The challenge for logistics companies in India is to consolidate across service spectrum.
India as big logistics market Logistics is the back bone of India’s economy, truly a catalyst that links supply to demand. Indian logistics market is expected to grow by around 3 to 4 per cent in coming years consistently as it is pegged to India’s GDP growth. Taking into account country’s immediate priorities to build infrastructure, logistics will be a key medium to execute and implement these projects pan India.
“To continue catering to the Indian market we have expanded the range of value-added services and extended the customer base across core end-to-end supply chain solutions and are continuously working on new business models – packaging and return goods etc. Our aim remains to become one-stop-shop for all logistics requirements,” says Mr Singh. Challenges facedAll the key economic variables like domestic manufacturing, exports and imports, fuel, inflation etc. have been under great pressure. The logistics cost as percentage of GDP in India is unusually high (around 13-14 per cent) which needs to come down closer to that of developed countries (7-8 per cent). Also investment in warehouses needs to be increased.  “The challenge for logistics companies in India is to consolidate across service spectrum,” says Mr Singh.
In surface transport, increasing petrol and diesel prices, policy bottlenecks with respect to highway development and land acquisition and congestion of road network are also some of the pressing challenges.
Supply chain managementGati KWE has a network of over 80 warehouses totalling over 6 lakh sq. ft. pan India that are closely integrated to its distribution network that offers surface, air and rail connectivity. 
The supply chain division at Gati is focused on designing, implementing and operating complex supply chains specific to industry requirements supported by cross functional expertise, value-based design, quality infrastructure and IT systems. Gati also manages a large variety of warehousing and distribution operations.
Future outlookGati-Kintetesu JV has been catering to diverse sectors across FMCG, Engineering, Textiles and Auto ancillary companies. The JV is expects to grow at CAGR of 15-17 per cent over the next 3 years. Gati-KWE has embarked on a journey of long term business transformation covering all the processes across business verticals in which we operate. Project Udaan is designed to address both the revenue drivers and the cost levers for improving profitability of the organisation.
“Our long- and short-term objectives include enhancing our e-commerce capabilities, to increase our shipments per day quarter after quarter, expand capacities to cater to more e-tailers, bikers for last-mile delivery and triple the number of fulfilment centres and e-logistics outlets,” informs Mr Singh. “For Gati KWE, providing value added services like Cash on Delivery, customised packaging, real time tracking and same day delivery will be the key to gain market share and retain premier clients, while acquiring new ones.”
 
-Diljeet Singh, Chief Sales & Marketing Officer, Gati KWE