Supply chain management refers to managing the flow of goods and services from suppliers to customers. It involves coordinating activities like production, transportation, inventory, and customer service. Effective SCM requires collaboration between all parties in the supply chain. The documents discuss how Swiggy and Zomato manage their food delivery supply chains through activities like partnering with restaurants, managing orders, delivery partners, warehouses, technology, and addressing challenges like demand forecasting and quality control.

1. SUPPLY CHAIN MANAGEMENT
Presentation on

2. Introduction
What is Supply
Chain Management ?
How it works ?
Swiggy &
Zomato
Importance in
Food Industry ?
Benefits ?
• Supply chain management refers to the process of managing the
flow of goods and services, from the point of origin to the point of
consumption. It involves the coordination and integration of all
activities involved in the production, procurement, transportation,
warehousing, distribution, and delivery of products or services.
• The goal of supply chain management is to optimize the efficiency
and effectiveness of the supply chain, while minimizing costs and
maximizing customer satisfaction. This involves a range of
activities, such as demand forecasting, inventory management,
production planning, logistics management, and customer service.
• Effective supply chain management requires collaboration and
coordination between all parties involved in the supply chain,
including suppliers, manufacturers, distributors, retailers, and
customers.

3. Importance of supply chain management
Cost Reduction
A well-managed supply chain can help reduce costs
associated with food delivery services by minimizing:
• Waste
• Improving inventory management
• Optimizing transportation routes
Improved Quality Control
Proper SCM ensures that food products are sourced from
reliable suppliers and that they are stored, transported, and
delivered under optimal conditions to maintain quality and
freshness. This is particularly important in the food delivery
industry, where customers demand high-quality and fresh
products.

4. Enhanced Customer Satisfaction:
Effective supply chain management can help
ensure that customers receive their orders on
time and in the right condition. This, in turn,
can lead to increased customer loyalty and
repeat business.
Increased Efficiency:
SCM helps to streamline the food delivery process,
making it more efficient and less prone to errors.
By optimizing processes such as inventory
management, order processing, and delivery
scheduling, companies can improve their overall
efficiency and reduce delivery times.
Importance of supply chain management

5. Key components of Supply Chain Management
Planning and Forecasting
The first step in supply chain management is to
plan and forecast the demand for food products
based on factors such as seasonality, trends,
and customer preferences. This involves
analyzing data, developing sales forecasts, and
coordinating with suppliers and distributors to
ensure that the necessary raw materials and
resources are available.
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Manufacturing and Production
After procuring the necessary ingredients, the
food products are manufactured and produced.
This involves managing the production process,
ensuring the quality and safety of the products,
and optimizing efficiency to minimize waste
and costs.
Procurement and Sourcing
Once the demand is determined, the next step is
to procure and source the necessary ingredients
and materials from suppliers. This involves
negotiating contracts, managing relationships
with suppliers, and ensuring the quality and
safety of the products.
Warehousing and Inventory Management
Once the products are produced, they are stored
in warehouses until they are ready for
distribution. This involves managing inventory
levels, ensuring the proper storage and
handling of products, and tracking product
expiration dates and shelf life.
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6. Key components of Supply Chain Management
Transportation and Logistics
After the products are warehoused, they are
transported to distribution centers or directly to
customers. This involves managing the
logistics of transportation, ensuring on-time
delivery, and optimizing routes to minimize
costs.
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Distribution and Retail
Finally, the products are distributed to retailers
or directly to customers. This involves
managing the distribution channels, ensuring
the products are displayed and marketed
properly, and providing excellent customer
service.
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7. How was Swiggy
Started?
• In August 2014 Swiggy was founded. It was founded by Nandan
Reddy, Sriharsha Majety, and Rahul Jaimini in August 2014.
• Rahul Jaimini aged 31 is an alumnus of IIT Kharagpur and Nandan
Reddy aged 29 and Sriharsha Majety aged 31 both are both
graduated from Birla Institute of Technology and Science (BITS)
Pilani.
• Swiggy started its Journey from Bengaluru with six conveyance
officials and 25 eateries on its stage.
• In the season of 3 years, it has scaled up with more than 6,000
conveyance administrators crosswise over India in excesses of 8
urban communities like Delhi-NCR, Mumbai, Bengaluru,
Hyderabad, Chennai, Kolkata, and Pune.

