The Indian transportation industry is extremely competitive. To be successful with consistent growth, a transporter needs to be well-versed in areas like route-planning to ensure timely delivery, leveraging technology to connect loading with unloading points as well as the en-route tracking that helps connect clients. Chartered Logistics has mastered these basics of transporting and is reaping the benefits of pragmatic asset utilization. “For our organization everything that we do to ease the transfer of goods is an asset and not just the trucks on roads. We believe in precisely managing not just goods but the vehicles that carry the goods. Trucks, technology and the people are the three important assets of our business,” said Mr. Lalit Gandhi, Managing Director, Chartered Logistics Ltd.
On the back of a marvelous inter-connected system, the Ahmedabad-based fleet operator has weaved a solid web of efficiency. “Effective management leads to growth, and we are growing steadily clocking a turnover of around Rs. 180 crores in FY18. Our plan is to achieve a turnover of Rs. 250 crores by 2020,” asserted Mr. Gandhi.
Asked about the exact process that gives him confidence to reach the Rs. 250-crore turnover, he remarked: “If the truck is going with a load from point A to B, the branch manager at the unloading point B will ensure that the vehicle gets a load within 50 km radius. It took us years of experience and ‘tonnes’ of loads to build clients on both ends so that our own vehicles can carry goods to and from. If a vehicle must move even 100 km to pick up a load, the profit of that trip is gone.”
Owing to the planning and contacts built over the years, the company has an extensive network to connect with its loyal and ever-expanding customer base. Some of its prolific clients are Reliance Industries Ltd., Ambuja Cement Ltd., Aditya Birla Group, HNG Float Glass Hindalco Industries, Greenply Industries, Gujarat Sidhee Cement, Heavy Metal Tubes, Heidelberg, Hindustan Unliver, Indorama, etc.
The company that considers technology as its second biggest asset, surpasses customer expectations by linking them to the softwares that track the vehicle movement. “We have invested in computers since 1992, have GPRS in all vehicles, and the online software and IT structure is up to dated. Our vehicles can be easily tracked. If we have a branch where a vehicle is being unloaded, the manager personally visits the site to monitor the unloading. The branch manager’s presence also ensures the unloading process is done quickly so that the vehicle can move for the next assignment,” he said.
Apart from the branch manager, drivers are under Chartered’s third important asset ‘people’. The driver is respected and never forced to work beyond 200-250 km per day. The company grants him leave with salary to allow him to spend some quality family time. “If we frown about vehicle being off-road while the driver requests for leave, we won’t be able to continue in this business. A happy driver implies a happier and faster turnaround time. It also guarantees that the driver will come back to you and work for you longer. Anyway, we hire close to 45-50 per cent of market trucks on routes/areas where we do not have branches,” beamed Mr. Gandhi.
Expanding expertise
To serve its customers, the company has its trucks from the stables of Tata Motors, Mahindra Trucks and Bus Division, MAN and Ashok Leyland. “Around 150 trucks are of 31 tonners, 150 vehicles are of 4018, 18 trucks from MAN and a few of 3618 from Mahindra, all used as per the needs of the customers in varied industries like cement, coal and FMCG. Given its exposure to transport of cement, coal, gypsum, and even FMCG, the company is now also looking to expand into the 3PL (third party logistics) business. “We would integrate distribution, storage and packaging at one place and deliver back to the client. Not only FTL (Full Truck Load) but 3PL has a great potential in Gujarat given the State’s proximity to the northern States and fast-paced work on building ports and industries. Foreseeing the need we have bought 10 acres of land near our existing workshops,” added Mr. Gandhi.
It goes without saying that an operator of Chartered’s standard also has a strong vehicle maintenance workshop. “We have a workshop built across 3 acres of land where we have the capability to handle everything, from tyre pressure checks to engine overhauls. We even have a captive diesel pump of 20,000 litres. Such fine service checks ensure that a six-year-old vehicle appears and performs as an year-old vehicle.”
However, the company doesn’t shy away from taking AMC from the OEMs on the new vehicles. “With most OEMs calculating a customers’ total cost of ownership, the AMC for 3 years looks a great deal and puts a little less pressure on our workshop. Hence we can focus on our core business of transporting,” concluded Mr. Gandhi.