A DETAILED STUDY ON LOGISTICS MANAGEMENT WITH REGARD

TO GATI

PROJECT REPORT

Project report submitted in partial fulfillment of the requirement of

South Asia University for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
2010

Submitted By

NAME : K.SONA
ENROLMENT NO : SAA04F136ELB1HA3

Under the guidance of

Dr. Nirmal Kumar. R. T M.Com.,M.B.A.,AMIBM.,Ph.D

SOUTH ASIA UNIVERSITY

LONDON

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 CERTIFICATE

This is to certify that project entitled “A DETAILED STUDY ON

LOGISTICS MANAGEMENT WITH REGARD TO GATI“ is submitted
by SONA.K( enrolment no. SAA04F136ELB1HA3) GEMS B SCHOOL,
PONDICHERRY in partial fulfillment of the second trimester requirement in
logistic management for the award of the degree Master of Business
Administration and is certified to be an original and bonafide work.

PLACE : Guide Signature

DATE :

2
 ACKNOWLEDGEMENT

I am indebted to all powerful almighty God for all the blessings he showered on me and
for being with me throughout the study.

I also express with great pleasure and sincerity to record my thanks, gratitude

and honour to Mr. L. Alphonse Liguori-Managing Director, Mr. M. Tamijuddin-Director

academics for their valuable advice and for timely help concerning various aspects of project.

I place on record my sincere gratitude and appreciation to my project guide

Dr. NIRMALKUMAR.R.T for his kind co-operation and guidance which enable me to

complete this project.

I take this opportunity to dedicate my project to our loving faculty

Dr. NIRMALKUMAR.R.T who was a constant source of motivation and I express my deep

gratitude for his never ending support and encouragement during this project.

Finally I thank each and every one who helped me to complete this project.

DATE : SONA.K

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 EXECUTIVE SUMMARY

This study analyses the working of gati ltd.from the logistic point of view.

This study aims at studying the entire gamete of operations of gati ltd. This study is
an indicator of the growth of the logistic operation in this country and also huge
potential it has.

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CHAPTERS TITLE PAGE
ACKNOWLEDGEMENT 3

EXECUTIVE SUMMARY 4
CHAPTER-1 INTRODUCTION 7

1.1 CORPORATE PROFILE 8

1.2 NEED OF THE STUDY 10

1.3 OBJECTIVES OF THE STUDY 11

1.4 PERIOD OF STUDY 12

1.5 RESEARCH METHODOLOGY 12

1.6 VISION AND MISSION 13

1.7 FROM THE MD S’ DESK 14

1.8 BOARD OF DIRECTORS 16

1.9 MILESTONES 22

1.10 AWARDS AND ACCOLADES 25

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 1.11 CSR INNITIATIVE 26

1.12 CLIENTS 29

CHAPTER-2 SERVICES IN INDIA 30

2.1 DISTRIBUTION SOLUTION 31
2.1.1 GATI SURFACE EXPRESS 31
2.1.2 GATI AIR EXPRESS 32
2.1.3 GATI COAST TO COAST 34
2.1.4 AI GATI 35
2.1.5 GATI DESK TO DESK CARGO 35
2.2 LOGISTIC SOLUTIONS 36
2.2.1 SUPPLY CHAIN MANAGEMENT 36
2.2.2 COLD CHAIN SOLUTIONS 41
2.3 CUSTOMER PROFILE 44
2.4 VALUE ADDED SERVICES 46
2.5 WAREHOUSE NETWORK 47
CHAPTER-3 GATI INTERNATIONAL 48
3.1 INTRODUCTION 49
3.2 INDIA CENTRIC SOLUTIONS 50
3.3 CUSTOMER PROFILE 52
CHAPTER-4 CONCLUSION 53

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CHAPTER 1 INTRODUCTION

7
1.1 CORPORATE PROFILE

Gati Limited is a pioneer and leader in the Express Distribution and Supply Chain
Solutions in India. It was the revolutionary approach adopted by Gati that helped
launch many path-breaking initiatives in the logistics segment and many were the
firsts for the Indian market. In a span of 20 years, Gati has consistently explored
various ways to bring premium value to the customer, always setting benchmarks
in quality of service and customer satisfaction.

Having started as a cargo management company in 1989, Gati has grown into an
organization with more than 3500 employees and a turnover of Rs 745 crore and
covering 622 out of 626 districts in India.Gati has over 4000 vehicles on road,fleet
of refrigerated trucks,container vessels and world class mechantronic warehousing
facilities across India.Be it flexible point-to-point distribution solutions or complex
end-to-end integrated logistics solutions or supply chain management, Gati does it
all with great effectiveness and reliability, and enjoys the trust of a large customer
base.

Gati was also the first to run the millenium parcel express train in October 2001
between Mumbai and Kolkata with 10 VPUs. The initiative to run a parcel express
train between KYN (Mumbai) and NGC (Guwahati) was again taken by Gati - this
is a classic example of PPP (Public Private Partnership).