8. Swiggy Supply Chain Management
Partnering with Restaurants
Managing Orders
Delivery Partner Management
Warehousing and Inventory Management
Technology and Data Analytics

9. Swiggy's delivery partners and
their role in the supply chain
Delivery partners, also known as Swiggy's fleet, are
individuals who work as independent contractors to deliver
food orders from restaurants to customers. These delivery
partners play a critical role in the Swiggy supply chain by
ensuring that food orders are delivered quickly, accurately,
and efficiently.
• When a customer places an order on Swiggy, the
request is sent to the nearest restaurant that can fulfill
the order. Once the restaurant accepts the order, the
delivery partner assigned to that location is notified.
The delivery partner then picks up the order from the
restaurant and delivers it to the customer.
• Delivery partners are responsible for ensuring that the
food is delivered in good condition and within the
promised delivery time. They use their own mode of
transportation, including bikes, scooters, or cars, to
deliver the orders. Swiggy provides them with a
delivery bag and a Swiggy t-shirt to identify
themselves as Swiggy delivery partners.
• Swiggy has implemented various measures to ensure
that its delivery partners are well-trained, efficient, and
safe. They conduct training sessions to teach delivery
partners about customer service, food handling, and
traffic safety. They also provide them with insurance
coverage to protect them in case of accidents or
injuries on the job.

10. Swiggy's warehouse and inventory
management system
Swiggy's warehouses are strategically located in various cities
across India to ensure that the food items are stored closer to
the restaurants and can be delivered to customers quickly. The
warehouses are equipped with modern infrastructure, including
temperature-controlled storage areas and advanced inventory
management systems.
• When a customer places an order on Swiggy, the
details are sent to the nearest restaurant that can fulfill
the order. Once the restaurant accepts the order, the
food items are prepared and sent to the nearest Swiggy
warehouse. The food items are then stored in the
warehouse until they are assigned to a delivery partner
for delivery to the customer.
• Swiggy's inventory management system is designed to
ensure that the food items are properly stored and their
freshness is maintained. The system tracks the shelf
life of the food items and alerts the warehouse
personnel when the items are about to expire. This
helps to ensure that the food items delivered to the
customer are fresh and of good quality.
• Swiggy also uses an advanced tracking system to
monitor the movement of food items within the
warehouse. The system uses barcodes to track the
movement of food items from the time they are
received in the warehouse until they are assigned to a
delivery partner for delivery to the customer. This
helps to ensure that the food items are stored in the
right location and are easily accessible when needed.

11. Swiggy's technology and data-
driven approach to supply chain
management
Swiggy's technology-driven approach includes the use of
machine learning algorithms and data analytics to track and
analyze various aspects of the supply chain, including
inventory levels, order volumes, and delivery times. This helps
to identify patterns and trends, which can be used to improve
the efficiency of the supply chain and provide a better
experience for customers.
• Swiggy's data-driven approach to supply chain
management also includes the use of real-time data to
monitor the movement of food items throughout the
supply chain. This helps to ensure that the food items
are delivered to customers on time and in good
condition. The platform uses GPS tracking and other
advanced technologies to monitor the movement of
delivery partners and ensure that the food items are
delivered to the right location.
• Swiggy also utilizes machine learning algorithms to
predict the demand for food items and optimize its
inventory management. The algorithms analyze past
order data, seasonal trends, and other factors to predict
future demand for food items. This helps to ensure that
Swiggy always has sufficient inventory to fulfill
customer orders and minimize wastage.
• The platform also uses automation to streamline its
supply chain operations. Swiggy's automated systems
help to optimize the routing of delivery partners,
minimizing delivery times and reducing transportation
costs.

12. How was Zomato
Started?
• Zomato is an Indian group founded by two IIT graduates,
Deepinder Goyal and Pankaj Chaddah, in Delhi NCR in 2008.
• Once Deepinder saw his colleagues ordering food from different
restaurants. That was when Deepinder came up with bringing these
restaurant menus online.
• It is how they started the online food delivery service under
“FoodieBay” and renamed it “Zomato.”
• In the initial stage, FoodieBay listed restaurants in Delhi and NCR.
But, they grew their business very soon in other metro cities like
Kolkata and Mumbai.
• As FoodieBay started attracting more and more customers, the
founders decided to revamp its name to appeal to audiences outside
India too. So then they changed the name of FoodieBay to
“Zomato,” By 2016, Zomato had its sophisticated app doing food
deliveries from registered restaurants.

