Shopclues is an Indian e-commerce company founded in 2011 that focuses on tier 2 and 3 cities. It initially struggled with high costs from using air transport but implemented a new logistics strategy using third-party logistics providers. This allowed Shopclues to offer various fulfillment models including managing inventory itself (velocity premium), only shipping/delivery (velocity basics), or allowing direct fulfillment from merchants. The new strategy focused on order processing, inventory management, shipping, tracking, delivery and reverse logistics to improve costs and customer experience.

1. SHOPCLUES.COM
DEEPAN ILANGKAMBAN R
JARNAIL SAINI
SHARIF IQBAL WANI
SHUBAM PAL

2. INTRODUCTION
• SHOP + CLUES AND E – COMMERCE INDUSTRY
– Shopclues is an Indian based E-Commerce online platform
which was founded on 2011 in Gurugaon. The main target
sector was on Tier – 2 and Tier – 3 cities of India.
– It is an American based E- Commerce company Clues Network.
It was established in Silicon Valley by a renowned entrepreneur.
– It is the 35th E-commerce entrants in 2011 and now it was a 4th
online platform on the queue of Amazon, Flipkart and Paytm.
– Unlike selling a same online platform for every consumer across
the world, Shopclues came up with a new market place model
of selling a Unstructured product in the industry, In order to
show the competitive advantages to the existing players.

3. PROBLEM STATEMENT
– At its initial level Shopclues faced a big
competitive advantage among its competitor.
– And the cost of expenses also in the peak for
Shopclues because they used Airways at the time
as their mode of transport for faster delivery,
– this is the bad Logistics strategy which have been
implemented by Shopclues.
– TURNAROUND LOGISTICS STRATEGY

4. SHOPCLUES LOGISTICS STRATEGY
• MARKETPLACE MODEL
– Market place model is the online platform which have
been provided b an online e – commerce facilitator to
be the bridge between the Seller and the Customer.
– Marketplace is platform that enables a large,
fragmented base of buyers and sellers to discover
price and transact with one another in an
environment that is efficient, transparent and trusted.
– The main feature of the market place mode is that the
e – commerce like Shopclues will be providing a
platform for customers to interact with a selected
number of sellers.

5. • INVENTORY LED MODEL
– It’s when company sources directly from brands
and sellers and stock it.
– There are no multiple sellers selling one product,
unlike marketplaces where buyers get to choose
from several merchants.

7. LOGISTICS HAS A COMPETITIVE
ADVANTAGE
• Third-party logistics providers typically
specialize in integrated
operation, warehousing and transportation se
rvices which can be scaled and customized to
customers' needs based on market conditions,
• such as the demands and delivery service
requirements for their products and materials.

8. ORDER FULFILMENT CYCLE
•ORDER PROCESSING
•INVENTOR MANAGEMENT AND ORDER
FULFILMENT
•SHIPPING
•TRACKING
•ORDER DELIVERY
•REVERSE MATERIAL

9. ORDER PROCESSING
CUSTOMER
INBULD SOFTWARE – PRICE, TAX, COD, CARDS
DECISION SUPPORT SYSTEM (3PL)
SLA (PICK UP, SHIPPING, RTO)

10. INVENTORY MANAGEMENT
• APPLICATION PROGRAM INTERFACE (API)
FULFILMENT TYPES
VELOCITY PREMIUM
VELOCITY BASICS
MERCHANT DIRECT FULFILMENT

11. • VELOCITY PREMIUM
– Under the velocity premium the company managed the
complete fulfilment process, from pickup, quality inspection,
packaging and delivery through third party Logistics partners.
– HIGH VALUE AND LOW VOLUME PRODUCTS
• VELOCITY BASICS
– Under this the service offered shipment and delivery only,
with other fulfilment process managed by the sellers
• MERCHANT DIRECT FULLFIMENT
– Under this merchant will process the product without the
intervention of the Shopclues. The option was limited to the
sellers who handled special products such as Furniture, Sports
goods etc.

13. SHIPPING
DSS
API
STATUS
3PL

14. SHIPPING
• Order status information was floated to 3PL
partners selected by Decision Support System
through pickup Application Program Interface

15. • TRACKING
– Customer can track the order with the help of
Application Program Interface. Regular order detail of
the products also sent to the customers via sms or
mail. 3PL SLAs are classified based on the destination
of the orders.
• ORDER DELIVERY
– The 3PL partner was required to make at let three
order delivery attempts before initiating an RTO. The
Return to Origin meant that the order delivery as
unsuccessful and the product were sent back to the
seller.

16. • REVERSE MATERIAL FLOW
– DOOR STEP QUALITY CHECK AND RETIRN TO
SELLER
– To protect the customer interest Shopclues has a
well structured return and replacement policy for
products that were damaged, unsatisfactory, or
the wrong product
– as Nuvoex and pickndel, for handling 4,000
reverse orders per day across 14,000 PIN codes.

17. CONCLUSION
• Shopclues follows a Marketplace model and
Inventory led model to reduce the cost
reduction.
• They concentrated equally on the Reverse
Logistics to achieve sky level success by the
help of 3PL logistics partners.
• Shopclues wants to increase it’s just in time
concept and they want to concentrate more
on reverse logistics

18. THANK
YOU