Gati Final 4th Sem
Gati Final 4th Sem
Gati Final 4th Sem
As a part of our course curriculum and in order to gain practical knowledge in the
descriptions.
Earned during the summer internship project report preparation. In this report I had
The project flows logically consisting of a questionnaire, I hope that the findings
and the suggestions will bring the product into existence. I have enjoyed my report
preparation and have learnt lots of new things. I have tried my level best to make
this report a reader friendly and also did my level best to fulfil the objective of the
study.
ACKNOWLEDGEMENT
No project repot ever reflects the efforts of a single individual. The report owes its
existence to the constant support and guidance of people. I am grateful to all of them.
It is their help and support, due to which we became able to complete the design and
technical report.
Without their support this report would not have been possible.
I owe a never-ending debt of gratitude to Dr. Raji for their expert guidance and
support.
I would like to thank all the respondents for giving their valuable time and providing
useful information.
I am also grateful to all those who have either directly or indirectly contributedtoward
the completion of the project, for their support and encouragement.
Table of Content
2. Literature Review
5. 5.1 Findings
5.2 Suggestions
5.3 Limitation
6. 6.1 Conclusion
6.2 Reference
Annexure
EXECUTIVE SUMMARY
The birth of Gati practically represents the big change in Indian courier & cargo industry. The name Gati creates
an image, reliability, tradition & faith. Except its express cargo division it started its courier division under the
brand name “Gati Zipp” in the year of 1998. Now Gati Ltd. is a leader in Indian cargo service industry. The word
“Gati” is derived from Sanskrit language which means speed with direction.
Though Gati has proven its supremacy in Indian cargo sector, it is facing a low brand awareness in Indian courier
market. Since the company is wanted to relaunch its courier service in tie up with Indian cargo a detail story of
brand awareness and brand recall is very much needed. Keeping this thing in mind, we set out to find out the
INTRODUCTION OF THECOMPANY
1.1 INTRODUCTION
Exactly the same has made all the difference when Gati rolled out the express cargo concept in India. Gati, the
pioneer in India in mastering the idea of express cargo with a different feature of door to door and desk to desk
pick up and delivery which was conceptualized as a premium transportation service with convenience and
efficiency. It has made all the difference where the conventional transportation was the only way of delivering
In late 80’s India witnessed the liberalization policy that has changed the face and pace of India which triggered
high economic growth in manufacturing and service sector. The competition among corporate to serve its
customers first and fast become the key word of success in market place. Gati very proactively foreseen the vast
The realization of, importance of logistics in creating a country’s wealth, Gati has taken a different route and that
was resulted to the launch of Gati Desk to Desk Cargo in 1989 offering door to door pick up and delivery services.
1989 witnessed the introduction of a different product line in transportation where time, technology, safety and
In 90’s, Consumer preference started changing as the information technology has taken front seat in providing
highly efficient service at customer doorsteps. Time and speed became the essential ingredient of success of any
manufacturer who wants to deliver their products to end user on time and intact. Snail paced infrastructure
development in India was the only road block to attain high speed in delivering our customer needs.
In 1996, Gati has made history by getting into a strategic alliance with Indian Airlines to leverage the highest
network on air to provide the widest reach in surface with high speed delivery process to attain great customer
satisfaction.
The industry growth and information tech boom has created high customer expectation; the intangible service
started playing the key role in differentiating the tangibility of every product. It is like the service starts matters
the cost.
In 2000, a new millennium, Gati launched the first railway freight service from Mumbai to Delhi called “ Gati
Millennium Train “ eying the optimum utilization of cost and grabbing all opportunities come across as the market
dynamic changes.
The new millennium witnessed the explosion of information technology and expansion of Indian service industry.
India started acting global. The investment friendly business environment that has made international corporate’s
entry into Indian market. It triggered stiff competition in market place and higher consumer expectations. All the
company’s started to think on “optimum utilization “of all resources to meet customer expectation as well as the
thinner bottom line to a thicker one. The conventional wisdom of “Revenue generation by sales and spent by
distribution “has made a major shift to “effective distribution and SCM make company’s bottom line brighter”.
This made – the back room logistic and distribution function to a strategic board room function. The black sheep
In 2003, Gati introduced oracle based Gati Enterprise Management Solution, nick named GEMS to give all
competitive edge to our customers in leveraging the market opportunities on time. Gati GEMS is one of the most
effective tool to track and trace the shipment and enabling Gati in optimizing all resources.
India became the fastest growing economy in the world with an aspiration to fetch a double digit growth in GDP.
The pace that Indian logistic scenario moves ahead, Indian infrastructure like road, rail, ports Air ports
development is not showing the speed that requires to support the faster development in logistics.
Gati has already started investing heavily in improving the ware housing, IT, Hubs, Aviation, Customer service
etc to move ahead to meet the market needs. Gati is going ahead in re-engineering of network through central
distribution centre and express distribution centre. Now Gati offers distribution and warehousing solution in 592
out of 604 districts of India. Gati has expanded to Asia Pacific region by offering India- centric distribution
solutions.
