Gati Limited : At the Threshold of a Big Leap

Gati Limited At the Threshold of a Big Leap

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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infrastructure
Vast network of office and franchisees 5 Zonal Offices, 61 Express Centers, 109 Depots, 160 Franchisees, 54

Customer Convenience Centers, 20 Surface Transit Centers, 19 Air Transit Centers, 5 Rail Transit Centres, 3827 extra service stations and 27 modern warehouses, spread across 580 out of 590 districts in the country.
GATI spread across 427 locations in India and overseas offices in Sri

Lanka, Nepal, Hong Kong, Singapore and China.

The company also owns 30 containerized HCVs, refrigerated vehicles

and tractor-tow-head which provided the cutting edge to the business.

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TECHNOLOGY
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.

Human resources
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-which

diagnose 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

Operations
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 and

GATI Silver services, for speedy air-delivery of time-sensitive consignments at several major airports in India.
It offered value added services such as flexible delivery options, door

pick up and delivery, online tracking, toll-free call number.

It planned to acquire modernized, customized to re-engineer and

revamp its network to international standards.

GATI is certified by IATA (International Air Transport Association) to

promote, service, market and movement.

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handle

international

air

cargo

Industry Scenario
The decade of eighties saw the real entry of professional player

into this market.

Industry grew at a steady rate and provide services to customers

at large.
Indian express cargo industry into divided into parts are

organized players.

and unorganized of both local and international

Over 2000 express companies are operating in India.

Various Sector
These service providers have national and international reach

armed 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.

Cont.
These players uses the services of other players for their

consignments 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.

Product and Services of Express Industry

Customer Specific Products Offered. Express(Document, Non- Document): - Basic Product. - Time Bound Delivery - Delivery time depended on Size, Pick-up and delivery location and

type(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

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.

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 transportation.

players

integrating

air

and

surface

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.

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 international trade.

was

dependent

on

domestic

and

Heavy investment in infrastructure set up and new technology.

Gatis Core competencies vis--vis other players

Gatis Strategy was to focus on information technology, process

improvement, 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 to

be delivered.

Gatis Positioning against other competitors

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

SWOT
Strengths: Dominant player in the surface cargo segment in India, which accounts

for more than 55% of the total.

Niche value additions such as third-party logistics, trucking and

warehousing 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

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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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CONCLUSION
GATI must develop Relationship Retailing for development of Retail Business Which 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 ahead of it More international tie ups to become global
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