gati pvt ltd

8/11/2019 Gati Pvt Ltd

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LOGISTICS PROJECT

GATI PVT LTD.


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GATIMahendra K Agarwal, MD, GATI came with a management degree from US and joined his family business at TCIone of the top three transport companies in India in the 1980s.

The AIM was to rebuild TCI based on systems and processes and manage it professionally to meet implicit and consumer needs.

Established in 1989 , as division of Transport Corporation of India(TCI), Gati started operations as a door-incargo company and offer money back guarantee, by accepting payment after producing proof of delivery

Gati first started operations between Madras and Madurai and then progressed by setting up 4 stations in HydBangalore, Madras and Hosur in 1989.

Based on customer's feedback and interaction Mr Agarwal decided to create a separate brand equity for Gati.

The name GATI was selected to reflect and represent speed with direction.


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GATI

In the initial 6 years Gatiflourished into a smallbusiness ready to perform onits own. Delivery commitmentstook priority over completeutilization of capacity and Gatiwas focused on to its aim to

provide time bound and pointto point delivery.

It separated from TCI in1996with its turnover being Rs 18crore at that point. De-Mergerfollowed by Rapid growthallowed acquisition of TCIshipping (Gati Coast ) and TCIHighways which led to theformation of Gati Ltd. Use of

business partners known asGati associates for transportservices.

Introduction of Desservice along with t

service. Use of tnumbers in Indian Lbecome the first 3PL

Tie up with IA for long term contract.mservices, courier ser

international operSAARC coun


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Logistics Industry OverviewContainer

RailCFS Trucking Warehousing

Concor

GatewayDistripark

AllCargoGlobal

TCI

Gati

ShreyasLogistics

Blue Dart

Source: Thomas Weisel International


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Express Industry OverviewExpressIndustry

OrganizedPlayers

Semi-Organized

Players

SmallUnorganized

Players72%

>INR 50 Crores15%

INR 5-50 Crores13%


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EVOLUTION OF GATI

1989-95

Door-to-Door Service Money back Guarantee Cash on Delivery

1996

Tied up with Indian Airlines Speedier delivery of shipments

1997 Introduced Concept of 3PL

1998

First logistic company with ISO 9001 Launched Suvidha(IC Zipp)-Courier

Service

1999

Expanded to SAARC nations Tie up with postal department of Bhutan

and Maldives

2001

GATI millennium parcel express First exclusive cargo train between

Mumbai and Kolkata

2003

Platform shifted to Oracle Forayed into Singapore Operations shifted to GEMS

2007

Alliance with China Railway ExpressInternational logistics Co. Ltd.

Introduced VTS

2008

Centralized call centre at Nagpur Millennium Parcel Express(KYN-GW Alliance with GLS(Europes parcel lead

2009

Mechantronic Warehouse at hyderaba 10C, real time shipment delivery notif SQS(Service Quality Standardization)

2010

GATI Redsun- Integrated Supply ChaSolution provider

GATI E-Commerce- makemygiftz.com

2011-12 JV with Kintetsu World Express Launched GATI Connect- gaticonnect


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GATIs Portfolio of Services GATI

SurfaceExpress

GATI AirExpress

GATIRedsun

GATI ArtExpress

GATI

Warehousing

GATI Euro

Express

GATIInternational GATI Sh


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Evolved Network StructureRestructuring exercise has taken place from time to time

In 2006, country divided into 4 zones for operational purpose, further divided into 18 EDCs (operated on tHub and Spoke Model)

EDCs control Distribution warehouse, Depots and Franchisee

Hubs are connected through Express routes , while hub to spoke is connected through Fee

More than 4000 vehicles run every day to connect the network- Vendor vehicles and Market Veh


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Gatis ReachExtensive reach, 667 out of 671 districts

Vehicle strength of above 4000 vehicles

Gati Kausar, provides Full Truck Load services for long haul transportation across India, and servicedistribution centers or cold storages . Also entering into the cold storage market

Gati e-Commerce Solutions -- Pick and Pack centers at Delhi, Bangalore, Pune and Mumbai for goods segment . Dedicated fleet of 200 vehicles and 300 bikes deliver over 10000-plus shipments per dayservice provider in the country to cater to 6700 direct pincodes , with a payment option of Cash OnPrepaid basis

Gatis strong clientele includes 5 of the top 10 auto companies, top 7 electronic companies, 5 of the topharma companies,etc.