Change is very constant in market place. Gati always choose a road less traveled by and create a positive
Recently Gati has undergone a transformation process and displaced the promise to “Ahead in Reach” from the
statement of “We deliver anything anywhere”. Gati now have a global outlook and its brand design has changed
to
Vibrant new look. Gati has restructured to meet all B2B and B2C customer needs which enable to address the
Gati’s ambition is to become a truly Indian multinational company to set a bench mark reference in customer
MILE STONES
From inception, Gati have been obsessed with providing the best possible service. This obsession has resulted in
setting the benchmarks for the industry. Here are the some snap shots of the glorious story of a leading logistic
1989
1989-1995
A toll free number is introduced for customers for first time in India.
1996
A strategic alliance with Indian airlines, India’s largest air network for faster delivery of shipments to its
customers.
1997
Introducing the third party logistics system in India and offering the complete logistics solution to its
customers.
1998
1999
Expanding its services in to SAARC countries, ties-up with Bhutan and Maldives Postal department.
2001 Introducing the first exclusive cargo train between Mumbai and Kolkata in association with Indian
Railway.
2003
Bags the best logistic company 2003 in a survey conducted by Frost & Sullivan.
2004
Awarded the consumer super brand status in the logistic category for 2006-07
Board of Director
Amit Pathak Company Secretary, Compliance Officer and Chief Investor Relations Officer
FUNCTIONAL AREAS
HR Practices:
Today companies are trying to reinvent HR practices. Likewise Goodyear tyre also is continuously adopting new
changes that can be in mutual benefit of their employees and organization’s business. Goodyear tyre human
resource team is reconfiguring their HR processes and run innovative employee engagement programs to improve
Resourcing from referrals, online portals, campus placements and walk ins.
Payroll Administration
Compensation Management
Workforce Management
PRODUCT PROFILE
Gati Express
Gati Zipp
Gati Saver
Gati Priority
Gati coast-to-coast
COD – Collection of cash against delivery from the customer and remitting it to the supplier online through
e-banking.
DOD- collection of draft and cheque on behalf of customer at the time of delivery.
Safety Measures: special “suraksha” bags for safe handling of high value of cargo.
With the widest network, the best of cargo movement facilities and several value added services to choose from,
Gati express is the preferred distribution solution provider today in India. Gati has a range of express services to
choose from:
E-billing
Gati Saver
Flat rate of Rs 89 per package ( up to 4kgs) ideal for samples, gifts, study materials and printed material.
Gati Priority
Speed, reliability and reach: Every operation at Gati Priority follows this principle. The large fleet of surface
vehicles and a strategic alliance with Indian airlines helps Gati to meet every possible business need.
Multi modal connectivity for easy and quick transit at non airport locations.
Gati Zipp
Gati goes beyond the normal courier service with zipp and provides its customers with unique price and transit
time option.
A pre paid payment option the form of zipp envelopes and boxes.
Cash-on-delivery facility
Gati coast to coast is Gati’s shipping division. Set up way back in 1986, the CTC division was to become the
preferred service provider for all sea bound cargo in the bay of Bengal, Andaman Island and Malacca strait. In
the two decades of its existence, Gati CTC has followed this vision with diligence and determination and has
mv Gati Suvidha
mv Gati Zipp
mv Gati-1
mv clarissa
Logistic and supply chain management are the integral part of Gati’s business. A sharp and steady focus on
these key functions has helped Gati to gain a competitive edge over the rest of the market. Gati offers its service
Gati’s warehousing facilities consists of completely modern storage system and material handling system. With
it branches in all metros, semi metros, cities, Gati has more than 200 storage locations across the India. With
over 6000 sq ft of warehousing space spread all over the country and serving the multiple clients, Gati is able to
Gati Ltd., incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 1160.39 Crore)
Gati Ltd. key Products/Revenue Segments include Freight & Demurrage which contributed Rs 279.46 Crore to
Sales Value (54.58 % of Total Sales), Diesel, Petrol & Lubricants which contributed Rs 214.95 Crore to Sales
Value (41.98 % of Total Sales) and Other Operating Revenue which contributed Rs 17.55 Crore to Sales Value
For the quarter ended 31-12-2017, the company has reported a Consolidated sales of Rs 448.51 Crore, up 10.48
% from last quarter Sales of Rs 405.97 Crore and up 6.89 % from last year same quarter Sales of Rs 419.60 Crore
Company has reported net profit after tax of Rs 4.80 Crore in latest quarter.
The company’s top management includes Dr.P S Reddy, Mr.K L Chugh, Mr.Mahendra Agarwal, Mr.N
Srinivasan, Mr.P N Shukla, Mr.SunilAlagh, Mr.Yasuhiro Kaneda, Ms.SheelaBhide. Company has Singhi& Co.
as its auditoRsAs on 31-12-2017, the company has a total of 108,346,795 shares outstanding.
SERVICE DELIVERY
The accountable service provider and his service suppliers (e.g. the people)
Customer contact
The service encounter is defined as all activities involved in the service delivery process. Some service
managers use the term "moment of truth" to indicate that defining point in a specific service encounter where
Many business theorists view service provision as a performance or act (sometimes humorously referred to as
dramalurgy, perhaps in reference to dramaturgy). The location of the service delivery is referred to as the stage
and the objects that facilitate the service process are called props. A script is a sequence of behaviours followed
by all those involved, including the client(s). Some service dramas are tightly scripted, others are more ad lib.
