E-commerce in Turkey

WILDAU TECHNICAL UNIVERSITY OF APPLIED SCIENCES
FACULTY OF ENGINEERING AND NATURAL SCIENCES
Case Study
T-MACK FASHION DELIVERY
Academic Master Study programme
“Logistics and Supply Chain Management”
Ana Maria Correa Vaca
Claudia Gabriela Gomez Gutierrez
Kamila Hurkova
Merve Nur Tas
Tommi Einar Veromaa
Supervisor of the Study Work: Prof. Dr. Jens Wollenweber
Wildau 2017

i
Contents
List of Figures ........................................................................................................................................iii
List of Tables.......................................................................................................................................... iv
List of Graphs.......................................................................................................................................... v
List of Abbreviations.............................................................................................................................. vi
1 Introduction .................................................................................................................................... 1
2 Target region: Istanbul, Turkey ...................................................................................................... 2
2.1 Current players in the market .................................................................................................. 2
2.2 Package delivery...................................................................................................................... 3
2.3 Comparison to saturated markets ............................................................................................ 5
3 Products and pricing ....................................................................................................................... 7
3.1 Product portfolio...................................................................................................................... 7
3.2 Competitive advantage............................................................................................................ 8
3.3 Market entry strategy............................................................................................................... 8
3.4 Pricing concept for products.................................................................................................... 8
4 Market potential and data generation............................................................................................ 10
4.1 Market share.......................................................................................................................... 10
4.2 Sources and destinations of shipments.................................................................................. 12
4.3 Information structuring for model-based optimization ......................................................... 13
4.4 Estimation of possible revenues............................................................................................ 14
5 Network structure and process...................................................................................................... 16
5.1 Network topologies ............................................................................................................... 16
5.2 Location of a warehouse........................................................................................................ 16
5.3 Distances and speed of fleet .................................................................................................. 17
5.4 Scheduling process................................................................................................................ 19
5.5 Delivery process.................................................................................................................... 20
6 Infrastructure ................................................................................................................................ 23
6.1 Garage layout ........................................................................................................................ 23
6.2 Technical equipment ............................................................................................................. 23
6.3 Staff ....................................................................................................................................... 24
6.4 Information flow.................................................................................................................... 25
6.5 Vehicle’s costs calculation .................................................................................................... 26
7 Organization of pickup and delivery ............................................................................................ 28
7.1 Customers’ order data ........................................................................................................... 28
7.2 Delivery routes ...................................................................................................................... 30
7.3 Infrastructure required........................................................................................................... 35
8 Planning of hub location............................................................................................................... 37
8.1 Relations linked by direct transport....................................................................................... 37

ii
8.2 Number of hubs and transports routed via hubs.................................................................... 37
8.3 Hub location optimization..................................................................................................... 38
9 Overall financial analysis ............................................................................................................. 39
9.1 Investments............................................................................................................................ 39
9.2 Cost Structure........................................................................................................................ 40
9.3 Income & Cost based pricing ................................................................................................ 43
9.4 Profit and Loss Statement...................................................................................................... 46
9.5 Balance Sheet ........................................................................................................................ 47
10 Final analysis and recommendations............................................................................................ 48
11 References .................................................................................................................................... 50
12 Appendix ...................................................................................................................................... 52
12.1 Estimated forecast of new items frequency........................................................................... 52
12.2 Location of partnering designer shops .................................................................................. 54
12.3 Population of Istanbul ........................................................................................................... 55
12.4 Weight of clothing items ....................................................................................................... 56
12.5 Calculation of warehouse location ........................................................................................ 57
12.6 Order data.............................................................................................................................. 58
12.7 Delivery routes – Example.................................................................................................... 61
12.8 Optimized calculation of warehouse location ....................................................................... 62

iii
List of Figures
Figure 1: Location of partnering designer shops on a map ................................................................... 13
Figure 2: Direct and Reverse logistics networks................................................................................... 16
Figure 3: Distribution area in short-term Fleet configuration and delivery times................................. 17
Figure 4: Average traffic speed in Istanbul per hour............................................................................. 18
Figure 5: Motorbike distance vs. time................................................................................................... 18
Figure 6: Topography of Istanbul (En-dk.topographic-map, 2017) ...................................................... 18
Figure 7: Bike distance vs time ............................................................................................................. 19
Figure 8: Scheduling process – Flow chart ........................................................................................... 21
Figure 9: Delivery process – Flow chart ............................................................................................... 22
Figure 10: Garage layout without expansion space............................................................................... 23
Figure 11: Illustration of IT systems and flows of information between entities.................................. 25
Figure 12: Customers’ orders - Day 1 ................................................................................................... 29
Figure 15: AMPL code for distance measuring .................................................................................... 32
Figure 16: Day 1 - Routes ..................................................................................................................... 33
Figure 19: T-MACK domain................................................................................................................. 35
Figure 20: Illustration of Hub-Shop-Customer relations....................................................................... 37
Figure 21: Garage/Hub layout with optimal amount of shelf/motorbike space .................................... 38
Figure 22: Optimal Hub location based on 3 days of orders from partner stores. ..................... 39
Figure 23: Breakeven delivery prices in TRY – premium orders ......................................................... 45
Figure 24: Profit & Loss Statement....................................................................................................... 46
Figure 25: Balance sheet ....................................................................................................................... 47

iv
List of Tables
Table 1: Comparison of cargo companies in Turkey .............................................................................. 3
Table 2: Estimate share of e-commerce regarding the designers’ portfolio.......................................... 12
Table 3: Revenue estimation ................................................................................................................. 14
Table 4: Other operating costs of motorcycles...................................................................................... 26
Table 5: Motorbike, smartphone and total amortization costs. ............................................................. 27
Table 6: Employee working times and hourly salary............................................................................ 27
Table 7: Vehicle operating costs per zone per month ........................................................................... 27
Table 8: Motorbikes investment............................................................................................................ 39
Table 9: Cellhpones investment ............................................................................................................ 39
Table 10: Computers investment........................................................................................................... 39
Table 11: Furniture & Fixture investment............................................................................................. 40
Table 12: Shelf-rack/sqm investment.................................................................................................... 40
Table 13: Containers/backpacks investment ......................................................................................... 40
Table 14: Distance per day in km.......................................................................................................... 40
Table 15: Fuel cost ................................................................................................................................ 41
Table 16: Repair and maintenance cost................................................................................................. 41
Table 17: Depreciation cost................................................................................................................... 41
Table 18: Courriers cost ........................................................................................................................ 41
Table 19: Variable courriers cost .......................................................................................................... 42
Table 20: Insurance cost........................................................................................................................ 42
Table 21: Other mployees cost.............................................................................................................. 42
Table 22: Hub/garage cost..................................................................................................................... 42
Table 23: Services cost.......................................................................................................................... 43
Table 24: IT Platform cost..................................................................................................................... 43
Table 25: Gross margin and net profit with “new prices”..................................................................... 44
Table 26: Estimated forecast of new items frequency........................................................................... 53
Table 27: Location of partnering designer shops .................................................................................. 54
Table 28: Population of Istanbul per city district (Nufusu.com, 2016)................................................. 55
Table 29: Weight of clothing items....................................................................................................... 56
Table 30: Calculation of the warehouse location – gravity method...................................................... 57
Table 31: Customers’ orders - Day 1 .................................................................................................... 58
Table 34: Optimized calculation of the warehouse location – gravity method ..................................... 62

v
List of Graphs
Graph 1: Market share of package delivery companies in Germany....................................................... 6
Graph 2: Average delivery time and price of main competitors in package distribution compared with
TMACK .................................................................................................................................................. 9
Graph 3: Population of Istanbul, 2005-2016 ......................................................................................... 11
Graph 4: Distribution of household consumption expenditures in Turkey, 2007-2016........................ 11
Graph 5: E-commerce in Turkey: Volume of domestic transactions in million TRY, 2012-2017 ....... 12
Graph 6: Breakeven delivery prices in TRY – normal orders............................................................... 44
Graph 7: Breakeven delivery prices in TRY – premium orders............................................................ 44
Graph 8: Costs of Service Sold ............................................................................................................. 48
Graph 9: Day 1 – delivery routes – 6 motorbikes.................................................................................. 61

vi
List of Abbreviations
CSS Cost of Service Sold
ICTA Information Technologies Authority
IT Information Technology
KTY
KTK
Karayolu Taşıma Yönetmeliği
(Road Transportation Regulation)
Karayolları Trafik Kanunu
(Road Transportation Law)
M3 Licence of authorization, which are given to carry out domestic and international
cargo operations.
PTT Posta ve Telgraf Teşkilatı
(Organization of Post and Telegraph), the national post and telegraph directorate of
Turkey.
P&L Profit & Loss Statement

1
1 Introduction
This case study focuses on retail distribution in Istanbul, Turkey. We are offering an online sales
platform for several independent fashion designers who cannot afford to build one only for themselves
or have not yet done it due to lack of knowledge or experience. We will provide an end-to-end service
from creation of the platform, marketing, order management, delivery and after sales customer service
such as enabling returns and analysing customer satisfaction.
The centre of interest of this project is especially the B2C distribution. The idea is to improve
shopping experience through a sustainable retail method inspired by exponential business models such
as the one of the Deliveroo Company in food industry. We plan to have two distribution fleet: (1) fix
employees working in delivery full/part time which will be the main pattern at the beginning and (2)
we will aim for flexible delivery agents who could pick up a package nearby their current location and
deliver it to the final user. The objective is to make an “independent” network from over medium-long
term and decrease the number of fixed employees accordingly. This leads to both, significant
advantages and considerable risks.
Firstly, market research was performed to consider all important competitors in both, e-commerce
retail and package delivery industry. Then, we defined our product portfolio and respective pricing
strategies. It was required first to find designer stores which would partner with this start-up. From this
we were able to estimate potential market share and develop first concept of the network structure and
IT infrastructure. In the second phase of this project the focus will be on the optimization of the
delivery process, including more detailed planning and overall cost calculation.

