GATI LIMITED

A case study
 Gati Ltd.
• Gati Ltd. is a a leader in Express cargo
,Distribution and Supply Chain
Management solutions in India
• The Co. operated in three different
business segments
– Logistics
– Shipping
– Fuel stations
 Logistics
• Logistics division is primarily offering
services through multi modal
transportation arrangements using its own
fleet of resources of trucks and through
alliances with Airlines.
• The business grew very fast and starting
in 1995 with a turn over of less than Rs 25
crores to Rs 361 crores in 2004.
• The trucking solutions wing often offered
customized container services ,with online
cargo tracking and security
• The segment achieved a growth rate of
about 22% YOY
 Shipping
• Shipping was a “coast to coast”
arrangements in India with special
emphasis on A & N Islands.
• This sector grew at 11% YOY.
• Services were later expanded to cover
Yangon also
 Fuel stations
• Fuel stations were being operated mainly
in Karnataka, AP and Maharashtra.
• These stations had a slow growth rate
compared to others , 4% YOY.
• Profitability was also poor
• Gati’s turnover was 70% from Logistics,
7% from Shipping and 23% from Fuel
stations.
• Out of 70% of Logistics division 985 was
from cargo and 25 was from Courier
services.
• The Co. faced competition from small time
regional players because of lower pricing
 Infrastructure
• The Infrastructure consisted of vast
network of offices and franchisees in
India ,fleet of trucks and outsourced ships.
• The Co. aimed to provide one stop service
provider in logistics solutions focusing on
warehousing, express distribution centres,
information technology and human
resources.
 Technology
• Introduction of Gati website
• On line tracking of dockets and customer
complaints.
• Large no. of locations were networked
through leases lines and VSAT.
 Human resources
• Gati employed a large worforce of over
2300 persons.
• It introduced Performance Appraisal
System and linked it to Business
performance.
• Promotion policy opened transparent
career development plan .
 Operations
• Gati is an ISO 9001:2000 Co. certified for
design, marketing ,cargo management
services and logistics solutions .
• Its international business operations kept
with the changing market trends
• Gati was certified by IATA to promote,
service ,market and handle international
air cargo movement
 Marketing
• Gati Marketing’s strategy aimed at
attracting new customers and retaining old
ones.
• A series of activities were involved to
serve the customers and make them long
term clients.
• Market was constantly evolving and
customers’ demand were on the increase .
• The Co.’s growth was propelled by an
urge to delight its customers with quality
and deliver value beyond their
expectations
• The Alphonso Mango Scheme
• Enterprise management system provided
e-POD
• It introduced Express Distribution Centre
at various locations in India
• Gati is the only Indian Co. that offered
comprehensive multi-modal ( road , sea,
air, rail ) transportation services to
customers .
 Industry Scenario
• The development of Indian Express
industry took a leap in late eighties
• Gati entered in 1995.
• Freight forwarding and consolidation
services
• Globalisation
 Other major players
• Blue Dart
• DTDC
• CONCOR
• EMS Speed Post
 Logistics market
• Emerging challenges
• Space
• Trade environment
• Economies of scale
• Time bound operation
• Regulatory authorities