The Gati advantage of seamless connectivity across air, road, ocean and rail has
resulted in a plethora of offerings to the customer unmatched in the industry.
Besides having a strong network in India, Gati has a strong market presence in the

8
Asia Pacific region and SAARC countries. Today, Gati has offices in China,
Singapore, Bhutan, Dubai, Hong Kong, Thailand, Nepal and Malaysia and has
plans to foray into other markets.

Gati's shipping division, Gati Coast to Coast based at Chennai, with two decades of
experience in the industry has many firsts to its credit: first in operating direct
service to Yangon; first in operating a direct container service from Ranong Port,
Thailand; and the first in operating direct container service from Penang, Malaysia.
Gati Coast to Coast today has a tonnage of 46,345 DWT and a fleet strength of six
vessels.

Gati's business model is well aligned with the customers’ need, which is why the
core businesses have grown to meet the evolving needs of the customer, and this
has resulted in consolidation of services and in the development of core and critical
infrastructure, thus propelling Gati to the forefront in the logistics segment

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1.2 NEED OF STUDY

As India grows in global economic power there is an urgent need to study the
management of logistic operation in this country. This study is an eye opener for
every management student to see the diverse range of operations in the great
emerging field of logistics management.

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1.3 OBJECTIVES OF STUDY

The objectives of study are

a) To study the operations, services rendered and corporate profile of gati ltd.
Which is a pioneer and leader in express distribution and supply chain
solutions in India

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1.4 PERIOD OF STUDY

The period of the study is limited for a span of 3 months

1.5 REASEARCH METHODOLOGY

It is very simple and the research design is solely based on collection of secondary
data. The analyses is only qualitative in nature and as such no quantitative analyses
has been done

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1.6 VISION AND MISSION

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Be a globally preferred provider of India-centric supply chain services and
solutions, and a leader in the Asia Pacific region
Delight customers with quality service by setting new trends through innovation
and technology
Be the most preferred organisation for all stakeholders
Be a responsible corporate citizen with unwavering commitment to
environmental protection and conservation

1.6FROM THE MD S’ DESK

Mr. Mahendra Agarwal, MD 14

Gati's new colours

 1.7 MILESTONES

From inception, we at Gati have been obsessed with providing the best possible
service. This obsession has not only led to dramatic changes in our business, but
has also resulted in setting new benchmarks for the industry. Here are some
snapshots of our story:

1989 – 1995

• New concept of Door to Door service. A Money Back Guarantee was given
in case of delay in delivering shipments.
• Cash-On-Delivery (COD)- Gati started a unique value-added service called
Cash-On-Delivery (COD).
• Call Free Number - Gati was the first in the logistics industry in India to
introduce the concept of a Call Free Number.

1996

• Tied-up with Indian Airlines to facilitate speedier delivery of shipments.

1997

• ntroduced the concept of 3rd party logistics (3PL).

1998

• First Logistics Company in India to be awarded ISO 9001 Certification.

• Launched courier service - Suvidha, which was later called as IC Zipp
Courier.

1999

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 • Gati International - Gati expanded to SAARC countries through tie-ups with
the postal departments of Bhutan and Maldives.
• The P.D. Agarwal Development Centre was set up in Pune exclusively for
employee training and development.

2001

• Gati Millennium Parcel Express - Gati launched the first exclusive Cargo
Train between Mumbai and Kolkata in association with Indian Railways.

2003

• Bagged the Voice of Customer Award for “The Best Logistics Company
'03” in a survey conducted by Frost & Sullivan.
• Gati@web: Internal processes were simplified and moved to Oracle
platform.
• Launched India-centric distribution solutions. Forayed into Singapore, the
international business hub.

2004

• Introduced mechanized racking systems in the automated warehouse at

Panvel, Maharashtra.

2005

• State-of-the-art Mechantronic warehouses with APL racking and modern

handling equipment in major cities across India.
• Gati was given the Champion CIO award for less than Rs. 1000 crore
category of the Enterprise Connect Award- 2005
• Gati was awarded the Amity HR-excellence award in 2005

2006

• Awarded the 'Best Logistics Partner' by HCL Info systems

• Awarded Consumer Super Brand status in the logistics category for 2006-
2007

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 • Nominated for NDTV ' Business Leadership Awards ' 2006 in logistics
category
• Customer Convenient Centers introduced to enhance accessibility
• Launched Gati Student Express
• Gati Miles a Redemption Coupon to settle cashless claims.
• Online Employee Information System and Performance Management
System introduced.

2007

• Strategic alliance with China Railway Express International Logistics Co.