Role congruence occurs when each actor follows a script that harmonizes with the roles played by the other
actors.
In some service industries, especially health care, dispute resolution, and social services, a popular concept is the
idea of the caseload, which refers to the total number of patients, clients, litigants, or claimants that a given
employee is presently responsible for. On a daily basis, in all those fields, employees must balance the needs of
any individual case against the needs of all other current cases as well as their own personal needs.
LOGISTICS MANAGEMENT IN INDIA
India is among the fastest growing economies in the world. An extended and improving transportation network,
rapidly increasing number of highways, and ambitious plans for expanding railways are transforming India into
a global transport hub. India has a robust logistics industry that supports its GDP growth and government's Make
In India programme.
Technology is being used to streamline operations, track shipments, and improve communication between
different stakeholders.
With businesses becoming increasingly globalized, there is a need to have efficient supply chain management
systems in place. This has led to an increased focus on supply chain management within the logistics industry.
The e-commerce sector is one of the fastest growing sectors in India and this is having a positive impact on the
logistics industry. The growth of e-commerce is leading to an increased demand for efficient last-mile delivery
services.
The rise of e-commerce: E-commerce is booming in India, and this is having a major impact on the logistics
industry. Online shopping is growing at an incredible rate, and this is leading to a huge increase in demand for
logistics services.
The growth of online grocery shopping: Along with e-commerce, online grocery shopping is also growing rapidly
in India. This is another area where logistics companies are seeing a big increase in demand for their services.
The rise of last-mile delivery: Last-mile delivery is becoming increasingly important in the logistics industry, as
companies strive to get orders delivered to customers as quickly and efficiently as possible.
The growth of express delivery: Express delivery is another area where the logistics industry is seeing strong
growth. With customers expecting ever-faster delivery times, logistics companies are working hard to meet this
demand.
The rise of reverse logistics: Reverse logistics is also becoming increasingly important, as more and more
Logistics is essential for the economy of a country. It pertains to the general method of controlling how resources
are obtained, housed and delivered to their ultimate location. Determining the efficiency and accessibility of
potential distributors and suppliers is part of logistics management. It is a differentiating sector that can largely
affect any country’s exports, thereby adding a significant competitive edge, with the underlying assumption of a
robust logistics sector. The logistics industry comprises all supply chain activities, mainly transportation,
inventory management, flow of information and customer service. It determines the success of not only the
country’s supply chain but also influences it on a global scale. The effectiveness of logistics helps to determine
India’s logistics are estimated to account for about 14.4% of GDP. More than 22 million people rely on it for their
income. The Department of Commerce's logistics division for India was established on 7th July 2017 and was
given the responsibility of the Integrated Development of Logistics Sector. The Special Secretary to the
Government of India is at the helm of the division and has been assigned the responsibility for the development
of an action plan to facilitate the overall development of the logistics sector through policy changes, procedure
improvements, identification of bottlenecks and gaps, and adoption of technology. Overall, India’s logistics sector
The government has initiated various steps to boost the logistics sector, such as follows:
National Logistics Policy: The government has planned to release the National Logistics Policy. The planning
of the strategy involved detailed conversations on the supply and demand sides with all central ministries and
takes a broad view of the sectors defining precise action points. The proposed policy's objective is to boost the
nation's economy and corporate competitiveness by establishing an integrated, seamless, effective, dependable,
green, sustainable and cost-efficient logistics network that makes use of best-in-class tools, procedures and
qualified personnel. The policy aims to reduce the logistics cost, which stands at 14% of GDP to 9-10%. The
strategy will establish a single-window e-logistics market and emphasize developing skills, competitiveness and
employment for MSMEs.
National Logistics Law: A national logistics law has been drafted and is under consultation. Through a unified
legal framework for the paradigm of One Nation, One Contract, it would support the One Nation, One Market
objective and provide a flexible regulatory environment (single bill of lading across modes). The law's
provisions will make it possible to assign a distinct logistics account number in place of cumbersome registration
processes.
Logistics Master Plan: This initiative is in the works which takes a geographical strategy as opposed to an
industry approach. Several projects and activities will be integrated into the plan to expand the mix of intermodal
and/or multimodal transportation. Coordinated construction of relevant infrastructure (gas and utility pipelines,
optical fibre cable networks) is planned to prevent problems in the future. An Inter-Ministerial Committee will
be used to supervise the master plan's execution. The state and local logistics strategies will be created in
coordination and cooperation with the federal plans.
National Multimodal Facilities and Warehousing: In order to promote intermodal and Multimodal Logistics
Parks (MMLPs) as a separate class of infrastructure and to encourage efforts with a national registry of
multimodal facilities to enable price discovery, ensure optimal utilisation, and support planned development,
the National Grid of Logistics Parks and Terminals is being planned. Furthermore, the government has begun
to devise certain standards and guidelines that will be implemented for the development of warehousing. The
government plans to optimise procedures for obtaining clearances that make the procedure of establishing
warehouses more efficient, along with setting up a system for rating and certifying those warehouses for
excellence.
