Supply chain management (Gati ltd.)

1. Presented by: RAJESH KUMAR Roll No. 12/MBA/23

2. Overview Gati Ltd . Was incorporated on 25 th 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.

3. Performance : Rapid growth with a CAGR 25% in last 8 years Turnover : Indian Rs. 12094 Millions 1989 : 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 India Technology : Web based GEMS (Gati Enterprise Management Services), Oracle APPS & CRM GATI Pioneering… Performing …Innovating

4. Mahendra Agarwal – CEO of Gati Ltd. He holds an Engineering Degree from Bangalore University, and a Masters in Business Administration from Austin, USA.

5. 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

6. LOGISTIC 70% SHIPPING 7% FUEL STATIONS 23% SEGMENTATION

7. 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

8. 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

9. Gati Transportation The 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. Surface Transport Roads Railways 2. Air Transport Water Transport

10. 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

11. NEW FIRMS ENTER SUPPLIERS Transport vehicle Suppliers BUYERS General public PORTER’S FIVE FORCES MODEL

12. SUBSTITUTE Post Offices Internet COMPETITORS BLUE DART DTDC COURIERS & CARGO LTD CONCOR EMS SPEED POST …..continue

13. 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 .

14. 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, G ati 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.

15. 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 .

16. Owner GATI Block Office 1 District Regional Office 1 GATI - Block Office 2 GATI - District Office 2 Transportation warehousing & Packaging Owner Supply Chain Design

17. 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

18. 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

19. 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 facilities Use promotional activities Time bound delivery Using a third party 3PL and 4PL for reducing a cost. STRATEGY OF THE COMPANY

20. 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

21. COMPETIRORS COMPANY Symbol Blue Dart Express Ltd. BLUEDA Corporate Couriers & Cargo Ltd. CORCOU Elbee Services Ltd. ELBSER Patel Onboard Couriers Ltd. PATONB Skypak Service Specialist Ltd. SKYSER

22. VALUABLE CLIENTS

23. 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 23

24. 24 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.

25. Availability of space Culture and infrastructure changes Lower profit margin CHALLENGES FACED BY INDUSTRY

26. Corporate Social R esponsibility I nitiatives 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

27. 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)