Gati Limited (CaseAnalysis)

8/14/2019 Gati Limited (CaseAnalysis)

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Gati Limited :At the Threshold of a Big

Leap


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Gati L imited At the Threshold of a Big Leap

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Gati Limited Leaders in express cargo movement

Pioneer in distribution and supply chain management

Services provided

Point

to

point transportation to complex end

to

end transportation. Supply chain management

Services are

Cost efficient and flexible

Operates in three types of business segment viz.

Logistics 70

Shipping 7

Fuel Stations 23


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Vast network of office and franchisees

5 Zonal Offices, 61 Express Centers, 109 Depots, 160 Franchisees, 54Customer Convenience Centers, 20 Surface Transit Centers, 19 AirTransit Centers, 5 Rail Transit Centres, 3827 extra service stations and27 modern warehouses, spread across 580 out of 590 districts in thecountry.

GATI spread across 427 locations in India and overseas offices in SriLanka, Nepal, Hong Kong, Singapore and China.

The company also owns 30 containerized HCVs, refrigerated vehiclesand tractor-tow-head which provided the cutting edge to the business.

infrastructure


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Gatti website was inaugurated in 2002.

Online tracking and lodging complaints .

This provide high level of customer satisfaction through reverse flow of

information through the Website, e-mail, SMS and toll free number.

Gati.Net, to enable employees to share information and communicate

GATI implemented web based ERP called gati@web, comprising GEMS(Gati Enterprise Management System), a custom-developed application,This is completely a centralized and on-line application.

TECHNOLOGY


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The company has a strength of more than 2000 trained manpower that

is committed to the growth of the organization. The training continues to

be the thrust area of HR.

Promotion Policy was revised- branded Talent for Tomorrow-whichdiagnose the cos operational dynamics & enable high performers to

get on fast track growth route

For training: co-opted consultants from NIIT,FCCI,AIMA,ICFAI,XLRI,etc

Human resources


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GATI is an ISO 9001:2000 company, certified for design, marketing

and providing cargo management services and logistic solutions

In collaboration with Indian Airlines, Gati launched GATI Gold andGATI Silver services, for speedy air-delivery of time-sensitiveconsignments at several major airports in India.

It offered value added services such as flexible delivery options, doorpick up and delivery, online tracking, toll-free call number.

It planned to acquire modernized, customized to re-engineer andrevamp its network to international standards.

GATI is certified by IATA (International Air Transport Association) topromote, service, market and handle international air cargomovement.

Operations


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I ndustry Scenar io

The decade of eighties saw the real entry of professional playerinto this market.

Industry grew at a steady rate and provide services to customersat large.

Indian express cargo industry into divided into parts areorganized and unorganized of both local and internationalplayers.

Over 2000 express companies are operating in India.


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Various Sector

These service providers have national and international reacharmed with fully equipped infrastructure and other value allied

services.

The organized sector of the cargo management business poster

high profits.

Semi organized sector players operates in a limited geographical

area.

They have their own networks in the regions in which they operate.


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Cont.

These players uses the services of other players for theirconsignments and generally have high volumes.

The unorganized sector are restricted to the boundaries of a

particular city.

They are unable to keep pace on reliability and timeliness.

The delivery schedule is based on the urgency of the

consignments.


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Product and Services of Express I ndustry

Customer Specific Products Offered.

Express(Document, Non- Document):

- Basic Product.

- Time Bound Delivery

- Delivery time depended on Size, Pick-up and delivery location andtype(document, non-document)

- General Delivery Time:12 noon, 24-hour, 48-hour and 72 hour.

Door To Door(By Air and Surface):

- Option Selection on mode of transport.

- Heavy Consignment and pick up/destination delivery by surface


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Contd.. Door to Airport and Airport to door:

- Total Responsibility of legal preparations and procedures

Services:

- Basic Service is time bound delivery.- Value added services offered such as pick up, proof of delivery,

payment after delivery, Web enabled services.

- This is due to increased competition.


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Logistics Market

Emerged as a new growth opportunity for express companies.

Increased international freight due to Multinational companies

setting up their manufacturing operations.

Third Party logistics activities include order completion, dispatch

planning, physical transportation, in- transition.

Organized Sector players integrating air and surface

transportation.


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Contd In order to reduce cost and stick to core competencies,

outsourcing the supply chain and logistics activities.

The fourth party logistics is still in its nascent stage.

It is knowledge oriented and integrates best possible and cost

effective services to the customer.


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Emerging Challenges

Limitation on availability of space

Cultural and Infrastructural changes were required to deliver their

services to customer.

Direct competition from unorganized sector of the industry.

Growth of company was dependent on domestic and

international trade.

Heavy investment in infrastructure set up and new technology.


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GatisCore competencies

vis--vis other players

GatisStrategy was to focus on information technology, processimprovement, cost management, establishment of start of the art

warehouses and providing quality service to the customers.

Blue Dart is in a strategic alliance DHL which offered customized

services with expressed delivery od documents.

It had an air service.

DTDC is offering web services and shopping services which is tobe delivered.


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GatisPositioning against other competi tors

Gati aimed at achieving Six Sigma Standards.

Re-engineered its warehouses and distribution infrastructure,

process oriented operations

Mechatronic Warehouses: effective utilization of space, state of

the art warehouses, effective material handling

Gati enhanced Stacking efficiency and in-transit safety of

consignments

Introduced multi-axle vehicles


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Strengths:

Dominant player in the surface cargo segment in India, which accountsfor more than 55% of the total.

Niche value additions such as third-party logistics, trucking andwarehousing solutions.

Re-engineered hi-tech warehouses and distributing infrastructure.

Advanced IT solutions to back up its services.

It provides multi modal connectivity.

Weakness:

Insufficient regional and global presence as compared with its

competitors

It has been neglecting courier segment

SWOT


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Opportunity:

Expanding economy.WTO agreements Improvement in the logistics infrastructure in the country-better roads,

improved ports etc.

Entry of a large no. of global retailers

Increasing investments, booming manufacturing and development of

organized retail sectors-provides business potentials to express

industries

Threats:

Global competitors Direct competition from unorganized sectors..

Space limitations


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GATI must develop Relationship Retailing for development of Retail

BusinessWhich will help the company

To establish and maintain long-term bonds with customers, rather

than act as if each sales transaction is a completely new encounter.

Though Gati is a dominant player in the surface cargo segment in India,

it still needs radical rethinking because-

Its now facing global competition

Needs to improve its networking as its competitors are much aheadof it

More international tie ups to become global

CONCLUSION


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THANK YOU

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Gati Limited (CaseAnalysis)