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Pickup call/Online

Start Pickup

Loading material GAvehicle

Unloading of material

Stacking Destination-wise

Loading material in vehicle

Trip Challan preparation

Vehicle Departure

Unloading o

Stacking Dest

Loading mate

Trip Challan

Vehicle D

Destination T

Destination Transit center

Unloading of Material

Update tax details

Loading of material into Delivery GAs vehicle

Vehicle departure and delivery to customer

GATI ASSOCIATECONTROLLING OU SC /

Flow diagram


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Features and Differentiation

Widest reach, 667 out of 671 districts in India

Pioneers in various innovative service offerings

Early adoption of technology and leveraging it for enhanced customer value

Transporting special products unique products specially sourced from famouslocations

Leader in cold chain solutions with vast fleet of refrigerated vehicles with advancedtemperature control systems

Customized end-to-end supply chain solutions

Re- engineering solutions for customers competitive advantage - warehouse layoutdesign, logistics process re-engineering, logistics network optimization


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Transportation, Warehouse and Inventory ManagementMultimodal transport systems

State of the art vehicles with temperature control and pneumatic suspension

Tie up with Air India, Indian Railways and local vehicle owners as GATI Associates

2.5m sq ft of warehouse space

Ready to use warehouses

Fully automated system

Modern material handling and RFID systems

MIS report generation

Mechanized racking system for speed and accuracy

End-to-end tracking

Inventory management solutions helps customers to operate a lean business


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PORTER VALUE CHAIN ANALYSIS

Inbound logistics Operations Outbound logistics Marketing & Sales

Primary Value Chain Activities

Receiving Warehousing& Inventory control

Initially cargo of 40 kg, butincreased gradually

60 mechatronic warehousewith APL tracking

Mechanized rackingsystems

Inputs to final products Delivery & orderfulfillmentChannel selection,

Advertising & Pricing

Vendor vehicle & marketvehicle to balance load

factor

Route optimization to reducecost by 3%

GATI associates, vehicletracking

Alliance with generallogistics system

Premium cargo 7 desk-to-desk service, 4000 vehicles

Hub & Spoke model: Door todoor service in 667 districts

2 sales channel- Contractual& retail

Balancing both Top line &bottom line


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PORTER VALUE CHAIN ANALYSIS

Support activities

ProcurementTechnology

developmentHR management Firm Infrastru

Equipped cooling plants,vehicles & service centers

For pick up & dropentrepreneual model

Oracle CRM & finance

Gati enterprise managementsystem (GEMS)

Real time shipmentinformation SMS / Email

Corporate stradecided at HO

5 geographies conexpress cen

Reorganization frlevel and upw

Amity HR excellence award

Food cooked & served inoffices, gender diversity

Need based recruitment viaconsultant & visiting campus


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PackagingGATI over the years is known for providing customized services as per customers requirement.In Packaging also GATI has come up with variety of options and innovative techniques toensure safety and customer satisfaction.

GATI-KWE Secure Box - secure packing and urgent delivery GATI-KWE Art Express - Exclusive service for packaging and handling art pieces GATI-KWE 20 Kg Box Service limited to selected cities only. Provides Ultra secure 20kg

capacity box at an additional charge of Rs. 100Thermal passive packaging


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IT Management at GATI

Prior to 2003

FoxPro Based Software used at200 locations resulting ininconsistency and redundancy

Development of GEMS (Gati Enterprise Management System)using Oracle CRM and Oracle Financials; launched in July 200

Gati took over GEMS in August 2003

In-house web-based systems such as Warehouse Management S(WMS), Human Resource Information System (e-HRIS), ShippInventory Management System

Widest network of IP Phone

Scanned image of POD can be downloaded by customer on rea

Project 10c Real time upload of POD

Project 20c Real time sales force automation

Project 30c Online Docket Preparation

Vehicles are VTS (Vehicle Tracking System) enabled

Current IT Systems


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STRATEGIC ANALYSIS

Gati small cargo Service Gati cargo managementservice Gati Ltd

PHASE IStarted as a division of TCI, became independent in 1994 to become cargo service company

To scale up, formed strategic alliances with railways, Indian airlines and GATI associates

PHASE II As cargo management service company expanded into other countries ( SAARC)

Realigned the organizational structure in 2001 for better operational efficiency & became techno

PHASE III Forayed into other avenues premium cargo , Zipp, Air freighter to become holistic solutio

Phase I Phase II Phase III


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GROUP 1

gati pvt ltd

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