Ltd.
• Launched a joint Courier and Air Cargo Service with Air India.
• Opening of Mega state-of-the-art Mechantronic Express Distribution Centre
in Bangalore
• Introduced VTS (Vehicle Tracking System)
• Gati Cafe Deliver – a unique concept, an outlet offering a menu of services
• DOD Direct (Draft on line) to reduce cycle time of customer payments.
• Introduced 40ft Container vehicle with German based double deck system
technology
• Gati was awarded the Amity HR-excellence award in 2007

2008

• Launched the Centralized Call Centre at Nagpur

• Launched the Millennium Parcel Express Train between KYN (Mumbai)
and Guwahati
• Strategic Alliance with GLS (General Logistics Systems) Europe's Parcel
Leader.
• Launched Gati Europe Express.
• Introduced e-POD (Electronic Proof of Delivery) and Centralized POD Cell.
• Gati Happiness – a window online to buy a range of delicious products.
• Gati was awarded the Amity HR-excellence award in 2008

2009

• Regained the Superbrand status 2009-10

• Launched the Mechantronic Warehouse in Hyderabad
• Launched 10C, a solution for shipment delivery notification, real time.
• Launched Gati Academy
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 • Launched Gati Art Express
• Introduced SQS (Service Quality Standardization)
• Gati Won the 2009 CIO 100 Awards and Enterprise Connect Award 2009.

Gati was awarded the Amity HR-excellence award in 2009

1.8AWARDS AND ACCOLADES

First logistics company in India to be awarded ISO 9001 certification

In 2003 Gati was voted The Best Logistics Company and bagged the Frost &
Sullivan Voice of Customer award
Gati's chief information officer, GS Ravi Kumar, was given the Champion CIO
award for the less than Rs. 1000 crore category of the Enterprise Connect Award-
2005
Gati was awarded the Amity HR-excellence award in 2005
Gati bagged Indira's Super Achievers award for training and development in
2005
Awarded the 'Best Logistics Partner' by HCL Infosystems for 2005 -2006
Awarded Consumer SuperBrand status in the logistics category for 2006-2007
Nominated for NDTV ' Business leadership Awards ' 2006 in logistics category
Gati's Chief Information Officer, GS Ravi Kumar, was given the Champion CIO
award for the less than Rs. 1000 crore category of the Enterprise Connect Award-
2009
Gati has won the NASSCOM - CNBC-TV18’s IT User Awards 2009 for the
logistic vertical.
Gati's Chief Information Officer, GS Ravi Kumar, was awarded "CTO Of The
Year - 2nd Runner Up" by CTO Forum on 18th Aug'2010 at Dublin, Ireland for
our unique and innovative project 10C. There were 123 company participated for
CTO forum award.
Gati's Managing Director, Mahendra Agarwal was given Life Time Achievement
Award by the Express Logistics & Supply Chain Council of India on 1st
October,2010.
Gati's Chief Information Officer, GS Ravi Kumar, was given the 'EDGE 2010'
award in Enterprise Mobility Category by Information Week-IT Magazine on

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 30th Oct'2010 at INTEROP, Mumbai 2010 for our unique and innovative project
10C.

1.9CSR INNITIATIVES

Corporate social responsibilty initiatives

Gati is a socially responsible company. Through a number of initiatives, we have tried
to make a difference to the lives of people around us. Here is an account of the work we
have done so far.

Maye village, Bhuj district, Gujarat

26 January 2001: Gujarat is hit by a massive earthquake. Bhuj district is the worst
affected. Gati personnel sprang into action and reached Maye village the same day to
provide food, clothing, medication and water to the earthquake-affected community. A
team of doctors was also brought in to provide medical aid to the 400 families in Maye.
Gati was the first to build makeshift houses for these families - houses that were
scientifically designed to resist earthquakes. Even today, though the villagers have
managed to rebuild their homes, they still retain these structures.

Gati Government School, Hyderabad, Andhra Pradesh

In 2003, Gati agreed to develop a government school located at Banjara Hills. As a
contribution to the government's Janmabhoomi program, Gati built a school building
with all necessary facilities -- spacious classrooms, toilets and staff rooms. The building
has 27 rooms and a playground. Gati also provided the furniture for school students and
staff. Today the school strength stands at 1100 students. The housekeeping and security
of the school is still under our purview.

Tsunami relief fund

The tsunami that struck South East.Asia on December 2004 was one of nature's worst
disasters ever. It left in its wake more than 10 lakh people dead and over four million
displaced. The tsunami relief operations have been hailed as one of the fastest and most
massive operations ever. Gati was one of the first to reach the rescue scenes at
Nagapattnam and Cuddalore. Gati brought in food, water, clothing, medication and a
team of doctors.The team took special care of children, who were the most affected.
Gati also provided the affected community with essential utensils like plates, glasses
etc.
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MC High School, Nagore, Tamil Nadu
After rehabilitating tsunami-affected people at Nagapattnam and Cuddalore, Gati
constructed the MC High School at Nagore. This school strength is about 600 students
who belong to tsunami-affected families. The school is a two-storied building
consisting of 18 Class rooms, Head Master Room/Staff Room,Computer Lab, Meeting
Room, a kitchen, toilets and Compound Wall. With this reconstructed school at Nagore
many students are getting their education.

