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GATI Evolution Of Third Party Logistics

Presented by: Amrita Arivdekar Dhaval Shah Gayatri Iyer Makarand Rane Pankaj Godhwani

19 July 2011

Objectives of Presentation
How GATI Evolved Challenges Faced Strategies to overcome Challenges Lucrative Business Model Reorganization

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Introduction
GATI Ahead In Reach Headed by Mr. Mahendra Agarwal, MD Door-To-Door Cargo Co,1989 1.5 Million Packages in 29 States In India Speedy & Efficient Movement of Cargo

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Continued..
Tie up with Airlines & Railways Customer Relationship Marketing Money Back Guarantee & Value Of Money For Customers Operational Efficiency & Service Reliability Efficient Reorganization

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Mission and Vision


Mission
To provide prompt services to delight customers by setting new trends through innovation & technology & creating value for money

Vision
Redefining services by offering value added services with highest quality & being pioneering leader in the business segment.

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Journey of GATI

Phase 2 (1994-98)

Phase 3 (1998-03)

Phase 1 (1989-94)

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Continued....
Phase 1
Division of Transport Corporation of India (TCI) Door-To-Door Cargo company Separate Brand Equity Initial venture failed to meet expectation

Phase 2

Separation from TCI in1994 Demerger form TCI in 1996 Tie-up with Indian Airlines Several new services were introduced

Phase 3

GATI going International in 1999 Started operating in 10 regions by 2001 Acquisition of Shipping and Highway business of TCI Introduced combination of modes at customers choice

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Identify Customers

Stiff Competition

Challenges

Delivery Setup

Service Channels
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Strategies
Separate Brand Equity Customers values and appreciates Differences
Time bound delivery Point-to-point service Premium priced cargo

GATI Associates

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Continued..
Bulk Advertisements Money Back Scheme Payment on Proof of Delivery Advanced CRM Techniques Improved Tie-Ups

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Airlines
Tie up with Indian Airlines 300Tonnes/Day Economies Of Scale Self Owned Operations Fleet flexibility

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Railways

3 Year Contract Each train Rs.10 Lakh Delhi-Madras Best Route

Problems No Return Load Fixed Payment Collection not equal to Commitment Delayed Shipments Reduced Traffic
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Reorganisation
Before Divided into Regions Independent Units Lack Of Professional Orientation

After Vertically Separated Divisional Heads Rationalized Branches

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Recommendations
Proper Management Railways Potential Efficient Branding International Operations Corporate Social Responsibility Activities Marketing Strategies Long Term Sustainability

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Conclusion
Unexplored Territory Product Variety Service First , Cost Next Reorganisation led to Stiff Competition Product Variety & Proliferation

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Thank You
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