"The buzzword is fourth-party logistics"

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: these naakas is excruciating for truckers and slows down efficiency significantly. Additionally, each state requires separate paper work for tax etc. For example, West Bengal requires surface carriers to fill up Form 40 and Uttar Pradesh requires Form 31.

If you were to consider a movement from Kolkata to Mumbai, which is a distance of 900 kilometers, and if the trucker was traveling at 45 kmph, excluding breaks etc, it should not take more than about 30 hours, which is the norm in the West. However, the time this journey actually takes is, much longer in India.

Delivery and courier companies all over the country face regulatory issues and there was even a bid by an independent group in Kerala to run the check post in a district called Vayalar because of the particularly slow movement of trucks at this check post. If we were to name one wish on the regulatory front, it would be to standardise regulations at check posts across states to increase efficiency in movement. Another ongoing project is improving the country’s physical infrastructure in cities and on the state highways.

In India, our logistics cost to GDP is about 13%, whereas in the West it is 8%-9%. For example, consumer good companies have many more warehouses in India compared with their counterparts in the US because they do not want to deal with the inter-state regulatory issues and the physical transport issues.

Can you share an overview of Gati’s acquisitions and partnerships?

Gati acquired Kauser India last year. The acquisition brought us a fleet of 94 vehicles with a carrying capacity of 3-12 tonne and a temperature range between minus 20 degrees and plus 20 degrees centigrade. The company also has a partnership with the Netherlands-based General Logistics System for which we act as a gateway to India and which, in turn, acts as Gati’s gateway to Europe. Gati owns two Boeing 737s. Gati has completely outsourced bookings and deliveries to our 1,000-odd partners. We have another 300 partners who provide us with vehicles.

What are some of the advantages and disadvantages of using a third party logistic carrier versus an in-house logistics company?