2
2 Target region: Istanbul, Turkey
2.1 Current players in the market
2.1.1 Fashion
Most popular e-commerce websites from fashion sectors in Turkey are the following
(Modakariyeri.com, 2017):
- Lidyana
- Trendyol
- Morhipo
- Asos
- Shopi Go
- Ali Express
- Beymen
- Luisa Via Roma
- Net-A-Porter
- The Outnet
For our case, the most important ones are the Turkish websites Lidyana.com, Trendyol.com, and
Morhipo.com. Both websites are offering a huge number of collections from various stores and they
are both very popular in Turkey.
Lidyana started its online life focusing on only one area as an example of “vertical e-commerce”.
However, with the heavy customer traffic, it slowly started shifting through the other branches of
fashion, too. As of 2017, they have 800 suppliers in their platform, more than 200 of this number can
be counted as ‘start-up’ designers. They provide the operations of payment, packaging, return, and
customer service. Besides this, they also offer marketing through many different media like social
media and the website. This, of course, creates a unique value for them. While the turnover was 15
million TRY in 2013, it has been showing an increasing growth throughout the years and reached 40
million TRY in 2017. (milliyet.com, 2016)
Trendyol.com, announced that it is the biggest Turkish fashion e-commerce website according to its
sales of 20 million products. According to the statement, the website reaches to 70% of the women
who are online shopping in Turkey. They closed 2016 with 1 billion turnover, and are aiming 1.5
billion for 2017. Trendyol.com gets 35 million visits every month and they sell more than 2 million
products from domestic and international brands every year. On average, every day they are delivering
55 thousand products to their customers. (odmeteknolojileri.com, 2016)
Founded in 2011 by Boyner Holding, Morhipo.com came a long way in a very short time. In
20145Europe500 report, it is recognized as the fastest growing e-commerce website of Europe with
117% growth rate in the research year. It offers great variety of products from both luxury and budget
friendly brands to its customers. Yearly turnover of Morhipo.com is 350 to 400 million TRY.
(gazetevatan.com, 2017)
2.1.2 Package delivery
Main cargo companies operating in Turkey are the following:
 MNG Cargo
 Yurtici Cargo
 PTT Cargo
 Sürat Cargo
 Aras Cargo
 UPS Cargo
 DHL Cargo
 TNT Cargo (FedEx)

3
# Name Number
of
Branches
Year of
Establishment
Number
of
Hubs
Vehicle
Fleet
Number
of
Employees
1 MNG Kargo over 800 2003 25 2200 8000
2 Yurtiçi Kargo 842 1982 33 4000 14000
3 PTT Kargo 4500 1840 Info not
available
Info not
available
Info not
available
4 Surat Kargo 744 2003 24 3000 5000
5 Aras Kargo 825 1989 29 over 4000 12000
6 UPS Kargo over 260 1998* 23 over 700 3000
7 DHL Kargo 57 1981* Info not
available
Info not
available
Info not
available
8 TNT Kargo (FedEx) 46 1998* Info not
available
Info not
available
Info not
available
Table 1: Comparison of cargo companies in Turkey
*The date of entering the Turkish Market.
Turkey has a dense and dynamic cargo network. Some of the cargo companies are even offering
mobile branches for maximum customer satisfaction, especially for the places like work centres,
university campuses or holiday municipalities with high demand of sending or receiving cargo.
Besides this, for maximum flexibility, they offer pick-up services from the address. All the cargo
companies listed provide an online platform for their customers to track their cargos.
On average, the domestic delivery duration is 1 work day for the distances up to 600 km and 2 work
days for the distances over 600 km.
Companies offer various special services upon request, for example:
Intraday service (MNG Cargo): for the shipments handed in to agency network before 10.00, they use
the fastest and most effective distribution network within the province. Within this service, it is
possible to track your shipment online from its receipt to delivery by using their just-in-time tracking
system.
Cash-on-Delivery (PTT Cargo): This is a common practice in Turkey in e-commerce transactions.
With this type of delivery, the item charge is collected from the address during the delivery and
collected amount is then paid to the sender. It is also are called "Cash on delivery special service", and
items which are included in this special service are called "Cash on delivery item".
Reversible (Aras Cargo): For the documents the related copy of which the customer wish to get back,
signed by the recipient, the customer can opt for the Reversible delivery service.
2.2 Package delivery
In Turkey, there is no healthy information about the package delivery sector which includes certain
number of the size of the market and shares. This is one of the disadvantages of the sector. Whereas
some big companies provide the statistics about every activity carried out by the company, since not
every company or service provider in the sector has the same practice and because of the lack of
controls; this situation occurs. This even leads to cargo companies to have missing information about
their market shares and they usually do their own market research in order to guess their shares. The
size of the package delivery market can be estimated from various values, for example: the daily flow
of goods, number of e-commerce transactions, or vehicle fleet of the companies.
2.2.1 SWOT analysis
Strengths:
Cargo transportation has an important share in logistics activities in Turkey and is growing rapidly. As
a result of the increase in e-commerce along with technological developments, cargo volume increases
day by day as a result of demand for cargo transportation, not only caused by increased population and
increased consumption but also because of the changing customer behaviors.

4
To ensure free competition in road transportation and to discipline, modernize it, KTK (Road
Transportation Law) entered to force in 19 June 2003 and KTY (Road Transportation Regulation)
published with it. Their focus on improving quality and increasing institutionalization can be
numbered as one of the important advantages for the sector.
Another advantage of the sector is the transfer of technology that the global companies in the sector
make to Turkey. Significant amount of foreign capital and technology investments brought by the
cargo sector, provides significant added value to Turkey. The start of international cargo transport in
Turkey takes place in the form of partnerships with local companies or direct foreign investment in
Turkey, foreseeing the potential of the Turkish market for global companies with a worldwide service
network. These global scale companies (DHL, TNT(FedEx), UPS) in the sector provide significant
benefits to Turkey with both technology and capital transfer.
Finally, according to the Postal Services Authorization Regulations issued by the Information
Technologies Authority (ICTA), private companies are authorized to provide postal services. In this
context, the final step in the liberalization of the postal sector, which is an important component of the
telecommunications sector, has been taken with the Postal Service Provider Proof of Entitlement.
Providing a competitive environment in this way will bring the sector high performance and
productivity, and the industry will be even more open. In this sense, companies that make cargo
transportation will use existing distribution and transportation networks to carry out the postal service
if they obtain the authorization without extra financial expense and they will have the chance to
expand their share in the sector.
Weaknesses
PTT A.Ş., which is a public entity, publishes and carries out its own law and regulations, next to the
KTY and this situation leads to differences in practice among firms, which results in different
procedures for each enterprise and non-uniformity. (memurlar.net, 2013)
The fact that there is only one company (UPS, foreign origin) with the M3 authorization document
operating in the international and domestic cargo operations area, shows that the companies in cargo
operations are only operating nationwide and that these companies cannot receive shares from
international markets. (AKBULUT, 2016) However, the PTT is a member of the World Union of
Posts and for this reason its branches accept international shipment. Other cargo companies which
provide international service from Turkey are realizing this through the agreements they made by
foreign international transportation companies.
Especially in the cargo transportation sector, the fact that there is a lack of data on transportation, as
the result of not knowing exactly how the load is distributed at the country level is a weakness of the
sector. This results in not having clear information about the market size. This situation mostly caused
by the scarcity of publicly accessible statistics, and a lack of consensus that exists regarding an
appropriate market definition and an estimation methodology. (DVV Media Group, 2014)
Opportunities
One of the most important opportunities for the cargo transport sector in Turkey is the geographical
position of Turkey. The fact that Turkey is a bridge between the West and the East in terms of
geographical location makes the cargo transportation sector an extremely critical sector in terms of
economic development of the region.
Cargo transportation is a very detailed and labour-demanding operation for businesses. According to
logistics experts, 75% of production and sales companies’ logistics activities are still covered by the
resources of in their internal structures, only one quarter of the companies in Turkey outsource their
logistics needs. (AKBULUT, 2016) As a result, a large part of the cargo market currently available in
Turkey cannot be used by cargo companies. However, increasing costs will push companies to
outsource their logistics services; thus, it is estimated that firms will increase their market share.