The Logistics division has designed a digitisation initiative to provide an integrated IT foundation that would
boost productivity, reduce wasteful travel and provide a slick user experience. The standards for the National
Logistics Platform (iLOG) are currently being finalised in conjunction with the Ministry of Electronics and
Information Technology (MEiTY). The iLOG will work to integrate a single platform for the various IT solutions
that have been developed by various stakeholders, including logistics service providers, purchasers, and central
and state government agencies such as customs, Directorate General of Foreign Trade (DGFT), railways, ports,
National Logistics Workforce Strategy: For the integrated skill development of professionals in the logistics
sector, the government is developing a national logistics workforce strategy. Building on the framework of skill
development centres already in place, which are currently based on modes of transportation, it is planned to enable
cross-sectoral exchange of ideas and best practices as well as create a workforce of professionals who will be the
primary force behind the development of logistics in the nation. The approaches include a coordinated effort to
analyse and address present and future skill needs, mainstreaming logistics education and training in regular
formal education from school through post-graduate level, and introduction of a Certified Logistics Professional
(CLP) scheme, and to incentivise the engagement of such professionals. The Driver Employment and
Empowerment Programme is one of the strategies, and it aims to lower logistics costs by making truck driving a
Road Ahead
The initiatives taken by the government will lead to the progress of the logistics sector. The integration in the
form of a multi modal network of transport and warehousing will lead to increased efficiency in the transportation
and storage of goods throughout the country. By focusing on the digital aspect, the government’s aim is to upgrade
the existing system that will lead to faster, better communication with fewer errors that will benefit the sector
significantly. The plan has a strong monitor system with periodic audits in order to check the implementation of
policies and application of required corrective measures. With the aforementioned initiatives, India intends to
raise its ranking in the Logistics Performance Index to 25 and cut bring down the logistics cost from 13% to 8%
of GDP, leading to a reduction of approximately 40%, within the next five years. These goals were set by the
National Logistics Policy. This would guarantee the logistics industry acts as a growth engine and a major factor
Gati covers 594 districts out of 602 districts in India providing excellent cargo services to various customers.
Gati gives more priority to timely delivery than the cost of delivery reflected by vehicle under utilization.
Gati was the first company which offered value added services with highest quality to transport business which
For the successful operation of its business it started a new concept with a group of front-end entrepreneurial
delivery set up popularly known as Gati Associates (GA). This kind of concept was new to the cargo & courier
industries in India.
Gati was giving assurance a net revenue of Rs 8000/- a month (in 1994) and a financial arrangement ensured
over a period of time to all its GAs for the smooth and successful running of business.
In 2000, Gati launched the first railway freight service from Mumbai to Delhi called “Gati Millennium Train
“eying the optimum utilization of cost and grabbing the major share in Indian cargo market.
Gati introduces oracle based GEMS package to give all competitive edge to its customers in leveraging the
It is the first company which offers money back guarantees policy on cargo services if the cargos are failedto
For first time in India, It is introduced a toll free number for the benefits of customers regarding the querieson
to send samples, gifts, study materials and printed material ( up to 4kg) at a flat rate of Rs.89 with service tax
In 2006 Gati has redefined its brand name from “we deliver anything any where” to “ahead in reach” and
changed its logo in order to hold the market leadership in Indian cargo market.
First company of India to introduce 7*24 hr booking system for its customers under the brand name “Café
D’eliver”.
Provides other additional services like door pick-up and delivery, holiday and Sunday pick-up.
Gati is handling 2.2 million of packages in a month across 29 states in India with assured delivery date on the
docket.
It has developed the excellent connectivity across the country thus enabling it to provide unparalleled service
to its customers.
Gati is also investing substantial resources in customer relationship marketing through regular customer meets
and customer carnivals which is a new strategy to this industry and resulted in creating a unique market to Gati.
Gati has done an alliance with Indian Airline in order to provide services in 550 locations through 150 branches
Gati is operating a call centre on 24*7 basis to receive, respond and monitor customer complaints.
In the courier segment Gati was one of first companies to use 2kg and 5kg boxes to capture the retail courier
market.
Gati is only one Indian Cargo company which runs its business in three modes i.e. surface, water & air.
Gati is the only cargo company of India which has its own sea cargo division named Gati coast-to-coast.
Gati has opened its branches in foreign countries like China, Hong Kong,Thailand & in SAARC Countries to
Gati took roughly four yearly to stabilize the differential express cargo business from simple cargo business.
Due to poor positioning Gati Suvidha was failed to attract the customer thus getting low market share from
courier business.
Gati’s railway cargo project was failed as it was proved to be highly expensive for Gati and did not fetch
good revenue.
Opportunity:
Gati’s strategic alliance with Indian air line has created a huge amount of business in air cargo sector.
In July 2007 Gati is going to start its own flight operation in association with Indian for air cargo business.
Automotive industry in India is growing at 18% per annum creating a huge opportunity for Indian logistics
Indian retail sector is growing 25% annually creating US$ 175-200 billion by 2016.
Over 8.6 million productions of vehicles with a growth rate over 35% per annum.
The recent experiment on Alphonoso mango has created a great business opportunity in packaging for Gati.
Threat:
Gati’s business model was cloned by several retail courier operators thus creating threat for Gati’s business.
Gati’s employees were recruited by its competitors with high salary and other perk and allowances.