Blood Donation Camp at EDC Ahmedabad on death anniversary of Shri P.D. Agarwal
As done every year on September 17, a blood donation camp was organized this year
too at EDC Ahmedabad. All Gati'ites, actively joined the P.D.Agarwal Blood Donation
Drive by participating in the voluntary blood donation camp, which was conducted by
Prathama Blood Centre with full enthusiasm.

Gati inaugurates the first handloom shed in Rajouli for the flood affected weavers on
September 21, 2010
Rajouli village in Mahabubnagar district, AP, known for famous Gadwal saris, was one
among the worst flood affected village that hit Andhra Pradesh in the month of October
2009. The floods shattered the lives of the weavers who lost their looms as well as their
houses. With looms destroyed and nowhere to stay the weavers were just hoping for
some assistance to help them in keeping their tradition of weaving alive. Its here that
Gati stepped in. While the Govt provided assistance in building houses for them, Gati
acquired land in the village just opposite to the area where the houses were being
constructed to build prefabricated work sheds for the weavers.

The first workshed was inaugurated on Tuesday, 21st September 2010 by Sri. G Kishan
Reddy, MLA, Floor Leader AP Assembly, and Sri. V. M. Abraham, MLA, Alampur.
Present at the occasion were
Sri. K Damodar Reddy, ZP, Chairman, Mahabubnagar;
Shri M. Purushotham Reddy, Collector & Dist Magistrate, Mahabubnagar; Shri G.
Sudhir Babu, SP, Mahabubnagar.
Mr. V.T.Pawar, Trustee P.D.A. Foundation & Whole Time Director, Gati Infrastructure
Ltd., Mr. N K Pandey, Trustee P.D.A. Foundation & Chief Law Officer and Mr.
V.S.N.Raju, Company Secretary of Gati Ltd. were also present.
This was yet another step taken by Gati in coming forward to help in whatever possible
way during natural calamities in our country.

Gati joins hands with Hyderabad Goods Transport Association (HGTA) in setting up a
State-of-the-art 'Transport Training & Development Institute' in Hyderabad

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"Transport Training & Development Institute(TTDI)", a state-of-the-art truck drivers
and transport employees training school cum grooming center at Autonagar is the first
of its kind initiative dedicated to train the personnel of transport sector which includes
truck drivers, cleaners, hamalis (transport labours), staff of transporters, etc.

Improper driving is the cause of nearly 80% of the road accidents in India, it was
pointed out that emphasis on safe driving is the need of the hour.

"The objective of this Transport Training & Development Institute (TTDI) is to

empower commercial vehicle drivers with all the essential safety practices so that they
face the roads with a much greater responsibility". Better driving practices and
improving fuel efficiency is paramount importance. Fleet drivers will be trained in
improved driving skills, basic mechanics, fuel saving techniques and safe practices.
While skills such as safe driving, fuel conservation, repairs and maintenance are taught,
other aspects of life on the road are also highlighted - trouble shooting, fire-fighting,
and first aid. The importance of good health is stressed, with special emphasis on
prevention of HIV - the most prevalent disease among truckers.

The institute which is a 9000sft two storied facility with modern and updated
mechanical and electrical labs, including a computer lab will groom truck drivers and
transport workers not just in matters of automobiles but also soft skills, English,
computers, online operations, Google map reading etc.

1.10 CLIENTS

We believe in offering our clients the best possible service. And it shows...

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CHAPTER 2 SERVICES IN INDIA

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2.1 DISTRIBUTION SOLUTION

2.1.1 GATI SURFACE EXPRESS

Connecting India

With the widest network, the best of cargo movement facilities and several value
added services to choose from, Gati Express is the preferred distribution solution
provider in India today. Gati’s customers include companies from industries such
as pharmaceuticals, textile and apparel, white goods, electronic goods,IT Telecom
and other high value cargo.

Gati has a range of express services for you to choose from:

Gati Surface Express City: Same day delivery within the city
Gati Surface Express Zone: For your regional distribution requirements
Gati Surface Express State: Ideal for secondary distribution needs
Gati Surface Express National: Reaches the remotest corners of the country
Gati Surface Express Bulk: For high - density cargo(1CFT = 15 kgs) and
bulk cargo (above 500 kgs)

Gati Surface Express offers you features like:

On - time departure of vehicles irrespective of capacity utilization

Assured date of delivery
Door pick - up and door - delivery, absolutely hassle – free
Weather - proof containerised vehicles for safe movement
One - time lock for tamper - proof transit
Online track and trace facility to trace your cargo
Physical proof of delivery option
e - billing and e – POD

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2.2.2 GATI AIR EXPRESS

Redefined Connectivity to Match Business Needs

Gati Air Express,the latest offering from Gati is in answer to the needs of the
business segment to meet the demanding timelines of today's businesses.Gati Air
Express delivers shipments across all major locations the very next day during
business hours,and to some prime locations even before noon!A fleet of dedicated
frieghters(cargo planes)that fly during the night,and a seamless multimodal
network that goes down to the last mile,to ensure that your shipments arrive on
time. The company has assured the customer,frieght would be refunded if the
assured timelines are not met by the company.
Next Day Before noon delivery locations:

