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Analysis of Service Framework of
Express Service
Service Operation Management
Name of Faculty
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
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
Gati Limited
Divisions
Fuel Stations
e-Commerce
Freight Forwarding
Gati KWE
Premium (Air)
GTS (Rail)
Supply Chain
Management
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
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
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
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
Operations
• Customer generatespick up request
• GA is informed to pickup the goods
• GA performs the pick upand completes theformalities
• GA ships goods to theDepot/GDW/EDC
• At depot/GDW/EDC thedetails of theconsignment areentered into GEMS anda new docket number isgenerated (for internalpurposes) after doingthe required checks
• At EDC theconsignments are sortedaccording to theirdestinations.
• Consignments aresorted according to theirrespective hubs andthus transported totheir hubs i.e. EDC
Feeder Route
Expre
ss Ro
ute
• After receiving ashipment at EDC, theconsignment is shippedto its respective GDW
• The consignment is thenshipped from a Depot toGDW
• The arrival time atDepot and thedeparture ofconsignment formDepot is entered intothe system
Local Route
• The consignment is thenshipped from GDW toEDC
• 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
• Theconsignmentthen goes tothe depot
• Consignment waits atthe GDW if there is notenough truck load/minitruck load for thedestination Depot
Feeder Route
• GA takes theconsignmentfrom Depotand delivers itto thecustomer
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 challanis made for each GA
• The vehicle is loaded LIFO (last in first out)
• The undelivered shipment is returned to the operating unit
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
Technology @ Gati
Gati @ Web
GatiEnterprise
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
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
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
Section C
Group 1
1301-048 Ayush Asthana1301-151 Pramod Kumar1301-155 Prashant Sahni1301-192 Sankalp Saxena1302-087 Nandita Jaswal
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