Supply Chain Management

Group Assignment
On
Toyota and Nykaa

POST GRADUATE DIPLOMA IN MANAGEMENT

(Batch 2021 – 23)

Under the Supervision of Prof Keshav Sharma

Submitted by

Ayushi Ahuja PGMB2109

Sagrika Gandhi PGMB2161

Satyam Srivastava PGMB2140

Tarang Kapoor PGMB2155

Nykaa and its Supply Chain

Brief Profile of the Company

Nykaa is a Mumbai-based multi-brand beauty store that sells cosmetic and

wellness products. Falguni Nayar created Nykaa as an online retailer in April
2012, and the company opened its first brick-and-mortar store at Indira Gandhi
International Airport's T3 Terminal in November 2015.
Nykaa is an e-commerce website that offers beauty and wellness products from
all the leading brands, such as Lakme, Kaya Skin Clinic, L'Oréal Paris, and
many others. It features around 850+ handpicked businesses and 35,000+
products. The age range between 22 and 35 is the predominant population of
Nykaa. Additionally, Nykaa has two offline retail styles: Nykaa Luxe and
Nykaa on Trend. The Luxe format includes Indian and international luxury
beauty brands in addition to the company's own cosmetics line, Nykaa Beauty.
On Trend is the first format of its kind on the market, curating products based
on their category-wide appeal. In March 2016, Nykaa introduced private label
bath and body care products.

In just three years, Nykaa has become India's premier beauty destination, with
500,000 pleased customers relying on us not only for their favorite brands, but
also for advice, updates, expert tips, and videos on how to always look and feel
wonderful! Nykaa is pleased to offer an extensive selection of makeup,
skincare, hair care, perfumes, bath and body, luxury, and wellness goods for
women and men, with over 850 carefully selected, fairly priced, and 100
percent authentic brands and 1 million products. Using the services of the
nation's finest and most trusted courier companies, Nykaa now ships to nearly
every zip code in the United States.

We believe that the Nykaa woman deserves only the finest, most real, most
genuine beauty and health items that money can buy. In contrast to other online
retailers, we NEVER source from the "grey market," opting instead to sell only
100 percent authentic products obtained directly from the companies or
authorized wholesalers. Our genuineness permeates all aspects of our corporate
activities. Since its inception, Nykaa.com has endeavored to set the benchmark
for product quality control, guaranteeing that customers receive only 100
percent genuine and fresh products sourced directly from manufacturers or their
authorized distributors.

Snap-Shots of the Web Site

The front of the site includes the options like categories, brands etc. and
various ads of their discounted, new products etc.
 List of Products Available Through Online Medium

Categories

1) Make-Up:
a) Face
b) Body art
c) Eyes
d) Lips
e) Nails
f) Make up Kits
g) Tools and brushes

2) Skin
a) Cleansers
b) Toners
c) Moisturizers
d) Masks
 e) Eye care
f) Lip care
g) Neck creams
h) Body care
i) Sun Care
j) Hands and feet

3) Hair
a) Hair care
b) Tools and accessories
c) Hair styling

4) Appliances
a) Hair styling tools
b) Hair removal tools
c) Shaving tools
d) Face tools
e) Massage tools
f) Foot
g) Smart watch and fit bands

5) Personal Care
a) Bath and shower
b) Body
c) Face
d) Hands and feet
e) Feminine hygiene
f) Men’s grooming
g) Sexual wellness
h) Dental Care
 i) Home and health
j) Travel essentials

6) Mom
&Baby
a) Maternity care
b) Maternity wear

7) Wellness
a) Health supplements
b) Weight management
c) Sports nutrition

8) Men
a) Shaving
b) Beard care
c) Hair care
d) Skin care
e) Bath and body
f) Grooming kits
g) Fragrance

Supply Chain of Nykaa

Delivery Process

 Once the order has been processed by the Nykaa system, the products are
carefully checked to make sure they are in great shape.
 After passing the last quality check, they are put in boxes and given to
our trusted delivery partner.
  The delivery partners then bring the package to you quickly. If they are
unable to fix the problem at the time or address you gave them, they will
call you.
 Customers from other countries don't have to pay any import taxes to
Nykaa when they buy from them. The customer must pay the customs fee
to the courier service in order to get the product.

