Professional Documents
Culture Documents
Submitted by
Shivani sharma
Enrolment no: 200609024
Submitted to
Shree Guru Gobind Singh Tricentenary University
Gurugram Haryana
In partial fulfilment of the requirement for degree of Master of
Business Administration
Batch (2020-2022)
Declaration
I hereby declare that the online survey, data collection and analysis
work related to Summer Training Project report titled entitled “TO
STUDY ABOUT SUPPLY CHAIN STRATIGIES OF
FLIPKART” has been carried out exclusively on my efforts, my
working experience (45 days in Flip kart Sanpka, Guru gram). I
made this report under the guidance of Dr. Deepak Pandey sir
(Project Supervisor), Krishna mam (Sr. executive at IMT
department Flipkart Sanpka, Gurugram).
This study even internal part of our MBA Program and to do this
project in a short period was a heavy task. Intention, dedication,
concentration and hard work are very much essential to complete any
task. But still it needs lot of support, guidance assistance, co-
operation of people to make it successful. I thank to Dr. DEEPAK
PANDEY SIR (Project Supervisor), KRISHNA MAM (Sr.
Executive at Flipkart Sanpka, Gurugram), and all the people who
supported me to complete this research report.
During this small time frame of in which the project reached its
completion, there were a few people whom I would like to make a
mention of and without whose help the project would have never
seen the light of day.
SHIVANI SHARMA
BATCH: - 2020-2022
Index
A) Introduction to the Industry / Company
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total internet connections, ~61% connections were in urban areas, of which 97% connections
were wireless. Online penetration of retail is expected to reach 10.7% by 2024 compared with
4.7% in 2019. Moreover, online shoppers in India are expected to reach 220 million by 2025.
According to a report published by IAMAI and Kantar Research, India internet users are
expected to reach 900 million by 2025 from ~622 million internet users in 2020, increasing at
a CAGR of 45% until 2025.
Smartphone shipments in India increased by ~23% YoY to reach 38 million units in
the first quarter of 2021, driven by new product launches and delayed demand from 2020.
Xiaomi led the Indian smartphone market with 26% shipping, followed by Samsung (20%).
The Government of India's policies and regulatory frameworks such as 100% Foreign
Direct Investment (FDI) in B2B E-commerce and 100% FDI under automatic route under the
marketplace model of B2C E-commerce are expected to further propel growth in the sector.
As per the new FDI policy, online entities through foreign investment cannot offer the
products which are sold by retailers in which they hold equity stake.
As of August 9, 2021, the Government e-Marketplace (GeM) portal served 7.23
million orders worth Rs. 127,231 crore (US$ 17.12 billion) for 53,575 buyers from 2.40
million registered sellers and service providers.
Through its Digital India campaign, the Government of India is aiming to create a
trillion-dollar online economy by 2025. It has formed a new steering committee that will look
after the development of a government-based e-commerce platform. The new committee, set
up by the Commerce Ministry, will provide oversight on the policy for the Open Network for
Digital Commerce (ONDC), which is an e-commerce platform that the government is backing
for the development. The ONDC will serve as the infrastructure for setting up the final
storefront, which will be similar to Flipkart and Amazon.
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2. Flipkart Overview
Flipkart was founded in October 2007 by Sachin Bansal and Binny Bansal. It is one of
India’s leading E-commerce marketplaces and is headquartered in Bengaluru. The company
initially started as an online bookstore. Later, it also started selling other items such as movies
and mobile phones. Now the company offers more than 80 million products spread across
more than 80 categories. It has the capacity to delivery eight million shipments per month.
Flipkart Group raised an additional US$ 1.2 billion from Walmart-led investor group
in July 2020. Its valuation has reached US$ 24.9 billion post equity round. Flipkart has
pledged to completely transition to electric vehicles (EVs) by 2030 across its E-commerce
value chain by partnering with Climate Group’s global electric mobility initiative, EV100.
A. Motivation Behind Flipkart: -
Who would have thought that the E-Commerce Giant of India, Flipkart would have
started with a Non-Completion of a Summer Project by two Students: - Sachin Bansal and
Binny Bansal. This is how the 2 founders met during their IIT Delhi tenure.
Before Flipkart, Customers used to buy offline mainly from retailers and didn’t
actually get the chance to compare the prices that other competitors are offering.
The Bansal’s being fascinated with the E-Commerce, decided to start their own
shopping site.
Their research about E-Commerce led them to know about the bad Experiences of
Customers with the Online Shopping Mode. This was an Opportunity for the Tech
Enthusiastic to change the experience of the Customer with better service.