AFL has ventured in premium cargo (Courier) in the brand name AFL “Wiz” thus creating threat for Gati’s
Global logistics major “DHL” has opened its office in Gurugaon in order to start its business in north India.
First Flight, one of the premiere courier company of India is entered in to air cargo sector with its two own
air craft between Delhi and Chennai and very soon entering in Hyderabad and Bangalore cargo market.
CHPAPTER 2
LITRETURE REVIEW
The logistics industry had been one of the key sectors which showed a strong revival post COVID-19 pandemic.
Domestic indicators like e-way bill generations, FASTag collections, Indian rail freight volume, domestic port
volumes and foreign trade are showing clear signs of revival. Organised domestic logistics players have been
able to improve business led by user-industries’ preference towards credible supply chain management. Further,
the third-party logistics (3PL) space has seen a faster improvement in operations led by segments like e-
Commerce, pharma and FMCG. The express logistics industry (~Rs. 25,000 crore, ~2.5% of the Indian logistics
industry) is slated to grow at 15% CAGR over FY2020-FY2025. The B2B segment (~Rs. 13,500 crore, 50%
organized market share) is expected to grow at a 13% CAGR over FY2020-FY2025. National logistics players
are expected to clock a fast ~20% CAGR over FY2020-FY2025 compared to regional peers. Gati is on a high
earnings growth trajectory for the next 2-3 years, which began post the company’s acquisition by Allcargo
logistics in March 2020. Gati, with a strong foothold in the B2B segment has a strong double-digit growth
opportunity going ahead which would be lead by market share gains from both existing players and new customer
accounts. Allcargo partnered with turnaround specialists Alvarez & Marshal and launched Project Avvashya to
redefine Gati and restructure its business processes. The restructuring involves divestment of subsidiaries
(domestic and overseas) and fuel station businesses, which were unrelated businesses, sale of land & buildings,
significant paring of debt and contingent liabilities, deep rationalization of costs (manpower and overheads),
streamlined working capital (debtors & payables) and senior leadership changes which would going ahead lead
to asset-light focused approach on its two core businesses 1) B2B Express (Gati KWE), 2) B2C (e-commerce
business for Gati standalone). Gati had trimmed consolidated gross debt from Rs. 411 crore in FY2020 to Rs.
290 crore in FY2021 (aided by Rs. 57 crore from sale of properties) which is further reduced to Rs. 185 crore
with sale of Gati Kausar (cold chain subsidiary, 70% stake, ~Rs. 105 crore debt). Further, it has identified Rs.
170 crore worth of non-core assets, which will be monetised over next two years which would lead to net cash
surplus position by FY2023. Gati now being part of Allcargo has access to a global network (300 offices in more
than 160 countries). It will be tapping its parent’s global clients for door-to-door service, potential business from
customers which are engaged in the parent’s CFS and ICD business and cross border e-commerce business. Gati
had numero uno position in surface express (almost 90% revenue share) with a market share of 12.5% in 2014
which got eroded to 7% currently with a loss of customer accounts (200+ accounts left over few years). It is now
on path to regain its leadership positioning (Safe express with 11% market share is the current leader) through
accelerated sales (in retail & KEA), digitization (new sales CRM, Whatsapp Bot, PayTm-led digital payments)
and capacity expansion (six hubs in metros cities to be made built to suit super hubs with automation increasing
overall capacity by more than 50%). Gati targets to grow its revenues in double-digit and achieve OPM of 10.5-
Based on detailed analysis, Gati found that it was economically viable to use the railway network to move its
cargo. After prolonged negotiation with Indian Railways. Gati signed a three-year. The contract was motivated
by Gati's ability to service three different market segments with greater efficiency: some air cargo (urgent on time
to deliver, but bulky), some surface cargo (both retail and major accounts) and transport market (price sensitive
segment). The railway contract was not without risks. Each train cost Gati Rs. 10 lakh. It required moving one
train every week, which was possible only when 30 mt/day of cargo was mobilized. The expected revenue from
a trainload was Rs. 18 lakh. The best route was Delhi-Madras. Prejudices from railways prevented its operations.
The Bombay-Calcutta route was operational for six months. The Delhi-Bombay route was not received well as
the distance was not large enough to shift prime customers to the rail mode. Movement through the railway
network could not be sustained because even in the best route (Bombay - Calcutta), there was no return load. The
contract stipulated a fixed payment to railways. Collection did not match with the commitment. Non-availability
of load delayed shipments and delivery commitments could not be met, leading to reduced traffic. Some in Gati
argued the railways business failed because Gati never sold the product or a service but inadvertently started
selling the mode (rail) of transport. Customers were unwilling to pay a premium price for what was perceived by
them as slow mode of transport. Before Gati undertook organization-restructuring railways was managed as a
project. After restructuring there was no clarity as who was responsible for what of this product. This further led
to lower collection and non-profitable operations. Eventually, Gati abandoned the initiative. There was a feeling
of unease among senior executives that a potentially good project was not well managed and a great business
BlueDart
BlueDart is South Asia’s premier courier, and integrated express package Distribution Company. It has the most
extensive domestic network covering over 33,739 locations, and service more than 220 countries and territories
worldwide. BlueDart is the only express carrier in the country today which offers an entire range of services that extend
from a document to a charter-load of shipments. BluDart’s services are relentlessly monitored to deliver a netservice
level of 99.96%.
