Transportation and Warehousing Facilities at Gati

Abstract The case study describes the various steps taken by Gati to provide effective logistics solutions to its customers. The company focused on providing both transportation services and warehousing facilities. The case study focuses on two logistics solutions - Gati Logistics Package' and Gati Trucking Solutions'. The various modes of transport used by Gati in the form of multi-modal connectivity are highlighted along with the company's effort to develop an efficient warehousing network through the launch of gati@web. Issues: Need for customer-centric cargo management solutions to overcome competition Utility of modern product storage systems Effective use of multi-modal connectivity Importance of logistics solutions Implementing an efficient warehousing network.

Introduction Indian businesses have become very competitive, quick, efficient, and flexible in order to stay ahead of competitors. An efficient logistics system is one way to achieve this advantage, and companies across industries have realized that a good logistics system brings not only substantial savings, but can also drive a company to the top slot. Manufacturing companies outsource their logistics requirements to third party logistics (3PL) service providers who look into supply chain activities like compilation of order and dispatch planning, physical transportation, in-transit monitoring, confirmation of deliveries, payment to transporters and providing Management Information Systems (MIS) to the client... Questions for Discussion: 1. Discuss the transportation facilities of Gati. In this context, explain briefly the factors that should be taken into account while making transportation decisions in supply chain management. 2. Discuss the warehousing facilities developed by Gati. What was the rationale in implementing gati@web as part of Gati's business strategy?
GATI TRANSPORT One of the fastest emerging players in the Indian logistics scene is Hyderabad based GATI originally as a transport and express courier company, today it positions itself as a multi- modal logistics company with full suite of services. Operating 340 branches at 1300 locations all strategically located with 18 surface Hub-Centers, 210 express and service routes covering 95000 kms everyday services by a fleet strength if 1500 vehicles. GATI offers all the standard logistics proof of delivery within 7 days, along with covering all risks by insurance. It also offers customized services to its clients many of whom are MNCs. GATI sums up its value proposition as ON TIME INTACT- ELSE YOUR MONEY- BACK . GATI is an ISO 9001 certified cargo courier. In addition to creating an extensive network, GATI also provides support services like pilferage proof SURAKSHA bags for high value articles- Silk sarees, watches etc., sales tax registration, OCTROI clearance, door pick up and door deliveries, money back guarantee dealing on delivery and cash- on delivery and freight on delivery GATI services the time limited segment too, via its refrigerated trucks. It claims the ability of perishable cargo movement up to (-) 25 degree Celsius and thermo king units and ISO PUF containers operating on a triple power system. GATI realized early on that a logistics service wanted to diversify into full and fledged 3PL services. Would need not just networking for location and support system which every other provided gave but also would need a tangible service offering which would differentiate it with from the rest. Accordingly today GATI offers its 3 PL logistics solutions, which it says, is a flexible tailor made nationwide distribution system leveraging its networks and alliances with Indian Airlines in

India, Bhutan post in Bhutan and its entry into SAARC region. The 3PL suite includes order booking, order fulfillment, inventory management and most important, provides the transport and seamless information flow on inventories, it offers to maintain a round the clock, parts- bank, 24 year round accessibility with the advantage of shared infrastructure facilities in terms of both space and cost and bundles ion services like hourly and same day deliveries covering strategic locations in the country. GATI has also a special arrangement of GATI train from Mumbai to Kolkata for good with transit time of 3 days.

QUESTIONS Q1 Enumerate various logistical services provided by GATI Q2 what innovative services do GATI provide? Q3What are the value added services provided by GATI? Q4 Prepare the network details of GATI facilities. Q5 With your knowledge about other logistical service providers, what other logistical Services can GATI think of providing. SOLUTIONS Q1) Enumerate various logistical services provided by GATI The various logistical services provided by GATI are: a) Transport and delivery of articles through 1500 vehicles and other facilities. b) Track and trace system to locate goods in transit. c) Guaranteed proof of delivery within 7 days. d) Covering all risks by insurance e) Customize services to its clients like pilferage proof SURAKSHA bags, most of its clients are MNCs.

Q2) What innovative services do GATI provide? GATI provides innovative services like a) ON TIME INTACT- ELSE YOUR MONEY- BACK b) SURAKSHA bags for high value articles like silk sarees, watches, etc. c) Special Mumbai kolkata GATI train ( 3 days) d) Same day delivery

Q3) What are the values added services provided by GATI? Value added services are as follows a) Track and trace b) Proof of delivery within 7 days c) Cargo movement for perishable goods (-) 25 degree Celsius) d) Thermo king units e) 3 PL services with Indian airlines and Bhutan f) Seamless information flow g) 3PL order booking, order fulfillment, inventory management and transport h) Round the clock, parts bank, 24 hours, and year round accessibility of information.

