'Significance of Cost Efficient Logistics Solution for MSMEs'

SMEStreet Exclusive interview between V Rajesh Gowrinath, SVP- Sales, Allcargo Gati ltd. and Faiz Askari, Founder and Chief Editor of SMEStreet, which highlights India's evolving logistics scenario from the perspective of MSMEs.: Top Interviews

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V Rajesh Gowrinath  Senior VP-Sales Allcargo Gati Ltd., Faiz Askari

V Rajesh Gowrinath Senior VP-Sales Allcargo Gati Ltd. with Faiz Askari

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The logistics services industry presents a significant opportunity for Indian Micro, Small, and Medium Enterprises (MSMEs) seeking to enhance their operations. With India's burgeoning economy and expanding market reach, efficient logistics solutions are crucial for businesses to thrive. MSMEs can leverage logistics services to streamline supply chain processes, reduce costs, and improve overall efficiency. Whether it's transportation, warehousing, inventory management, or distribution, outsourcing these tasks to specialized logistics providers can allow MSMEs to focus on their core competencies and scale their businesses effectively. Additionally, with the increasing digitalization of logistics services, MSMEs can access advanced technologies such as real-time tracking, analytics, and optimization tools to further enhance their operations. By embracing logistics services, Indian MSMEs can gain a competitive edge in the market while navigating the complexities of supply chain management in a rapidly evolving business landscape.

MSMEs in India often expect exclusive solutions for their diversified logistics needs. As a leading logistics service provider, GATI attracts MSMEs with its tailored solutions designed to cater specifically to the needs of MSMEs in India. With its extensive network and expertise in logistics management, GATI provides MSMEs with reliable and cost-effective transportation, warehousing, and distribution services. Here is an exclusive conversation between Mr. V Rajesh Gowrinath, Senior Vice President of sales, Allcargo Gati Limited and Dr Faiz Askari, Founder and Chief Editor of SMEStreet, in which India's evolving logistics scenario is discussed from the perspective of MSMEs.

Here are the edited excerpts: 

  1. How has Gati strategically positioned itself to support the unique needs of the MSME sector in the logistics industry?

GATI understands and directly addresses the evolving requirements of MSMEs within the logistics space. We continue to serve them with the very best in terms of reach, reliability, automation, customer service, etc. However, a very important segment for us has always been MSMEs and how we can help them access markets, grow their business and enable their success, and most importantly, do this in a cost-effective manner. This is also where we step in with our integrated express logistics systems and ability to deliver anything anywhere in India reliably and cost effectively.

"Serving 735 of the 739 districts in the nation and including more than 19,800 PIN Codes, we offer the most dependable and extensive (in terms of reach) Pan-India network."

2. What are the specific challenges that MSMEs in the logistics sector face, and how do Gati's solutions address these challenges?

Accessibility and customized services are two major problems that MSMEs in the logistics industry frequently face. Serving 735 of the 739 districts in the nation and including more than 19,800 PIN Codes, we offer the most dependable and extensive (in terms of reach) Pan-India network. The entrepreneurs known as Gati Associates make up a sizable portion of our first and last mile network.  We have over 3500 of them spread across the length and breadth of the country whose business we have helped set up and scale with ours. Gati has always been in the forefront of enabling entrepreneurship.

3. Are there any innovative technologies or approaches that Gati has implemented to enhance efficiency and cost-effectiveness for MSMEs in logistics?

GATI has integrated innovative technologies to enhance efficiency and cost-effectiveness for MSMEs in logistics. GEMS, an innovative real-time Enterprise Resource Planning tool, is designed to prioritize customers, optimize processes, and improve workflow management. Developing GEMS helped Gati grow from an express distribution leader to an end-to-end logistics organisation. With new digital solutions and proven skills, GEMS is a micro services platform that simplifies business and improves operational excellence and customer experience. GATI also offers warehousing solutions that enable MSMEs to store inventory conveniently, fulfilling orders efficiently, and creating new markets for them.

4. How does Gati ensure that its logistics solutions are tailored to the diverse requirements of MSMEs, considering their varied scales and operations?

In order to provide customized logistics solutions, we at GATI place a high priority on comprehending the distinct needs of different MSMEs. We have increased the range of services we provide to include revolutionary solutions for micro and small businesses. One of our projects involved setting up meetings between SMEs and possible dealers and distributors in several markets, which helped them reach a wider audience and gain better access to new markets.

5. In terms of collaborations and partnerships, how does Gati work with MSMEs to foster mutual growth and development in the logistics industry?

Gati's relentless dedication to serving SMEs has been the driving force behind our remarkable expansion in this industry.  Our services empower individuals and businesses across the nation to seamlessly transport goods to any location in India, offering unparalleled reliability, real-time tracking, and exceptional cost-effectiveness. With Gati, customers can effortlessly expand their reach and enhance customer experience in tier II and III markets. These markets are gaining significance as key consumer markets across various categories such as FMCG, consumer durables, consumer electronics, and e-commerce. We empower them to achieve greater reach, seamless access, and exceptional customer experience. Gati is highly skilled at delivering a smooth customer experience, especially in emerging consumer markets of tier II and III, which are becoming significant hubs for multiple industries. With our expertise across various industries, we ensure seamless reach, convenient access, and exceptional customer satisfaction. Our extensive distribution network throughout India plays a crucial role in empowering small and medium-sized enterprises, facilitating their long-term growth and success. We provide more than just logistical support; we serve as trusted advisors to small and medium-sized enterprises, offering valuable market insights and strategic guidance. With our comprehensive service support, we enable small business owners to efficiently expand their reach, fostering growth from Punjab to the northeastern states. As part of our dedication to streamlining business processes, we have implemented E-dockets specifically designed for our MSME customers. Our commitment to this endeavour has not only deepened our connection with SMEs, but also motivated us to broaden our network and operational scope by consistently incorporating new operating units and channel partners.

Faiz Askari MSME Logistics GATI