Gati Limited (CaseAnalysis)
Transcript of 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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