7/26/2019 Gati Case Solution

1/19

GATI LTD.Evolution of a Third Party

Logistics Organization

PGDIM 22, Sec B

Group 16

Jitendra Kastore 1502083

Kishan Kaaria 15020!3

Krishnadas Dha"e 15020!5

Paras Mehta 1502125

Praharsh Shri#asta#a

1502130

7/26/2019 Gati Case Solution

2/19

$#er#ie%

Incorporated on 25&'pr&1!8! %ith re(isteredo)ce in Scundera*ad

'i+ is to redene o(istics industr-

Gati is a eadin( do+estic e.press car(o dei#er-

ser#ice %ith pan&India distri*ution net%or" Pri+ar- /ocus areas inte(rated o(istics soutionsthrou(h in/ra, I S-ste+s, tech soutions andcusto+iation to +eet custo+er needs

$4ers +utipe dei#er- options %ithoutco+pro+isin( on uait-, reia*iit- or speed

7/26/2019 Gati Case Solution

3/19

eatures pro#ided *- Gati

7ontract o(istics

9aue added distri*ution

SM: o(istics support

Business process outsourcin(

ar(e ;eet o/ truc"s and ships

Strate(ic tie ups %ith rai%a-s and airines

e+perature controed #ehices %ith &20 de( 7to < 20 de( 7 capa*iities

IS$ !0012008 certied

7/26/2019 Gati Case Solution

4/19

Piars o/ G'I Dei#er- Strate(-

7usto+ied soutions and nurturin(taent7usto+er centric, si+pe and hi(h-

reia*eMar"et eadership9aua*e or(aniation:ncoura(in( inno#ation and

entrepreneurship

7/26/2019 Gati Case Solution

5/19

Gati Distri*ution $#er#ie%

Express ervice Pre!iu! ervice pecial ervices

Dei#er- in appro. !!=>districs in India

?andin( 1200 M 7ar(oper +onth

or dei#er- o/ o*@ects i"eart%or"s

=5 " ship+ents *oo"edper +onth

2= . A operations andcusto+er ser#ice

Specia o4ers /or students

'ssured space o/ ship+entsin 28 sectors

7/26/2019 Gati Case Solution

6/19

G'I Supp- 7hain o% Dia(ra+

7/26/2019 Gati Case Solution

7/19

G'I Distri*ution et%or"

7/26/2019 Gati Case Solution

8/19

G'I & SC$ 'na-sistrengths

Do+inant pa-er in sur/ace car(o inIndia

e&en(ineered %arehouses and

atest I support

Muti+oda connecti#it-

"ea#ness

Insu)cient (o*a and re(ionapresence co+pared %ith

co+petitors

7ourier se(+ent is (ettin(

ne(ected

Opportunities

:.pandin( econo+-

I+pro#e+ent in in/rastructure

Eroads and %ater%a-sF

:ntr- o/ +utipe (o*a retaiers

Increasin( in#est+ent Ee( 9

o(istics IP$F

Threats

Go*a o(istics co+petitors

Space i+itations

7o+petition /ro+ unor(anied

sector

7/26/2019 Gati Case Solution

9/19

Internationa $peration 7ounterin(Go*a hreats

:.pansion o/ operations in 'sia Pacic e(ion andS''7 7ountries to strate(ica- /ocus on India&centric*usiness

ie&ups %ith Go*a Pa-ers eadin( to co#era(e in +ore

than 200 countries

:.peditin( custo+s cearance ser#ices /or /astero#erseas dei#eries

Pro#idin( internationa dei#er- options in +ore than500 pic"up options in India

7/26/2019 Gati Case Solution

10/19

7oncusions

G'I +ust /ocus on de#eopin( reationship retaiin(

/or retai *usiness %hich %io +aintain on( tern *onds %ith custo+ers

I+pro#e retai e.perience

Ci hep in pro+otin( the *rand

r- to /or+ a J9 /or tech trans/er %ith a (o*a supp-

chain eader i"e Bue Dart or D? Hsin( 3P or =P /or reducin( +ana(e+ent costs

G'I +ust tr- to reduce e+po-ee attrition *- +orepro+otiona strate(ies throu(h ? support

