AE PM Gati Shakti: A Game- the consignments are stuck up at

local hub or in
a
recent
have c o m e up in
Changer for Multi-Modal ports.Many local players last mile
care of this
years and they are taking
Integrated Logistics hub to consignee.
handing of goods from the local area to provide
However, a lot more is needed in
this
Prime Minister of India, Mr Narendra Modi's Gati (speed) to the logistics. Once again, pruaen
National Master Plan, Gati Shakti, is one of the here. Gati
investment in the infrastructure is the key
most ambitious roadmaps in recent years for the mile con-
Shakti roadmap will facilitate the last
deployment of a strategic intent of Government reduce travel
nectivity of infrastructure and will also
of India that aims to have an "integrated
planning time for people.
and coordinated execution" of projects leading
to multi-modal connectivity (MMC). Vision for PM Gati Shakti: The vison of PM
Currently, Gati Shakti this
India's logistics costs around 14 percent of GDP captures the complete mindset of
that the logistics cost
as compared with developed nation, where this game-changer initiative so
of GDP comes down sig
figure is 7-8 percent of GDP. India's logistics of India as a percent about 14
performance can improve only when the infra- nificantly from existing percent. The vision
will incorporate the infra-
structure projects involving seamless connectivity states, "PM Gati Shakti
Ministries and State
of road, rail, air, and waterways becomes effective structure schemes of various
Sagarmala, inland
giving Shakti (translation: strength or power) to Governments like Bharatmala, UDAN etc. Economic
Gati (translation: speed). From supply chain point waterways, dry/land ports,
of view, the initiative can prove a game-changer Zones like textile clusters, pharmaceutical clusters
in bringing the India's logistics contribution toderence corridors, electronic parks, industria
corridors, fishing clusters, agri will be covered
zones
GDP closer to the benchmarks set by developed to improve connectivity & make Indian businesses
nations.
more competitive. It will also leverage technology
extensively including spatial planning tools
BACKGROUND with ISRO (Indian Space Research Organisation)
PM Gati Shakti, as a national master plan was imagery developed by BiSAG-N (Bhaskaracharya
National Institute for Space Applications and
launched by Prime Minister Mr Narendra Modi on
October 13, 2021, which heralded a new chaptereointormatics).*
in governance. Gati Shakti works through a digital Six Pillars of Gati Shakti: Gati Shakti finds its
platform to coordinate among 16 ministries of base on six pillars as follows: Comprehensiveness,
government including railways and roadways for Prioritization, Optimization, Synchronization,
integrated planning and coordinated implementation Analytical, and Dynamic (Figure 1-7). Through
of infrastructure connectivity projects. these six pillars, different infrastructure schemes,
Two major improvement opportunities needed in including logistics projects of various ministries and
India's logistics domain are as follows: (a) MMC and state governments can be coordinated and executed
(b) last-mile connectivity. with perfect coordination.12
What Is Multi-Modal Connectivity (MMC)? The Seven Engines of Gati Shakti: As reiterated by the
MMC is an approach that facilitates an integrated and Finance Minister of India, Ms Nirmala Sitharaman
seamless connectivity for the movement of people, during her Union Budget presentation in parliament
goods, and services from one mode of transport to on February 1, 2022, seven engines drives the PM
another.
What Is Last-Mile Connectivity? It is often
observed that in logistics network in long-distance tne /
https://www.niti.gov.in/speeding-gati-shakti.
transportation, which is taken care by 3PL players, htps://pib.gov.in/PressReleasePage.aspx?PRID=1763307.
 AND MANAGING THE SUPPLY CHAIN
16 DESIGNING

Comprebensiveness:
Synchronization: Prioritizzation:
Dynamic: Analytical: Optimization
Sclecting the most|| Through Cross
All the exciting and
Visualize, Teview and Entire data at one place Activities of cach planned initiatives of
monitor the progress of with GIS based spatial department, as well as of optimum route in Sectoral
various Ministries and
planning and analytical different layers of terms of time and Interaction
cross-sectoral projects, Departments with one
tools having 200+ layers, governance, in a holistic cost
through the GIS platformn centralized portal
to help in identifying
the enabling better visibility to manner by ensuring
vital interventions for the executing agency coordination of work
enhancing and updating
the master plan

