GATI

1. Analysis of Service Framework of
Express Service
Service Operation Management
Name of Faculty

2. Introduction
Network reach – 99.3% of India
Disciplined delivery through optimised route planning
system
Continuous Service Level monitoring for secure and on-
time delivery
4000+ vehicle strength & direct connectivity operations in
28 airline sectors
16 Express Distribution Centres and 60+ distribution
warehouses
Hub & Spoke Model
1989-95
•D2D Cargo
division of
TCI
1996
•Separated from
parent TCI
•Worth INR 18
crores
2001-08
•Organization
Restructuring
•Mechatronic
Warehouses
•Value Chain
Concept
•Vehicle Tracking
System
2008-14
•Multi-modal
logistics provider
•JV with KWE
(Japan)
•340 branches
•1300 locations
•Revenues worth
INR 1290 crores
• TCI: Largest logistics company in India and was founded in 1958
• FedEx: It is American global courier company, In India it as 1 million sq. ft. of warehouse& more
than 1000 trucks
• Safe Express: Started Operation in 1997, have warehouse space of more than 8 million sq. ft.
• Other couriers & Regional transporters: Companies like Bluedart, DHL and regional transporters
are also competitors to GATI KWE
Competition

3. Gati
Limited
2.5 MN sq.
ft. of
Warehouse
600 offices
(including
17 hubs)
1300 Gati
Associates
Profit of 20
crore on
1290 cr.
Turnover-
1.5%
4500 Fleet
size
Introduction
Company uses Vendor Vehicles – Deployed for a long term on a route on
a fixed per kilometer charge
Market Vehicles are hired on spot rates form open market as per the
need
Gati uses Oracle CRM, Oracle Financials and a Customized ERP
Gati was early adopter of SMS in 2002
First to introduce ‘Tracking’ facility
To strengthen the data analytics, Gati introduced Oracle BI, it was
country’s first Oracle BI tool

4. Gati Limited
Divisions
Fuel
Stations
e-
Commerce
Freight
Forwarding
Gati KWE
Premium
(Air)
GTS (Rail)
Supply
Chain
Managem
ent
Other
Subsidiaries
Gati
Kausar
(Cold
Chain)
Gati Zen
Cargo
Gati Parks
Pvt. Ltd
Our
Project’s
Focus
Express
(Surface)
Existing System
Network
Sales
Channel
Gati
Associate
Organization
Structure

5. Organization
Structure
Sales Channel
Contractual Retail
• Customers are billed end
of the month
• Gati introduced a new
concept of billing only
after submission of the
proof of delivery
• Contractual Sales are high
in volume with lesser price
realization
• Cash and carry model
• Target SME customers
• Retail yield higher
realization per kg
Current Contractual to Retail Ratio is 74:26
Existing System
Network
Gati
Associate
Sales
Channel

6. Organization
Structure
Sales
Channel
• For Pick up and delivery Gati introduced entrepreneurial business
associate model called Gati Associate
• Gati Associates attracted unemployed graduates and in the last
decade the attrition was very low
• Gati Associate Model helped in the growth of the organization
• Gati Associates were not on the payroll of Gati or linked with Gati
in any form. The job of the GA is to facilitate the pick and delivery
of goods in their area following a particular schedule
• GA work on commission basis on number of pick up/deliveries and
the total weight of goods shipped
Existing System
Network
Gati
Associate

7. Organization
Structure
Sales
Channel
Gati
Associate
Existing System
Country is divided into 4 Zones: East,
West, North and South
Zones Further divided into Express
Distribution Centre. Total 16 EDC in
the country
EDC’s control 62 Gati Distribution
Warehouse
102 Depot
247 franchisee
Network
• EDC acts as a Hub under the Hub and Spoke model
that Gati follows
• Each EDC has support function staff (Account, IT,
HR) which reports to Head Office
• GDW act as spokes in the hub and spoke model.
• GDW are connected to EC through feeder routes

8. Operations
• Customer generates
pick up request
• GA is informed to pick
up the goods
• GA performs the pick up
and completes the
formalities
• GA ships goods to the
Depot/GDW/EDC
• At depot/GDW/EDC the
details of the
consignment are
entered into GEMS and
a new docket number is
generated (for internal
purposes) after doing
the required checks
• At EDC the
consignments are sorted
according to their
destinations.
• Consignments are
sorted according to their
respective hubs and
thus transported to
their hubs i.e. EDC
Feeder Route
ExpressRoute
• After receiving a
shipment at EDC, the
consignment is shipped
to its respective GDW
• The consignment is then
shipped from a Depot to
GDW
• The arrival time at
Depot and the
departure of
consignment form
Depot is entered into
the system
Local Route
• The consignment is then
shipped from GDW to
EDC
• The arrival time and leaving time of the consignment is
entered/scanned at every point in the system
• GatiKWE follows Hub and Spoke model
• Express Distribution Centers act as Hub and Gati Distribution
Centers as Spoke
Local Route
• The
consignment
then goes to
the depot
• Consignment waits at
the GDW if there is not
enough truck load/mini
truck load for the
destination Depot
Feeder Route
• GA takes the
consignment
from Depot
and delivers it
to the
customer