7/26/2019 Gati Case Solution

11/19

Q1) The logistics business in India is expected to growsteadily as an ofshoot o 7 per cent projected GDgrowth! Gati has co"petition in e#ery product$"ar%etseg"ent but none as a whole! &ow should Gati protectitsel ro" possible encroach"ent by co"petition'

ie up %ith e&co++erce co+panies such as ip"art,'+aon, Snapdea, etc

Introduce :.press dei#er- and $#erni(ht dei#er-

sche+es :+phasie on the e.tensi#e outreach o/ Gati andpu*icie it

7ater to re+ote areas in the countr- such as the northeastern states and ?i+aa-an re(ion

De#eop %arehousin( capa*iities especia- in tier 2,3and re+ote re(ions

Introduce transportation throu(h %ater%a-s

7/26/2019 Gati Case Solution

12/19

Q() ipp is not "o#ing! *hat can be done to re#i#ethis' +"ployees are waiting to see so"e i"pro#e"entin ipp, but when' To succeed, ipp, needstransor"ation to a process orientation! *hat would

ta%e it to beco"e a process based organi-ation' 7reate a separate tea+ %hich %oud *e responsi*e /or dei#er- /ro+end to end his +eant a separate +ar"etin( tea+, /ocused operationatea+, and dedicated custo+er care and +onitorin( tea+

So+e o/ the acti#ities reated to ipp such as pic" up, sortin(, anddei#er- can *e outsourced

ipp %as to use the Gati net%or" %here#er it %as appropriate andoperate on its o%n net%or" %hene#er necessar- /or purposes o/ speedor e.a+pe, ipp product %oud *e in a separate *a( he- %oud *ehanded separate- at the airport itse/ to reduce transit ti+e

:.tensi#e +ar"et research to understand %hat ne% /eatures +a- add#aue to the product /ro+ the consu+er point o/ #ie%

o add #ou+e, Gati %as pannin( to tar(et a ran(e o/ ne% custo+ersand hoped, *ased on the positi#e +ar"et /eed*ac" and i+a(e, to (et*ac" the traditiona Gati custo+ers

he product e.tensions o/ ipp specica- tar(eted three +a@orse(+ents educationEstudentsF, phar+a co+panies, and e&co++erce*usiness co++unit-

7/26/2019 Gati Case Solution

13/19

Q.) Gati online +/ 0called G+2) is wor%ing well andhas stabili-ed! *hat should Gati do with this sotware'2hould it be sold to an IT 3r" or should Gati start aconsulting agency to i"ple"ent this +/ in other

courier co"panies' Gati is %e "no%n /or its ad#anced I in/rastructure

G:MS is Gatis stren(th %hich di4erentiates it /ro+ itsco+petitors

In the %est, +an- co+panies are "no%n /or theirproprietar- I capa*iities especia- in the o(isticsdo+ain such as HPS

hese capa*iities (i#e an upper hand to suchco+panies o#er their co+petitors

So, Gati shoud not se G:MS to direct co+petitorsoperatin( in the sa+e do+ain

he- shoud rather +a"e use o/ Indias hi(h s"i ando% cost I capa*iities to de#eop itse/ as a soutionpro#ider

he- +a- consider sein( this ser#ice to ar(e r+s inother do+ain that ha#e o(istics as their ena*er

2ingapore is 6uite encouraging There is a si"ilar

7/26/2019 Gati Case Solution

14/19

2ingapore is 6uite encouraging! There is a si"ilaropportunity or s"all cargo business in the iddle +astand +urope! The act that Gati has "ulti"odaltransport operations is an ad#antage! ll these wouldensure a solid

basis to grow both nationally and internationally! The%ey issue is how ast this growth should be' *hatwould accelerate this growth'hreat o/ e% :ntrant $C L & hi(h entr- *arrier is the hi(h .ed cost associated%ith esta*ishin( the internationa transportation net%or" his incudes hu*s,(round transportation #ehices, air ;eet, etc

