WCA eCommerce 1st Annual Conference - Workshop 3 Topic: eCommerce Key markets: India Speaker: Rajesh Mehta Executive Director LP Logistics India

1. Ecommerce Logistics in India – Insight, Opportunities , Challenges & Future
Trends.
1st ANNUAL
CONFERENCE
HYATT REGENCY MIAMI
Director [Global Sales & Strategy], LP India Logistics Pvt. Ltd.
Rajesh Mehta

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Tableofcontent’s

3. 1. E-commerce in India : Insight

4. 2. EVOLUTION OF E-COMMERCE LOGISTICS: INDIA, CHINA, US
- Price Sensitive
- Traditional
Style of
Operation
- Slow Adaption
to technology
& Best
Practices
USA
Developing
Countries
CHINA
INDIA

6. Beauty & Personal Care

7. 3. Logistics: Cost Structure in E-commerce:
 The logistics sector specific to e-commerce retailing in India was valued at USD 0.46 billion in 2016 and
is projected to witness a CAGR of ~48 per cent in the up coming five years to reach USD2.2 billion by
2020.
Logistics Cost in e-Commerce:
- Logistics cost as a percentage of revenue for e-commerce retailers may vary from 5 to 15 per cent
depending on the category of products being offered.
Last Mile Line Haul Sorting Collection

8. Overview of the e-commerce retail supply chain

9. 4. E-commerce retail logistics: Business models
Pre-Dominant in
India adopted for
high value products.
Inventory is not
owned by e-
commerce retailer.
Packaging & Quality
checks are carried
out by sellers.
Seller either stores
the goods in the
mother warehouse
or is directly shipped
to the customers
from the sellers
warehouse.
Pre-Dominant,
specifically for low
value, fast moving &
multi range products.
Inventory is
purchased by the e-
commerce retailer &
stored by them in
their fulfillment
centers.
While this is a capital
intensive model, and
substantial inventory
risks, it is
nonetheless helpful
in creating trust and
service credibility
among users.

10. E-commerce Retail Logistics: Marketplace Model

11. E-commerce Retail Logistics: Inventory Model

12. E-commerce retail logistics: Sector landscape
E-Commerce
Focused LSP’s
50 %
Traditional LSP’s
20 %
Captive Logistics
Arm
30 %

14. 5. Regulatory Challenges & Compliance : Cross Border
Approximately 12,635 laws and regulations
govern business operations in India .

15. Taxation Challenges: Who will pay VAT ? Vendor or E-commerce platform operators.

17. Challenging Times, Disruptive Opportunities.
The Indian logistics industry is rife with fragmentation, inefficiencies and – hence, the opportunities for disruption few of
them are mentioned below :
 Inferior management practices.
 High level of waste.
 Losses due to transit damages and limited adoption of technology pose significant challenges.
Roleof3PL
Several startups with
good technology
base but no logistics
platform.
3 PL & Value added
services market
potential to reach
USD 330 Billion BY
2020
GovernmentInitiatives
“Make in India”
initiative is expected
to boost the
manufacturing sector
to 10 per cent
growth.
By 2025 organized
logistics could be a
USD 50 BN
opportunity in India.
RobustTaxRegime
GST implementation
will bring new
horizon on business
models .
Indian logistics
industry shifts from
unorganized to
organized operations
which is needed for
an ideal supply chain
management.
OPPORTUNITIES

18. 6. E- commerce : Future Trends

19. 7. Case Study : Cosmetics Client B2B Ecommerce Challenges and Solution
SCOPE
• Labelling for a leading French
International Beauty Care Brand In
Custom’s Bonded Warehouse.
LP’s Solution
to
Operational
Challenges
• Accuracy : Due to Incorrect Labelling (Errors reduced to 99.99 % due to
QA/QC pro-active measures & majorly by displacing Male labelling staff
by Female staff).
• Productivity per day (38,000 labels/Day was increased to 45,600 labels /
day post the implementation of process driven approach by LP an
increase by 20 % ).
• Damages and Pilferages ( Almost Nil at any given point due to passion and
love for the products coupled with process driven approach).

20. In-bonding & MRP Labelling Process
• Tally
stickers
against
MRP List
• Quality
check of
the
sticker:
MRP,
wrong
print,
Email-ID,
Generic
name etc.
MRP
Sticker
Inward
&
Tallying
• Visual
Verificati
on during
inward
• Opening
of the
Pallets &
checking
of stocks
physically
before
stating of
labelling
the
products
In-
Bonding
of goods
• Sorting
specific
labels
relevant
to the
product.
• Check
and Fix
the
sample
label on
the
products
as per
A.O.C
sample
Labelling
•Prepare
the
Packing
list as per
pallet
•QC check:
Seal &
Tape
•Making
entry in
register &
forwarding
report to
the
customer.
Packing
Wrapping
&
Dispatch
Quality
Assurance (QA)
Maker-
Checker
Quality
Control (QC)

21. MRP Labelling Facility Images
Work-station: Women Empowered . . . Quality Check in progress. . .

22. Major References:
1. KPMG & Confederation of Indian Industry, “India’s e-commerce retail logistics growth
story, August-2016.
2. Avendus Report on, “Logistics –Tech , Re-architecting the nervous system of economy”,
July 2016.
Please Note: Accuracy of figures may vary slightly on case to case basis .

23. 1st ANNUAL
CONFERENCE
HYATT REGENCY MIAMI