13. Zomato Supply Chain Management
Warehousing
Routing and Optimization
Delivery Partner Management
Technology
Sustainability

14. Zomato's delivery partners and
their role in the supply chain
Zomato's delivery partners play a critical role in the company's
supply chain management system. These partners are
responsible for picking up food orders from restaurants and
delivering them to customers. Here's a detailed explanation of
their role in the supply chain:
• Order Acceptance: Delivery partners are notified of
incoming orders through the Zomato app and have the
option to accept or reject them. Once they accept an
order, they are responsible for picking up the food from
the restaurant and delivering it to the customer within the
promised timeframe.
• Timely Delivery: Delivery partners are responsible for
ensuring that orders are delivered on time. They need to
plan their routes efficiently and factor in traffic and other
delays to ensure that they reach the customer's location
within the promised time frame.
• Customer Service: Delivery partners also play a
critical role in providing good customer service. They
need to be polite and professional while delivering
orders and handle any queries or concerns that
customers may have.
• Safety and Security: Delivery partners are responsible
for ensuring the safety and security of the food during
transit. They need to ensure that the food is packaged
properly to prevent spills or contamination and that it
is delivered in a hygienic condition.

15. Zomato's warehouse and
inventory management system
Zomato's warehouse and inventory management system is a
critical part of the company's supply chain management. The
system is designed to ensure that food deliveries are made
quickly and accurately, while minimizing wastage. Here's a
detailed explanation of Zomato's warehouse and inventory
management system:
• Warehousing: Zomato maintains a network of warehouses
strategically located in various cities to ensure timely delivery.
These warehouses are equipped with advanced technology and
equipment to store and manage food inventory efficiently. They
are also designed to comply with food safety regulations and
maintain hygiene standards.
• Inventory Management: Zomato uses advanced inventory
management software to keep track of the stock and minimize
wastage. The system tracks the movement of inventory in real-
time, from the time it is received at the warehouse until it is
dispatched to the delivery partner. This ensures that the
inventory is managed efficiently and that food is delivered fresh
to customers.
• Demand Forecasting: Zomato uses machine learning algorithms
to predict demand and adjust inventory levels accordingly. The
algorithms use historical sales data and other relevant data
points to forecast demand accurately. This helps the company
optimize its inventory levels and reduce wastage.
• Stock Rotation: Zomato uses a first-in-first-out (FIFO) stock
rotation method to ensure that inventory is used before it
expires. This method involves using the oldest inventory first to
minimize food waste due to expiry.

16. Zomato's technology and data-
driven approach to supply chain
management
Zomato's technology and data-driven approach to supply chain
management is a critical factor in the company's success as a
food delivery platform. Here's a detailed explanation of
Zomato's technology and data-driven approach:
• Machine Learning: Zomato uses machine learning
algorithms to predict demand and adjust inventory levels
accordingly. These algorithms use historical sales data and
other relevant data points to forecast demand accurately.
This helps the company optimize its inventory levels and
reduce wastage.
• Routing Optimization: Zomato's routing system is designed
to optimize delivery routes based on various factors like
traffic, distance, and time. The algorithm helps drivers find
the shortest and fastest routes to their destination, thereby
reducing delivery times and costs. This technology also
helps Zomato to manage the fleet efficiently.
• Data Analytics: Zomato uses data analytics to identify
patterns and optimize operations. The company analyzes
data from various sources, including sales, deliveries, and
customer feedback, to identify areas for improvement. This
information is then used to optimize processes, improve
customer service, and reduce costs.
• Real-time Tracking: Zomato's delivery management system
provides real-time tracking of delivery orders and provides
updates to customers. This helps to improve transparency
and ensure that customers receive their orders on time.