VISION
To Become Amazon of India
MISSION
Ab Har Wish Hogi Poori!
Flipkart Values
1) Audacity
2) Bias for Action
3) Customer First
4) Integrity
5) Inclusion
B. Reason for Success of Flipkart: -
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The Flipkart was laid on the foundation of Customer First. When the Bansal’s started
their journey, they started by selling books but searching for vendors to list books on their
platform became a huge problem and the customers are still reluctant to shop online.
The First ever order received by Flipkart was by a man name VVK Chandra who had
Order a book, but due to its unavailability they got anxious. This order being their first order
made them search the whole Bangalore city to find it and eventually delivering their first ever
order. Another Major factor for the success of Flipkart is the Bansal’s Tech Expertise and
knowledge about E-Commerce which they acquired during their IIT Delhi and amazon
tenure.
Flipkart Easy to buy Policy made them acquire a unique Positioning (POD) in the
minds of the Customer where they allowed buying without registering.
C. Group Companies
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American retail giant Walmart today wrapped up the acquisition of Flipkart in the
world's largest ever ecommerce deal so far. Walmart paid $16 billion for around 77% stake in
Bengaluru-based Flipkart. The deal is widely expected to shake up one of the most thriving
and exciting e-comm markets the world over.
Here are 10 key things to know about the jumbo ecommerce deal:
1) The American giant Walmart is very likely to revolutionize Indian retail with low
prices and a vast variety of consumer goods.
2) Flipkart founder Sachin Bansal will now exit completely. He has sold Walmart his
entire 5.5% stake. Sachin, along with co-founder Binny Bansal, once worked as
interns at Amazon. They started Flipkart in 2007 in an apartment in Bengaluru's
Koramangala.
3) The deal has made India's online sellers very jittery because they fear Walmart could
wipe them off. The American retail behemoth has long had a reputation of killing
small businesses with cut-throat pricing.
4) Walmart had been trying to enter India for years. Strict FDI rules has so far kept its
presence limited to just the cash-and-carry segment. It currently has 21 stores in
India.
5) With Walmart buying into Flipkart, the fight for India between Amazon and Flipkart
is set to grow more frenetic.
6) Flipkart has maintained leadership position in fast growth categories like fashion,
electronics, mobile and large appliances. Flipkart, along with its fashion units,
controls nearly 40% of Indian online retail. Amazon is close on its heels.
7) A more intense battle between Flipkart and Amazon is likely create a huge supply
chain infra, along with a large number of jobs.
8) Deep discount — effective but cash-burning — has been Flipkart main strategy to
fight Amazon. Walmart would give Flipkart not just more funds for the fight but also
a formidable ally with great experience in retailing and logistics.
9) The deal is set to bring about a big change in Indian retail. While Walmart is sure to
bring its cut-price game to India, Amazon's counter push may ensure that
merchandise prices in India head even lower.
10) Analysts say Flipkart is expected to generate meaningful losses for at least the next
few years, so this looks like a shot at the future. Lending credence to this view,
Walmart shares plunged 4% and m-cap went down by $10 billion after the formal
deal announcement was made.
E. Components of successful model: -
1. Flipkart’s Customer Segments:
Massive Urban Market – who prefers to buy online?
• Flipkart has grown into an enormous platform for a vast marketplace in India for
the time being.
• Currently, Flipkart marketplace is only open and available for deliveries to be
made anywhere within India.
Discount Lovers – Promotional Offers & Special Pricing for Customers
• Flipkart offers its loyal and new customer(s) promotional offers & special pricing
during the holidays.
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• They also provide branded products at reasonable prices – This is also a great
way to ensure diligent treatment towards loyal customers and help further
introduce its products to potential marketplace.
5. Flipkart’s Channels
One of the most significant reasons for Flipkart success is the powerful combination
of Flipkart revenue model and other digital marketing schemes that spread like
wildfire across the internet, creating its online presence, awareness and helping to
further channel Flipkart for opportunities.
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The rural Indian market is an untapped potential that most e-commerce businesses
would like to venture into, and their marketing strategy can be expected to see some major
changes in the recent future.
The majority of the shoppers from tier 2, tier 3 cities and rural areas engage in
valuebased shopping on e-commerce sites- shopping for a wide variety of products that are
affordable at the same time. This affordability is due to initiatives such as discounts, EMIs,
and cashbacks. Further, options such as cash on delivery, and replacements have created trust
in the mind of the consumer regarding the online shopping process. The two biggest e-
commerce players, Amazon and Flipkart have also launched their platforms in Hindi with a
view of onboarding new customers. This gives the consumers the comfort of shopping in a
language they prefer, creating a better experience.
