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Flipkart
Bhavik Thakkar
Kapil Makhija
Mehboob Bhatti
Aniket Katdare
Sagar Sawant
•Flipkart functions
•SCM of Flipkart
•Flipkart’s profitability
ITM SION
BATCH-91
Flipkart Logistic & Supply chain management
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
Product Portfolio
• Books
• Movies
• Music
• Games
• Mobiles
• Cameras
• Computers
• Healthcare and Personal Products
• Home appliances and electronics
• Stationary
• Perfumes
• Toys and many more…
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%
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
USER INTERFACE (UI)
Graphical|Non-Graphical
EASY TO NAVIGATE | EASY TO SEARCH
EASY TO COMPARE | EASY TO ORDER
Payment Options
STARTED BY FLIPKART STARTED BY FLIPKART
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
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
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
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
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
INVENTORY STOCKING
Delivery
Centers
Ware house
Stocking
Levels
INVENTORY
MANAGEMENT
SYSTEM
Threshold Forecasting
Product’s
Inventory
Frequency Of Order
Of The Product
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
Customer Support
New Sale| Customer grievances| Other Info
24x7 Customer Support
Toll free phone:- 1800 425 3547
email- cs@flipkart.com
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
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
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
SnapShot
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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Flipkart Logistic & Supply chain management

  • 1. Flipkart Bhavik Thakkar Kapil Makhija Mehboob Bhatti Aniket Katdare Sagar Sawant •Flipkart functions •SCM of Flipkart •Flipkart’s profitability ITM SION BATCH-91
  • 3. 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
  • 4. Product Portfolio • Books • Movies • Music • Games • Mobiles • Cameras • Computers • Healthcare and Personal Products • Home appliances and electronics • Stationary • Perfumes • Toys and many more…
  • 5. 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%
  • 6. 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
  • 7. USER INTERFACE (UI) Graphical|Non-Graphical EASY TO NAVIGATE | EASY TO SEARCH EASY TO COMPARE | EASY TO ORDER
  • 8. Payment Options STARTED BY FLIPKART STARTED BY FLIPKART
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. INVENTORY STOCKING Delivery Centers Ware house Stocking Levels INVENTORY MANAGEMENT SYSTEM Threshold Forecasting Product’s Inventory Frequency Of Order Of The Product
  • 15. 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
  • 16. Customer Support New Sale| Customer grievances| Other Info 24x7 Customer Support Toll free phone:- 1800 425 3547 email- cs@flipkart.com
  • 17. 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
  • 18. 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
  • 19. 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
  • 21. 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