Countering fuel hikes and redefining newer heights with Gati-KWE

Over the years Gati-KWE has evolved as one of the leading domestic air freight service providers with a digital-first approach and cutting-edge technology, delivering excellence at par. Yet a leading logistics player that has always held customer-centricity and a digital-first approach to its core have not been exempted from experiencing challenging times owing to the exorbitant fuel pricing.

The current war scenario has impacted the crude oil prices in the international markets and India has not been an exception. The economy entered the doldrums and affected every possible business vertical including logistics and supply chain. “Considering this unavoidable rise in the fuel surcharge Gati Air had a challenging task at hand to work out the pricing in a way that customer pricing would be least impacted.” says Mr. Charles Devlin D’Costa, Chief Supply Chain Officer, Gati-KWE.

Digitalization, a common help at hand

The world fuel cost approximately accounts for a quarter of the operating cost. With surcharges on the rise for months, compounded by recent global macroeconomic pressures, it has certainly impacted the imbalances in aircraft supply and changes in airspace restrictions. 

However, the air freight sector has been quick to counter and has found agile and astute strategies, to emerge out of the economic stagnation. and one common help at hand is and always has been digitalization. 

Enhancing the operational efficiency 

With a council of team members, Gati Air has worked out various initiatives and pricing techniques, and strategies, to mitigate the impact of the price hike. It aims to keep the fuel surcharge at the lowest level possible, yet standing true to the commitments of delivering excellence. 

A dedicated team of experts with pioneering technology has made air cargo movement more agile. This has eventually augmented supply chain reliability and operational efficiency while providing much-needed reassurance in form of turnaround, precise shipment deliveries as well as estimated time of arrival. 

Banking on fuel-saving techniques

With the world economy hitting a low, one of the finest strategies is to work towards fuel saving while executing operations. With Constant Descent Approach (CDA) whether on the ground or on-air, service providers would always have ways to further reduce their operating costs, consequently lowering the costs borne by the end retailers and vendors. 

Considering transparent pricing 

Consider transparent pricing, not as an option but as a compulsion. It also ensures better customer relations as there are no hidden costs or charges, from booking to shipping and delivering. As forwarders, it is necessary to reconsider what is there on books, and what accounts and finances need to be revised and redefined. When keeping costs low is the aim, consolidating multiple shipments at one go rather than scheduling multiple, through manual booking processes can cost more. With the world whirling around digitalization, opting for the process of automation while booking, to tracing and tracking your shipments certainly works for lowering costs.

Optimize end-to-end routing 

A well-planned end-to-end routing and mapping, by a team of dedicated experts, can provide solutions when it comes to lowering the cost. Forwarders choosing to have airports closest to the end destination or having expanding options without having to rely on flying to carrier hubs, simplify the pricing in the bigger picture as well. Having more direct routes and avoiding multiple scheduled connections is effective for optimum fuel and cost savings.

Conclusion

Taking a leap further, with upgraded infrastructure and countrywide connectivity, Gati-KWE has a network constantly growing to provide diverse logistics solutions, offering unparalleled supply chain management, e-commerce services, and air freight services, despite the fuel surge.