Gati: Achieving Quality Excellence in Shipment Delivery
(6 pages of text)
The general manager at Gati, a well-known logistics services company in India, was worried about the number of complaints the company had received. The popular supply chain solutions and logistics service provider had introduced a premium express service scheme five months ago and, since then, had 231 complaints concerning the late delivery of goods. This new scheme charged a considerable markup and guaranteed shipment of goods within 72 hours. Being dedicated to ensuring quality, the general manager had to decide whether the process was under control and if the company was operating within tolerable error limits. Could he find a solution to streamline the delivery process and achieve a target defect of 0.0005 per cent? Using MS Excel, statistical techniques were used to unravel the multi-faceted dilemma and help in decision-making.
This case is suitable for graduate-level courses on operations management, service operations management, and quality management for full- and part-time students in an MSc program in management or MBA program. The case is also applicable to executive development programs or short-term courses for practitioners in the field of quality management, quality engineering, and logistics and supply chain management. After completion of the cases students will be able to
- understand the functioning of a large-scale logistics service provider from various managerial dimensions;
- assess the notion of statistical quality control through a p-chart using Microsoft Excel;
- understand the concept of cause and effect relationships using a fishbone diagram;
- use a Pareto chart to identify the important causes responsible for the defects and then construct a Pareto chart using Microsoft Excel; and
- examine and connect the concepts of process capability, capability index, and defect percentage using Microsoft Excel.
Transportation and Warehousing
India, Large, 2017
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