Packaging

They put the goods in boxes that are covered on top with plastic. Each
product is wrapped in its own bubble wrap, and bottles and other fragile
items are also protected with bubble wrap.

Courier Partners of Nykaa

 Aramex - http://www.aramex.com/
 DTDC - http://www.dtdc.in/
 Bluedart - http://www.bluedart.com/
 Ecom Express - http://www.ecomexpress.in/
 Wow Express - http://www.wowexpress.in/
 Delivery - http://www.delhivery.com/
 Tanvi Express - http://www.tanviexpress.com/

Estimated Delivery Time

Nykaa keeps 95% of the items in our catalogue in stock, but some must be
ordered directly from the brand so that we can keep our promise to sell only
fresh, never-expired items. Even though Nykaa does everything it can to avoid
this, these items may cause a delay in sending out your order. But if an order
comes from outside the U.S., it may take longer to get the goods because of
logistics, holidays, or other things.
Delivery times may be a little longer during a Mega Sale because so many
orders are being placed. They try to get all orders out within five days of the
date of the order.
 Practical Implementations

Online Supply Chain Network Design:

MA NIVE LAKM LO’RE MARY

C A E AL KAY

NYKAA
WAREHOUSE/
DISTRIBUTION
CENTRE

Information flow
CUSTOMERS

Distributor Storage with Carrier Delivery

Nykaa follows a distribution network of distributor storage with carrier

delivery. The mentioned distribution network is mentioned below:
Inventory:

The inventory that to be kept at the Nykaa distribution center should be high
in number so as to fulfil customer demands without any delay.

Transportation:

The transportation cost is lower than that of manufacturer because in this

with respect to manufacturer-based supply chain, nykaa bought in bulk from
the manufacturers and supply is through their delivery partner whereas in
manufacturer-based model, the manufacturer supplies individually to every
customer’s order.

Facilities:

The facilities including warehousing and distribution should be top-notch so

as to provide best in class service so as to compete other players in the
market. Nykaa guarantees on time and genuine products guarantee to its
customers.

Information:

In Nykaa, the information about the orders and delivery to the manufacturer
remains minimal as Nykaa as a distributor plays main role in the whole
supply chain. Once the customer places an order through Nykaa application
or website, then, the company processes the information and simultaneously
ships the required product to the customer from the warehouse inventory.

Response Time:

In this online model, the response time needs to be as quick as possible as

customer don’t want to wait for long once he paid the money. If the order is
received, then the processing should be the quickest as it shows the
convenience is delivering the product.

Product Variety Availability:

As Nykaa, is just a platform for all the brands to reach as much market as
possible, so the brands are utilizing this platform a lot. At present Nykaa is
dealing with most of the cosmetics brands available in the market like MAC,
Nivea, Lakme, L’Oréal etc. So, this increases the bucket size that Nykaa as a
supplier has. So Nykaa has higher product variety.
Online Distribution Channel:

The supply chain model of online distribution channel is very different.

The above-mentioned diagram is explained below:

1) Once the customer places an order, the information is directly sent to

the fulfillment center and after the fulfillment centers validate all the
information, they process the order for further movement. Fulfillment
center always keep buffer stock with them so as to fulfill customer
demands in shortest time possible.
2) The fulfillment center that sends the goods to the central hub.
 3) From the central hub, the goods are transferred to regional hub

through air, road or shipping medium.

4) From regional hub it is either directly delivered to the customer or is

delivered with the help of city offices of the online agency.

