Gati
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Feb 20, 2024
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Gati: Manvir Singh By: Venkataanand Anbarasu Virat Oza
Yeshwanth Marshall
Smit Shaurya Analysis 1. Operational Challenges and Bottlenecks: Gati faced significant operational challenges, including inadequate maintenance of trucks dedicated to the premium express scheme and reliance on local vendors for last-mile delivery. These bottlenecks directly affected service quality and contributed to delays in shipments. Addressing these operational inefficiencies is crucial for improving the overall performance of the premium express service.
2. Quality Management Perspective: Sudhir Murarka's background in quality management, including his Six Sigma Black Belt certification, provides Gati with a valuable resource for analyzing and addressing the issues with the premium express scheme. His approach of soliciting input from stakeholders and leveraging data-driven analysis underscores the importance of a systematic approach to problem-solving and quality assurance.
3. Management Structure and Decision-making Dynamics: Gati's management structure, characterized by traditional principles and micro-management, poses challenges for effective decision-making and operational efficiency. Murarka's position as the general manager of Process and Quality requires navigating these
dynamics to implement necessary changes and improvements. Aligning management practices with modern principles of agile decision-making and empowerment could enhance Gati's ability to respond to operational challenges effectively.
4. Customer Satisfaction and Competitive Advantage: The high number of complaints about delays in the premium express deliveries reflects negatively on
Gati's reputation for timely and reliable service. Addressing these issues is not only essential for meeting customer expectations but also for maintaining Gati's competitive advantage in the logistics industry. Improving service quality and streamlining operations will
be critical for retaining and attracting customers in an increasingly competitive market.
Pareto Analysis
The Pareto chart serves as a valuable tool for identifying the most prominent causes of complaints. Upon analyzing the Pareto chart, it becomes evident that the primary driver behind the complaints is reliance on vendors, accounting for the highest tally at 108. Following closely behind is the issue of lacking Standard Operating Procedures (SOP), registering 93 instances. Additionally, delays in loading and unloading contribute significantly to the complaints, with a count of 41. These three factors emerge as the primary sources of dissatisfaction, overshadowing other contributing factors, which hold a minimal share of the overall complaints.
Fish Bone Diagram
The illustration helps develop focused solutions by pointing out underlying causes and examining related relationships. It encourages data-driven decision-
making, efficient monitoring, and a culture of continuous improvement to guarantee that the delivery process stays within allowable error bounds. Ultimately, the fishbone diagram helps the general manager of Gati achieve the goal defect rate of 0.0005 per cent and streamline the delivery process.
1. Process: Incorrect routing or sorting, a lack of teamwork among members, or mistakes in paperwork or tracking are some examples of delivery process problems that could be causing delays.
2. People: Delays may be brought on by human factors like inadequate staffing, poor communication, or a lack of training. Additionally, delivery staff may have to deal with issues like bad weather, traffic jams, or vehicle
breakdowns.
3. Equipment: Misfunctioning vehicles, packaging supplies, or sorting machines are examples of equipment that can cause delays in the delivery process.
4. Environment: Outside variables like bad weather, clogged roads, or political unrest may be contributing to delivery delays.
5. Management: Inadequate planning, a lack of resources, or inflated goals are examples of poor management techniques that may be causing delays. Evidence
Evidence of Customer Complaints: Sudhir Murarka received a call from the senior manager of Customer Care, expressing concerns about 231 complaints regarding delays in premium express deliveries. This illustrates the significant impact of the issue on customer satisfaction and the urgency of addressing it.
Operational Bottlenecks: The case highlights challenges such as inadequate maintenance of trucks and reliance on local vendors for last-mile delivery. These operational inefficiencies directly contribute to delays and inefficiencies in Gati's premium express service, as indicated by the observed delays.
Quality Management Gaps: Inconsistent training and manual reporting processes
are evident, leading to errors and delays in premium express deliveries. This underscores the importance of implementing standardized procedures and technology solutions to improve quality control and ensure timely deliveries.
Customer Satisfaction Concerns: The high volume of complaints regarding delays in premium express deliveries poses a significant risk to Gati's reputation and customer satisfaction levels. This evidence emphasizes the critical need for corrective action to address root causes and restore customer trust and loyalty.
Problems
1.Operational Inefficiencies: Gati faces challenges in maintaining its fleet of trucks dedicated to the premium express scheme, leading to delays in
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shipments. Additionally, reliance on local vendors for last-mile delivery introduces variability and affects service reliability.
2. Quality Management Gaps: Despite Sudhir Murarka's expertise in quality management, the lack of standardized procedures and training for employees handling the premium express service results in errors and delays. Inefficient reporting practices and manual data entry further exacerbate the problem.
3. Management Structure Constraints: Gati's traditional management approach, characterized by micro-management and rigid decision-making processes, hinders timely responses to operational challenges. This structure may impede Murarka's efforts to implement necessary improvements effectively.
4. Customer Satisfaction and Reputation Risk: The high volume of complaints regarding delays in premium express deliveries poses a significant risk to Gati's reputation for reliable service. Failure to address these issues promptly could lead to customer dissatisfaction and loss of competitive advantage in the logistics market.