To devise the e-commerce strategy in rural India, we need to first understand the
consumers of rural India. According to a report by Accenture, today’s rural customers are
becoming more aspirational, selective about brands, value-seeking, and connected. It also
mentions that more than fifty per cent of the customers are willing to use digital channels.
The only barriers that can stop them from converting them to e-commerce customers are trust
issues and logistics problems. Catering to these issues while still providing a competitive
price point to the price-sensitive customers is the key to expand into the rural market.
Earning a customer’s trust is also very important here. The customers from the rural
parts of India are price-sensitive, have relatively low disposable income, hence they can’t
afford to buy a product, only to find that it is not something they really wanted. Omni-
Channel strategy in a few towns can be of good use here, as then the customers can actually
touch and feel the product at the nearest physical store before buying them at a discount from
an online store. This can also assist in logistics and supply chain issues in rural marketing.
Understanding the local culture, and offering discounts during special occasions like
local festivals, will help not only to drive sales but also to create a customer-centric approach
for e-commerce sites. For a more personal experience, the e-commerce sites can send the
customers a ‘Gratitude Letter’ in the regional language, with their name printed, during the
festive offers. Also, effective consumer grievance addressing cell in regional languages will
help to establish e-commerce websites as more customer-friendly.
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But when you buy a business, you take over an operation that’s already generating
cash flow and profits. You have an established customer base and reputation as well as
employees who are familiar with all aspects of the business. And you don't have to reinvent
the wheel— setting up new procedures, systems, and policies—since a successful formula for
running the business has already been put in place.
On the downside, buying a business is often more costly than starting from scratch.
However, it’s often easier to get financing to buy an existing business than to start a new one.
Bankers and investors generally feel more comfortable dealing with a business that already
has a proven track record. In addition, buying a business may give you valuable legal rights,
such as patents or copyrights, which can prove very profitable.
H. Geographical Spread
I. Growth
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J. Market Share
Flipkart Group clocked gross merchandise value (GMV) of around $15 billion last
calendar year and is currently on an annualised GMV run rate of $23 billion. a report from
wealth management firm Bernstein said Flipkart, excluding Myntra, had clocked GMV of
around $12.5 billion in calendar 2020 while Myntra clocked $2 billion. The same report said
its rival Amazon India clocked a GMV of around $11.5 billion during the year.
Flipkart has estimated a growth of around 50-60% this year. This comes at a time
when online commerce adoption is increasing, with the pandemic nudging consumers across
the country to try online shopping.
The latest GMV numbers throw light on the competitive landscape of Indian
ecommerce when the sector continues to see increased capital flow from marquee global
investors while Indian conglomerates like Reliance Industries and Tata Group have entered
the space.
Flipkart raised $3.6 billion in what was also its first capital infusion from external
investors since the Walmart acquisition. Canada Pension Plan Investment Board (CPP
Investments), Singapore sovereign wealth fund GIC, Japan’s SoftBank Vision Fund 2 and
Walmart led the round, with existing investors like Qatar Investment Authority also
participating in the round.
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Internship Objective: -
Launchpad gives you an opportunity to be a part of the journey and gain a deep supply
chain experience. Students will go through a 45 days Internship program at our
facilities/hubs, learn about the nuances of supply chain, and be part of our team. Students will
receive a benefits basket that offers Stipend, Insurance, RnR incentives & Certificate on
internship completion.
Internship Location:
Sankpa: Hadbast No. 23, Village Sanpka, Tehsil Faruk Nagar, District Gurgaon, State
Haryana-122503. It is largest warehouse of Flipkart in North India. The total area of the
warehouse is 7.5 Lakhs Sq. Feet. In which the 5.5 Lakhs Sq. Feet area is for Inventory and 2
Lakhs Sq. feet area is for Mother hub Operations. There were 1.25 Crore Items (Quantity)
inventory were stored in the warehouse.
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1. Inbound:
A. Unloading & Receiving: -
If we see the quality control process is not that regrease as only product packaging and
specifications were checked for the Quality the functional element is not checked on any
single item.
Once the product got its WID then the Products has given a temporary Basket called
Tote and the Tote has its unique ID and this Tote ID along with the Products have been
registered in the WMS (Warehouse Management System). This is the first point where the
product has been entered in the Warehouse Management System.
This Products and Tote Id can be transported in the Tote itself or in Pallets.. Broadly
in warehouse the products are divided in Large & Non-Large Products. The Inbound
Assistance take time to arrange this product properly and enter the exact quantity present in
the Tote or Pallet.
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If the product is stackable and large in Quantity and also large product category then it
uses to place in Pallets as in pallets large quantity is placed with single Tote ID.
