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logistic of flipkart & snapdeal
- 1. Logistics of TwoE-commerce Players Akank Raghuvanshi(240) Gaurav Chatterjee (67) Ishaan Rana (218) Mohit Keswani (280) Nitin Arora (147) Sahil Dudeja (199) 3/23/2015 1Group-7
- 2. Logistics: The word “logistics”is derived from the Greek word “logistike” meaning “the science of computing and calculating”. 3/23/2015 2Group-7
- 3. Principals of Logistics Everycompany dreams of achieving the seven R’s • Delivering the Right product • In the Right quantity • In the Right Condition • At the Right place • At the Right time • For the Right customer • At the Right Cost 3/23/2015 3Group-7
- 4. 3/23/2015 4 Types ofLogistics Inbound Logistics Outbound Logistics Third Party Logistics Fourth Party Logistics Reverse Logistics Group-7
- 5. 3/23/2015 5 • Founder-Sachin Bansal & Binny Bansal • Launched in October 2007 • India’s leading e-commerce marketplace • 20 millions products across 70+ categories • Turnover- US$ 1Billion(2013-2014) • 26million registered users • 5 million+ shipment per month • 20,ooo employees Flipkart Overview Group-7
- 6. • eKart's history- eKart is what was earlier known as Flipkart Logistics • eKart is part of WS Retail Services Private Limited, the business-to-customer company of Flipkart • It is more economical than other 3rd party logistics companies • Being able to service more orders through other ecommerce websites will allow eKart to scale and expand its network, which will in turn benefit Flipkart as well • eKart's reach - 150 Cities, the largest such network set up by an online retailer in India • eKart currently offers services such as delivery logistics, reverse logistics and pay on delivery 3/23/2015 6Group-7
- 7. Customer Places order onWebsite Order downloaded to Order Mgmt System Order transmitted to nearest warehouse Inventory mgmt system looks for the product Order allocated from inventory New PO raised for replenishment Item sent for packing & shipping preparation Item Shipped Item Received at distribution Centre Last mile delivery by Courier cos / Flipkart Internal Delivery arm / Indian Postal Service / DC personnel Flipkart-Order Processing Order Management System Flipkart Generated Barcode Shipping & Tracking ID Via courier companies / Flikart Self Delivery 2Wheeler / Small van / Postal Service 3/23/2015 7Group-7
- 8. Purchases and Procurement InventoryLevels + Rare Ordered Product Direct Procurement From Companies Credit period= 14-30 days Credit Limits= varies with products Distributors of these companies delivers the product in respective flipkart’s Ware house (as per requirement) 1.Weekly 2.Monthly 3.One-time 4.Urgent Stocked in the warehouse and Delivery Centers 3/23/2015 8Group-7
- 9. Distribution Frame(inoverallIndia) 25 Warehouses 500Delivery Centers – previously it was 150, others newly formed (aim to reduce the time of delivery) Customer order Checked in delivery centre inventory Delivery Time 1-2 Days Checked in the nearest warehouse inventory YES NO SUCCESS!!! Sent to logistics body Automatic inventory check via Inventory management system Ordered to the company Delivery time 6-15 Days Delivery time 2-5 Days YES YES 3/23/2015 9Group-7
- 10. Delivery & Logistics Locationof the product Is Identified No. of order served Daily > 30,000 Customer product delivery location (Delivery cost-Free If ordered > 300 Rs. Else Rs. 30 Extra) Logistic body is assigned Parameter = city, locality,Type Of product, Cost definition etc. Automated Software Sends Information about the product Delivery to these logistics body 3/23/2015 10Group-7
- 11. 3/23/2015 11 Snapdeal Overview •Founder-Kunal Bahl • Started - February 2010 • India’s largest online marketplace • Coverage - 4000+ number of town & cities • 6000+ featured brands • 4,000,000+ listed products • 500+ categories • 20,000,000 registered users as for 2013 Group-7
- 12. 3/23/2015Group-7 12 • Snapdealis only the technology provider, for both sellers and buyers • They do not maintain any inventory of their own • Snapdeal’s business and platform model is anchored by an innovative system that incorporates updates from both sellers and shoppers • The Snapdeal.com platform enables sellers to list products for sale on the site, manage inventory and make pricing changes in real-time based on what is happening in the marketplace Contd… • Bluedart is the logistics partner for Snapdeal.com
- 13. 3/23/2015 13 Bluedart Overview •Started- In 1991 it begun its operations • Coverage- 34,248 location(Domestic) • Service more the 220 countries & territories • Warehouse- 72 location across the country • Deals in- Ecommerce,B2B and B2C initiatives • ISO 9001 - 2008 countrywide certification by Lloyd's Register Quality Assurance for its entire operations, products and services Group-7
- 14. • Blue Dartis south Asia’s leading integrated air express carrier and premium logistics-service provider • Though its sales alliance with DHL, the premier global brand name is express distribution services • In 2005 DHL acquired 81% of its stake 3/23/2015 14Group-7
- 15. 3/23/2015 15 Transportation SizeType Ownership Ekart 40 DeliveryVehicles 30 bikes and 10Vans Self Owned Blue Dart 102 DeliveryVehicles 44 Bikes, 26Vans,32 Tempo Company Owned Comparison of Ekart and Buledart Delivery Hub Surveyed – Okhla, New Delhi Group-7
- 16. 3/23/2015 16 Size Noof Shipment Size of hub Location Storage Ekart 1500-2000 18000 sqft LajpatNagar,Kalakaji, Jamia , Okhla 10000 units Blue Dart 1000-2000(200- 250/day of Snapdeal) Avg order size /personal is 100-120 15000 sqft South Delhi 40-50 tons Contd…. Group-7
- 17. 3/23/2015 17 Workforce Noof workers Upstream Downstream Process Access Ekart 80 5 60 Receiving- Sorting Pin Code- Routing- Scan- DRS- Delivery 12 hubs 4Ware house Blue Dart 100-120 - - Receiving- Sorting Pin Code- Routing- Scan- DRS- Delivery 20 hubs 12 Ware house Contd…. Group-7
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