Supply chain management (Gati ltd.)

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Presented by:

RAJESH KUMAR

Roll No. 12/MBA/23

Overview• Gati Ltd. Was incorporated on 25th April,1989 with its registered

office at Secunderabad.

• It is established with an aim to redefine the logistics industry.

• It is a leading domestic express cargo company with a pan-India distribution network offering multi-modal connectivity (road, rail, air and sea) and end-to-end logistics solutions.

• The focus is on integrated logistics solutions. Gati's transport infrastructure, IT systems, cutting - edge technology solutions and an intensive knowledge of India allows it to tailor its products to meet every customers' unique needs.

• Gati offers a wide range of options and does not waver in its focus on quality, reliability and speed.

Performance : Rapid growth with a CAGR 25% in last 8 yearsTurnover : Indian Rs. 12094 Millions1989 : Pioneered the concept of Express Cargo in India.Mode : Largest Multi-modal Connectivity (Surface, Air, Rail & Sea)Reach : Covers 602 districts in India Warehousing : Mechatronics warehousing at all major locations Touch-Points : 5 Call Centers with Toll Free Number across IndiaTechnology : Web based GEMS (Gati Enterprise Management Services), Oracle APPS & CRM

GATI Pioneering…Performing…Innovating

• Mahendra Agarwal – CEO of Gati Ltd.

• He holds an Engineering Degree from Bangalore University, and a Masters in Business Administration from Austin, USA.

Delight the customer with quality services by setting new trends through innovation and technology.

Be the most preferred organization for all its stakeholders.

Be a responsible corporate citizen with unwavering commitment to environmental protection and conservation.

VISION OF THE COMPANY

LOGISTIC 70%SHIPPING 7%FUEL STATIONS 23%

SEGMENTATION

Be the leader in Asia pacific, and a globally preferred provider of India-centric supply chain services and solution.

Achieve the 6 sigma standard.

OBJECTIVE OF THE COMPANY

ACTIVITY:

It is a leading domestic express cargo company with a pan-India distribution network offering multi-modal connectivity (road, rail, air and sea) and end-to-end logistics solutions.

Bankers Details:

Axis Bank Ltd

ICICI Bank Ltd

State Bank of India

Gati TransportationThe process of shipping or moving an item from one location to another.

Transportation Mode:There are three basic means of transporting products utilized by Gati.

1. Surface Transport Roads Railways

2. Air Transport

3. Water Transport

INTERNATIONAL

• Gati has now extended its horizons in the Asia-Pacific and SAARC (South Asian Association for Regional Co-operation) countries. Gati has opened offices in Singapore, Hong Kong, China, Sri Lanka, Nepal and Myanmar to strategically focus on India-centric business

• Strategic tip-up with Global player.• Coverage of more then 200 countries.• More then 500 pick-up point in India.• Custom Clearance Services

NEW FIRMS ENTER

SUPPLIERS Transport vehicle Suppliers

BUYERS

General public

PORTER’S FIVE FORCES MODEL

SUBSTITUTE

Post OfficesInternet

COMPETITORS BLUE DART DTDC COURIERS & CARGO LTD CONCOR EMS SPEED POST

…..continue

Marketing

• Gati Marketing’s strategy aimed at attracting new customers and retaining old ones.

• A series of activities were involved to serve the customers and make them long term clients.

• Market was constantly evolving and customers’ demand were on the increase .

FINANCIAL 2013 2012

Income 908.09 755.43

Revenues 744.72 618.08

Total assets 76385.46lacs 75596.46 lacs

Earning per share 1.77 1.66

During the year under review, Gati achieved a turnover of Rs.908.09 crores, as against Rs. 755.43 crores in the previous year, showing a growth of 21% and an EBIDTA of Rs. 93.01 crores as against Rs. 86.11 crores in the previous year. Gati has recorded a profit before tax of Rs. 22.95 crores and profit after tax of Rs. 14.30 crores as against of Rs. 19.15 crores and Rs. 15.11 crores respectively in the previous year.

Human Resources • Gati employed a large workforce of over 2300

persons.• It introduced Performance Appraisal System

and linked it to Business performance.• Promotion policy opened transparent career

development plan .

Owner GATI Block Office 1 District Regional Office 1

GATI - Block Office 2 GATI - District Office 2 Transportation warehousing & Packaging

Owner

Supply Chain Design

Operations

• Gati is an ISO 9001:2000 Co. certified for design, marketing ,cargo management services and logistics solutions .

• Its international business operations kept with the changing market trends

• Gati was certified by IATA to promote, service, market and handle international air cargo movement

Technology Management:

• Regularly calibrated thermostats to control the refrigeration units

• Monitoring of climate conditions at all times, record temperature, RH and CO2 levels during transit

• Vehicle tracking systems for climate control truck movement to monitor in-transit location

• Custom built pneumatic suspension system for efficient shock absorption and smoother drive

• Energy saving hatches on door to ease partial load handling

• Cooling Plants that can be plugged into normal grid power on location, serving a portable cold stores

They are focusing a more on H.R. development :-performance appraisal, bonus Pay according the performance.

They know the consumer is king of the market. That’s why they are more focusing on the customer satisfaction .

Door to door facilitiesUse promotional activitiesTime bound deliveryUsing a third party 3PL and 4PL for reducing a cost.

STRATEGY OF THE COMPANY

Technology

Online line tracking on www.gati.com

e-POD-Scanned copy of Proof Of Delivery through e-mail

Toll Free Number A 24 x 7 service

e-mail Updates - Tracking your consignment is just a click away

SMS Updates Messages on your mobile

VALUABLE CLIENTS

Strengths:Dominant player in the surface cargo segment in India, which accounts for more than 55% of the total….

Niche value additions such as third-party logistics, trucking and warehousing solutions….

Re-engineered hi-tech warehouses and distributing infrastructure.

Advanced IT solutions to back up its services.

It provides multi modal connectivity.

Weakness:Insufficient regional and global presence as compared with its competitors.

It has been neglecting courier segment.

SWOT ANALYSIS

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Opportunity:

Expanding economy, WTO agreements. Improvement in the logistics infrastructure in the country-better

roads, improved ports etc. Entry of a large number of global retailers. Increasing investments, booming manufacturing and

development of organized retail sectors-provides business potentials to express industries

Threats: Global competitors. Direct competition from unorganized sectors. Space limitations.

Availability of spaceCulture and infrastructure changesLower profit margin

CHALLENGES FACED BY INDUSTRY

Corporate Social Responsibility Initiatives

• Set up of Gati Nagar in Bhuj District in the year 2001(for Gujarat Earthquake victims)

• Gati Government School in Hyderabad started in the year 2003

• 30 lakhs donation by Gati Family to Tsunami victim

• MC High School, Nagore, Tamil Nadu

• 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.• Company must concentrate on the total retail

experience and which will helps in generating more business.

• Stay in touch with customers.• Promotional Focus.

(Advertising Direct Mail –Personal Selling ,Direct marketing)