FedEx
FedEx Express invented express distribution and is the industry’s global leader, providing rapid, reliable, time- definite
delivery to more than 220 countries and territories, connecting markets that comprise more than 90 percentof the
world’s gross domestic product within one to three business days. Unmatched air route authorities and transportation
infrastructure, combined with leading-edge information technologies, make FedEx Express the world’s largest express
transportation company, providing fast and reliable services for more than 3.6 million shipments each business day.
DHL
DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics
and international mail services to its customers. A global network composed of more than 220 countries and territories
and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their
supply chain requirements. India is on the fast track to growth. With increasing trade opportunities, DHL is well
positioned to provide customers in India with integrated end-to-end solutions across domestic and international
First Flight Couriers was founded in 1986 with the setting up of three offices at Kolkata, Mumbai and Delhi. First
Flight has 1200 First Flight Offices across India, 2300 Authorized Collection Centers, 452 Franchisee Locations
Serving over 6700 Pincode Destinations across India with a Dedicated Workforce of over 17000 plus employees,
Strategically located 10 own International Offices, Serving over 220 countries globally. First Flight’s commitment to
corporate excellence and its yearning towards success has made it a common household name today.
DTDC
DTDC is India’s Largest Express Delivery Network, comprising of over 5800 Channel Partners spread across the
country and a strength of 22,000 professionals enabling deliveries of 11 million consignments per month across over
10,000 pin-codes in India. Started in 1990 and headquartered in Bangalore, today DTDC also has a significant global
footprint and services 240 international locations including USA, UK, Canada, UAE, Hong Kong, Australia, China
and all ASEAN countries, through its own operations, joint ventures and business associates. It offers products that
address all Logistics-related needs of its clients, ranging from Express Documents to Heavy Cargo, from Domestic
Premium Products to International Delivery, and from Supply Chain Solutions to Warehousing.
CHAPTER 3
RESEARCH METHODOLOGY
Research is a common language refers to a search of knowledge. Research is scientific & systematic search for
pertinent information on a specific topic, infect research is an art of scientific investigation. Research
Methodology is a scientific way to solve research problem. It may be understood as a science of studying how
research is don’t scientifically. In it we study various steps that are generally adopted by researchers in studying
their research problem. It is necessary for researchers to know not only know research method techniques but also
technology.
The research problem consists of series of closely related activities. At times, the first step determines the native
of the last step to be undertaken. Why a research has been defined, what data has been collected and what a
particular methods have been adopted and a host of similar other questions are usually answered when we talk
of research methodology concerning a research problem or study. The project is a study where focus is on the
following points:
RESEARCH DESIGN
A research design is defined, as the specification of methods and procedures for acquiring the Information
needed. It is a plant or organizing framework for doing the study and collecting the data. Designinga research
plan requires decisions all the data sources, research approaches, Research instruments, sampling plan and
contact methods.
1. Exploratory research.
2. Descriptive studies
EXPLORATORY RESEARCH
The major purposes of exploratory studies are the identification of problems, the more precise
Formulation of problems and the formulations of new alternative courses of action. The design of exploratory
DESCRIPTIVE STUDIES
Descriptive research in contrast to exploratory research is marked by the prior formulation of specific
research Questions. The investigator already knows a substantial amount about the research problem. Perhaps as
a Result of an exploratory study, before the project is initiated. Descriptive research is also characterized by a
A casual design investigates the cause and effect relationships between two or more variables. The
hypothesis is tested and the experiment is done. There are following types of casual designs:
Area of study: The study is exclusively done in the area of marketing. It is a process requiring care,
sophistication, experience, business judgment, and imagination for which there can be no mechanical
substitutes.
Sampling Design: The random sampling is done because any probability sampling procedure would require
detailed information about the universe, which is not easily available further, it being an exploratory research.
Sample Procedure: In this study “random sampling procedure is used. Random sampling is preferred because
of some limitation and the complexity. Area sampling is used in combination with random sampling so as to
collect the data from different regions of the city and to increase reliability.
-To study the operations, services rendered and corporate profile of Gati ltd.
-To study the current distribution channel of Gati ltd in retail segment
-To identify the competitors of the company in retail segment and its outlets
-To study the models of promotion for the company and its outlets
CHAPTER 4
DATA ANALYSIS
DATA ANALYSIS AND INTERPRETATION
1 Freight 100
2 Warehousing 89
3 Crossdocking 88
4 Network Design 66
5 Value Adding 98
Valuse Adding,
98 Freight, 100 Freight
Warehousing
Crossdocking
Network Design
Valuse Adding
Network Warehousing,
Design, 66 89
Crossdocking,
88
The pie chart above shows the service offer of each organization. The chart shows that 100% of the
respondents provide freight service and almost 90% provide Warehousing and Crossdocking. Only 66% were
providing service of Network Design. Other service includes value adding, which represents 98% of the
1 Operational Stability 11
2 Cost Effectiveness 10
3 Customer Needs 36
4 Other 96
11 10
Operational Stability
36
Cost Effectiveness
96
Customer Needs
Other
The pie chart above shows the operational decisions and reasons for operations with other logistical
providers. The chart shows that 96% of the respondents operate with other service providers for different
reasons like coordination, clearance, bulk operations etc. Almost 36% have operations with other providers
as per customer needs. Only 11% and 10 % were providing service along with other providers for the purpose
of operational stability and cost effectiveness respectively. It is stated that 96% of organizations operate with
No.