5
Threats
The globalization of the world economy has resulted in faster and more reliable delivery expectations
of customers, products with shorter shelf life (electronics, fashion products and perishable cargos,
etc.). This will prevent the development rate of the cargo transported by land internationally.
With the increasing trade volume, motorized courier services are now regarded as a necessity in big
countries of the country and the demand for courier delivery services is increasing day by day. Apart
from small and medium sized businesses in the economy, large businesses also benefit from motorized
courier services. It is a known fact that the traffic density of the country including Istanbul, Ankara,
İzmir, Bursa and more is huge, with Istanbul being the sixth in the world in the congestion ranking
because of about 50% more travel time in the city during the rush hours. (tomtom.com, 2018)
(turizmavrupa.com, 2017) Currently, courier distribution companies are delivering a post which is
urgently needed from one point to another in Istanbul, in a short time compared to the time used by
normal transportation methods. This situation increases the share of the companies that distribute
packages up to 5 kilograms from the sector, and the companies that do cargo operations lose their
share from the market and this situation is adversely affected.
Turkish logistics companies are unable to move to the Middle East because of the issues originating
from problems in Egypt, Syria, Iran and Iraq. Especially the road/ cargo transport to the Gulf countries
has been blocked at a very large rate due to regional crises, and this is one of the biggest problems
facing the sector. (AKBULUT, 2016)
Conclusions
This SWOT analysis is made from the Turkey Cargo Sector perspective. The sector has big players
and as a start-up company, instead of taking a share, it was decided to create own share in this
scenario. In this case, we are able to turn the threats of the sector into opportunities. The business
model is going to use motorbikes and bicycles as its vehicle fleet. Also, with volunteered working
employee system, we are aiming to provide a rapid delivery network, even in Istanbul. Our platform
(e-commerce website) is fully integrated with the mobile application (e-commerce mobile
application). In contrary to our competitors, we are both, the seller and the deliverer. Hence, we are
aiming to reach a unique reliability point in the delivery sector. The moment our customers purchase
the product, they will be given an order number and they will be able to follow the shipment. For all of
this, they are going to use only one platform, which reflects user friendliness in our model.
2.3 Comparison to saturated markets
Germany was selected as a comparison country, representing a saturated market in both, online retail
and distribution sectors.
The biggest online retailers in Germany, sorted according to net sales, are: (handelsdaten.de, 2014)
 Zalando
 Bonprix Handelsges.
 H&M Hennes & Mauritz
 Heinrich Heine
 Esprit Retail Private Sale
 S.Olivier
 C&A Online
 Walbusch Walter Busch
 Görtz Retail
 Josef Witt
Private households spend on average 4.4% of their incomes in clothing and shoes (Statistisches
Bundesamt, 2015). 87% of population (older than 10 years) uses internet (Statistisches Bundesamt,

6
2016). And 45 mil people bought products and services online for private purposes which corresponds
to about 76% of internet users older than 10 years. Online sales accounted to almost 67 billion EUR in
2016 (bevh.org, 2016). 65% of the online purchases were in retail industry (incl. sports items)
(Statistisches Bundesamt, 2014). 81 % of internet users go online also with their smart phones
(Statistisches Bundesamt, 2016).
The biggest package delivery companies in Germany are DHL, DPD, UPS, Hermes, GLS with the
following market shares as shown in Graph 1 (Statista, 2017). The average price for a small parcel is
about 3.9 EUR (paketda.de, 2017).
Graph 1: Market share of package delivery companies in Germany

7
3 Products and pricing
3.1 Product portfolio
T Mack Fashion Delivery is a company that provides logistics solutions for retail e-commerce through
a platform that links two targets:
1. Independent fashion stores: searching to expand current business and to gain market visibility.
2. Customers: bringing them closer to new and independent designers with a sustainable
approach and offering them better service in the delivery of their purchased items.
3.1.1 Affiliate Marketing
Globalization is a dynamic process that permits the multinational companies to expand globally and
cover all the shopping centres with almost the same brands. This results in independent designers
being unable to compete with large manufacturers because of the high costs involved in having a
webpage for commercializing and a logistics strategy that allows the distribution of the product.
There is a growing trend where new consumers (millennials and Centennials) want to maintain their
identities, prefer the personalization of the products and do not give importance to the famous brands.
The platform offered by T-MACK FASHION DELIVERY will permit to create an agglomerate of
independent designers where the final consumers will have a new purchase option, while the company
supports local stores. It will promote the designs of all the independent designers who work with the
company. And when a customer buys through this channel, T-MACK FASHION DELIVERY
receives a commission for the sale (Cost Per Action).
3.1.2 Delivery of the items
This service is provided using a combination of bicycles and motorbikes for the distribution. Through
mathematical algorithms the routes will be optimized and the resources distributed efficiently and
environmentally responsible (see Chapter 5 for further detail).
The use of bicycles is done especially in areas with mobility restrictions due to traffic; these are
mainly central business districts or metropolitan areas. While the motorbikes are used to go from one
district to another or when highway must be used.
The workforce consists of permanent employees and independent contractors.
This project will be carried out in Turkey, in the city of Istanbul. However, in the very short-term
phase, the platform will have a limited coverage to the most populated area (see the next chapter
where the coverage area is shown).
The customer can use the Tracking function. He will receive a notification “Your product is on the
way” when the product has been loaded. Afterwards, the customer will be able to track the product
through the mobile app. In addition, if the client will not want to track the shipment actively, through
the mobile application, updated information on the status of the shipment will pop up. (see Chapter 5
for further detail).
The delivery time will depend on the type of service:
 Premium Delivery: 3 hours
 Normal Delivery: 1-2 days (target)
Deliveries will be performed from Monday to Friday in working hours from 8h00 to18h00.
For premium deliveries, the last order will be received every day max. at 15h00 in order to be able to
keep the delivery promise.

8
3.2 Competitive advantage
Two classes of competitors must be differentiated in this business: (1) competitors in the delivery
service and (2) the e-commerce retailers that sell clothing and accessories from different stores. The
business model, that T MACK FASHION DELIVERY proposes, combines these two services in a
single platform, which has not been implemented by any of the competitors, yet (usually the delivery
part of the e-retail business is subcontracted).
This model will allow T MACK FASHION DELIVERY greater control over products and deliveries,
reducing the waiting time of customers to obtain their items.
T-MACK company uses the tools available to implement in its system for the benefit of the
environment and society. T-Mack Fashion Delivery will use bicycles as one of its main modes of
transportation for deliveries, not only because they are more efficient in some cases but also as a
commitment to a sustainable service.
Crowdsourcing deliveries allows the company not to limit itself to only fixed employees as delivery
workforce. Since there will be also the independent collaborators to effectuate the delivery, the
opportunities for the company are increasing without incurring fixed costs. Among its benefits are:
greater capacity to respond to growing demand, are people who know the delivery area (local) and is a
form of marketing (word of mouth).
3.3 Market entry strategy
Faster deliveries:
T Mack Fashion Delivery offers to manage shipments in a shorter time, maintaining market prices.
Sustainable Service:
The inclusion of bicycles as a means of transportation to perform deliveries satisfies the needs of
customers and contributes to reducing social and environmental risks in the city of Istanbul.
Inclusive Business Model:
The importance of supporting the national industry can be highlighted as an entry strategy. It provides
an opportunity for local designers to be grouped in a single platform that allows customers an easy
location and purchase of their products, increasing their sales and creating an economic return for all
participants.
Mobile App:
This application will allow a greater connection with final consumers through the evaluation of the
service, promotions of products on the platform, review of the status of the order, etc.
Packages Tracking:
One of the main problems of e-commerce logistics delivery systems is not being able to be in the place
of delivery to receive the product. Our service allows the customer to track the package in real time,
and to know accurately when the package arrive.
3.4 Pricing concept for products
3.4.1 Affiliate Marketing
The rates charged for this service usually depend on the network and the segment in which the
business is located, the website traffic and the services it provides. Some websites have different price
ranges for the different actions that customers perform (buy, click, complete online forms, register,
share, etc.).

9
The affiliates are always looking for websites with large numbers of visitors, this in theory provides
greater security that your product will have a better impact if it is promoted on these sites.
(Ecommervewiki.org, 2017)
The affiliate can evaluate the willing-to-pay-price for this service from two points:
 The costs incurred when trying to promote and sell the products directly.
 The percentage of sales that want to reach through related customers.
The network rates depending on the criteria indicated in the previous paragraph are between 5% and
50% (Clickz.com, 2000).
Based on the fact that the platform is new in the market, it belongs to the textile industry, independent
designers are small or medium businesses and the company has competitive advantage in delivering
the items, a fee of 10% of the total sales generated from the platform has been determined for this
project.
3.4.2 Delivery of the items
To establish the price of the delivery service, three approaches can be used: (1) variable and fixed
costs + profit margin, (2) based on the value of the product (value from the client's point of view) and
(3) based on the competition.
Based on market conditions that are well established and highly competitive and that there is a price
strongly fixed in the minds of consumers for the acquisition of similar services, the determination of
price based on competition was selected. This strategy does not incur any costs for determination of
the market price because it is already implemented. It also provides a real data reference that is easily
accessible in the web.
Below there is a comparison in Graph 2 with the main competitors in the targeted market (Trendyol,
Lidyana, Morhipo, 2017):
Graph 2: Average delivery time and price of main competitors in package distribution compared with TMACK
The Graph 2 shows that all the platforms have the same price for the delivery service in the market.
This is because they deliver with the same cargo companies that are Yurtiçi Cargo and MNG Cargo.
In the case of Lidyana which offers international deliveries, this will be carried out by DHL. This
company has two modalities of deliveries: (1) Same day cargo that are delivered between 1 or 2 days
and (2) normal deliveries between 2 to 10 working days.