Solutions
Operational Efficiency Improvements: Implement a proactive maintenance schedule for trucks dedicated to the premium express scheme to ensure optimal performance and minimize breakdowns. Evaluate and potentially renegotiate contracts with local vendors to ensure adequate capacity and reliability for last-
mile delivery, or consider bringing some delivery operations in-house for better control.
Enhanced Quality Management Practices: Develop standardized operating procedures (SOPs) for all stages of the premium express service, including training programs for employees to ensure adherence. Invest in technology solutions such as automated data entry and tracking systems to reduce errors and streamline reporting processes.
Restructuring Management Practices: Advocate for a more agile decision-making framework within the management structure, empowering frontline employees to make operational decisions and respond promptly to challenges.
Encourage a culture of innovation and continuous improvement, where employees are encouraged to identify and address operational inefficiencies proactively.
Customer Satisfaction and Reputation Management: Establish a dedicated customer feedback mechanism to monitor satisfaction levels and promptly address any issues or complaints.
Launch a communication campaign highlighting the company's commitment to improving service quality and addressing customer concerns, rebuilding trust and confidence in the premium express service.
SWOT ANALYSIS Strengths:
Solid Reputation: Gati's prompt delivery and dependable service have helped it establish a solid reputation in the logistics sector.
Broad Range of Services: Gati provides a comprehensive suite of logistics solutions designed for certain industrial sectors, such as the e-commerce, healthcare, and automotive industries.
Huge Fleet: Gati has a fleet of over 6,000 vehicles and 32 contemporary warehouses, providing it with the infrastructure needed to support its activities effectively.
Technological Capabilities: To improve operational efficiency, Gati has made investments in technological solutions like algorithm-based decision support systems and GPS tracking.
Weakness :
Operational bottlenecks: Difficulties including poor truck maintenance and depending on neighbourhood merchants for last-mile deliveries cause delays and
inefficiency.
Problems with Quality Management: Manual reporting procedures and inconsistent training lead to mistakes and delays, which lower the calibre of services.
Management Structure Restrictions: Agile decision-making and innovation are hampered by Gati's traditional management style and micromanagement.
Customer Satisfaction Issues: Gati's reputation and customer satisfaction ratings are at stake due to the high frequency of complaints about delays in premium express deliveries.
Opportunities Market Growth: Gati has the chance to increase its market share and attract new clients thanks to India's constantly expanding logistics sector.
Technological Advancements: By making ongoing investments in technological solutions, operational effectiveness and customer service standards can be further raised.
Sustainability Initiatives: Adopting sustainability measures can improve Gati's reputation among consumers who care about the environment.
Strategic Partnerships: Working together and taking advantage of alliances can open up new business prospects and improve the services that are offered.
Threats Regulatory Changes: Changes in government regulations and policies may impact Gati's operations and increase compliance costs.
Competitive Pressure: Intense competition from both domestic and international players poses a threat to Gati's market position and profitability.
External Risks: Factors such as extreme weather events, natural disasters, and geopolitical tensions can disrupt supply chains and affect Gati's operations.
Customer Expectations: Evolving customer preferences and demands for faster and more reliable delivery services require Gati to continuously innovate and adapt its offerings to remain competitive.
Implementation Plan
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Solution
Action Plan
Timeline
Vendor/Distributor Diversification
(36 Days)
Compiling a list of potential suppliers.
Gathering vendor details
Assessing prequalification advancement
Conducting a tender process among eligible bidders.
Select preferred suppliers.
Obtaining approval from management.
5 days
7 days
7 days
5 days
7 days
5 days
Employee Training
(61 Days)
Conducting a survey to assess real market demand.
Planning for scheduling and allocating resources.
Recruiting employees for training purposes.
Sharing internal information for training purposes.
Conducting instructional sessions.
Obtaining input from staff members.
6 days
8 days
20 days
6 days
14 days
6 days
Innovative Technology
(76 Days)
Evaluating technological concerns.
Conducting a viable investigation centered on potential solutions.
Initiating the acquisition process for
products and services.
7 days
10 days
10 days
5 days
Obtaining approval and initiating purchases.
Setting up and examining new technology.
Implementing and overseeing commercial operations
30 days
14 days
Gantt Chart
gatiiii.xlsx
Executive Summary
Gati, a leading logistics service provider in India, faced challenges with its recently launched premium express scheme, resulting in numerous customer complaints about delays in deliveries. Sudhir Murarka, the general manager of Process and Quality, undertook a comprehensive analysis to identify and address
the root causes of these issues.
Key challenges included operational inefficiencies, quality management gaps, and rigid management structures. Operational improvements such as proactive maintenance of trucks and renegotiation of vendor contracts were proposed to enhance efficiency. Additionally, measures to standardize procedures, improve training, and empower employees were suggested to bolster quality
management practices. Restructuring management practices to foster a culture of innovation and agility was recommended to enable timely decision-making and continuous improvement.
To mitigate customer dissatisfaction and protect the company's reputation, a concerted effort to implement these solutions was initiated, with ongoing monitoring and refinement. Through these actions, Gati aims to optimize its premium express service, ensuring timely and reliable deliveries while maintaining its competitive edge in the dynamic logistics industry landscape.
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