And if the product is unstack-able then it is placed in the Tote only. And this Totes are
placed on a Pallets. We can place maximum 20 Totes on one palate.
These pallets are created as per the floor Location. There is total 5 Floors in the
warehouse. Using the RT Machine, the pallets are transported to the respective floors. And
this Transportation is a transfer of the products from Inbound to Putting department.
C. Put-away or Putting
Put-away refers to the process of moving incoming inventory from the receiving zone
to an optimal location for storage. As a process, putaway involves more than just transporting
inventory from Point A to Point B, though. ptimal usage of storage space
Location Code: The structure of each floor is exact similar. The code is made up as
follows:
1. Floor Location: - There are 5 Floors in the warehouse and The code of its are
namely - G0, G1, G2, G3, G4
2. Pick Zone: There are 24 Pick Zone for Non-Large Products and 9 Pick zones
for large products.
Codes are – P1 to P24 for each Floor. And for Large P25- P33
3. Aiel No: - The Aiel No. is a pathway No. the total paths are
Codes are – A1 – AN
4. Rack No: - There are 16 Racks in Single Aiel. Codes are: - R1-R16
5. Lane No: - There are 5 Lanes in one Rack and 6 partition 1-6.
Codes are: A1-A6, B1-B6, C1-C6, D1-D6, E1-E6 Example
Location Code with Barcode:
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There are 5 Types of Put-away. It depends on the Source of the Tote creation.
a) Inward Bucket: The Source of the Tote is Inbound where new products are taken for
QC pass and WID. It is new type of Bucket creation for the rapid putting. In this
putting we can skip the scanning of each unit and directly scan Handling Unit (HU)
which is Tote ID. It saves time but can create wrong scan.
b) Inward Bulk: The Source of the Tote is Inbound where new products are taken for
QC pass and WID. It is old method in which the assistant needs to scan each Item for
putting.
c) Packing Cancellation: The Source is the Outbound as this is a order cancelled by the
customer before packing of the product.
d) Return Quality Pass: The Source is the IRT Department which is Issue Resolving
Team. And this are the products which is returned by the customer because of any
issue they faced.
e) Disposable Bucket: The Source is IRT. The Returned products which are Quality
Pass rejected then it was given in this type of putting to return to vendor or sell at low
price in market.
The Whole Put-away is completed by HHD (Hand Holding Device) which place the
products in Totes to a defined location. Each associate has a login ID and Password for login.
By this the whole information of transfer of products from tote to the location is updated.
1. View Tote
2. Assign Tote
3. Handling Unit Put-away
4. Scan Location
5. Scan Item & Auto Completion.
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2. Outbound:
A. Order Creation for Picking
Once the customer places the order the order is given to the picking assistance and the
order is assigned to the individual picking assistance ID.
B. Picking:
Once the order is assigned to the picking assistance, he will go to the instructed
location to pick the ordered product and close the picklist. This closed picklist bucket then
sent for packaging through the conveyor belt. And as soon as the picking assistance drop the
tote at drop zone, he will get new picklist.
C. Packaging
The Packaging is taking tacking the individual product for packing. As per the
requirement and SOP the packing material used and the packing material is also scanned in
the system to assigned with the product. At packaging stage only, the order sticker of address
of the customer is pasted.
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manually with the help of conveyor belt. By the secondary sorting these non-large packages
are packed in large plastic bags and the bags are sealed with cable tie. And these bags are
placed at assigned locations.
F. Loading in Trucks
At the cut-off time. The cut-off time is a time of journey start time of truck for any
specific location. At this time all the packages collected at the assigned location were loaded
in the truck
➢ I Think the process should thoroughly matched with the SOP. There are some
problems that can be solved by proper implementation of SOP.
➢ the improvement points and suggestions from their low designation employees and
this thing kindly demotivate the workforce. Some experienced persons can make the
work very easy but they are silent because no one is willing to hear them. I think the
organization should also work on this.
➢ Performance Evaluation for Assistance or Sr. product, count of product, location of
the product which can affect the IPP for the designates. The Organization should
come up with more better performance Evaluation.
➢ The Training for the Employees can reduce the losses in the inventory. I can
understand that is a new facility but for the future productivity and performance some
training sessions can do wonders.
➢ Regarding the Interns the Organization can use the knowledge of the interns at better
position and it can benefit the performance of the inventory at better level. The
Organization should prepare a structured internship and can-do better talent
management. Ground work is important but after getting knowledge by ground work
but after that it should use this graduates and post-graduates for technical or mind
work
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Annexure
Photo Gallery
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