10
According to the information collected, a price of 7.99 TRY was determined for normal delivery. And
provided that none of the competitors offers the premium service with a delivery time of 3 hours, the
premium delivery price was set to 10.5 TRY (increase by 31.41%).
4 Market potential and data generation
4.1 Market share
4.1.1 Influencing Factors
To estimate the potential market share of TMACK, the following influencing factors need to be
examined:
Suppliers
As described before, TMACK will partner with 30 designer shops. This number is fixed for the
starting phase of the business. Based on market research (especially a comparison with a similar model
in other Turkish city Izmir at peksekerbutik.com), a range of possible number of items was defined
between 15 and 65 per designer. Then random numbers were generated within these limits. Based on
this, on average, every designer store will have 40 products.
Also, based on research, a new single item can be introduced every 5-15 days. Again, random numbers
were generated within this range. Resulting from this, the frequency of new items is on average 10.7
days.
In order to connect the frequency of introduction of new items and the portfolio size, a k factor was
introduced:
𝑘 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑖𝑡𝑒𝑚𝑠 𝑖𝑛 𝑠𝑡𝑜𝑟𝑒
25.5 (𝑡ℎ𝑒 𝑚𝑒𝑑𝑖𝑎𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑟𝑎𝑛𝑔𝑒 𝑓𝑟𝑜𝑚 15 𝑡𝑜 65
Then the average frequency of introducing new items was divided by this k factor in order to have an
estimation, how often on average there will be a new item per shop. The result is that one new item
can be introduced on average every 8 days by a particular shop. Knowing that there will be 30 shops,
30 items can be introduced every 8 days which means that about 4 new items can be expected every
single day in total.
The detailed numbers per each of the 30 shops can be seen in Table 26 in the appendix.
Customers
Turkish population accounts almost 80 mil habitants. Out of this, 68% are aged between 16 and 64 and
48% are women (TurkStat, 2016).
In Istanbul, the registered population is nearly 15 mil (TurkStat, 2016). The increasing trend can be
seen in Graph 3. The population density of Istanbul is 2849 persons per square kilometre. (TurkStat,
2016) As described in chapter 2, TMACK will cooperate with independent designers. This implicates
a niche market for people who are willing to pay higher price for the retail items than the mainstream.
At this point, it is difficult to estimate the percentage of this niche population.

11
Graph 3: Population of Istanbul, 2005-2016
97.2% of Turkish people use a computer and 95.9% have internet access (TurkStat, 2017). This is a
prerequisite for the foreseen business. There are more than 76 mil mobile telephone subscriptions
(TurkStat, 2017) which corresponds to 95% of the total population and nowadays, it can be assumed
that the majority of mobile phones used are smart phones. Besides this, there are over 61 mil.
registered credit cards in Turkey (The Interbank Card Center (BKM), 2017).
According to the survey about household budget, on average 5.2% of expenditures are in clothing and
footwear (TurkStat, Household Budget Survey, 2016). In the Graph 4 it can be seen that this
distribution is more or less stable over the past 10 years.
Graph 4: Distribution of household consumption expenditures in Turkey, 2007-2016
The e-commerce domestic volume reached 63 billion TRY in 2016 and this number has been already
exceeded after the 3rd
quarter in 2017 (The Interbank Card Center (BKM), 2017). This shows a rapid
growth in the e-commerce market, see Graph 5. This development significates a huge potential for
future online businesses in Turkey.
8 000 000
9 000 000
10 000 000
11 000 000
12 000 000
13 000 000
14 000 000
15 000 000
16 000 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
5,9 5,4 5,1 5,1 5,2 5,4 5,3 5,1 5,2 5,2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Various good and services
Restaurant and hotels
Educational services
Entertainment and culture
Communication
Transportation
Health
Furniture, houses appliances and home care
services
Housing and rent
Clothing and footwear
Alcoholic beverages, cigaratte and tobacco
Food and non-alcoholic beverages

12
Graph 5: E-commerce in Turkey: Volume of domestic transactions in million TRY, 2012-2017
Combining the findings from the two previous statistics, it can be forecasted that over 3.6 billion TRY
(about 808 million EUR if 1 EUR = 4.5 TRY) will be spent in online retail in 2018 (calculated as 5.2%
of 70 billion TRY).
There is no particular seasonality in clothes shopping behaviour in Istanbul.
Competitors
An important influencing factor on the future market share are the already existing competitors. These
were described in detail in the first chapter.
Marketing expenses
The company marketing strategies also influence the market share. The market entry strategy was
described in Chapter 2. Any further actions are out of scope of this report.
4.1.2 Market share scenarios
The marketing concept taken by TMACK is so far unique on the market (combining fashion retail and
distribution). Hence, a comparison in terms of market share is difficult. If compared only to
distribution companies, the share would be <1% and the same if compared only to fashion e-retailers
given the starting phase of this project.
It was decided to forecast scenarios based on the share of products sold through the platform compared
to the number of products sold by the designers in the physical shops (only considering the designers
with whom a partnership contract was signed). The estimated values for this share are in the Table 2
below. The values increase over time thanks to acquired experience in marketing and higher popularity
with the final customers.
Short-term Medium-term Long-term
Best scenario 15% 20% 40%
Average scenario 10% 15% 25%
Worst scenario 5% 10% 15%
Table 2: Estimate share of e-commerce regarding the designers’ portfolio
Also, at later stage in this report, a cost-revenue calculation will be done.
4.2 Sources and destinations of shipments
4.2.1 Sources of shipments
As described earlier, TMACK will partner with independent designer shops which will be the sources
of shipments. Some existing shops were chosen as examples (see stores nr.1-6) and the remaining
0
10000
20000
30000
40000
50000
60000
70000
2012 2013 2014 2015 2016 2017
VolumeinMillionTRY
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter

13
locations are selected randomly in the most populated city areas where the boutiques are concentrated.
The detailed coordinates of the shops are in a Table 27 in appendix.
The locations are also visualised in the Figure 1. From the map it is clearly visible that the sources are
concentrated in the “centre” of Istanbul.
Figure 1: Location of partnering designer shops on a map
4.2.2 Destinations
The business type of the deliveries will always be B2C which means distributing items from the
designers to the final users of the fashion items.
The population of Istanbul together accounts more than 15 million people and is distributed in the
particular districts as shown in the Table 28 in the appendix. The percentage of population in single
districts will be used as one of the indicators for the ordering probability (when optimizing the
network). For simplification purposes, exact order data will be created and used for further
calculations.
4.3 Information structuring for model-based optimization
The model based optimization will have the objective to find optimal number of fixed and independent
employees.
Details about two types of information will be needed: (1) orders and (2) employees.
In the second part of this project, test data will be created for at least three typical days of operations
(e.g. 1 day with more orders,1 day with more traffic,1 average day) which will be used for further
calculations.
4.3.1 Orders details
The following will be considered about incoming orders:
 Order number
 Address of designer shop (where the items where ordered from)
 Quantity of items per order
 Price of items ordered
 Total weight of order
 Premium delivery – yes / no?
 Shipping address of customer
 Vehicle needed for delivery (based on distance and weight) – bicycle / motorbike?

14
4.3.2 Employee details
The following will be considered about employees:
- Name
- Type of vehicle – bicycle / motorbike?
- Max. driving range
- Max. weight carrying limit
- Type of employment – fix / independent?
- Current position – to calculate distance to the boutiques and customers
- Remaining working time
4.4 Estimation of possible revenues
As estimated above in Table 2, in short term, the following ratios from total amount of products from
the partnering designers will be sold through the TMACK platform:
 Best case: 15% sold through TMACK
 Average: 10% sold through TMACK
 Worst: 5% sold through TMACK
As described in chapter 4.1.1, four new designs are expected daily from all suppliers together.
Assuming that each design comes in five different sizes and all is produced fifteen times, then there
are 300 single items for sales daily.
Knowing this, and assuming the average price per item of 200 TRY, the following estimation of
revenues can be done:
Per Day Per Month
Average number of items for sale 300 9,000
Best case 15% 45 1,350
Average case 10% 30 900
Worst case 5% 15 450
Revenues from commission of 10%:
Average price per item [TRY] 200 200
Best case [TRY] 900 27,000
Average case [TRY] 600 18,000
Worst case [TRY] 300 9,000
Revenue from delivery
Average number of items per order 1.5 1.5
Premium order cost in [TRY] 10% 10.5 10.5
Normal order cost in [TRY] 90% 7.99 7.99
Best case [TRY] 247.23 7,416.9
Average case [TRY] 164.82 4,944.6
Worst case [TRY] 82.41 2,472.3
TOTAL REVENUES
Best case [TRY] 1,147.23 34,416.9
Average case [TRY] 764.82 22,944.6
Worst case [TRY] 382.41 11,472.3
Table 3: Revenue estimation
The revenues come from two sources as described in the previous chapter: (1) commission of sold
items and (2) the delivery. Probably, only 10% or orders will be premium delivery and the rest normal
delivery.

15
With this approach, in the average case, it can be forecasted that there will be a daily revenue of 765
TRY (166 EUR)1
and monthly about 22,944 TRY (4,988 EUR)1
per month.
1
Current exchange rate: 1 EUR = 4.6 TRY

16
5 Network structure and process
5.1 Network topologies
Based on the business model, the shipment of products will flow directly from the stores to the
customers without need of a warehouse as intermediate. The reasoning behind this configuration lies
in the shipment distances and the delivery times. In the Figure 2, two network logistics topologies are
shown. The first one refers to the direct shipment from stores to customers. This distribution of items
will work in a similar way to the “milk run” logistics distribution, with the difference that in this
scenario there are multiple suppliers delivering to multiple customers, and the route depends on the
algorithm. The second diagram in Figure 1, reflects the return process of an item, based on the return
policy. In this scenario, items that are scheduled to be returned or changed could potentially be stored
in the warehouse (garage) of the fleet.
Figure 2: Direct and Reverse logistics networks
5.2 Location of a warehouse
A first estimation of the location of garage/warehouse was done using the Euclidean distance formula
among all coordinates of known stores.
22
( )( )n n ny yxd x  
In Annexe A, it is shown the excel file of the calculations. At this point, optimization methods (such
as gravity methods) were not implemented as they require knowing position of customers and
including costs associated to facilities, fixed and variable costs. Nevertheless, through this formula an
approximate centric (non-optimal solution was obtained), which helped to determine a range of
delivery for the customers. This range was set at 25km from the warehouse/garage location and it is
shown in Figure 3.

