A case study

Gati Ltd. operated in three different business segments ± Logistics ± Shipping ± Fuel stations . ‡ Gati Ltd. is a a leader in Express cargo .Distribution and Supply Chain Management solutions in India ‡ The Co.

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.

with online cargo tracking and security ‡ The segment achieved a growth rate of about 22% YOY .‡ The trucking solutions wing often offered customized container services .

Shipping ‡ Shipping was a ³coast to coast´ arrangements in India with special emphasis on A & N Islands. ‡ Services were later expanded to cover Yangon also . ‡ This sector grew at 11% YOY.

‡ Profitability was also poor . ‡ These stations had a slow growth rate compared to others .Fuel stations ‡ Fuel stations were being operated mainly in Karnataka. 4% YOY. AP and Maharashtra.

faced competition from small time regional players because of lower pricing . ‡ Out of 70% of Logistics division 985 was from cargo and 25 was from Courier services.‡ Gati¶s turnover was 70% from Logistics. 7% from Shipping and 23% from Fuel stations. ‡ The Co.

express distribution centres. ‡ The Co. information technology and human resources.Infrastructure ‡ The Infrastructure consisted of vast network of offices and franchisees in India .fleet of trucks and outsourced ships. aimed to provide one stop service provider in logistics solutions focusing on warehousing. .

Technology ‡ Introduction of Gati website ‡ On line tracking of dockets and customer complaints. ‡ Large no. . of locations were networked through leases lines and VSAT.

‡ It introduced Performance Appraisal System and linked it to Business performance. ‡ Promotion policy opened transparent career development plan . .Human resources ‡ Gati employed a large worforce of over 2300 persons.

‡ Its international business operations kept with the changing market trends ‡ Gati was certified by IATA to and handle international air cargo movement .Operations ‡ Gati is an ISO 9001:2000 Co. service .cargo management services and logistics solutions . certified for design. marketing .

Marketing ‡ Gati Marketing¶s strategy aimed at attracting new customers and retaining old ones. . ‡ Market was constantly evolving and customers¶ demand were on the increase . ‡ A series of activities were involved to serve the customers and make them long term clients.

‡ 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 .

that offered comprehensive multi-modal ( road . rail ) transportation services to customers . air.‡ It introduced Express Distribution Centre at various locations in India ‡ Gati is the only Indian Co. . sea.

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 .

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