Responsiveness as a Strategic Dimension for Nykaa

Nykaa as a company is quite good when it comes to responsiveness, they

dispatch their almost products with in 1-4 days of days of time from
warehouse. Nykaa keep 95% of the products which are shown in the
catalogue in their inventory, but some specific products are such that they
should be directly shipped from manufacturer to customer.

Products which are ordered at the time of sale may get delayed due to high
volume of orders, but they target it to dispatch with in 5 days.

After the package get dispatch Nykaa provide the customer with the
tracking number, so that customer can track the movement of the package
and will feel secure and certain about it. For smooth and timely delivery,
they have done partnerships with companies like DTDC, Bluedart, Ecom
Express.
Warehouse Management and Transportation Tie-Ups

Nykaa is an online store that sells beauty and wellness products from top brands
like Lakme, Kaya Skin Clinic, L'Oréal Paris, and many more. Nykaa has
warehouses in Mumbai, New Delhi, and Chennai to store the clothes it sells. It
says that it has more than 850 brands and 35,000 products. Nykaa is mostly for
people between the ages of 22 and 35. Nykaa also has two offline stores, called
Nykaa Luxe and Nykaa on Trend. The luxe format features both Indian and
international high-end beauty brands, as well as Nykaa Beauty, a line of beauty
products made by the company itself. Format On Trend is the first book of its
kind on the market, and it is the first to show how popular products are grouped
by category.

Resource Requirements and Advancements in Operating

Through Online Supply Chain

Online supply chain is very different from traditional supply chain. More and
more companies understand the importance of customer satisfaction and are
now seeing supply chain as an asset to themselves and not as cost centers.

As the cosmetic market was never online before and use to operate by
traditional supply chain as depicted below:

Manufacturer  Distributor  Wholesaler  Retailer 

Customer

Nykaa took the cosmetic business digital and operated through digital supply
chain, for this they needed some extra resources such as mentioned below:

 Smart phones will be needed by customers

 Internet access has to be there
 Company should have good servers
 Company should have a good website which won’t crash
 Quick response time
 Have multiple delivery partners
 Good inventory management system
 Product variety should be good
 Smooth return process

Nykaa revolutionized the cosmetic industries supply chain by following the

below mentioned flow:

Manufacturer  Nykaa (warehouse)  Customer

Cost Optimization Techniques

 Probably the best opportunity for diminishing your supply chain costs is
through smart administration of your labor force. Labor force
management incorporates everything from communication activities to
market demand analysis and procedure forecasting. Inefficient
communication procedures can prompt missed shipping deadlines or
return shipments. When warehouse management include process
 forecasting into their business development system, they are better ready
to use their staff, in this manner expanding their personnel ROI while
diminishing costs. With clear and reliable employee training, the increase
in savings will keep on accruing after some time.
 A good inventory management strategy is essential for decreased
production network costs. A sound inventory management system
incorporates numerous elements like a procurement plan and failure
analysis (for when the unavoidable mistakes occur).
Analysis and References

The U.S. Census reports that e-commerce sales increased by 13%

between 2018 and 2019. Since e-commerce and supply chain
management are intertwined, the impact of e-commerce has placed all
businesses—large or small—in a position where they must either update
their current SCM system or lose out to rivals who have effective SCM.

Nykaa's Position in the Supply Chain

Nykaa plays two roles in supply chain management:

1. Retailers use Nykaa to market to its user base.

2. Nykaa allows offline shops to purchase goods and raw materials from
producers, wholesalers, and distributors.

Suppliers have the same option to sell directly through Nykaa or through
their own recognized channels as do retailers.
Drop-shipping allows shops who utilize Nykaa for both buying and
selling cosmetics to completely get rid of their own supply chain
management. The store should not worry about the order when a
consumer place one on the Nykaa website because the Nykaa warehouse
will handle it and deliver the product right to the customer. The retailer's
sole responsibility in this transaction is to take money from Nykaa and
pay the provider.