ORGANIZATIONAL STUDY

COMPANY : GATI Ltd

PREPARED & PRESENTED BY, DEEPAK SUDHAKARAN SNGIST , N.PARAVUR, EKLM

Company Profile
Gati Limited is a pioneer and leader in Logistics and Supply Chain Solutions in India. Corporate office Singapore & Head office - Secundrabad Started as a cargo management company in 1989 More than 3500 employees - Turnover of Rs 745 crore-Covering 622 districts in India. Today, Gati has offices in China, Singapore, Bhutan, Dubai, Hong Kong, Thailand, Nepal and Malaysia and has plans to foray into other markets.

GATI SERVICES Service Name Express City Express State Express Zone Express National Express Bulk Gati Saver Priority International Cargo International Courier Air Freight International Ocean Freight Gws International TS (Trucking Sol) Internal FOC (free of cost)

Product Service Code 21 22 23 24 25 5 2 6 10 31 32 33 3 8

Organizational Hierarchy
MD & CEO

CHIEF BUSINESS CHAIN MGR

CHIEF SALES & MKTNG MGR

HEAD BUSINESS & OPERATIONS

HEAD SALES & MKTNG

EDC HEAD (SERVICE)

MGR (GDW) EDC HEAD (GTS) MGR (GDW)

EDC HEAD (SALES)

INBOUND MGR

OUTBOUND MGR

EXECUTIVES

EXECUTIVES

EXECUTIVES

EXECUTIVES

SALES EXECUTIVES

SALES EXECUTIVES

MARKETING
SALES
MAJOR -50000 business & credit facility.

RETAIL -50000 business & credit facility.

GTS(GATI Transport Solution) -Direct in nature -Absence of costs present in other segments. -2 methods of transportation used -Trucks & Trains. -1st to run the millennium parcel express train in Oct 2001 between Mumbai and Kolkata.

LOCATING CUSTOMERS & MAINTIANING CUSTOMERS

MAJOR, RETAIL and GTS works as separate team. -Executives & Managers of these teams make contact with their customers

PROMOTION TV adds by Head Office(Secundrabad) Setting kiosks nearby colleges and other crowded areas & supply notices Take part in Exhibitions ](Took part in Codissia Trade Center Exhibition recently). PAYMENT COLLECTION PAID FOD(Freight on delivery) TBB(To be billed) After submission of POD

HUMAN RESOURCE DEPARTMENT

RECRUITMENT
Recruitment is based on Man Power Requirement -Last years business -- Next year projects --Retirement or resigning of emp

Sources of recruitment References & Job Portals

Levels/Categories to which recruitment is made

-ASSOCIATES -EXECUTIVES -MANAGERS Done by HR Manager and Top level executives (Done directly by the Head Office)

Recruitment Procedure
-Inviting Filtering the applications -Informing the candidate about the interview

-Conducting preliminary interview (done by HR)

-Conducting panel interview (done by a panel) -Salary negotiation

-Placement

ATTENDANCE MAINTENANCE SYSTEM

E-Attendance system. GRIVENCE REDRESSAL MECHANISM Employee Reporting Officer HR Manager Head Office CEO

TRAINING
Based on -Needs & As per the evaluation done by the HR manager. Compulsorily training provided if a new technology or system is implemented within the organization.

Training techniques used :

Induction training
MDP(Management Development Program) on specialized areas. OTHER -(Soft skills training ,Customer Service ,Business Accounts)

CUSTOMER SERVICE
It is the duty of Customer Service Executive to deal with customer grievances. There is a team of SSE (Service Support Executive) for making sure that the shipment has reached the customers in time..

They will be constantly tracking the shipments and makes sure that it has

reached the customers

Answer to customer phone calls and emails.

FINANCE DEPARTMENT
Accounts System
GEMS (Gati Enterprise Management System) - maintaining acc. GEMS is- developed by SATYAM in 2003. For maintaining financial details, GEMS uses Oracle Finance.

SOURCES & APPLICCATION OF FUNDS

Sources of funds 1.Paid Docket 2.FOD(Freight on Delivery) 3.TBB(To be billed) Application of funds Deposits(limited balance of 2lakhs)

MANGEMENT OF PAYABLES & RECEIVABLES

Managing Payables

Payables are of 2 types 1. Payables to Vendors Gati hires trucks and other vehicles(Advance & Payables) Contract between the Vendors -THC (Trip Hiring Contract)

2.

Commission for GA(Gati Associates)

Gati Associates are people who work on commission basis. Takes shipment which has to be delivered to the customers Collect the consignment from customers to GATIs office.

Managing Receivables

Receivables can be of 2 types 1. Receivables from TBB(To be billed)

Focus on customers who makes business more than 50000.

The credit amount will be collected on 2nd, 11th and 21st. The bill collected on 3rd remains as receivables till 10th and will be shown as

received only on 11th.

2. Collection from Executives Executives collect the amount from customers and they remit this amount on some periodic basis as 4days or 5days. Till they remit the collection, it remains as Receivables

A Comparison on Income, Expenditure, Profitability and Net assets on the year 2010 and 2009 (in lakhs).
ITEM Sales Net Current Assets Total Assets (Net) Total Income Total Expenditure Profit Before Tax and Exceptional Items Profit/(Loss) after Tax 30th June 2010 74472 24,982.52 76,385.46 75,140.83 73,226.28 1,914.55 1,510.97 30th June 2009 61808 21,837.98 75,596.46 63,032.61 62,721.17 311.44 (1,505.79)

Face value of share RS. 2 Share Price 63.00

WAREHOUSING & DISTRIBUTION

The consignments 1st , reach the outbound section CJBO).
From there, the transshipment dockets will be moved to the next EDC or GDW. The consignments which have to be distributed in that area moves to the EDC or GDW at that particular locality.

Tracking Consignments
Tracking facility to know the status of their consignment.

Unloading the shipment & its distribution

6 parameters are checked while unloading the consignment 1. Address & Pin 2. Mobile number 3. Delivery date 4. Actual weight 5. Volume metric (calculated by L x B x H) 6. Documents (Checks the permit)

A docket will be carried along with the Consignment.

- Verify, Unload, Carry it to the Booking Area, Update docket, Deliver the parcel, Collection of POD customers.

Strengths -- Dominant player in the surface cargo

Weaknesses

segment in India -- International presence, -- Mechanized warehouses, -- Value-added services should aid growth in market share.

--Gati doesnt concentrate on air cargo

which contributes only 10% to the total revenue. --Dependence on Manufacturing Industries.

SWOT
Opportunities

--Strong macroeconomic growth, robust growth in trade driving the growth of the Indian industry. --Modernization of ports, and improvement in road infrastructure. --GTM (Go To Market) is expected to make Gati more customer centric & helps in wealth maximization

Threats --A rise in fuel charges could have an adverse impact on margins. --An economic slowdown could impact the logistics industry as a whole. --Significant investments involved in the setting up of warehouses. --Gati is facing strong competition from Blue Dart in the domestic air cargo business

Findings
Indian Logistics market is highly dependent on the Economic Conditions. Manufacturing Industries are the major contributors of GATIs revenue. An Employee working in marketing department makes and attends an average of 75

official phone calls per day.

GATI is going for a new strategic change called GTM (Go-To-Market) which is expected to bring more revenue.

Inefficient use of Train Services and GTS team fails to achieve their targets.

Suggestions
Concentrate on air cargo segment. Introduce new Marketing and Promotional techniques. There is an excess train capacity which most probably seems to be unused. Reduce the train capacity from 200 tons to 150 tons.