Problems

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Humber College *

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123

Subject

Management

Date

Feb 20, 2024

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docx

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4

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Problems 1. **Operational Bottlenecks:** - **Maintenance Issues:** Trucks dedicated to the premium express scheme lack proper maintenance, affecting their performance and reliability. - **Dependence on Local Vendors:** Last-mile delivery outsourced to local vendors, whose operations may be inconsistent or insufficient. 2. **Management Issues:** - **Micro-Management:** Leadership team's micro-management approach and lackadaisical attitude may hinder efficient decision-making and implementation. - **Inadequate Standard Operating Procedures (SOPs):** Lack of standardized processes for the premium express scheme, leading to variations and delays. 3. **Human Resources and Training:** - **Low Employee Motivation:** Recently hired staff handling the premium express scheme may lack motivation due to inadequate incentives and training. - **Cultural and Health-related Punctuality Issues:** Employees may face challenges related to cultural festivals and poor health, impacting punctuality. 4. **Inefficient Reporting Practices:** - **Manual Data Entry:** Key points in the delivery system involve manual data entry, leading to inefficiencies, errors, and potential fraudulent activities. - **Redundant Paperwork:** Excessive paperwork in the pickup process, causing delays and errors. 5. **Technology and Decision Support System:** - **Inefficiency in Algorithm:** The decision support system guiding booking associates may be inefficient, affecting the selection of the nearest hub and causing delays. - **Lack of Integration:** Lack of integration between the algorithm, pickup process, and overall system may contribute to delays. 6. **Customer Care Feedback:** - **Communication Gaps:** Lack of effective communication between the Customer Care department and the operational teams, leading to unresolved customer concerns.
- **Unclear Customer Expectations:** Customer expectations regarding premium express delivery times may not align with the actual capabilities of the system. 7. **Lack of Systematic Continuous Improvement:** - **Absence of Continuous Improvement Culture:** Lack of a systematic approach to address issues promptly and improve processes continuously. - **Limited Feedback Loops:** Inadequate mechanisms for gathering feedback from various stakeholders and incorporating improvements. 8. **External Factors:** - **Accidents and Weather Conditions:** Occasional random interventions like accidents and slow movement of the fleet due to inclement weather affecting delivery times. Addressing these possible problems systematically and implementing corrective measures will be essential for Sudhir Murarka to streamline the premium express delivery operations at Gati. **Case Analysis: Gati's Premium Express Scheme Challenges** 1. **Background:** - Gati, a prominent logistics service provider in India, launched a premium express scheme aimed at guaranteeing the delivery of goods within 72 hours for an increased price. - The scheme faced challenges, as evidenced by 231 complaints about delays, prompting Sudhir Murarka, the General Manager of Process and Quality, to investigate. 2. **Industry Context:** - The logistics sector in India is a significant contributor to the country's growth, witnessing rapid expansion driven by infrastructure development and increasing demand. - Gati, a market leader, focuses on innovation, with a diverse range of services spanning multiple industries. 3. **Logistics Challenges in India:**
- The Indian logistics sector faces challenges such as inadequate infrastructure, lack of integration in transportation networks, and regulatory differences, impacting overall efficiency. - Initiatives like the Sagarmala Project highlight significant investment opportunities in port and shipping logistics. 4. **Gati's Journey and Values:** - Gati, since its inception in 1989, has built a reputation for providing timely and innovative logistics solutions. - The company has ambitious goals, including delivering one million packages daily by 2020. 5. **Premium Express Delivery Operations:** - The premium express scheme was launched to provide high-speed logistics services with a target delivery time of 72 hours. - The scheme involved a complex process, including smart algorithm-based decision support and collaboration with local vendors for last-mile delivery. 6. **Identified Problems:** - **Operational Bottlenecks:** Maintenance issues with dedicated trucks, dependence on local vendors, and challenges in last-mile delivery. - **Management Issues:** Micro-management, inadequate standard operating procedures, and potential decision-making challenges. - **Human Resources and Training:** Low motivation and proficiency of recently hired staff, cultural and health-related issues affecting punctuality. - **Inefficient Reporting Practices:** Manual data entry, redundant paperwork, and potential fraudulent activities. - **Technology and Decision Support System:** Inefficiencies in the algorithm and lack of integration. - **Customer Care Feedback:** Communication gaps and unclear customer expectations. - **External Factors:** Accidents and weather conditions impacting delivery times. 7. **Possible Solutions:** - **Operational Improvements:** Address maintenance issues, evaluate local vendor performance, and optimize last-mile delivery.
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- **Management Restructuring:** Review micro-management practices, establish clear SOPs, and streamline decision-making. - **Human Resources Enhancement:** Provide additional training, improve employee motivation, and address cultural and health-related challenges. - **System and Technology Optimization:** Evaluate and enhance the efficiency of the decision support system, and ensure seamless integration across processes. - **Customer Communication Improvement:** Bridge communication gaps, manage customer expectations effectively, and seek regular feedback. 8. **Statistical Analysis:** - Utilize statistical process control charts to assess whether the delivery process is under control. - Analyze average delivery times and standard deviations to identify trends and variations. 9. **Continuous Improvement Culture:** - Promote a culture of continuous improvement within the organization. - Establish feedback mechanisms and regularly assess and enhance processes. 10. **Conclusion:** - Sudhir Murarka needs to collaboratively address the identified problems, implementing a systematic approach to streamline the premium express scheme and ensure it aligns with the company's commitment to timely and high-quality logistics services. 11. **Recommendation:** - Establish cross-functional teams to address specific issues identified in each area. - Monitor and measure improvements regularly and adjust strategies accordingly. Sudhir Murarka's challenge is to lead a comprehensive improvement initiative, ensuring alignment with Gati's commitment to customer satisfaction and operational excellence. The success of these efforts will not only resolve current challenges but also position Gati as a leader in India's competitive logistics industry.