17
Figure 3: Distribution area in short-term Fleet configuration and delivery times
5.3 Distances and speed of fleet
5.3.1 Motorbikes
The fleet of transport is a mix of motorbikes and regular bikes, which will be owned, and
crowdsourced as well. The average traffic speed during working hours in Istanbul is 23km/h (Figure
4). This was the speed taken to calculate the average time.
For calculating real distances between destinations considering the given city infrastructure (and not
the air connection), a detour factor is needed. The detour factor of Istanbul was created by calculating
different route distances on roads inside the 25km delivery radius. For example, one delivery from
garage location to a customer at 20km distance would be 24km in reality because of the excess
movement needed when driving on roads. It should also be mentioned that the cargo weight is not
taken into account in the calculations as clothing products consist mostly of air and very light
materials and therefore are very lightweight.
Considering a maximum radius of 25 km, it would require average 78 min to travel that distance and
157 min if a round trip is considered (Figure 5). However, as it was stated before, in one trip there may
be more than one deliveries planned, which would optimize the process. Moreover, most likely this
time will be longer as it considers distance in a straight line rather than actual routes. (TomTom ,
2014)

18
Figure 4: Average traffic speed in Istanbul per hour
Figure 5: Motorbike distance vs. time
5.3.2 Bikes
Introducing bikes as a transport solution in Istanbul is a challenge. The topography of the city is rather
irregular (Figure 6), landscape variations have made it difficult to develop efficient cycling
infrastructures and to incentive users to choose this mean of transportation in the past. However, there
are many ongoing initiatives to create safer environments for cyclists. In 2014, the government
committed to expand its bike lane network by 1000 Km until 2023. There are also some innovating
solutions designed to solve the hilly terrain of the city, one example are the bicycle escalators, already
used in Norway (World Resource Institute, 2014). Regardless, of the challenge previously stated, the
use of bikes in Istanbul is growing fast. Trying to take a conservative approach, an average speed of
10km/h was selected. With a range of service reaching 10km it would take approximately 72 min to do
a round trip by bike including detour factor (Figure 7). As it happens in the case of motorbikes, more
than 1 customer delivery at a same time is feasible.
Figure 6: Topography of Istanbul (En-dk.topographic-map, 2017)
78
157
0
20
40
60
80
100
120
140
160
180
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50
TIme(min)
Distance (km)
Distance vs Time
MotorBike 23km/h
Time go (min) Time back (min)

19
Figure 7: Bike distance vs time
5.4 Scheduling process
The delivery process (Figure 8) starts when a new order is received through the e-commerce platform.
Based on the shipment address the system determines if the order is within the 25km range. If it is not,
the order will be rejected, and the customer will be instantly notified. On the other hand, if it is within
range, the customer will receive a first notification that the order is in progress.
The system works with an algorithm which should be updated every time when there is a new order in
route. It considers the position of the customers, stores and warehouse (garage) as well as the weight
and size constraint, and the number of working hours left during that day. Considering the nature of
the products to be delivered, average weight of clothing items is analysed in the table below. Based on
these values, a maximum of 5kg is set for bicycles and a maximum of 10kg for motorbikes. (PARCL,
2016)
Depending on the type of order (premium or regular) the system will schedule the order following a
different methodology:
5.4.1 Premium Delivery:
 The system checks for any motorbike or bike available for the delivering the order on
time
 If there is more than one option available, the priority will be given to fixed
employees operating motorbikes
 If there are no motorbikes available and the remaining time for the due delivery (3
hours) is reaching the 1 hour limit time left, then the system will assign to the nearest
motorbike available the immediate delivery (even if this might delay any other
previously scheduled action)
 Changes are updated in the database
5.4.2 Regular Delivery:
 Based on the latest scheduled agent position (if there is no saved latest position,
determine present position), it determines if the total distance to the store and to the
customer and back is within 10km, then the system will check if there are any bikes
available.
Case A: If it is higher than this range, the algorithm checks for motorbikes available
to schedule that day. It will continue checking for available motorbikes until there are
36
72
0
10
20
30
40
50
60
70
80
0 1 2 3 4 5 6 7 8 9 10
TIme(min)
Distance (km)
Distance vs Time
Bike 10 km/h
Time go (min) Time back (min)

20
60 min lefts for the working hours to be over. This is done in case an independent
agent becomes suddenly available. If it reaches this time limit, then the order will be
schedule for the next day.
Case B: In case the total distance to the store and to the customer (roundtrip) is less
than 10km, then the system will check for bikes available. If they are any bikes
available, it would be immediately scheduled, if not it will check for motorbikes
available that day. As in the previous case, it will continue checking for available
motorbikes or bikes until there are 60 min lefts for the working hours to be over. If it
reaches this time limit, then the order will be schedule for the next day.
5.5 Delivery process
The delivery process detailed in Figure 9 can be applied to each agent independently (fixed or
flexible). The process is linked to the scheduling process stated before, which means that every
time the previously mentioned is updated so does the schedule for each agent.
 The system will check if there is any pending order next in route for pick-up. In case there
is, the agent will proceed to pick up the order at the store and notify the store.
 After this pick up, the system does not schedule an immediate delivery, instead it checks
again if there is another pending order to pick up. If there is any, it repeats the process,
until the next step is not pick-up, and it checks for pending product next in route for
delivery. In this case, it would proceed to notify the customer and deliver the product.
Then the algorithm iterates again since the beginning.
 Next it will check for any pending return items next in route for pick up.
 If there are no orders, deliveries or return items pending, then the fixed agent will return to
base stations, while the independent agents remain idle.
 The system will continue iterating until there are 30 min left until the end of working
hours.

21
Figure 8: Scheduling process – Flow chart

22
Figure 9: Delivery process – Flow chart

23
6 Infrastructure
6.1 Garage layout
In Figure 10 below, the layout of the warehouse (garage) is illustrated which includes areas for
motorbikes, shelves and empty space (manoeuvring space) for motorbikes. Nothing will be stored in
the empty/manoeuvring space. Motorbike area covers 18.2sqm in total, which includes dimensions of
the motorbike (1.3m length and 0.5m width) and 50cm empty space between each of the 10
motorbikes, for accessibility reasons. The shelf area covers total of 4.14sqm with dimensions of
2.3length and 0.6m width. There will be 3 shelves with each 3 layers for storing for reverse logistics
items. Each partner clothing store will have its own location in the shelf; size of each location will
roughly be 0,46cm of length and 0.6m width. The shelf racks will not be fully used at the start of the
business. However, they will be purchased already as the investment cost of the shelves is not high
(about 230 TRY per one shelf).
Figure 10: Garage layout without expansion space
Total area of the garage is 47.82sqm with manoeuvring space of 25.48sqm included. The aim for a
suitable garage is to find a space that is closest to the company needs mainly in terms of location and
size. The ideal garage cost for 47.82sqm space would be 3735 TRY based on the current market prices
(Istanbulrealestate.com, 2017).
6.2 Technical equipment
6.2.1 Motorcycles
Small-medium size motorcycles are the company’s most important investments. The idea is to invest
in cheap and low maintenance motorcycles that provide excellent fuel efficiency. Fuel efficiency is a
key role as we expect our business to expand in the future by having increasing amount of orders and
delivery locations. Therefore, we can maintain decent cost-efficiency in fuel costs. And it is more
environment friendly, too which corresponds to the company objectives. Maximum speed is not a key
factor in motorcycle investments as the motorcycles are generally going to operate in the city’s centre
or suburban areas. The needed max speed is not expected to extend 80km/h (highways). The chosen
motorbike model would cost approximately 695€. Its technical and product details can be seen below
(Alibaba.com, 2017):
 Name: OEM GT
 Supplier: Ruizhu Xian Wuxi New Shenxi International Trading Co., Ltd.
 Theoretical Max. speed: 160km/h
 Realistic Max. speed: 80km/h
 Displacement: 150cc
 Fuel consumption: 3.5L/100km

24
 Fuel Type: Gas / Diesel
 Price: 695€ (negotiable with suppliers)
The economic fuel consumption rate of 3.5L per 100km provides a good base for the motorcycle
operations. Fuel price in Turkey is currently around 1.22€/L (Globalpetrolprices.com, 2017). The fuel
price is strongly reflected from the price of crude oil per barrel, and as of November 10th 2017 the
price per barrel is 57.18 USD, and for comparison it has fluctuated from up to 140 USD per barrel in
2008 before economic crisis. The price of crude oil is expected to increase in the upcoming years. By
choosing to invest more on fuel consumption efficient motorcycles, the threat of sudden increases in
crude oil prices will not affect the company operation costs significantly (2017). This motorbike can
also be equipped with satchels or a small container more than enough in size to carry clothing
products.
Nevertheless, T-MACK company goal is in the end to promote greener and sustainable solutions in
deliveries while still maintaining good customer service level in further areas of the city. Ultimately,
the goal in technical equipment investments is to decrease amount of motorcycles used and replace
them with sustainable vehicles.
6.2.2 Smartphones
Fixed employees and free agents both need a smartphone to access the company’s delivery software.
Free agents will use their self-own smartphones using the T-MACK FASHION DELIVERY mobile
app. For fixed employees the investment of smartphones is needed for above mentioned reasons. The
employees’ requirements for smart phones are to be able to run the company-provided mobile app and
a form of communication software e.g. WhatsApp for communication in non-delivery process related
issues like calling when being sick or other running issues. Below there are technical details of the
chosen smartphone. (Mediamarkt.com, 2017)
 Name: SAMSUNG SM-G532 GRAND PRIME PLUS 8GB
 Suppliers: Mediamarkt Turkey
 CPU: Quad Core 1,4Ghz
 Camera: 8 megapixels
 RAM: 8Gb
 Memory: 8Gb
 Battery capacity: 2600mAh
 Price: 181.67€
The main driver for smartphone investments is the price and generally brand name. Samsung as a
producer is one of the biggest manufacturers in the smartphone industry and has long history of
technical equipment manufacturing which allows to rely on the competence of their smartphone to
function without problems in daily use. Mainly from IT point of view, the smartphone is used to
send/receive location information, customer orders and communication between employees. The 8Gb
of RAM and a CPU of 1.4Gb x 4 is more than enough to run 2 mobile apps at once and the price of
181.67€ per smartphone is decent for a general-purpose smartphone.
6.3 Staff
The workforce consists of permanent employees and independent contractors:
1. Permanent (fixed) Employees: They are regular employees of the company and have an
established schedule and receive all benefits according to the law. Fixed employees are
generally low-educated local people with driving license for motorcycles.
2. Independent Contractors: These are people of legal age residing in the locality who register on
our platform. After going through on process, they would perform bicycle or motorcycle
deliveries. When the independent contractors are in the area where a delivery is required, the
platform sends a notification to the people closest to the point, the first one who would accept
the respective delivery would receive further instructions to carry out the work. In this case,
the economic compensation is calculated based on commission for each delivery.

