item is picked up and scanned.

PowerShip Rate for Sellers

ASP (Rs.) LocalNon Local Metro / Rest

of India

250 gms (Prepaid) 0 to 500Rs.

34Rs. 38

500 gms (Prepaid &

COD)0 to 500

Rs.

35Rs. 47

500 to 1000 Rs.

40

Rs. 49

1K to 10KRs.

40Rs. 55

Pricing per KG

10K to 25KRs.

49Rs. 60

>25KRs.

73Rs. 117

SurfacePer KG, minimum chargeable

weight of 5 KG

Rs.

16Rs. 19

.

eBay Seller Protection for Lost / Damaged items during transit:

Lost In Transit - 100% for items shipped through PowerShip.

Damaged in Transit - All damaged in transit claims is investigated by eBay and Logistics

Service Provider before a claim is settled.

Advantages

Great rates from top LSPs companies in India and hence building loyalty with

consumers through a consistent experience

Provision of eBay branded packing bags and tapes

Automated and accurate shipping and tracking information through predetermined

AWBs from LSPs

Reducing item transit times to buyers resulting in a delightful shopping experience on

eBay.

No commitment on volume / number of shipments to LSPs

Most trusted services from LSPs

Shipping fees debited from PaisaPay balance before remittance

Dedicated Customer Service for PowerShip

All in all, a great peace of mind and ease of managing business!

Important feature:

Blue dart, FedEx, Aramex and DotZot (DTDC) enabled on PowerShip. Assigned

LSPs are responsible in providing services to sellers and buyers through shipping

process.

Once PowerShip is enabled, existing LSP personnel to collect eBay PowerShip

packages.

Sellers are required to provide required Shipping documents at the time of pickup

including Invoice, forms as required by the buyer state, Shipping manifest, label etc.

Labels and declaration printed from My PaisaPay panel contain estimated weights.

Actual weight charged will be as per LSP weighing process.

eBay provided packing material to be used only for PowerShip transactions and one

bag per transaction / item shipped. Use of multiple bags for one package is not

allowed

Packing material supply to be provided once a month and basis sellers preference

Liquids / Deos and similar volatile substances are restricted on PowerShip due to LSP

limitations.

How does the weight process work?

After the packages are collected, LSPs are required to weigh the packages as relevant and

sometime use the ebay provided estimated shipping weight. Sellers are charged basis the

weight of the package, actual or volumetric whichever is higher, and the destination city /

region.

Proposed model for Indian railways

Today, successful companies rely on the skills of supply chain management professionals to

keep their goods and services flowing to the marketplace quickly, efficiently, and as cost-

effective as possible. Supply chain management includes all the activities a business employs

to keep its products flowing, from sourcing raw materials, to delivering finished goods at the

point of purchase.  The project group has studied mainly the logistic system providers and its

application in present system. It has been studied the concept of 3PL system, presently used

by e-commerce stores, for providing a wide rage of product to its customers with very fast

and efficient mode of transportation with real time traceability. The proposed model is

based on e-bay logistic service. This project idea can help railways to control expenditure

involved in bulk material movement which further improve the overall supply chain of

railways.

Implementation of 3PL system:

It is proposed that it can be implemented by outsourcing logistics activities to the 3PL service

providers for receiving of material from supplier and inter depot transfer or inter railway

transfer of material. By outsourcing logistics activities, organisations are able to not only

concentrate on our core business operations, but also achieve cost-efficiency and improve

delivery performance and customer satisfaction. The 3PL market in India was under-

developed but recent trend shows that 3PL industry is experiencing a rapid growth after year

2000 due to the liberalization of policy and opening up of Trade. The number of participants

in this industry had grown to be more than 1200 by year 2010 so we can find a good

competition amongst 3pl service provider.

This system of materials logistic management by 3PL can be escalated for materials

collection from vendors and distribution to various consignee in zonal railways.the proposed

system can be implemented as follows:

1. It is crucial to select the right 3PL partner that can meet our particular requirements so best

suitable 3PL provider shall be chosen through open competition. It should provide web based

integrated logistic support and service provider.

2. 3PL provider should provide and maintain web based interface where authorized indenter

can place their indent for transportation of material from one destination to another through

common portal which is also integrated with MMIS, material transportation will be from

a) Depot to depot

b) depots/divisions to end users .;

c) from supplier’s various locations to various depots of indian railways, including in transit

trekking of consignment;

d) and imported consignment to various locations on Indian Railway.

Detailed tender document will be prepared as per our requirements .

3. 3 PL provider web based program should also be integrated with IMMIS of indian

railways.

4. After setting up the web based system purchase order can be processed as follow

Step 1: Source purchaser place purchase order on supplier and one copy is sent to

3PL service provider.

Step 2: On receipt of PO supplier will acknowledge on 3PL web based programme so

that 3PL provider can inform their nearest logistic partner to arrange the vehicle to

service the order.

Step 3: When the material consignment is ready supplier shall change the status of

material to “ready to dispatch”. Then assigned logistic provider will collect the

material from supplier doorstep. supplier will provide the dispatch documents.

Step 4: Since Web based programme is linked with IMMIS so the movement of

consignment can be seen throughout the railway.

Step 5: The consignment will be scanned and weighed at the logistic provider branch

and this information will be updated to web based programme.

Step 6: The consignment will be scanned using the barcoded waybill number and

dispatched. The order status will be changed to “ Consignment dispatched”.

Step 7: Consignment tracking will be automatically updated on web based

programme as well as MMIS until Delivery. When the material is delivered to

consignee the cycle completes and status updated as “Consignment delivered”.

 

5. Liability insurance of the material should also be given to 3PL provider and get quotation

on insuring goods from supplier’s door to final consignee door.

6. we should implement a feedback program to insure that our system is happy with the

3PL’s service via a questionnaire. Someone has to be responsible for managing this

feedback program and feed this information back to the 3PL.

7. It is also proposed to integrate the IPAS (accounting information management

system) through MMIS link of 3PL service so that bills of supplier and 3PL provider

can be processed online. It will reduce paper use and become environment friendly .

Flow chart of 3PL proposed system

1. purchaser place PO on supplier

2. one copy of PO is sent to 3PL so that they can arrange vehicle for transportation in that

area.

when material is ready supplier marks the order as "Ready to

ship".

3PL coordinate with their local transporter to pickup the material. LP collects the material from supplier premises.

Local transporter confirms pickup with

3PL through direct integration.

material delivered at consignee and tracked end to end on 3PL web

system as well as MMIS.

payment will be done by railway account

deptt.web based program of

3pl