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