25
The core of the company is the delivery personnel that handles everyday deliveries from independent
clothing stores. The fixed employees are working as motorcycle deliverers 8 hours a day for 5 days per
week. The salary paid for the fixed delivery employees will be based on the minimum wage in Turkey
of 1,777.5 TRY per month (around 386€2
per month) (Wageindicator.org, 2017). Independent
contractors receive commission of 10 TRY per delivery.
The administrative tasks at the beginning of the company are mostly handled by the company owners.
6.4 Information flow
Figure 11: Illustration of IT systems and flows of information between entities
The IT infrastructure in the company is split into three servers, of which two are responsible of daily
handling of processes. The two servers responsible for handling information flows are the external
platform server and internal platform server. External and internal servers are separated for data
security reasons. The external platform server will only include access to the stores’ webpage for
customers and partner clothing stores. The internal platform server contains all business data including
Supply Chain Management, Mobile commerce, Automated data collection and Online transaction
processing software. The clone server is used to copy the whole system data daily from both external
and internal servers. The cloning is done for data and IT security reasons, i.e. fire in the main server
room or malfunctioning update on a software. Therefore, all the data can be retrieved from a day
before, so that in worst case scenario only 24hrs of data is lost. The clone server can also be used as a
test environment for upcoming server or software updates and test how the system behaves with the
changes.
6.4.1 Internal information Flow
Internal platform server will be the most important part in the IT system. Internal server will handle
Supply Chain Management. This includes a scheduling process algorithm that will assign most
feasible and cost-efficient solutions to the delivery personnel and constant order tracking information
sent to end customers and clothing stores. Mobile commerce is used for example for maintaining the
incoming mobile app data and for changes needed in the mobile webpage. Automated data collection
is responsible for collecting all data of orders, deliveries, delivery phases and stock refreshments. This
data will be used for further development of the business by allowing the company to analyse all the
gathered data.
2
Exchange rate in November 2017 of 1 EUR = 4.6 TRY

26
As mentioned earlier, the internal server and clone server are separate physical servers from the
external server to minimize risks in data security. This is a key aspect as the internal server will
include the most valuable company data, especially the algorithms that are used to assign all
deliveries.
6.4.2 External information flow
The external platform server is used to maintain the webstore application that is provided to the
partner clothing stores and customers. There should be an investment into development of an online
webstore for both customers and partner shops to use (the development and maintenance will be
outsourced). The partner clothing stores will have a different partner-version of the webstore and
customer will have a normal client version, to be used in both personal computers and smartphones.
The external information structure consists of 3 elements: The external server, partner shop and
customer. Partner shops and the server exchange data using Electronic Data Interchange (EDI). Using
EDI eases the process of updating product catalogues per partner shop, rather than using for example
an Excel integration. It is very important for the webstore partner shop version to be used easily and
fast as there will be completely new products added on daily basis, because of the nature of the
clothing stores which create very customized and unique products to sell.
Customers will be ordering through website accessed by personal computers or smartphones, there
will be a normal and mobile-version of the webstore page. Customers making orders will constantly be
receiving data about their order status through the webpage or mobile app. The order data is sent from
customer to the external platform that checks availability of the product from partner clothing store.
When the information is confirmed, it will be sent to the internal platform where the scheduling and
online transaction processes take place. Ultimately, to it is sent to the supply chain management
(SCM) where a deliverer will be assigned to deliver the ordered items. The information communicated
will be for example when the item is picked up at clothing store, when the item has left the clothing
store and about the location during the delivery process and in the end when the order is delivered to
the customer or if the customer was not present at the delivery location.
6.5 Vehicle’s costs calculation
In Table 4, there are insurance costs per month, maintenance cost per vehicle per km, fuel price, fuel
consumption per vehicle and fuel price per km.
Insurance per month per motorbike [TRY]: 138
Motorbikes maintenance per vehicle-km [TRY] 0.5
Fuel price [TRY/l]: 5.6
Fuel consumption [L per 100km:] 3,5
Fuel price per/km [TRY] 0,19
Table 4: Other operating costs of motorcycles
In Table 5, there is an example of the models of motorbikes and smartphones as mentioned in
technical equipment chapter with prices of 3197 TRY for a motorbike and 835.7 TRY for a
smartphone, totalling to 4032.7 TRY per month for 1 motorbike and 1 smartphone. The lifespans are
assumed for both investments, 3 years for motorbike and 5 years for smart phone. The number of
driven kilometres by the motorbikes can influence its lifespan.

27
Table 5: Motorbike, smartphone and total amortization costs.
In Table 6, there is an example of cost factors of a fixed employee.
Employee salary/hr [TRY] 11,1
Employee working time per day [h] 8
Working days per month: 20
Total salary per month [TRY] 1777,5
Total employee hours per month: 160
Table 6: Employee working times and hourly salary
In order to demonstrate the composition of costs for vehicles and employees, and example can be seen
in Table 7 which assumes that there are 5 fixed employees each using 1 motorbike and the
independent workers deliver 50% of demand.
Table 7: Vehicle operating costs per zone per month
Monthly fuel costs, employee costs, motorbike maintenance costs, insurance costs, free agent
commission costs and total costs in TRY can be seen in this calculation (Table 7). The total costs of
these items are ca 20,683 TRY per month (equals to 4,496 EUR if 1EUR = 4.6 TRY). The fixed
employees generate the largest portion of the total costs.
Motorbikes Smartphones Total per month
Lifespan(years) 3 5
During 1st year 88,8 13,9 102,7
During 2nd year 88,8 13,9 102,7
During 3rd year 88,8 13,9 102,7
During 4th year - 13,9 13,9
During 5th year - 13,9 13,9
Total amortization
costs in years 1-5 3197,0 835,7 4032,7
Amortization
permonth
1 2 5 10 15 20 25
PER OPERATING ZONE PER MONTH <1 <2 <5 <10 <15 <20 <25
Demand % 10 % 15 % 15 % 10 % 25 % 15 % 10 % TOTAL
Nr. Of orders(Normal) 81 121,5 121,5 81 202,5 121,5 81 810
Nr. Of orders(Premium) 9 13,5 13,5 9 22,5 13,5 9 90
TOTAL demand 90 135 135 90 225 135 90 900
Nr. Of items ordered 130,5 195,75 195,75 130,5 326,25 195,75 130,5 1305
Fuel cost normal orders - - - - 715,9509 572,7607 477,3006 1766,012
Fuel cost premium order 2,121336 6,364008 15,91002 21,21336 79,5501 63,64008 53,0334 241,8323
Fuel Costs TOTAL 2,121336 6,364008 15,91002 21,21336 795,501 636,4008 530,334 2007,845
Free agent comission cost per delivery 810 1215 1215 810 - - - 4050
Free agent comission cost per item 0 0 0 0 - - - 0
Free agent TOTAL comission costs 810 1215 1215 810 - - - 4050
Employee cost 177,6 266,4 266,4 177,6 4440 2664 1776 9768
Motorbike maintenance costs - - - - 2049,3 1639,44 1366,2 5054,94
Insurance cost - - - - 345 207 138 690
Total Operating Costs(TRY) 812,1213 1221,364 1230,91 831,2134 7629,801 5146,841 3810,534 20682,78
Bikes Motorbikes

28
7 Organization of pickup and delivery
7.1 Customers’ order data
As mentioned in Chapter 4, customers’s data was created. Random numbers were generated regarding
the number of items ordered, from which of the 30 shop the order was made, the location of the
customer and if it is a premium delivery or not.
Regarding the number of items, the NORMINV formula in Excel was used to generate normally
distributed values with the mean of 1.5 and standard deviation of 1. The respective number of orders
multiplied by 200 TRY (average item price) results in the price of order. The total weight of order is
based on average item weight of 592g (based on table in appendix 8.4.). The shop from where the
order was made was generated by Excel formula RANDBETWEEN(1;30). The customer coordinates
were created in a webpage (geomindpoint.com, 2017) giving the coordinates of the hub and searching
for random points within the given 25km radius and making sure the generated points are not in the
ocean or a forest (For days 1 & 2, the customer coordinates are the same for simplification purposes
but the order data has changed).
Since the total order weight never exceeds 5kg and the number of items ordered never overpasses 5, it
can be assumed that both, bicycles and motorcycles can be used for all deliveries.
Data for three days was created:
 Day1: This is an average day with 30 orders and normal traffic (average travelling speed of 23
km/h)
 Day2: This is a day with average number of 30 orders but increased traffic in the city (average
travelling speed of 18 km/h)
 Day3: This is a day with increased number of orders to 45 per day and normal traffic (average
travelling speed of 23 km/h)
In total from 30 stores, 105 orderes were made during the three days which included in total 223 items.
There were 3 premium orders in Day 1, 4 premium orders in Day 2 and 5 premium orders in Day 5.
Average value of items ordered per store in 3 days was 1486 TRY. Average weight of items ordered
per store was 4.4 kg.
Interactive maps were created with the orders’ data and can be retrieved from the following links:
 Day1: https://drive.google.com/open?id=12cwwJ5jHjqctQINtDk3VY6k6Jg0fAF_b
 Day2: https://drive.google.com/open?id=15NfBAt-__0Sg6cpojG8zM4f2x499zXid
 Day3: https://drive.google.com/open?id=1O8TUey9nfkq9KJ3EMrfyIrWFr4l7iSW
The Figure 12 - Figure 14 show the location of shops and customers relevant for the given days. The
hub is shown in orange colour, the shops in blue and the customers in purple.