1 Strategic 37
2 Tactical 88
3 Operational 63
63 37
Strategic
Tactical
88 Operational
The pie chart above shows the mode of decisions regarding the operations. The pie chart shows 88% of
organizations take tactical decisions followed by 63% with operational decisions and 37% strategic decisions.
Most of the organizations have a mixture of all the decisions in their day to day as well as in long and short term
plans.
4. Which is the area of the activity, that organizations feel best in their service?
1 Freight 98
2 Warehousing 86
3 Crossdocking 87
4 Network Design 4
5 Value Adding 97
97 98
Freight
Warehousing
4
Crossdocking
Network Design
86 Other
87
The pie chart above shows the best activity which organization feels in their operations. The pie chart shows 98%
of organizations have freight in the predominant area, followed by 86% of warehousing. Another significant area
is Crossdocking with 87% as best activity. There is only a minor activity based on network design with 4% in pie
graph. Most of the organizations have a mixture of all the activities in their day to day and 97% of organization
says other activities bring in more revenue and the best of their activities, which includes packaging, labeling etc.
Table-5i Employees
2 Operations 468 11
No. People
1 Top Management 3 14
2 Operations 4 18
3 Accounts / Finance 4 18
4 Marketing 3 14
5 Human Resource 0 0
6 Documentation /Others 8 36
Docu
Top ment
Operatio Acc./Finan Marketin
Manage HR ation/
ns ce g
ment Other
Gati Ltd.
Employees
Percentage 14 18 18 14 0 36
Other
Organization
Employees % 11 11 11 13 9 45
Chart-5i Employees
50 45
45
40 36
35
30
25 18 18
20 14 14 13 Lintas F&L Employees
15 11 11 11 9 Percentage
10
5 0 Other Organization
Employees %
The line charts above shows the comparison of employees in each functional division of organization with Gati
Ltd. . The line chart shows around 14 percentages of people belong to top management and industry standards
has 11 percent, followed by 18% for operations and industry standards has 11%. Human Resource has to be
enhanced and need to be further improved or need to start in the organization. Documentation also needs to be
further strengthened. Marketing comprises of 14% working in the said area. Most of the organizations have a
mixture of top management with marketing in their activities and functional area. Human Resource comprises of
371 people and other main area is documentation and workers in the areas of loading, operational area. This
2 Europe 6
3 USA 89
4 Australia 86
5 Africa 71
6 Russia 98
7 Middle East 98
8 Other 90
Lintas
Other
Organizations 100 6 89 86 71 98 98 90
6i Catering Locations
0.9 1 Asia
0.06
Europe
0.98
0.89 USA
Autralia
Africa
Russia
0.86 ME
0.98
Other
0.71
0.8
Other Organizations
Europe
Asia
USA
Autralia
Africa
Russia
ME
Other
The pie chart above shows each organizations catering location in the world. The chart shows 100% of
organizations cater to Asian region followed by 6% to Europe and 89 % to USA. Each organization has
tremendous catering locations with 86% to Australia, 71% to Africa, 98% to Russia, 98% to Middle East, and 90
% to other locations. Locations mentioned as other is company catering frequently with repeat orders of
customers. Chart 6ii shows Gati Ltd. can enter European markets and other favourable market is Africa. This can
7. Which division of logistical activity earns the maximum rate of profit for each organization on a scale of
Table-7i -Maximum Rate of Profit Gati Ltd. F&L Compared with Industry Average)
Profit Scale (1 - 10) Freight Wareho Crossdocki Network Othe
using ng Design r
9
10
8 7
6 6 6
5 5 5
6 4
4
Lintas F&L Profit Scale
2 0
Industrial Profit Average
0
The bar chart shows each organizations maximum rate of profit in each area on scale of 1-10, where 1 denotes
least profit and 10 denotes the service that fetches excellent profit. The chart shows Gati Ltd. has ample amount
of profit in Freight area followed by Crossdocking and other value adding activities with 9 and 6 in scale. The
chart 7i shows industry average value is 7 for freight followed by 6.41 for warehousing. It is inferred that freight
is giving ample amount of profit and Cross-Docking, Other including labeling and packaging has industry
standards. The chart 7ii shows profit percentages said by each organization. We can infer that overall profit
percentage for Gati Ltd. has 2.39 percentages lesser compared to industry average. The organization should
8. Comparison of service offered by Gati Ltd. and rating of other organization in the industry on a scale of
0- 4.
Gati Ltd. 3 4 4 2 3
1
0.5
0
Ease of Client Customer Website Employee
Service Handling Service Efficiency
The chart shows Ease of Service is not up to the mark, it shows only 3 for Gati Ltd. and the industry standards is
3.84. So organization can increase their Ease of Service. Client handling is satisfactory compared with industry
standards. Customer service also has remarkable value compared with industry. Major area to look intois Website
easiness, Employee Efficiency. It can be brought up with a considerable effort by proper handling of human
9. What is the significant lead-time for each service rendered with previous years data of each organization?
Gati Ltd. 21 20 30 0 21
Industry Average 23 22 24 10 24
The above chart shows the service executed last year in logistics area and the significant lead-time of each area.
