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CASE STUDY GATI LIMITED : EVOLUTION OF A THIRD PARTY

Introduction
Gati Limited is Indias leader and pioneer in Express Distribution and Supply Chain Solutions, committed to make their customers business always Ahead in Reach while partnering with them to elegantly customize the delivery offering. Pioneering Express Distribution services in India, since 1989, Gati has transformed the logistic industry in India with many a path breaking revolutionary initiatives that paved the way to an organized logistic industry. With an annual turnover of Rs 12094 Million, Gati today offers an integrated Express Distribution and customized Supply Chain Solutions to customers across diverse industry verticals.

Gati's advantage of seamless connectivity across air, road, ocean and rail has resulted in a plethora of offerings to the customers, unmatched in the industry. Gati operates a fleet of 4000 vehicles on road, 3 marine vessels and over 7000 plus business partners across India. A market leader in India, Gati has a strong market presence in the Asia Pacific region and SAARC countries. Today, Gati has offices in China, Singapore, Hong Kong, Thailand, Nepal and has plans to foray into other markets.

Evolution
1989-1995 New concept of Door to Door service. A Money Back Guarantee was given in case of delay in delivering shipments. Cash-On-Delivery (COD) - Gati started a unique value-added service called Cash-On-Delivery (COD). Call Free Number - Gati was the first in the logistics industry in India to introduce the concept of a Call Free Number. 1996-1998 Tied-up with Indian Airlines to facilitate speedier delivery of shipments. 1996 Introduced the concept of 3rd party logistics (3PL) 1997 First Logistics Company in India to be awarded ISO 9001 Certification. 1998 Launched courier service - Suvidha, which was later called as IC Zipp Courier.1998

1999-2005 Gati International - Gati expanded to SAARC countries through tieups with the postal departments of Bhutan and Maldives. 1999 Gati Millennium Parcel Express - Gati launched the first exclusive Cargo Train between Mumbai and Kolkata in association with Indian Railways. 2001 Gati@web: Internal processes were simplified and moved to Oracle platform. 2003 Launched India-centric distribution solutions. Forayed into Singapore, the international business hub. 2003 Migrated the operations to the first of its kind web-based solution GEMS (Gati Enterprise Management System) 2003 Introduced mechanized racking systems in the automated warehouse at Panvel, Maharashtra. 2004 Introduced State-of-the-art Mechantronic Warehouses with APL racking and modern handling equipment in major cities across India. 2005

2006-2012 Strategic alliance with China Railway Express International Logistics Co. Ltd. 2007 Introduced VTS (Vehicle Tracking System) 2007 Launched a joint Courier and Air Cargo Service with Air India. 2007 Strategic Alliance with GLS (General Logistics Systems) Europe's Parcel Leader. Launched Gati Europe Express. 2008 Launched Gati Redsun, Supply Chain Division Gati's first stepforward for becoming a knowledge company and an integrated Supply Chain Solutions provider. 2010 Launched Gati venturing in E-Commerce 'makemygiftz.com', Gati's new web service to offer its customer a complete ecommerce platform linked to a physical distribution network. 2010

Gati Express Distribution

Distribution Network

Gati RedSun Supply Chain Solution

Gati RedSun Cold Chain Solution

Gati International Solution

Gati Ships

Alliances
Railway
3 Year Contract Each train Rs.10 Lakh Delhi-Madras Best Route Problems No Return Load Fixed Payment Collection not equal to Commitment Delayed Shipments Reduced Traffic

Airlines Tie up with Indian Airlines 300Tonnes/Day Economies Of Scale Self Owned Operations Fleet flexibility

Reorganization in 2003
The consequences of restructuring were deep and felt across the organization. Some of the most important issues are captured here. Earlier, Gati was a corporate office-driven organization. Now every division and zone was expected to set its targets (in consultation with the corporate office). The zones should manage their funds. The zones can resolve structural issues, modify procedures, refund customer (Claim) settlement, and damages. Virtually, they are independent, subject to broad policy issues. Earlier, divisions were based on geographical delivery, Now they are based on activity and its intensity. The old system was driven by close supervision. The new system is driven by performance measures and empowerment, Responsibilities have been redefined and refocused, and reporting relationships have changed.

Gati Online Initiative


conceptualized in 2000 objective was to develop a web-enabled information technology platform to support operations. project which was named Gati@web. The project comprised three different components: I. GEMS was the main application which was to be custom built covering all activities of Gati. II. Oracle Financials for financial reporting III. CRM for the contact centres. GEMS generated a summary report (DBR (daily business report) of all transactions carried out during the 24-hour cycle at more than 300 Gati 10caUons. Oracle Financials was used for balance sheet purposes, and the contact centre modules of CRM were used at various call centres of Gati.

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