Gati Limited - at The Threshold of A Big Leap
Gati Limited - at The Threshold of A Big Leap
of a Big Leap
BBA- Semester V
Gr1-B
Kanishq Baweja
Sushant Ohri
Fayza Akbar Khan
Avantika Makker
Utkarsh Aggarwal
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Services provided
Point to point transportation to complex end to end transportation.
Supply chain management
Services are
Cost efficient
flexible
Business Segment:
Logistics
Shipping
Fuel Stations
Vision
Core Values
Infrastructure
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-towhead which provided the cutting edge to the business.
Technology
Human Resources
Operations
MARKETING
Gatis simple approach was to attract new customers & retain old ones.
Gati was the first Indian Company to introduce toll free no (1-600-4254284)
Gati was the first Indian logistics company to implement e-CRM (electronic
Customer Relationship Management) by launching Customer call center that
reduced complaints resolution time.
e-POD was another one of the firsts by GATI that facilitated scanned images of the
consignment to be viewed on the companys website.
Gati was the unanimous & the most obvious choice for the BEST DOMESTIC
LOGISTIC COMPANY award that it won in 2004 .
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Gati was the only express distribution supply chain company that
offered comprehensive multi modal (air, sea, land & rail) transportation
services as well as third party logistics, trucking & warehousing
solutions.
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INDUSTRY SCENARIO
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Sector
Organized
1628
65
618
25
247
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Total
2493
100
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ORGANIZED SECTOR
The organized sector which was principally in the package segment of Cargo
management illustrated high growth.
The organized sector was by and large into documents business. The margins
were much lower than package segment & also barriers to entry were also very
less.
Entry barriers in the Package segment were high because company needed
strong distribution network, latest technology, well trained staff, strong brand
image & economies of scale.
South Asia's premier courier, and integrated express package Distribution Company.
The competitive advantage was that they had an air service, the only one of its kind
in the country, which was focused on carriage of packages as its prime business,
rather than as a by-product of a passenger airline.
DTDC was one of the leading Air Express & Cargo companies in India.
It has expanded its delivery network to create the nations Largest Domestic Delivery
Network
Post and Telegraph department in India which operated in association with other
member countries of Universal Postal Union
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There were few local companies who book consignments bound for any domestic
locations. Such companies did not have their own distribution network and relied on
the network of other similar companies in various locations or acted as wholesalers
to organized sector companies. The semi-organized sectors matched the reach of
organized sector service providers.
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Un-Organized Sector
Almost the entire market for intra-city business was accounted for by
documents.
The unorganized sector thrived on price and was unable to keep pace with the
market in terms of reliability and timeliness.
A scenario wherein unorganized sector would not exit at national level due to
its inability to keep pace with the technology and customer demand was
anticipated.
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Products:
Express (Document and non-document) :- this was the basic product of all
express service providers. The delivery time was time bounded and was assured
depending upon the distance between pick up and delivery locations.
Door to Door (by air and surface) :- under this product, companies offered an
option selection of mode of transport (if the customer did not specify the mode of
transport, the consignment were transported by air. In case of heavy consignments
or destinations on the trunk route surface mode was used.).
Door to airport and airport to door :- Under these products the express
companies took the total responsibility of preparation of legal documentation and
procedures.
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S.W.O.T. ANALYSIS
Strengths:
Weakness:
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Opportunity:
Threats:
Global competitors
Direct competition from unorganized sectors.
Space limitations
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Emerging Challenges
Space is a perishable item, availability of
space is the foremost challenge faced by
industry.
Direct competition from unorganized sector
player fight for lower profit margin
Express industry depend upon domestic and
international trade
Sustained
growth with the help of
Liberalization of Indian economy and
integration of international trade.
Bargaining power of
Suppliers: Medium
Government control of fuel
prices makes it difficult to
control, predict and pass on
the fuel costs to customers
Threat of Substitutes:
Medium
Highly customer oriented
company with multiple
vendor options
Balanced Scorecard
Internal Processes
Strategic Objective
Initiative
Expansion with a number of locations across India and Asia Pacific. Company
has consolidated position in China, Hong Kong, Thailand & Singapore and restructured investment in international subsidiaries. Control will be through the
Singapore subsidiary company i.e. Gati Asia Pacific Pvt Ltd., (GAP) and it has
closed Gati Holdings Ltd.,(GHL) Mauritius, the erstwhile direct subsidiary.
The main focus areas are Education, Community & Environment. Initiatives:
Gati MC High School, Nagore, Tamil Nadu Relief Initiative to the Assam Flood
victims Health checkup camp for drivers & handlers Gati Government High
School, Hyderabad, Andhra Pradesh Green Belt Plantation Blood Donation
Camp
Financi
al
Initiative
Strategy
Grow shipping business profitably
During FY2012 the shipping division recorded a revenue of Rs. 180 MN and
loss from operations of Rs. 288 MN against Rs. 923 MN and Rs. 162 MN
respectively in the previous year. Gati has restructured the shipping business
into a wholly owned subsidiary -Gati Ship Private Limited and inducted a
strategic partner to raise required capital.
Initiative
Training is a thrust area for Gati Ltd. Had it had co-opted consultants from
AIMA, XLRI, NIIT, FCCI etc.
Customer
Strategy
Initiative
ISO 9001:2000 company- certified for marketing and providing logistics and
cargo management services; valued added service like door to door delivery,
online tracking etc., e-Pod.
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.
THANKYOU
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