Flipkart Logistic & Supply chain management

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sagar-sawant
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Flipkart-e-commerce supply chain management
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  • 1.Flipkart Bhavik Thakkar Kapil Makhija Mehboob Bhatti Aniket Katdare Sagar Sawant •Flipkart functions •SCM of Flipkart •Flipkart’s profitability ITM SION BATCH-91
  • 2. Introduction To Flipkart • Founder-Sachin Bansal (CEO Co-Founder) and Binny Bansal (COO Co-Founder) • Background- IIT Delhi and ex- Amazon • Year-2007 • Investment-4 lacs ($9000) • Headquarters- Bangalore • Human Capital- 4500+ employees 2500+ developed on field in distribution & operations • Current Valuation- 1$ Billion • Revenue- 1180 crores (US 190$ million-2012-13) • Investors- Tiger Global, Accel Partners and South Africa‘s Naspers • IPO Expected- In 1-3 Years
  • 3. Product Portfolio • Books • Movies • Music • Games • Mobiles • Cameras • Computers • Healthcare and Personal Products • Home appliances and electronics • Stationary • Perfumes • Toys and many more…
  • 4. Product Offering • Wide Range of products • Over 15 million products – still counting 11.5 million book titles • With visit to transaction conversion Rate of 6%
  • 5. Ranking & Popularity Website Ranking • India rank-12 • World Rank-247 ( Source- Alexa.com) Popularity-0.538% of the total internet users of the world have visited Flipkart.com
  • 6. USER INTERFACE (UI) Graphical|Non-Graphical EASY TO NAVIGATE | EASY TO SEARCH EASY TO COMPARE | EASY TO ORDER
  • 7. Payment Options STARTED BY FLIPKART STARTED BY FLIPKART
  • 8. RECEIPT GENERATION • ORDER NO.:OD203579542 • THIS CONTAINS ALL INFORMATION I.e.., PRODUCT CODE, DATE OF PURCHASE, REFERNCE NO., DELIVERY AREA CODE • HELPFUL IN EASY TRACKING OF ORDERS ONLINE TRACKING • ORDER NO:-OD203579542 • FLIPKART LOGISTICS AGENCY • CUSTOMER ENTERS ORDER NO. , AND HE GETS REAL TIME UPDATE OF THE SHIPMENT STATUS
  • 9. AFTER SALES SERRVICE 1. 30-DAY Money back guarantee Unsatisfied Calls/Connects Product Customer with flipkart returned Replacement customer service by logistics or money is partners returned in the account 2. E-WALLET Feature ( flipkart adds new dimensions to its operating cycle) Loyal Deposit Use it for further Customer more money purchases 3. Reporting & Analytics On the basis of your past Schemes/ Discount/ Offers/ Behavioral purchase Recommendations are generated 4. Reviews First to review Certified Buyer
  • 10. Purchases and Procurement Inventory Levels + Rare Ordered Product Direct Procurement From Companies Stocked in the warehouse and Delivery Centers Credit period=14-30 days Credit Limits= varies with products Distributors of these companies delivers the product in respective flipkart’s Ware house (as per requirement) 1.Weekly 2.Monthly 3.One-time 4.Urgent
  • 11. Pricing & Margins 8-35% On sale price of product Parameter= Brand, Category margin, Premium margin, Volume, Cost of Delivery, Operating cost margin High Margin Category Toys, Watches, Beauty & Healthcare, luggage Mid Margin Category Books, TV, Home & Kitchen, Gaming, Belts, Bags Low margin category Mobiles & Cameras, Computer accessories
  • 12. Distributor Frame in overall India 25 Warehouses -7 previously, other converted from delivery centre 60 Delivery Centers - 35 previously, others newly formed (aim to reduce the time of delivery) Customer order Checked in delivery centre inventory YES Delivery Time 1-2 Days SUCCESS!!! Sent to logistics body NO Checked in the nearest warehouse inventory Automatic inventory check via Inventory management system Ordered to the company YES Delivery time 2-5 Days YES Delivery time 6-15 Days NO
  • 13. INVENTORY STOCKING Delivery Centers Ware house Stocking Levels INVENTORY MANAGEMENT SYSTEM Threshold Forecasting Product’s Inventory Frequency Of Order Of The Product
  • 14. Delivery & Logistics No. of order served Daily > 30,000 Location of the product Is Identified Logistic body is assigned Customer product delivery location (Delivery cost-Free If ordered > 300 Rs. Else Rs. 30 Extra) Parameter = city, locality, Type Of product, Cost definition, inter-city agreement etc. Logistics Priority Automated Software Sends Information about the product Delivery to these logistics body
  • 15. Customer Support New Sale| Customer grievances| Other Info 24x7 Customer Support Toll free phone:- 1800 425 3547 email- cs@flipkart.com
  • 16. How are their products less expensive than in retail shops?Retail store (organized) Online store Need a shop floor or chain of shop floor. Managed by centralized warehouses . Need skilled sales and management staff Need customer service associates. Need branding and displays No need for branding and displays of the product Need to pay overheads such as electricity bill, telephone bill, stationeries etc at every store. Comparatively less Expensive as overhead are born only for the dispatch centers Need furniture and equipments which need maintenance at every store Need few furniture and equipments which requires less maintenance cost
  • 17. Product stocking strategy (to maximize the profit) • Discontinued and old stock has been allotted more discounts and highlighted nicely. • Mid priced ranged products are preferred in each category. • Exclusive products are avoided. • Complex products which requires more demonstration are kept less in stock. • Combo-offer
  • 18. FLIPKART DISTRIBUTOR LOGISTICS PRICING BPO Flipkart distribution is getting designed in such way that , flip-kart can become official distributor of several company’s product future in India. Eg – Motorola/Google Flipkart Logistics is getting designed in such way that, other e-commerce website can also outsource delivery to Flip-kart. Flipkart Pricing getting designed in such way that, other e- commerce website can outsource delivery of several products through flipKart. (Motorola/Google,Cas io) Flipkart BPO getting designed in such way that, other e-commerce website can outsource delivery of several products through flipchart •Open loop for Value Added Service •Adding extra source of income
  • 19. SnapShot
  • 20. Special thanks to • Mr. Agasti Mhatre (Employee of Jaipan) • Mr. Sanjay Chavan (Online Purchase Manager of Jaipan) • Mr. Sunil (Ex employee of Flipkart) Sources:- 1. Google 2. Flipkart.com
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