17. Common challenges faced in food delivery supply chain management
• Inventory Management: One of the biggest challenges in
food delivery supply chain management is managing
inventory levels. It is important to ensure that the right
amount of food is available at all times to meet customer
demand. Overstocking can lead to wastage, while
understocking can result in delayed deliveries and
dissatisfied customers.
• Quality Control: Maintaining quality standards is critical in
food delivery supply chain management. Ensuring that food
is fresh, properly packaged, and meets food safety standards
is essential to avoid health hazards and maintain customer
satisfaction.
• Routing and Delivery: Efficient routing and delivery
management are essential in food delivery supply chain
management. It is important to optimize delivery routes and
ensure that the food is delivered on time to customers.
Delays in delivery can lead to dissatisfied customers and loss
of business.
• Demand Forecasting: Accurate demand forecasting is
critical in food delivery supply chain management. Without
accurate demand forecasts, it can be difficult to manage
inventory levels and optimize delivery routes. This can lead
to overstocking or understocking, delayed deliveries, and
dissatisfied customers.
• Capacity Planning: Capacity planning is another challenge
in food delivery supply chain management. The company
must ensure that it has enough delivery partners and
infrastructure to handle the expected demand.
Underestimating capacity can lead to delays and dissatisfied
customers, while overestimating capacity can lead to
unnecessary costs.

18. How Swiggy and Zomato address these challenges
Both Swiggy and Zomato use data analytics
and machine learning to forecast demand and
optimize inventory levels. They also
maintain warehouses or dark stores to store
and manage inventory efficiently.
Inventory Management
Swiggy and Zomato both have quality
control measures in place to ensure that the
food is of high quality. They inspect food
orders before delivery to ensure that they
meet food safety standards and that the
packaging is intact.
Quality Control

19. How Swiggy and Zomato address these challenges
Swiggy and Zomato both use technology to
optimize routing and delivery. They use
routing optimization algorithms to find the
fastest and shortest routes for delivery
partners. They also provide real-time
tracking of deliveries to ensure that food is
delivered on time.
Routing and Delivery
Swiggy and Zomato both use data analytics
and machine learning to forecast demand
accurately. They analyze data from various
sources, including sales, deliveries, and
customer feedback, to identify trends and
patterns.
Demand Forecasting

20. Impact of COVID-19 on Supply Chain Management
The COVID-19 pandemic has had a significant impact on global supply
chains, including food delivery supply chain management. Here are some of
the ways in which COVID-19 has affected supply chain management:
Disruption of Supply Chains: The pandemic
has disrupted global supply chains, with
lockdowns and travel restrictions disrupting the
flow of goods and services. This has led to
shortages of raw materials, delayed deliveries,
and increased transportation costs.
Increase in Demand for Home Delivery: With
lockdowns and restrictions on movement, the
demand for home delivery services has
increased. This has put pressure on food
delivery platforms to scale up their operations
quickly and efficiently.

21. Impact of COVID-19 on Supply Chain Management
Changes in Consumer Behavior: COVID-19
has changed consumer behavior, with more
people opting for online food delivery services
to avoid physical contact and minimize the risk
of infection. This has led to an increase in
demand for food delivery services. Safety Measures and Protocols: The pandemic
has also led to the implementation of safety
measures and protocols to protect delivery
partners and customers. This includes
contactless delivery, the use of personal
protective equipment, and increased sanitation
and hygiene measures.
Increased Adoption of Technology: COVID-
19 has accelerated the adoption of technology in
supply chain management, including food
delivery supply chain management. This
includes the use of data analytics, machine
learning, and automation to improve inventory
management, routing and delivery, and demand
forecasting.

22. Steps taken by Swiggy and Zomato to ensure the safety of
their customers and delivery partners
COVID-19
Contactless Delivery: Both companies have implemented
contactless delivery, which involves leaving food
packages at the customer's doorstep without any physical
contact. This reduces the risk of infection for both
customers and delivery partners.
Personal Protective Equipment (PPE): Swiggy and
Zomato have provided PPE kits, including masks, gloves,
and sanitizers, to their delivery partners to ensure their
safety.

23. COVID-19
Health Declarations: Swiggy and Zomato have implemented
a health declaration process for their delivery partners to
ensure that they are not infected with COVID-19 and do not
pose a risk to customers.
Hygiene Measures: Both companies have implemented
hygiene measures, including regular sanitization of
delivery bags, vehicles, and equipment, to ensure the
safety of food packages.
Support for COVID-19 Testing and Treatment: Both
companies have offered support for COVID-19 testing
and treatment for their delivery partners.