• DELHI
• NOIDA
• GURGAON
• FARIDABAD
• MUMBAI
• AHMEDABAD
• NAVI MUMBAI
• HYDERABAD
• BANGALORE
• CHENNAI

• KOLKATA
Next day delivery Locations:

• GHAZIABAD
• LUCKNOW
• CHANDIGARH
• AGRA
• JAMMU
• SRINAGAR
• GOA
• PUNE NASIK
• VAPI
• BARODA

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 • COIMBATTORE
• COCHIN
• TRIVENDRAM
• MADURAI PONDICHERRY
• MYSORE
• TIRUPUR
• HOSUR
• GUWAHATI
• BUBANESHWAR
• PATNA SILIGURI
• INDORE
• BHOPAL
• NAGPUR
• RAIPUR

• JAIPUR
With Gati, customers are assured of :
Reserved space in 34 designated air
movement sectors
24X7 service counters at major air transit
centres
Multi - modal connectivity for easy and
quick transit at non - airport locations
Flexi - pricing options based on urgency and
load factor
Door pick up and door delivery
Online track and trace
A fleet of dedicated frieghters.
Expertise in handling high value / perishable
goods

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2.1.3 GATI COAST TO COAST

A sea of opportunity

Gati Coast to Coast (CTC) is Gati's shipping division. Set up way back in 1986, the
CTC vision was to become the preferred service provider for all sea bound cargo in
the Bay of Bengal, Andaman Islands and Malacca Straits. In the two decades of its
existence, Gati CTC has followed this vision with diligence and determination and
has emerged as a complete solutions provider.

Gati CTC offers its customers:

IIII Sturdy and safe cellular container vessels

MV GATI-1
MV GATI Zipp
MV GATI Prestige
MV GATI Majestic
MV GATI Pride
IIII Regular liner services between
East Coast of India and Ports in Andaman sea, Bay of Bengal and Malacca
Straits
Indian ports and Ports in Andaman sea, Bay of Bengal and Malacca Straits
Colombo - Tuticorin Bi-weekly service
IIII Multimodal connectivity to all parts of India

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2.1.4 AI GATI

Courier with unmatched reach

Air India and Gati have entered into a strategic tie up to bring to you the retail
courier service of global standards -AI Gati , the most efficient way of delivering
courier at an affordable price.

AI Gati Products :-
Types of Packs

• AI Gati Interzone/ Intrazone -

Designed to cater needs of corporates ,SME's and Institutions which require
courier service on a regualer basis .Delivery avalilable in 119 locations
serviced by AI Gati
• AI Gati In City -
Designed to cater in city delivery requirments for documents and small
package

Covering 2200 pincodes of India,gives a wide range of reach.

2.1.5 GATI DESK TO DESK CARGO

An affordable surface product especially designed for your non-commercial

packages.
Flat rate of Rs. 200 per package (up to 5 kgs) ideal for samples, gifts, study
materials & printed material

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2.2 LOGISTICS SOLUTIONS

2.2.1 SUPPLY CHAIN MANAGEMENT

Gati — an analyst, consultant and SCM partner

rolled into one
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.

Gati logistics package

This ready - to - use package comes with an instant distribution network and a wide
system of storage locations and distribution channels. It is ideal for clients looking
to distribute goods from multiple locations and those with changing distribution
needs. For an SME or an MNC entering the Indian market, Gati Logistics is the
right choice.

The unique features of this package are:

'Made Ready' distribution channel

Standardisation at all locations
Inventory location close to your customer
Entry into new markets without a large capital investment
Shelf Space at over 200 locations

Integrated logistics
Gati provides customised solutions by integrating all the four stages of your
business — procurement, production, distribution, after sales service and reverse
logistics.

Effective SCM has the following benefits

Reduces transportation management time and costs

Increases profit margins and overall profitability
Integrates transportation procurement, planning and execution

30
 Improves on - time deliveries and customer service
Enables global supply visibility and maximum efficiency for competitive
advantage
Strengthens relationships with suppliers and carriers
Enables the movement of goods across modes and around the globe

The Gati approach

A systematic and effective four - stage approach towards the logistics requirements
of clients. Gati studies their needs and designs customised solutions for all its
clients The four stages involved are depicted as follows:

Process flow

Warehousing

Gati warehousing — logistics solutions made to order

Logistics and supply chain management are an integral part of our businesses. A
sharp and steady focus on these key functions has helped Gati gain a competitive
edge over the rest of the market. In recent times Indian industry has begun to
acknowledge the strategic importance of logistics and warehousing functions to

31
their businesses. And Gati's expertise and experience in this area is being harnessed
by many companies.

Gati offers its services as a 3PL or a third party logistics provider. A 3PL provider
allows a company to:

Concentrate on core competencies

Create greater competitive flexibility and release working capital
Get lean and agile
Exploit the better know - how and scale efficiencies of logistics companies

Maximum space, minimum investment

Gati's warehousing facilities consist of completely modern storage systems and

material handling equipment. Thus, Gati is able to offer customers very high levels
of operational efficiency.