9. Booking
•Gati Agent (GA) visits the
customer.
•He takes the sales invoice
to determine the value of
the docket
•He collect relevant
documents based on type
of material being sent
•GA checks the condition of
the package
•He prepares the bill for
actual weight and it
volumetric weight and
charges based on
whichever is higher
•GA then loads the
shipment and transfers it
to the collection office
Stacking
•Once the shipment reaches
it is segregated with
respect to its operating
unit
•It is then placed in its
allocated space on pallets
according to its size and
volume
•Standardized stacking
process ensures the safety
of shipments
Shipment
Receiving
•Documents are collected
from the driver
•Seal is verified and the
condition of the load is
checked
•Unloading tally is prepared
•Shipment is unloaded
•DEPS (Damage, Extra,
Pilferage, Shortage)
process is performed and
updates are done in the
system accordingly
Shipment
Dispatch
•Vehicle undergoes
inspection
•Loading slip, Trip Higher
Contract and loading tally
is prepared
•Shipment is loaded as per
the loading tally
•Loading tally contains the
docket numbers and the
number of packages to be
loaded
Delivery
•The shipments are
segregated between
local and outbound
based on the last digit
of the docket numbers
•Money receipt is
created for those
shipments which are
cash on delivery
•Intimation letter is
prepared for COD /
DOD
•Pick-up delivery challan
is made for each GA
•The vehicle is loaded
LIFO (last in first out)
•The undelivered
shipment is returned to
the operating unit

10. Query Handling
Segregated into
different working
module like handling all
query calls, Registration
of all calls, Processing of
query, Query closure,
Conversation of pre-
sales lead into sales
lead management,
Maintaining query
branch wise and region
wise, Arrange query
according to (escalated
queries, un-resolved
query and conversation
query to sales head)
Complaint Handling
Different parts such as
registration of all
complaints, Analysis of
the complaints,
processing the
complaints, (Escalations
of unresolved,
Observation Note issue,
No. of freight refunds
made), Verification
closure, Corrective
action and recovery
Proactive Customer
Service
Different segments are
docket tracking,
maintain booking
service, undelivered
stock, accident and
check post definition
notice, COD/FOD
intimation, docket not
forward from branch,
dockets lying without
documents, docket not
delivered on assured
delivery date
Gati Enterprise
Management
System(GEMS)
Oracle
CRM &
Finance
Warehouse
Management
system
Business
Intelligence
and Mobile
app

11. Technology @ Gati
Gati @ Web
Gati
Enterprise
Management
System
Oracle CRM
& Finance
Warehouse
management
system
Real time shipment information
Customer Account Management
Shipment status by SMS/ mail
Customized warehouse management
24 X 7 customer care

12. Inbound Operation at Warehouse
• Material Storage- Fresh, Returned, Damaged
• Mark storage area & update system
• Warehouse goods arrangement
• Prepare a Row-Rack-Location Code
• The goods are stored row wise according
to customer and then arranged rack wise
with docket information and at last
according to location
• Warehouse Delivering Process
• FIFO: 1st items which will come to
warehouse, it will be going to delivery 1st
• LIFO: last goods are going to first delivery
• FEFO: Goods with latest expiry date
first delivery
Outbound Operation at
Warehouse
• Prepare Pick-Up
• Cross Checking of the Shipment
picked-up
• Scanning of the shipment
• Route Planning
• Update System
• Generate Invoice

14. Recommendations
Start building own assets in terms of trucks, etc. as this will give better control and reduced cost.
A move from ‘Assured Delivery’ to ‘Guaranteed Delivery’ will result in better efficiency in the system, and increase customer trust
For some important regions company should start replacing GA’s with their own employees or include GA’s on their payroll.
This is because trained company employees will perform better in the face to face customer interaction
For a busy GDW, the company can choose to send direct truck to destination EDC, bypassing its home EDC.
GPS enabled tablets should be provided to Delivery/Collection Boys and GA’s which will reduce the time to enter docket
information at the Depot
Incentive to drivers & handlers for ‘on time delivery’ will improve efficiency. Truck drivers’ will become more efficient if they know
they will be rewarded for on time delivery
Post 2009, vendor payments started getting delayed, attrition of vendors increased; thereby increasing cost and
inefficiency. Learning from this, vendor payments must be streamlined

15. Section C
Group 1
1301-048 Ayush Asthana
1301-151 Pramod Kumar
1301-155 Prashant Sahni
1301-192 Sankalp Saxena
1302-087 Nandita Jaswal