The chart shows 4122 numbers of freight service jobs has been executed with average lead-time of 21 days.
Similarly warehousing jobs with 224 and lead-time of 22 days. While comparing with industry standards Freight
is dominating and similarly the main lucrative area is other (Packaging, Labeling etc.), which has 833 in number
and 21 days lead-time. Organizations lead-time is excellent except for Crossdocking. Focus should beto reduce
10. Average elapsed time between order receiving and delivery of the service (Inventory).
7
6
5
3
Elapsed Time
3
The above chart shows the physical verification check and average elapsed time between order receiving and
delivery of the service. The chart shows 89% of organizations have physical verification. Average elapsed time
between order receiving and delivery of service has an average of 6.9 days. The total value of elapsed time is 613
days for 89 organizations, hence the average days are 6.9 as explained in the figure for Industry average. Lintas
11. Were there any shortage/ excess of stocks noted, in the last verification done?
0
Lintas F&L Industry
Inventory Excess
4.8
0 Inventory Excess
0
Lintas F&L Industry
The above charts show the Inventory Excess and Shortage faced by organization during verification. It is evident
that shortage faced by Gati Ltd. is less compared to industry standards; there is a difference of 8. Another aspect
is regarding the excess of inventory; in this scenario, Gati Ltd. has a remarkable lead with comparison to industry.
12. Average number of customer complaints generated and industry average.
Year
The above chart shows average number of complaints. The complaints for Gati Ltd. is 290 and whereas to industry
average is around 180 in number. Hence organization should try to reduce the complaints arising. This can be
achieved by increasing new modern methods and facilities to customers. Organization need to heavily focus onto
the issue to reduce number of complaints arising in operations, customer satisfaction and other similar areas.
Rating
100 100 100 100 100
100
80
60
40 11
20 3
0 Rating
The above chart shows preference of complaints and how organization follow up to retain customers. Its been
noted that cent percent of organization follow up with customers for customer complaints. Most of the preferable
methods for contacting customers for new service intimation and customer realtionship are telephone, email and
other methods like marketing / sales, customer office visit with 100 rating. The least preferred are gifts and fax
FINDINGS
On the basis of study conducted, it is evident that GATI LTD. is following most of pre-requisites of an efficient
However there are some areas, which need further attention for increasing the quality of services.
Gati Ltd. express ltd. is fully aware of the basic need of customers than its competitors.
The delivery of goods to the customer in the most reliable transit period (and preferably the shortest)
possible.
The country's most reliable air and surface network offers a pre-determined delivery schedule with
Gati Ltd. offers the country's most comprehensive communications technology and customer software
Gati Ltd. does not have very well connection with the national airports.
The national airport services are limited to certain airports and are very expensive.
At national level transportation of goods is done via road that makes delay in the service.
SUGGESTIONS
Since Gati Ltd. is mainly focuses on the international services so it must pay attention in the domestic
services.
Gati Ltd. does not have very well connection with the national airports so Gati Ltd. must make good
At national level transportation of goods is done via road that makes delay in the service so the national
airport services must be spread to every airport so it will be resulted into quick service.
The national airport services are limited to certain airports and are very expensive. Spreading to the
Limitations are influences that the researcher cannot control. They are the shortcomings, conditions or
influences that cannot be controlled by the researcher that place restrictions on your methodology and
1. It was an academic effort and limited to cost, time and geographical area.
CONCLUSION
The process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw
materials, in-process inventory, finished goods and related information from point of origin to point of
A recent US study found that logistics costs account for almost 10% of the gross domestic product. The process
itself covers a diverse number of functional areas. Involved in logistics are transportation and traffic, as well as
The Blue Dart fulfill all the necessary and regulatory requirements of the logistics of goods and service as a
renowned ‘supply – chain management company’, it sincerely concentrate on all the area of its quality services.
Though it always try to fulfill all the requirement of its customers but it is lacking in the case of domesticservices.
It must pay equal attention on the domestic services so that more and more people can take the advantages of its
ultimate services.
REFERENCE
WEBSITE- INTRANET:
www.gati.com
WEBSITE- INTERNET:-
www.birla.com
www.google.com
www.sail.com
www.bhushan.com
www.essar.com
MAGAZINES
Tisco News
BOOKS
(a) Operational Stability (b) Cost Effectiveness (c) Customer Needs (d) Other
4. Which is the area of the activity, that organizations feel best in their service?
(a) Freight (b) Warehousing (c) Crossdocking (d) Network Design (e) Value Adding
(a) Top Management (b) Operations (c) Accounts / Finance (d) Marketing
6. Which division of logistical activity earns the maximum rate of profit for each organization on a scale of 1-10
7. Comparison of service offered by Gati Ltd. and rating of other organization in the industry on a scale of 0- 4?
8. What is the significant lead-time for each service rendered with previous years data of each organization?
(a) Customer Complaints given preference (b) Phone (c) Service Intimation (d) Gifts