CASE STUDYGATI LIMITED : EVOLUTION OF A THIRD PARTY

Introduction• Gati Limited is India’s leader and pioneer in Express

Distribution and Supply Chain Solutions, committed to make their customers’ business always ‘Ahead in Reach’ while partnering with them to elegantly customize the delivery offering.

• Pioneering Express Distribution services in India, since 1989, Gati has transformed the logistic industry in India with many a path breaking revolutionary initiatives that paved the way to an organized logistic industry.

• With an annual turnover of Rs 12094 Million, Gati today offers an integrated Express Distribution and customized Supply Chain Solutions to customers across diverse industry verticals.

• Gati's advantage of seamless connectivity across air, road, ocean and rail has resulted in a plethora of offerings to the customers, unmatched in the industry.

• Gati operates a fleet of 4000 vehicles on road, 3 marine vessels and over 7000 plus business partners across India.

• A market leader in India, Gati has a strong market presence in the Asia Pacific region and SAARC countries.

• Today, Gati has offices in China, Singapore, Hong Kong, Thailand, Nepal and has plans to foray into other markets.

Evolution• 1989-1995• New concept of Door to Door service. A Money Back Guarantee was given in

case of delay in delivering shipments.• Cash-On-Delivery (COD) - Gati started a unique value-added service called

Cash-On-Delivery (COD).• Call Free Number - Gati was the first in the logistics industry in India to

introduce the concept of a Call Free Number.

• 1996-1998• Tied-up with Indian Airlines to facilitate speedier delivery of shipments. 1996• Introduced the concept of 3rd party logistics (3PL) 1997• First Logistics Company in India to be awarded ISO 9001 Certification. 1998• Launched courier service - Suvidha, which was later called as IC Zipp

Courier.1998

• 1999-2005• Gati International - Gati expanded to SAARC countries through tie-ups

with the postal departments of Bhutan and Maldives. 1999• Gati Millennium Parcel Express - Gati launched the first exclusive Cargo

Train between Mumbai and Kolkata in association with Indian Railways. 2001

• Gati@web: Internal processes were simplified and moved to Oracle platform. 2003

• Launched India-centric distribution solutions. Forayed into Singapore, the international business hub. 2003

• Migrated the operations to the first of its kind web-based solution –GEMS (Gati Enterprise Management System) 2003

• Introduced mechanized racking systems in the automated warehouse at Panvel, Maharashtra. 2004

• Introduced State-of-the-art Mechantronic Warehouses with APL racking and modern handling equipment in major cities across India. 2005

• 2006-2012• Strategic alliance with China Railway Express International Logistics

Co. Ltd. 2007• Introduced VTS (Vehicle Tracking System) 2007• Launched a joint Courier and Air Cargo Service with Air India.

2007• Strategic Alliance with GLS (General Logistics Systems) Europe's

Parcel Leader.• Launched Gati Europe Express. 2008• Launched Gati Redsun, Supply Chain Division – Gati's first

stepforward for becoming a knowledge company and an integrated Supply Chain Solutions provider. 2010

• Launched Gati venturing in E-Commerce – 'makemygiftz.com', Gati's new web service to offer its customer a complete e-commerce platform linked to a physical distribution network. 2010

Gati Express Distribution

Distribution Network

Gati RedSun Supply Chain Solution

Gati RedSun Cold Chain Solution

Gati International Solution

Gati Ships

Alliances

Railway• 3 Year Contract• Each train Rs.10 Lakh• Delhi-Madras – Best Route Problems• No Return Load• Fixed Payment• Collection not equal to

Commitment• Delayed Shipments• Reduced Traffic

Airlines• Tie up with Indian Airlines• 300Tonnes/Day• Economies Of Scale• Self – Owned Operations• Fleet flexibility

Reorganization in 2003

• The consequences of restructuring were deep and felt across the organization. Some of the most important issues are captured here.

• Earlier, Gati was a corporate office-driven organization. Now every division and zone was expected to set its targets (in consultation with the corporate office). The zones should manage their funds. The zones can resolve structural issues, modify procedures, refund customer (Claim) settlement, and damages. Virtually, they are independent, subject to broad policy issues.

• Earlier, divisions were based on geographical delivery, Now they are based on

activity and its intensity. The old system was driven by close supervision. The new system is driven by performance measures and empowerment, Responsibilities have been redefined and refocused, and reporting relationships have changed.

Gati Online Initiative• conceptualized in 2000• objective was to develop a web-enabled information technology platform

to support operations.• project which was named Gati@web. The project comprised three

different components: I. GEMS was the main application which was to be custom built covering all

activities of Gati.II. Oracle Financials for financial reportingIII. CRM for the contact centres.• GEMS generated a summary report (DBR (daily business report) of all

transactions carried out during the 24-hour cycle at more than 300 Gati 10caUons.

• Oracle Financials was used for balance sheet purposes, and the contact centre modules of CRM were used at various call centres of Gati.

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