Exceptional risk management for business continuity and customer centricity

Exceptional risk management for business continuity and customer centricity

Enabling the dreams of Indian businesses to grow requires more than just efficient express logistics services. Among other key factors, robust risk management is also crucial in ensuring the seamless movement of goods. In recognition of its efforts to mitigate risks for all stakeholders, Gati, one of India’s premier express distribution companies, was conferred two awards at the prestigious CNBC-TV18 India Risk Management Awards, for exceptional risk management in the areas of Business Continuity Management and ESG.

Exceptional risk management for business continuity and customer centricity

Having reviewed the risk management procedures of various organizations, the panel of jury members chose Gati as the recipient of these awards based on the innovative approach, strategic thinking, and outstanding results.

Business Continuity Management

Understanding the benefits of reducing risk for businesses, Gati has in place, a comprehensive business continuity risk management plan to significantly mitigate various risks that the business might face, in the course of delivering customized, end-to-end, logistics solutions to customers.

The business continuity management systems framework is built on the foundation of emergency response, crisis management, business continuity and disaster recovery. One of the hallmarks of the plan and what makes it so effective is that it covers various facets of the business such as cyber security, data protection, information security, IT disaster recovery, business recovery, physical security, crisis and incident management and crisis communication,  privacy, operational risk management, and financial risk management, covering about 80% of the volumes in the first phase with a plan to increase the coverage as part of the journey.

Further, a business impact analysis is done periodically, and based on the results, the senior management of the company is actively involved in framing recovery strategies.

The clearly defined processes, the development of viable alternatives, and focus of the leadership team, go a long way in making sure that customers continue to count on Gati for nationwide transportation of various types of goods and shipments, in a safe, timely manner, even in the face of disruptions or challenges.

Mitigating Environmental, Social and Governance risks

Being an organization that believes in creating shared value, Gati has adopted a strategic approach to ESG to create a positive impact on its people, the wider community, and the environment.

Strengthening its ESG framework and accelerating its initiatives, Gati has engaged a third-party consultant, an expert in the space of ESG, to assist in laying the foundational framework for ESG strategy and formulating the milestone goals. Further, to automate ESG reporting, and tracking as well as driving ESG programs it has roped in an ESG technology partner. The ESG software platform provides leading-edge, AI-enabled automation and domain-rich content that accelerates an organization’s ESG journey.

On the environment front, Gati is already taking various steps to reduce the risk of carbon emissions. Over 100 electric vehicles (EVs) have been introduced for first and last mile deliveries, across the country. Additionally, an MoU has been signed with clean energy solutions provider, Gentari, to add 500 electric cargo vehicles to the existing fleet. Moreover, Gati has been supporting Swedish furniture giant, IKEA, with electric vehicles for its store in Hyderabad and Bengaluru. Gati actively contributes to IKEAS’s mission to be 100% zero emission in home deliveries by 2025.

To get a better understanding of the emissions and develop an action plan to mitigate or offset them, Gati is mining into the rich insights provided by Operations data – such as mode of transport, full load/partial load, distance covered, weight transported, etc. among others.

Gati is also the first express distribution company to partner with the Indian Post and the Indian Railways for the ‘Joint Parcel Product’, moving towards greener transportation (from truck to train).

On the cyber security front, Gati is compliant with best practices and is ISO27001 certified, which significantly minimizes the chance of data breaches, and ensures security and safety for customers.

From an inclusivity and diversity perspective, one in five middle and upper management positions is staffed by women. To further encourage women employees, a new initiative, RESTART, was launched last year. The RESTART – Back to Work Program for Women helps women who have taken a pause in their careers for personal or domestic reasons, to return to the workforce. There is also a clear focus on attracting women logistics professionals, and the first shift of 11 Operating Units are run by an all-women’s team.

In addition to implementing various ESG initiatives, Gati has defined measurable metrics for ESG, and  established a methodology for monitoring the same. ESG risks and their mitigation measures have been identified, and responsibilities for the various metrics pertaining to ESG and the various ESG risks have been defined. ESG has also been integrated into internal and external audits.

Appreciation from customers

Along with appreciation and recognition for its risk management initiatives, Gati has also received accolades from customers.

On account of its customer-centric approach, its contract logistics division, Allcargo Supply Chain (the erstwhile Avvashya CCI) won four awards at the DOW India 4STAR Awards 2022 – Best Service Partner, CX Top Contributor Outplant Awards, and two awards for Outstanding Individual Performance Outplant.

While not an overtly visible feature, risk management is an integral business practice that ensures seamless delivery of services, while enabling one to look after the interests of all stakeholders.

This is something Gati remains committed to, and its recent recognitions from diverse quarters are a testimony to the positive impact of these efforts.