29
Figure 12: Customers’ orders - Day 1

30
The detailed data for all three days can be retrieved from the appendix (Table 31 - Table 33).
7.2 Delivery routes
After the order data is known, the delivery routes will be optimized. There are two different processes:
(1) considering the premium orders and (2) considering the normal orders.
In case of a premium order, the distance from shop to the customer will be checked and if it is less
than 10 km, the items will be delivered by the free agents using bicycles. If the distance is more than
10 km or no bicycle is available at the moment, one of the available bikes will be immediately called
to do this job in order to fulfill the time limit of 3h.
In case of normal orders, the possible delivery time is set to 1-3 days. This enables that the orders can
be collected throughout the day, an optimized schedule can be created at the end of the day and the
orders delivered in the following day. It will be always aimed to fulfill orders within the next day to
keep service level high; however the time span of up to 3 days enables some flexibility for daily
backorders (if any). Also, a bicycle can always deliver any order during the day and communicating
through the app that it has been done so this ordered would be automatically removed from the
schedule of the motorbikes.
Since the free agents are working randomly and paid only by delivering commision, the optimization
problem is focused only on number of motorcycles needed (important for initial investment); also
considering that at the beginning, the free agents would deliver only the premium orders.

31
7.2.1 Optimization methodology
Finding the optimal routes (shortest-distance optimality) for a two way graph data structure consisting
from three different nodes (hub, customers and shops) is a complicated and time consuming job. The
approach to do this would be first to create the data structure with the following elements:
 Motorcycles – Number of products it is carrying – max number of products it can carry
 Customers – Coordinates - Which shop they ordered from – Number of items they ordered
 Shops – Coordinates
 Hub – coordinates
The three nodes are connected to each other, which means, a motorcycle can move from between the
same kind of nodes or to a different node if required. Then, the algorithm should decide on the shortest
distanced routes taking into consideration the maximum kilometers a motorcycle can make in a
working day and its carrying capacity.
On this step of the work, the necessary resources are not available; thus instead, it is focused on
finding the required number of motorbikes to meet the daily demand.
7.2.2 Finding the Required number of motorcycles
Motorbikes and employees are the biggest investments of this project. Thus, finding the right number
of required motorcycles to meet the demand is an important task.
To reach this, the aim of the algorithm was changed, instead of reaching the shortest distances between
the nodes in a route; it is aimed to maximize the capacity allocation of the motorcycles. This is
decided to be suitable for two reasons: Firstly, in this delivery method, it is not important to deliver
fast, as long as the orders are delivered during the day (if it is not a premium order). Thus, at the end
of this method, the motorbikes will be delivering to each customer their respective orders anyway.
Secondly, it gives fast and reliable results.
To be able to solve the problem with this method, first the average distance is measured between the
shops and the customers. To measure the distance, a code for AMPL software is used (see Figure 15).
The code is using the haversine formula to find the birds’ eye distance between the coordinates.
Then to convert that data to a more realistic one, the birds’ eye distances are multiplied by the Detour
Factor (1.3, in this case). In the end, the average distance of 17.15 km is reached. To eliminate the
distance factor from the new optimization approach, we this average distance was used to determine
the maximum number of nodes a motorcycle can visit during a working day. Since between every
node it will take 17.15 km on average, during an 8 hour working day, a motorcycle can maximum visit
11 nodes with 23km/h average speed (8*23/17.15=10.72). We proceed with this number and when
delivering the products, when the motorcycle reaches to its 10th
node, it goes back to the Hub and
another motorcycle is started to be allocated. (See Graph 9 in the appendix for example of Day 1)

32
Figure 15: AMPL code for distance measuring

33
The objective of the optimization problem is:
 Minimum number of motorcycles
Constraints:
 One Motorcycle’s carrying capacity is 5
 One motorcycle can visit maximum 11 nodes per day (Leaving from hub and returning to hub
is included)
Steps:
1. List the shops according to the number of items waiting per shop in an ascending order,
divide the shops as required as the number of waiting items will be in mode 5. (ex: Shop
22: 8 will be shown as Shop 22a:5, Shop 22b:3)
2. Start allocating motorcycles according to these rules:
a. First visit the shops to fill the capacity, then move on to the customers
b. Always reach to the maximum carrying capacity and only then start delivering the
products (as long as there are enough nodes the motorcycle can visit and/or
products to pick up left)
c. Always start with the highest number of waiting items (as long as there enough
nodes the motorcycle can visit afterwards)
3. Finish the day by returning the hub.
7.2.3 Optimization results
With data from Day 1 (30 Orders, of which 3 are premium, thus excluded & 23 km/h average speed),
max 11 Nodes can be served (8*23/17.15=10.72). Resulting, 6 motorbikes can easily cover the
demand. Possible routes with this data are shown in theFigure 16 below.
Figure 16: Day 1 - Routes
max 9 Nodes can be served (8*18/17.15=8.40). Resulting, 8 motorbikes can easily cover the demand.
Possible routes with this data are shown in the Figure 17 below.

34
max 11 Nodes can be served (8*23/17.15=10.72). Resulting, 9 motorbikes can easily cover the
demand. Possible routes with this data are shown in the Figure 18 Figure 17below. However, if 1h of
overtime will be allowed for 2 of the workers in this busy day, the demand could be covered by only 8
motorbikes.
The business must also calculate with returns. Based on market research, the return rate in retail is
about 30% (invespcro.com, 2017) which means that in an average day of 30 orders, about 10 orders
may be returned. This would mean going to 10 different nodes (customers) and bringing it back to the

35
hub. Since one bike could serve up to 11 nodes a day, it was decided by the management to allocate
one extra bike only for collecting the returns.
7.3 Infrastructure required
Based on the routes shown in previous chapter, 6 bikes would be needed in Day 1, 8 bikes in Day 2
and 9 bikes in Day 3. Hence, on average based on this demand data, 8 bikes would be needed in a day.
In addition, one bike is needed for the returns. Also, in order to comply with the high customer service
level, one extra bike will be hold as spare in case of even more increased demand or any
breakdowns/maintenance times. This leads to a total required investment in 10 bikes. The same
motorbikes will be sourced as described in the Chapter 6, however the lifespan of only 3 years will be
assumed.
Since the sales point of TMACK is through the online portal or the mobile application, investments in
IT infrastructure must be considered as well. The following is neccessary:
 Domain name
 A domain can be selected with many names and many endings
 A company name with .COM domain is opted
 Example is shown in the figure below (godaddy.com, 2017)
Figure 19: T-MACK domain
 Hosting
 A service that stores your website files and shows them to visitors - such as
www.Bluehost.com)
 Website Design
 The code
 Can be outsourced for example from fiverr.com
 Payment Gateway
 A payment gateway links the website to the processing network and merchant account
 SSL Certificate
 If credit card information is accepted and stored it in a database, it is processed using
an offline POS machine or it can be charged manually on the merchant account' s
website
 SSL is used to secure credit card transactions, data transfer and logins and is another
must for any e-commerce website. To find the best alternative, after a market search,
godaddy´s SSL sertificate found to be best.
 Mobile Application
 There is almost no website without an accoppanying mobile app anymore, but for our
business it is crucial because we want customers to keep track of their orders,
volunteered bikers to see the waiting orders in the system from their smart phones.
Thus a mobile app on two operating system (IOS and Android) will be purchased and
utilized during the project lifetime.
 Continuous Updates / Bug Fixes
 This will be provided by our technician
 SEO Services
 SEO services works to improve the chances that the site will be found and ranked
highly by the search engine, search optimization
 This will also be provided internally
The costs associated with these services are considered in the total costs calculation (see Chapter 9) .

37
8 Planning of hub location
8.1 Relations linked by direct transport
Figure 20: Illustration of Hub-Shop-Customer relations
Above in Figure 20, the relation between shops, customers and the hub is demonstrated. The routes
and delivery routes are highly dependant on where the customer order or returning order is located and
the optimal routes will be calculated by algorithms. The amount of returning order requests from
customer is estimated to be 30% of all ordered products. These returning items are gathered from
customer locations and returned to the hub location to the respective shelf location of a store it was
originally ordered from.
There are two scenario where only direct transport are made from the hub. 1st is picking up the
returned products in the hub shelf and delivering them to a respective store where they were originally
ordered from. Re-delivery to the customers: There will be products in the shelfs of the hub that are
requested to be delivered again to a customer as if in some case customer was not present in the
delivery location at the time of delivery. These deliveries are assigned by the algorithm and done as a
“milkrun” type of delivery among with normal customer orders.
8.2 Number of hubs and transports routed via hubs
In most cases, no cargo will be directly going through the hub to customers. The hub works only as a
garage for motorbikes and small warehouse for returning/non-delivered products of customers.
Therefore only 1 hub is needed with current amount of motorbikes and storage space needed. Non-
delivered products mean that the customer was not present at the delivery location at given time and
the product was returned to the hub. Returning cargo means that customer was not satisfied with the
product and therefore requesting its return to a partner store, through the hub location or they return it
to the hub themselves.
According to the estimation of returning cargo of 30% from customers to hub location, there needs to
be investments in extra shelves that require space in the hub. Each partner shop will have 1150mm x
300mm space in the shelves for returning/non-delivered products. The total number of shelves needed
is now 5 with investment cost of 1150 TRY. Motorbike area remains the same at 11.7sqm but the
maneuvering space was reduced to 12.87sqm.