FIGURE 1-7 Six Pillars of PM Gati Shakti

Gati Shakti Scheme. She says, "PM Gati Shakti is
driven by seven engines: (i) roads, (i) railways,
(iii) airports, (iv) ports, (v) mass transport, (vi)
waterways, and (vii) logistics infrastructure. All1
seven engines will pull forward the economy in
unison." There is a great thrust in Union Budget
FY 23 on improving infrastructure for improving an important learning lesson for this case study.
the logistics network. This includes, 25,000 km of
additional national highways, 400 new Vande Bharat (a)In 2019,
trains, 100 cargo logistics terminals, and unified
logistics platform for data transfer for different
modes off transportation leading to seamless
multi-modal transportation along with minimal
documentation.
The MMC will provide integrated and seamless
connectivity formovement of people, goods, and
services from one mode of transport to another.
It will facilitate the last mile connectivity of infra-
structure and also reduce travel time for people."
PM Gati Shakti is focusing on
next-generation infrastructure to improve:
i. Ease of living (EoL),
i. Ease of doing business (EoDB),
ii. MMC for integrated network and infrastructure,
and
movement
iv. Seamless connectivity for facilitating
of people, and services from one mode
goods,
mile con-
of transport to another, and the last
nectivity of infrastructure to reduce travel time
for people.
Connecting the following three threads could give
Prime Minister of India Mr Narendra
Modi envisioned making India a USD 5 trillion
trillion
economy by 2024-25 from less than 3
economy. With USD 5 trillion economy,
India
would become the third largest economy in the
world. The task was difficult, which got com-
pounded due to breakout of COVID-19 pandemic
in early 2020. The impact of this pandemic has
lasted till the end of 2021.
(6)On October 13, 2021, National Master Plan, PM
Gati Shakti was launched by Prime Minister Mr
Narendra Modi.
developing (c)On February 1, 2022,the Finance Minister of India,
Ms Nirmala Sitharaman during her Union Budget
presentation in parliament, unfolded a massive fund
deployment plan for many initiatives of logistics
network and multi-modal integrated logistics,
which were envisioned in the PM Gati Shakti.

https://pib.govin/PressReleaselframePage.aspx?PRID=1763638.
Amitabh Kant, Speeding up with Gati Shakti. https://www.niti.gov.
in/speeding-gati-shakti,
htps://www.india.gov.in/spotlight/pm-gati-shakti-national-master
plan-multi-modal-connectivity.
https://economictimes.indiatimes.com/news/economy/finance/
india-on-course-to-become-usd-5-trillion-economy-by-fy26-cea/
articleshow/89281393.cms?utm_source=contentofinterest&utm_
medium=text&utm_campaign=cppst.
 MANAGEMENT
1: INTRODUCTION TO SUPPLY CHAIN
HAPTER

benefitted
It isimportant to note that the road to prosperity of India
2. How are supply chains
of a nation goes through a few examples.
PM Gati Shakti? Give
a

multi-modal logistics
well-developed integrated through
Critical
Success Factors
network. PM Gati Shakti 3. Critically analyze of PM
Gati
barriers
that envisioned multi-pronged ways to (CSFs), enablers,
and
improve the
logistics and supply chain of India has started taking Shakti.
logistics
network of
shape at ground level. This can prove to be a game- 4. How would
multi-modal
your
few years? Justify
changer in Indian economy. India change in next

answer.

DISCUSSION QUESTIONS
1. Through secondary sources, track the progress
in the implementation of PM Gati Shakti.

EXAMPLE 16
Among the first companies to utilize real-time information was Milliken and Company, a textie di

chemicals company. Milliken worked with several clothing suppliers and major department store
ail oT which agreed to use POS data from the department stores to "synchronize" their ordering ana
final clotning
textile plants to
manufacturing plans. The lead time from order receipt at Milliken's
receipt at the department stores was reduced from 18 weeks to 3 weeks.

costs and increase profits

pushed
The pressure during the 1990s to reduce
huge
outsourcing; firms
considered outsourcing
many industrial manufacturers towards manufacturing. Indeed,
to production and
everything from the procurement function volume as a per-
increase in purchasing
in the mid-90s, there was a significant
sales. Similarly, between
1998 and 2000, out-
of the typical firm's total
centage of all components
the electronic has increased from 15 percent
industry
sourcing in
to 40 percent.3 related e-business
and the
In the late 1990s and the early 2000s, the Internet solved merely
chain problems would be
models led to expectations that many supply E-business were
strategies
business models.
these new technologies and
by using service level, and increase flexibility and, of
supposed to reduce cost, increase
these expectations
albeit sometime in the future. In reality,
profits,
course, increase downfall
failed. In many cases, the
not met, as many e-businesses
frequently were
businesses can be attributed to their logistics
of some of the highest profile Internet
strategies.

EXAMPLE 1-7
furniture makers,
offered thousands of products from many
Furniture.com, launched in January 1999,
company had $22 million
in sales in the first nine months of
although only few brand names. The was due to
to its website. Its downfall in November of 2000
2000 and one million visitors a month used
inefficient delivery processes. Initlally, Furniture.com carriers
logistics details, and, in particular, Since transportation costs were
warehouse to the customers.
to ship its products from a central
too high, the firm formed an alliance with
six regional distributors. Unfortunately, these relationships
were hard to maintain and left many problems unsolved, including handling of repairs and returns.

channels and helped to

Of course, in many cases, the Internet introduced new
enable the direct-to-consumer business model. These new channels required many
companies to learn new skills and added complexity to existing supply chains.