Q4) Prepare the network details of GATI facilities. Network details of GATI: It is based in Hyderabad There are 340 branches, 1300 locations, which are all strategically, located, 18 surface Hub Centers, 210 express and service routes which covers 95000 kms with 1500 vehicles.

Q5) With your knowledge about other logistical service providers, what other logistical Services GATI can think of providing. Further logistical services a) Pick up services b) Packaging and labeling c) Have arrangements with big organizations like Godrej, Voltas, to lift and carry out all logistical operations of financial goods. d) Total association for inbound and outbound logistics Concept Questions Q1. What are the criticalities and characteristics of air transport? Criticalities a) Used for the products, which needs distribution speed, efficiency and frequency? EG. Perishable/ meat/ flowers. b) Used for high priced products EG. Electronics garments etc. Characteristics: a) Comparatively low fixe4d cost and very high variable cost. b) Creates new markets, which are other wise not accessible. c) Best for seasonal products. d) Encourages global competition. e) Consignment is delivered quickly. f) Flexibility security and speedy operations. g) The air transport capability is characterized by load size constraints and aircraft availability.

Q2. What are inter- modal issues? Inter modal issues include the presence of other modes of transportation and considering the total travel time (including time taken from city centre to the airport, reporting time, flying time, luggage clearance time etc.), saving in time offered by the air transport (may be marginal on short hauled routes). It is therefore desirable that the short hauled routes covering distances of up to 250 300 kms are served by other modes of transport like railways and road transport in order to optimize the use of scarce energy resources. There may be a need to provide air services on short- hauled routes for areas with difficult terrain or for an important tourist destination.

Q3 What are the 2 types of cost involved in air transport The two types of costs that are basically involved in air transport are: Fixed cost and variable cost Fixed cost

Fixed cost of air transport is associated with aircraft purchase and requirements for specialized handling systems and a cargo container is low compared to rail, water and pipeline. EG. Low aircraft and handling and cargo systems. Variable cost Airfreight variable cost is extremely high as result of fuel, maintenance and intensity of in flight and ground crew. E.g. High fuel, labour and maintenance

Q4 what are the situations in which airfreight is justified? Situations justifying airfreight 1) High value products 2) Perishable 3) Limited marketing period 4) Emergency

Q5 What is birdy back. It is a mode of air transport in which usually heavy machinery or heavy equipments are directly transported by loading it into the specially designed aircrafts. For e.g. many a times military trucks and cars are transported by means of birdy back where the vehicles are directly uploaded into the aircraft.
Q2. Explain the air transport with respect to logistics Air transportation is being considered by increasing numbers of shippers for regular service, even though air freight rates exceed those of trucking by more than 2 times and those of rail by more than 16 times. The appeal of air transportation is its unmatched origin - destination speed, speed especially over long distances. The average length of a freight haul is 1000 miles. Commercial jets have cruising speeds between 545 and 585 miles per hour, although air Port to airport speed average speed is somewhat less than cruising speed because of taxi and holding time at each airport and the time need to ascent to and descend from cruising altitude. But this speed is not directly comparable with that of other modes because the times for pick up and delivery and for ground handling are not included. All the se elements must be combined to represent door-to-door air delivery time. Because surface freight handling and movement is the slowest portion of total door to door delivery time, overall delivery time may be so reduced that a well managed truck and rail operation can match the schedule of air .of course this depends on the particular cases. As service dependability and availability can be rated as good under normal operating conditions. Delivery time variability is low in absolute magnitude, even though air service is quite sensitive to mechanical break down, weather conditions and traffic congestion. Variability, when compared with average delivery times, can rank air as one of the least reliable modes. The capability of air has been greatly constrained by the physical dimensions of the cargo space in the aircraft and the aircraft lifting capacity. This is becoming less of constraint, however, as larger aircrafts are put into service. Door- to- door ton-mile costs are expected to drop to about 1 half of the current cost levels through the benefit of new technology, deregulation, and productivity improvement programmes. This would make air a serious competitor with the premium forms surface transport services. Air transportation has a distinct advantage in terms of loss and damage. According to a classic study by Lewis, Culliton and Steele, the ratio of claim costs to freight revenue was only about 60% of those for truck or rail .in general, less protective packaging is required for air freight, provided that ground handling does not offer a higher exposure to damage then the en- route phase of the movement and that airport theft is not excessive. Air transportation service exists in common contract and private legal forms. Direct air service is offered in 7 types 1) Regular domestic trunk line carriers 2) All cargo carriers 3) Local service airlines 4) Supplemental carriers 5) Air taxies 6) Commuter airlines 7) International carriers

About a dozen airlines operate currently over the most heavily traveled routes. These airlines offer cargo caring services in addition to their regularly scheduled passenger operation.