With branches in all metros and mini metros, Gati has more than 200 storage
locations across India.

With over 600,000 sq. ft. of warehousing space spread all over the country and
serving multiple clients, Gati is able to offer many more customer friendly
solutions:

Flexible hiring options

Modern racking and handling equipment
Reduction in material breakage, damage etc
Engineering solutions to design and build warehouses as per requirements
Warehouse management system

Warehouse management system

Manage inventory in real - time. Gati's web-based warehouse management system
provides both functionality and flexibility for customers to manage warehouse
operations. The web - based WMS can be updated online thus allowing customers
a real - time picture of their inventory. The WMS gives precise, detailed, real -
time information about every aspect of customer operations.

32
The WMS application has the functionality to take care of multi - company / multi
- location capabilities. And, the multi - warehouse system has been designed so
that every warehouse can write its own rules.

The central focus is the powerful inventory control and management system -
making the management of diverse inventory holdings less complex and more
organised.

The web - based WMS has resulted in:

Improved inventory accuracy

Decrease in order processing time
Improved customer service levels
Elimination of put away and picking errors
Less returns
Reduced shipping errors
Capacity utilization

Industry solution

Industries where we excel

Consumer Goods
Retailers are pushing for more value-added services (VAS). Exceptional customer
service has become a requirement for success. And, skilled workers are
increasingly hard to find. All of these factors challenge the consumer goods
industry. To remain competitive, your business must adapt quickly to industry
demands. Gati's innovative solutions help you to transform quickly to the changing
environment .

Food & Beverage

Gati's logistics' solutions for perishable commodities enables support of a demand-
driven supply chain to help you adapt operations to volume levels and delivery
schedules as customer requirements change.

Engineering / Electronics
High-tech engineering and electronics' manufacturers, distributors and suppliers
compete in an environment that's fast-paced and in constant flux. Gati's effective

33
execution of operations and real-time information provides increased profitability
and reduced inventory levels.

Industrial Goods
The industrial/wholesale industry is ever-changing and driven by consumer
demand. Increased speed, reduced costs, more accurate fulfillment and value-
added services are everyday requirements. To keep pace with shortened lead times
and growing competition, Gati provides you with real-time control and visibility
into what's coming, and when to expect it.

Healthcare / Life Sciences

The increasing number of patient safety regulations and the illegal practice of drug
counterfeiting make it critical for companies in the life sciences industry to
improve supply chain security. Combined with heavy restructuring and
consolidation that has increased competition, the integration and management of
accurate, real-time data is more challenging than ever. Gati empowers healthcare
companies with cutting-edge logistics solutions to meet global and national
strategic challenges.

Computer & IT Peripherals

The industry in characterized by a rapidly changing environment with new models
appearing in a very short span of time. Focus should be on increasing the
productivity and performance of computer hardware supply chain. Gati's solutions
for forward & reverse logistics can be used to gain competitive edge in the market.

Retail
Expanding distribution channels, increasing globalization and growing customer
service expectations are some of the factors that make the retail and direct-to-
consumer industries exceptionally challenging business environments. With Gati's
multi-modal reach, companies can remain closer to the end-user, provide on-time
information and cut costs.

Fashion & Garments

In the booming fashion business, we make sure that new fashion is not only
displayed, but can be bought and worn the world over. We, at Gati, ensure that
your products reach the outlets on time and in impeccable condition.

Automotives
The automotive industry has always been the most demanding of all in terms of

34
achieving the highest quality standards in their logistics processes. Gati's efforts
have been driven by the need to reduce costs and the desire to respond quickly to
customer demand.

Tactical and Confidential Projects

Gati's solutions ensure that your goods are secure. You can track and monitor your
goods at all times. It reduces in-transit time and increases supplier network
responsiveness. We respond quickly to the industry's unpredictable demand. Our
logistics solutions provide the visibility you need to execute on tactical and
confidential operations.

2.2.2 COLD CHAIN SOLUTIONS

Business, from a fresh perspective

A scoop of ice cream that will bring smile to kid’s face. Medicine that will soothe
pain of an ailing person. The delicacy that will become the treat of a party. Each
perishable product is required to reach its consumer as it was intended – fresh, safe
and potent. It’s a daunting task, considering different products need varied climate
controlled environments to ensure their integrity on delivery. Any divergence can
result in irrevocable damage, resulting in the product losing value.

The Gati Kausar cold chain solutions is not about reaching destination; it is about
total care through the entire journey. Factors such as transit duration, cargo
properties, air quality, temperature and humidity- all have great significance. This
is where Gati Kausar steps in and excels.

Gati Kausar combines Gati’s unmatched reach and logistics expertise with
Kausar’s experience in refrigerated transport. Over 20 years, Kausar has delivered
distinction through proven and efficient solutions and together they are undisputed
leaders in the industry, specializing in fast, reliable and customized solutions in

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cold chain logistics.