Bar(ainin( po%er o/ *u-ers ?IG?L & *u-ers can turn to a shippin( pro#ider that

o4er /aster ser#ice, o%er price, or ser#ice inno#ation %ith ease his is especia-true /or ar(e corporations, i"e IBM, %hich ships in ar(e #ou+es and can *ar(ainuantit- discounts

Bar(ainin( po%er o/ suppiers $CL & ar(e shippin( ser#ice pro#ider can a4ectprices o/ suppies, i"e pac"a(in( +aterias his is *ecause the- *u- in ar(euantities and can turn to di4erent suppiers easi-

hreat o/ su*stitute products $CL & here are not +an- su*stitutes to shippin(In this da- and a(e %here +an- *usinesses ha#e stron( onine presence and a

s+a ph-sica presence, it %oud *e di)cut to nd a su*stitute in dei#erin( theirproduct

i#ar- '+on(st :.istin( ir+s?IG?L & :sta*ished pa-ers in shippin( ser#iceindustr- co+pete ri(orous- /or a +ar"et share, the co+pan- %ho responses rstto the constant- chan(in( en#iron+ent %ins :sta*ished co+panies ha#e tostri#e /or continuous i+pro#e+ent in uait-, o%erin( price, and inno#ation

here is #er- o% s%itchin( cost /or consu+ers in this industr- +a"in( ri#ar-e#en +ore intense

7/26/2019 Gati Case Solution

15/19

Q8) *hat are the internal 0structure, people, syste",peror"ance appraisal) re6uire"ents to "o#e ro" anacti#ity9oriented organi-ation to a solution pro#ider0logistics, .:, etc!)'

Structure e% co+posite tea+s shoud *e /or+ed that ha#e representati#es

/ro+ a the speciaiations

Shoud stren(then the +ar"etin( tea+ to attract ne% pro@ects

Peope Shoud de#eop additiona so/t s"is and +ana(e+ent s"is to ser#e

cients *etter

ea+ %or"in( capa*iities need to *e de#eoped

S-ste+ I s-ste+s shoud *e /urther stren(thened

Pro@ect +ana(e+ent capa*iities shoud *e incucated in the ne%s-ste+

Per/or+ance appraisa 'dditiona co+pensation shoud *e (i#en to tea+s %ho recei#e

e.ceent /eed*ac" /ro+ the cients on their pro@ects

Midde +ana(e+ent shoud *e appraised on the *asis o/ cient o-at-

7/26/2019 Gati Case Solution

16/19

Q;) The greatest strength o Gati is its ability toexperi"ent, willingness to ace ailures, and resilienceto o#erco"e the"! These are typically thecharacteristics o an entrepreneur dri#en organi-ation!*hen and how Gati should graduate to a leadership"anaged entity'

Gatis eadership shoud /ocus on enhancin( theco+pan-s stren(ths

In #oatie +ar"ets it is (ood to ha#e suchentrepreneuria capa*iities to adapt to chan(e

he- shoud continue %ith such strate(- in paces%here the- ha#e ess than desired +ar"et share

In the do+ains %here the- ha#e decent +ar"et share,the- shoud operate as a eadership +ana(ed entit-

7/26/2019 Gati Case Solution

17/19

Q7) Gati5s business "odel has changed ro"partnership to in#est"ent oriented! *hat are the ris%sin the new "odel' *hat are the ad#antages'

is"s

In#est+ents (i#e /uture returns %hich areunpredicta*e

In#est+ents are (uided *- in#estees "no%ed(e andoutoo"

'd#anta(es

Gati doesnt ha#e to oc" up its resources, on- +one-needs to *e aocated

Gati no% can +ore autono+ous in ta"in( decisions

7/26/2019 Gati Case Solution

18/19

Q

7/26/2019 Gati Case Solution

19/19

T$A%& 'O(