LOGISTICS PROJECT

GATI PVT LTD.

GATI
Mahendra K Agarwal, MD, GATI came with a management degree from US and joined his family business at TCI, which was
one 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 explicit
consumer needs.
Established in 1989, as division of Transport Corporation of India(TCI), Gati started operations as a door-into-door
cargo company and offer money back guarantee, by accepting payment after producing proof of delivery a POD.
Gati first started operations between Madras and Madurai and then progressed by setting up 4 stations in Hyderabad,
Bangalore, 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.
GATI
In the initial 6 years Gati
flourished into a small
business ready to perform on
its own. Delivery commitments
took priority over complete
utilization of capacity and Gati
was focused on to its aim to
provide time bound and point
to point delivery.
It separated from TCI in1996
with its turnover being Rs 18
crore at that point. De-Merger
followed by Rapid growth
allowed acquisition of TCI
shipping (Gati Coast ) and TCI
Highways which led to the
formation of Gati Ltd. Use of
business partners known as
Gati associates for transport
services.
Introduction of Desk to Desk
service along with te premium
service. Use of toll free
numbers in Indian Logistics to
become the first 3PL provider.
Tie up with IA for for a fixed
long term contract.multi-modal
services, courier services and
international operations to
SAARC countries.
Logistics Industry Overview
Container
Rail
CFS Trucking Warehousing MTO Express 3PL
Concor
Gateway
Distripark
AllCargo
Global
TCI
Gati
Shreyas
Logistics
Blue Dart
Source: Thomas Weisel International
3PL Industry Overview
Total Logistics Market Size Expected to be $67 bn by 2015
3PL Industry Size Approx $ 6.7 bn
3PL Market growing at 20% CAGR between 2009-15
Major Players Gati, Blue Dart, Prakash Cargo (FedEx),
TNT

Source: Deloitte
Inverse relationship between logistics cost of nation & share of 3PLs in national logistics market - The greater the share of 3PL, the
lesser the national logistics cost
Source: Deloitte
NMIMS Mumbai
Express Industry Overview
Express
Industry
Organized
Players
Semi-
Organized
Players
Small
Unorganized
Players
72%
>INR 50 Crores
15%
INR 5-50 Crores
13%
<INR 5 Crores
Express Industry Market Size - $2.2 bn in 2011-12;
Expected to grow at CAGR 17% to $3.5 bn by
2015
Major Players Gati Ltd, Blue Dart
40%
49%
11%
Market Share in Express
Distribution
Gati
Blue Dart
Others
Source: Economic Times
Source: Crisil
Source: Crisil
Figures in Crores
Source: Crisil
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 Express
International logistics Co. Ltd.
Introduced VTS
2008
Centralized call centre at Nagpur
Millennium Parcel Express(KYN-GWT)
Alliance with GLS(Europes parcel leader)
2009
Mechantronic Warehouse at hyderabad
10C, real time shipment delivery notification
SQS(Service Quality Standardization)
2010
GATI Redsun- Integrated Supply Chain
Solution provider
GATI E-Commerce- makemygiftz.com
2011-12
JV with Kintetsu World Express
Launched GATI Connect- gaticonnect.com
GATIs Portfolio of Services
GATI
Surface
Express
GATI Air
Express
GATI
Courier
GATI
Redsun
GATI Art
Express
GATI Kausar
GATI
Warehousing
GATI Euro
Express
GATI
Saver
GATI
International
GATI Ships
Evolved Network Structure
Restructuring 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 the
Hub and Spoke Model)

EDCs control Distribution warehouse, Depots and Franchisee

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

More than 4000 vehicles run every day to connect the network- Vendor vehicles and Market Vehicles
Gatis Reach

Extensive 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 services from
distribution 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 the white
goods segment . Dedicated fleet of 200 vehicles and 300 bikes deliver over 10000-plus shipments per day. First
service provider in the country to cater to 6700 direct pincodes, with a payment option of Cash On Delivery and
Prepaid basis

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






Pickup call/Online
Start Pickup
Loading material GAvehicle
Unloading of material
Stacking Destination-wise
Loading material in vehicle
Trip Challan preparation
Vehicle Departure
Unloading of material
Stacking Destination-wise
Loading material in vehicle
Trip Challan Preparation
Vehicle Departure
Destination Transit center
Destination Transit center
Unloading of Material
Update tax details
Loading of material into Delivery GAs vehicle
Vehicle departure and delivery to customer
GATI ASSOCIATE
CONTROLLING OU
SC / ATC
Flow diagram

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 famous
locations
Leader in cold chain solutions with vast fleet of refrigerated vehicles with advanced
temperature control systems
Customized end-to-end supply chain solutions
Re-engineering solutions for customers competitive advantage- warehouse layout
design, logistics process re-engineering, logistics network optimization
Transportation, Warehouse and Inventory Management
Multimodal 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

PORTER VALUE CHAIN ANALYSIS
Inbound logistics Operations Outbound logistics Marketing & Sales Service
Primary Value Chain Activities
Receiving Warehousing
& Inventory control
Initially cargo of 40 kg, but
increased gradually
60 mechatronic warehouse
with APL tracking
Mechanized racking
systems
Inputs to final products
Delivery & order
fulfillment
Channel selection,
Advertising & Pricing
Customer Support &
Repair activities
Billing only after proof of
delivery
Money Back Guarantee if
promise not fulfilled
Centralized call centre at
Nagpur
Vendor vehicle & market
vehicle to balance load
factor
Route optimization to reduce
cost by 3%
GATI associates, vehicle
tracking
Alliance with general
logistics system
Premium cargo 7 desk-to-
desk service, 4000 vehicles
Hub & Spoke model: Door to
door service in 667 districts
2 sales channel- Contractual
& retail
Balancing both Top line &
bottom line
PORTER VALUE CHAIN ANALYSIS
Support activities
Procurement
Technology
development
HR management Firm Infrastructure
Equipped cooling plants,
vehicles & service centers
For pick up & drop
entrepreneual model
Oracle CRM & finance
Gati enterprise management
system (GEMS)
Real time shipment
information SMS / Email
Corporate strategies
decided at HO level
5 geographies controlling 62
express centers
Reorganization from zonal
level and upwards
Amity HR excellence award
Food cooked & served in
offices, gender diversity
Need based recruitment via
consultant & visiting campus
Packaging
GATI 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 to
ensure 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. 100
Thermal passive packaging


IT Management at GATI
Prior to 2003

FoxPro Based Software used at
200 locations resulting in
inconsistency and redundancy

Development of GEMS (Gati Enterprise Management System) by Satyam,
using Oracle CRM and Oracle Financials; launched in July 2003
Gati took over GEMS in August 2003
In-house web-based systems such as Warehouse Management System
(WMS), Human Resource Information System (e-HRIS), Shipping System & IT
Inventory Management System
Widest network of IP Phone
Scanned image of POD can be downloaded by customer on real-time basis
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
STRATEGIC ANALYSIS
Gati small cargo Service
Gati cargo management
service
Gati Ltd
PHASE I
Started 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 technology driven

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







Phase I
Phase II
Phase III
GROUP 1