Your shipment is sensitive to climate. We are sensitive to your requirements

Gati Kausar brings specialised cold chain logistics solutions for healthcare, bio-
pharma, frozen and fresh foods, dairy products and more. We offer customised
solutions for temperature-sensitive shipments through our wide reach, cutting-edge
technology and a vast fleet of refrigerated vehicles equipped with advanced
climate-control systems. We ensure that the temperature and other required
parameters inside the vehicle stays exactly as required by your product,
irrespective of the inclement conditions outside.

Portfolio of Services

• Primary Distribution: Full Truck Load

• Secondary Distribution: Need based

• Dedicated Reefer Fleet: Exclusively for food chain business

• Organized retail: Exclusively for fruit & vegetable business

• Customized Cold Chain solutions- Need based

Gati Kausar Edge - Protecting shelf life

• Unmatched Refer distribution network pan India

• Largest ISO 9001: 2008 certified refrigerated transport company in India.

• State –of-the-art modern refrigeration units

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 • Insulated containers designed to suit India’s weather patterns.

• Tamper proof and sealed to safeguard the perishable cargo.

• Vehicle –tracking and cargo monitoring IT solutions.

• Climate control capability from +20 degrees to – 20 degrees Celsius.

• Large fleet capacity: Transport 1,00,000 tons annually.

• Impeccable Quality Control.

• Knowledge partners helping you achieve optimal cold chain management.

• Conditions monitored though Data Loggers.

• Complete perishable care in product life-cycle.

Trucks built with advanced pneumatic suspension system for safe & timely
delivery of delicate cargo over long distances

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2.3 CUSTOMER PROFILE

Consumer goods
Retailers are pushing for more value-added services (VAS). Exceptional customer
service has become a requirement for success. And, skilled workers are
increasingly hard to find. All of these factors challenge the consumer goods
industry. To remain competitive, companies need to adapt quickly to industry
demands. Gati's innovative solutions help businesses adapt and excel in a changing
environment.

Engineering / electronics
High-tech engineering and electronics' manufacturers, distributors and suppliers
compete in an environment that's fast-paced and in constant flux. Gati's effective
execution of operations and real-time information provides increased profitability
and reduced inventory levels.

Industrial goods
The industrial/wholesale industry is ever-changing and driven by consumer
demand. Increased speed, reduced costs, more accurate fulfillment and value-
added services are everyday requirements. To keep pace with shortened lead times
and growing competition, Gati provides you with real-time control and visibility
into what's coming, and when to expect it.

Healthcare / life sciences

The increasing number of patient safety regulations and the illegal practice of drug
counterfeiting make it critical for companies in the life sciences industry to
improve supply chain security. Combined with heavy restructuring and
consolidation that has increased competition, the integration and management of
accurate, real-time data is more challenging than ever. Gati empowers healthcare
companies with cutting-edge logistics solutions to meet global and national
strategic challenges.

Computer and IT peripherals

The industry is characterized by a rapidly changing environment with new models
appearing in a very short span of time. Focus should be on increasing the
productivity and performance of computer hardware supply chain. Gati's solutions

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for forward & reverse logistics can be used to gain competitive edge in the market.

Retail
Expanding distribution channels, increasing globalization and growing customer
service expectations are some of the factors that make the retail and direct-to-
consumer industries exceptionally challenging business environments. With Gati's
multi-modal reach, companies can remain closer to the end-user, provide on-time
information and cut costs.

Fashion and garments

In the booming fashion business, we make sure that new fashion is not only
displayed, but can be bought and worn the world over. We, at Gati, ensure that
your products reach the outlets on time and in impeccable condition.

Automotives
The automotive industry has always been the most demanding of all in terms of
achieving the highest quality standards in their logistics processes. Gati's efforts
have been driven by the need to reduce costs and the desire to respond quickly to
customer demand.

Tactical and confidential projects

Gati's solutions ensure security and allow for continuous tracking and monitoring
of cargo. It reduces in-transit time and increases supplier network responsiveness.
We respond quickly to the industry's unpredictable demand. Our logistics solutions
provide the visibility you need to execute on tactical and confidential operations.

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2.4 VALUE ADDED SERVICES

Gati's bouquet of value added services are designed to take care of your business
needs

FOD (Freight-on-delivery): Option of paying at the time of delivery.

COD (Cash-on-delivery): Collection of cash against delivery from your

customer and remitting it to you online through e-banking.

DOD (Draft/Cheque-on-delivery): Collection of draft/cheque on your behalf at

the time of delivery.

Inbound Rate Agreement: Ensures hassle-free, convenient supplies from your

vendors. Also gives you the advantage of dealing with one company at agreed
rates.

Documentation Assistance: Information on forms, permits, legal/statutory

requirements including clearance of check posts.

Holiday & Sunday Pick-up/Delivery: At Gati, we are sensitive to your urgent

delivery commitments which is why we provide the option for pick-up and
deliveries on Sundays/holidays.