38
Figure 21: Garage/Hub layout with optimal amount of shelf/motorbike space
The optimal amount of motorbikes is 10 and shelves 5, therefore the hub layout redesign shows
28.82sqm space for motorbikes and 6.9sqm space for shelves, along with 40sqm space for
maneuvering of motoribkes. The total cost of 10 motorbikes is 32020 TRY and for 5 shelves 1150
TRY. The rent with 10 motorbikes and 5 shelfs would be 742e per month.
8.3 Hub location optimization
The optimal hub location calculations are done based on partner store locations because these stores
are fixed locations that need to be travelled to every day; whereas customer location is totally random
and can be anywhere in Istanbul within the 25km radius from the hub location. In the future, with
months of order data from customer locations, a more optimized hub location solution can be
developed by moving the hub location towards areas that have higher demand and orders from store
volume.
In the Table 34 in the appendix, there is an updated optimization calculation of the hub location,
taking into consideration also the order volumes based on the 3 day demand explained earlier.
Coordinates of the optimal hub location are 41°02'24.4"N 28°57'08.3"E. It is shown on the map in the
Figure 22 below.

39
Figure 22: Optimal Hub location based on 3 days of orders from partner stores.
9 Overall financial analysis
9.1 Investments
9.1.1 Motorbikes
The motorbikes will be used by the messengers in the operational area for doing the deliveries. An
additional motorbike was considered that will be in the office in case of an emergency (breakdown of
another motorcycle, premium order that cannot be served within the agreed time, etc.)
Table 8: Motorbikes investment
9.1.2 Cellphones
Each messenger will have a cell phone through which he will receive the delivery orders that he will
have to make. It will also serve as a means of location for tracking packages. One cellphone will
remain in the office for the use of the warehouse operator
Table 9: Cellhpones investment
9.1.3 Computers
In addition, two computers were considered for the office that will be used by the systems technician
and the warehouse operator.
Table 10: Computers investment
No Price Total
10.00€ 707.50€ 7075.00€
No Price Total
10.00€ 181.67€ 1816.70€
No Price Total
2.00€ 208.00€ 416.00€

40
9.1.4 Furniture & Fixtures
The partners agreed that in the beginning they will only acquire the furniture that is necessary for the
office. The company will start leasing a small office to which shelves have been added in the garage
area that will be used as a small warehouse to store motorcycles and returned products. On these
shelves the products returned will be stored according to the company's policy. The detail of the rest of
the furniture needed is shown in the Table 11 below.
Table 11: Furniture & Fixture investment
Table 12: Shelf-rack/sqm investment
9.1.5 Containers and backpacks
As part of the standardization and to guarantee that all employees have the same capacity, the
company will invest in containers/backpack for deliveries. For the calculations, is was considered that
the average capacity was set at 5 items per container.
Table 13: Containers/backpacks investment
9.2 Cost Structure
All costs are calculated monthly for the elaboration of the Profit and Loss Statement (P&L).
9.2.1 Cost of Service Sold
9.2.1.1 Fuel cost:
Fuel cost is calculated based on the average price of fuel per liter. The motorbike chosen has a fuel
consumption of 3.5 liters per 100km. From this value, it is possible to obtain a price per km of 0.0431
EUR/km. The daily distance was calculated considering an average between Day 1, 2 and 3 (see Table
14). Based on the analysis of the previous section, a motorbike travels around 150km per day, and on
average 9 bikes are used per day (8 for normal order deliveries plus 1 for returns). It was also
considered that a month has approx. 20 working days. The results of the fuel cost are shown in Table
15.
Table 14: Distance per day in km
Furniture & Fixtures
Description No price total
Chairs 2.00 64.00 € 128.00 €
Desks 2.00 91.00 € 182.00 €
Chairs for visitors 4.00 40.00 € 160.00 €
Shelves 2.00 20.00 € 40.00 €
Total 510.00 €
Shelf-rack/sqm
No Price Total
5.00 51.00 € 255.00 €
No Price Total
10.00 30.00€ 300.00€
EUR/L): 1.22 € 900
mption (L per km): 0.035 1200
: 10 1350
200 1150
er/km* 0.043 € 23000
hly fuel cost (eur) 982.10 €
Fuel Cost Distance per day (Km)
Day 1
Day 2
Day 3
Average distance per day
Distance per Month

41
Table 15: Fuel cost
9.2.1.2 Repair and Maintenance
Since the investment of the motorbikes is very low, the cost of repair and maintenance during the
active life of the motorbikes should not exceed the value of investment. With a depreciation period of
3 years, a maximum of 25% out of the total value of the active was set as the cost for repair and
maintenance. This value will be destined to minor repair and maintenance issues. In case, a repair
needed exceeds this value, it is advisable to replace the active. The number of motorbikes includes the
9 active motorbikes and 1 additional spare motorbike.
Table 16: Repair and maintenance cost
9.2.1.3 Depreciation
The method chosen to depreciate is the straight line without residual. There are two items considered
for depreciation (motorbikes and smartphones). The period considered for the motorbikes is 3 years
and for the smartphones it is 2 years.
Table 17: Depreciation cost
9.2.1.4 Employees Salary (fixed)
The salary for the fixed employees is set according to the minimum wage in Turkey (2017). This
corresponds to 386,00 EUR. The number of agents needed is equal to the number of active motorbikes
(9 motorbikes).
Table 18: Courriers cost
9.2.1.5 Employees Commissions (variable)
To calculate the commission per trip of flexible employees, it was calculated how much is worth an
hour of minimum wage salary, plus a small increase. The commission obtained was of 1,7 EUR/trip.
To simplify calculations, it was established before that variable employees would only deliver
premium orders (at this stage of the optimization).
Fuel price (EUR/L): 1.22 €
Fuel consumption (L per km): 0.035
Tank size(L): 10
Range(km): 200
Fuel price per/km* 0.043 €
Total monthly fuel cost (eur) 982.10 €
Fuel Cost Distance per day (Km)
Day 1
Day 2
Day 3
Average distance per day
Distance per Month
Motorbikes
Cost of Maintenance per Km 707.50 €
Annual Cost of Repairing (EUR) 176.88 €
Number of Motorbikes 10.00
Total Monthly repair cost 147.40 €
Depreciation Motorbikes Smartphones
Investment (EUR) 707.50 € 181.67 €
Period 3.00 2.00
Total Depreciation per year per bike (EUR) 235.83 90.84
Number of Motorbikes 10.00
Total Monthly depreciation 196.53 € 75.70 €
Salary Number Eur/Month Total
Courriers 9 386.00€ 3474.00€

42
Table 19: Variable courriers cost
9.2.1.6 Insurance
The monthly insurance value is set at 30.48 EUR/Month, and it is set for the 10 motorbikes owned by
the company.
Table 20: Insurance cost
9.2.2 Selling, Administrative and General Expenses
9.2.2.1 Wages and Salaries
In addition to couriers, one employee each is needed for the management of the warehouse and for
updating and maintaining the IT applications. The warehouse operator will receive minimum wage
(386,00 EUR/Month) and the technician 20% more (463,20 EUR/Month).
Table 21: Other mployees cost
9.2.2.2 Rent
The rent cost is calculated based on an average price of 17 EUR/sqm in Turkey.
As it was explained in the previous section, the total garage space required includes: the space needed
to store the motorbikes based on its dimension (17.5 sqm); the shelfs dimension for the storage of
return items (6.9 sqm); and the maneuvering space of (19.25 sqm). The total space required is of 43.65
sqm which corresponds to 742.05 EUR.
Table 22: Hub/garage cost
9.2.2.3 Services
The services required include: internet, water, gas and electricity. The approximate values obtained
correspond to different sources such as the Istanbul Water and Sewerage Administration and the
TTNET. For the internet, it was assumed an unlimited tariff and a speed of up to 100 Mbps.
Variable
Premium Deliveries per Month Comission
60 1.70 €
Total Montlhy variable transport cost 102.00 €
30.48 €
10
304.84 €
Insurance per month per Motorbike
Number of Motorbikes
Total Insurance per Month
Salary Number Eur/Month Total
Warehouse Operator 1 386.00 € 386.00 €
Technician 1 463.20 € 463.20 €
Total Monthly Employees cost 849.20 €
Min Avg Max
Rent price(EUR)/sqm 14 17 20
Length Width sqm Total sqm
Motorbike dimensions in meters 1.3 0.5 1.75 17.5
Shelf dimensions in meters 2.3 0.6 1.38 6.9
Maneuvering space - - - 19.25
Garage total space required 43.65
Ideal garage cost per - - - 742.05 €
Services EUR/Month
Internet 135.00 €
Water, Gas 65.16 €
Electricity 70.00 €
Total services cost per month 270.16 €

E-commerce in Turkey

Recommended

Recommended

More Related Content

What's hot

What's hot (17)

Similar to E-commerce in Turkey

Similar to E-commerce in Turkey (20)

More from Merve Nur Taş

More from Merve Nur Taş (20)

Recently uploaded

Recently uploaded (20)

E-commerce in Turkey