Octroi Clearing Facility: Octroi clearance on behalf of customers.

Tamper-proof packing: Special bags for safe handling of high value cargo

Fragile goods packaging: Gati offers packaging solutions for fragile goods like
marble statues and glassware.

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2.5 Network

41
CHAPTER 3 GATI INTERNATIONAL

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3.1 INTRODUCTION

Gati pioneered the cargo management movement in India. And then spread its
wings over the sub - continent. The logistics leader is now making its presence felt
in the SAARC countries and the Asia Pacific region.

Gati International, the global operations wing, provides us with a strategic USP —
an international reach, along with a highly focused expertise in India - centric
operations. This ensures that Gati remains the undisputed leader not just in Indian
operations, but also in India - focused operations.

We now have offices in Singapore, Hong Kong, China and Malaysia which offer a
range of distribution solutions to and from India.

Bringing India and the world closer

Easy connections between India and the Asia Pacific

Gati takes care of the hassles of pick up, customs clearance and delivery of freight
and cargo.
Services offered include inbound air / sea movement and outbound air / sea
movement, along with:

Strategic tie - ups with global players

Same day connection
Online track and trace facility
Consignee and consignor nominated freight terms
Door to door service
Door to airport / port service
Airport / port to airport / port service
Airport / port to door service
Customs clearance service
Bonded storage service
Assured space for air shipments
Break - bulk and container services

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3.2 INDIA CENTRIC SOLUTIONS

Gati has been constantly setting new benchmarks in connectivity and coverage.
With its deeply entrenched network and domain knowledge, Gati has brought India
and the world closer. Entering India by air, sea and road, Gati offers seamless
multi-modal connectivity to road, air, sea and rail transport modes, thus enabling
customers to effortlessly access the Indian markets.

Gati strongly believes that technology drives customer experience. Gati has kept
pace with the changing trends. From its ERP and CRM solutions to the state-of-
the-art Oracle based software that launched gati@web, Gati has always been a
frontrunner in the use of IT for the benefit of its customers.

Gati Thailand
Thailand has been on its pinnacle for more than a decade. A major player on the
world's market floor in multifarious arenas, Thailand has earned the title of the
'Detroit of Asia'. In the past years Thailand has made remarkable trade alliances
with many developed and developing economies to strengthen its foot in the global
markets. Thailand is the world's no.1 exporter of rice other significant exports
includes textiles and footwear, fishery products, rubber, jewelry, automobiles,
computers and electrical appliances. Gati opened its first office in Bangkok to
promote business in both the countries. Gati introduced customized solutions to
cater the needs of Indian businesses in Thailand. The individuals can send their
Cargo to India at very economical prices. Within a span of less than 2 years Gati
Thailand has become an expert in relocation of cargo to India.

The services we offer are: Courier: Gati offers courier service of global
standards.In 1996, Gati tied up with Indian Airlines to facilitate speedier delivery
of shipment. This twelve-year relationship has now been further strengthened with
the launch of the co-branded (Air India Gati ) air cargo and courier service. This
lethal combination will demonstrate the value the customers can derive from the
synergies of the two majors in air and surface networks.we provide fast and
economical service to anywhere in India.

• Air Freight: To make the importing and exporting more convenient Gati
Thailand provides world class Air Freight and distribution services between
Thailand to India and other countries. We provide option of Door-to-Door
Delivery and Port-to-Port Delivery. Gati's intrinsic network helps consumers
to seamlessly access the markets in both the countries with focus on
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 reducing transit and combining it with the ability to seize cost saving
opportunities.
• Ocean Freight: We provide our customers the most competitive price and
faster delivery with an option of Door-to-Door Delivery and Port-to-Port
Delivery. Gati Thailand offers sea freight movements from the two countries
in full containers (FCL) and part loads (LCL). We have a seamless multi-
modal network that assists our customers with Door-to-Door / Port-to-Port
Transportation, Logistics and Customs Clearance.

• Inland Transportation: Gati Thailand is a pioneer and meets the needs of

the customers. Within Thailand we arrange for transporting from small to
large quantities.

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3.3 CUSTOMER PROFILE

Gati connects India with the Asia Pacific. We take care of the hassle of pickup,
customs clearance and delivery for Asian businesses that want to sell in India and
Indian companies that want to deliver their goods to Asia . The services offered
include Inbound Air/Sea and Outbound Air/Sea.

Gati International offers the following services:

Freight forwarding —- air and ocean —- to and from worldwide locations

Customs clearance — air and ocean — inbound and outbound
International courier — to and from worldwide locations
Cross-border trucking

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CHAPTER 4 CONCLUSION

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CONCLUSION

It is hereby concluded that gati ltd. Is playing a pioneering role in the express
distribution and supply chain solutions in India. It has constantly developed
various ways to develop in setting bench marks and developing new methods in
evolving consumer satisfaction.

Moreover it has taken a lot of initiatives to develop the logistic segment in this
country. And thus evolve a high level of quality in service and customer
satisfaction

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