OPERATIONS MANAGEMENT – II

PROJECT REPORT

SUPPLY CHAIN MANAGEMENT

OF FLIPKART

GROUP 9

KAUSHIK SARKAR : M088-22

MUHAMMED IQBAL P K : M091-22

SADEESHKUMAR R : M106-22

SAHIL S : M107-22
INDEX

S.No TITLE PAGE NO

1 Introduction to Supply Chain Management 2

2 Introduction to Flipkart 3

3 Flipkart's Supply Chain Management 4

4 Logistics & Warehousing of Flipkart 6

5 Push and Pull Processes in Flipkart 8

6 Strategic level Decisions in Flipkart 9

7 Tactical Level Decisions in Flipkart 10

8 Operational Level Decisions in Flipkart 11

9 Conclusion 12

10 References 12

1
INTRODUCTION TO SUPPLY CHAIN MANAGEMENT
Supply chain management (SCM) refers to the coordinated management of all activities involved
in the creation and delivery of a product or service, from the raw materials to the end customer.
SCM involves the integration and management of various functions, including procurement,
production, transportation, storage, and distribution. The goal of SCM is to optimize the flow of
goods and services from suppliers to customers while minimizing costs and maximizing efficiency
and customer satisfaction.

SCM can be broken down into four main components: planning, sourcing, production, and
delivery. Each of these components has its own set of activities and processes. They all work
together to ensure that goods and services are delivered to customers most efficiently and
effectively as possible.

Planning involves developing a strategy for the supply chain, including identifying the products
or services to be produced, the markets to be served, and the resources required to meet demand.
It also involves forecasting demand, creating a production plan, and developing a logistics plan for
transporting and storing goods.

Sourcing involves selecting suppliers and negotiating contracts with them. It also involves
managing supplier relationships to ensure that goods and services are delivered on time and to the
required quality standards.

Production involves managing the production process, including scheduling production, managing
inventory, and ensuring that products meet quality standards.

Delivery involves managing the logistics of delivering products to customers, including

transportation, warehousing, and distribution.

SCM is an essential function for any business that produces or delivers products or services.
Effective SCM can help businesses to reduce costs, improve efficiency, and enhance customer
satisfaction. It requires a combination of strategic planning, operational execution, and ongoing
monitoring and optimization to achieve the best results.

2
INTRODUCTION TO FLIPKART
Flipkart is one of the largest e-commerce companies in India. Founded in 2007 by Sachin Bansal
and Binny Bansal, who are not related, Flipkart initially started as an online bookstore, but over
the years, has expanded into a wide range of products, including electronics, fashion, home
appliances, and grocery. Before branching out into other product categories like consumer
electronics, fashion, household staples, food, and lifestyle goods, the company initially
concentrated on online book sales.

In 2018, Flipkart was acquired by Walmart for $16 billion, which is the largest-ever acquisition in
the Indian e-commerce industry. Flipkart now operates as a subsidiary of Walmart and competes
with other major e-commerce players like Amazon India and Snapdeal.

The company has a strong presence in the Indian market with over 350 million registered users
and is known for its competitive pricing, fast delivery, and wide range of products. Flipkart has
also introduced various innovations in the Indian e-commerce industry, like Cash on Delivery and
no-cost EMI options, making online shopping more accessible for customers.

Flipkart’s supply chain management plays a crucial role in its success. The company's supply chain
management strategy focuses on building a robust network of suppliers, logistics partners, and
warehouses to ensure that it can deliver products to customers in a timely and cost-effective
manner.

3
FLIPKART'S SUPPLY CHAIN MANAGEMENT
The following is the supply chain process followed by Flipkart:

Customer Places Order: Customer places an order by selecting merchandise from a wide range
of available products on Flipkart's website. The customer provides their contact details and
delivery address, and can choose from several payment options such as credit/debit card, net
banking, or cash on delivery. Flipkart's online system provides the customer with an estimated
delivery date.

Order Received and Acknowledged by Flipkart: Flipkart receives and acknowledges the order
as soon as the customer confirms it. The order information is sent to the Order Management System
(OMS) for processing.

Order Procurement: If the product requested by the customer is frequently requested and
available at Flipkart's warehouses, it is packaged and shipped directly. Otherwise, the order request
is forwarded to the supplier who delivers the product to Flipkart's facility.

Packaging and Shipping: The order is then tested, packaged, and shipped to the customer's
location through Flipkart's courier partner.

Order Received by Customer: Once the order is received by the customer, Flipkart ensures
timely and safe delivery through its extensive courier network. Customers are notified of transit
and other details via SMS and can check their order status on Flipkart's website's Order status page.

4
Key Aspects of Flipkart’s Supply Chain

Vendor Management: Flipkart works with a large number of vendors across India, and it has
developed a robust vendor management system to ensure that all vendors comply with its quality
standards and delivery timelines.

Inventory Management: Flipkart uses advanced technology and data analytics to manage its
inventory effectively. It uses algorithms to predict demand and optimize inventory levels, reducing
the risk of stockouts and excess inventory.

Warehousing: Flipkart has a network of warehouses and fulfillment centers across India to ensure
that it can deliver products to customers quickly and efficiently. The company also uses a hub-
and-spoke model for its warehouses to optimize transportation and reduce delivery times.

Logistics: Flipkart partners with a large number of logistics companies to ensure that it can deliver
products to customers across India. It also uses technology to optimize transportation routes and
reduce delivery times.

Technology: Flipkart uses advanced technology such as machine learning and artificial
intelligence to manage its supply chain effectively. Its technology platform allows it to track
products from the point of origin to the point of delivery, improving transparency and reducing the
risk of fraud and errors.

Overall, Flipkart's supply chain management is a key factor in its success as an e-commerce
company. Its focus on building solid relationships with vendors, optimizing inventory levels, and
using technology to manage logistics and transportation has helped it to deliver products to
customers quickly and efficiently, making it one of the most popular e-commerce platforms in
India.

5
LOGISTICS & WAREHOUSING OF FLIPKART
Flipkart is one of the largest e-commerce companies in India, providing a wide range of products
to consumers across the country. As a result, it has a complex logistics and warehousing system in
place to ensure that products are delivered to customers on time and in good condition. The
logistics and warehousing of Flipkart can be broadened as follows:

Logistics:
Flipkart's logistics system is designed to ensure that products are delivered to customers as quickly
as possible. The company has a network of warehouses and distribution centers across India, and
it uses a variety of transportation modes to move products from these locations to customers.

● Warehouses:
Flipkart has several warehouses located across the country to store and manage its
inventory. These warehouses are strategically located near major cities and transportation
hubs to facilitate faster delivery. The company has both owned and leased warehouses,
which range in size from 50,000 to 200,000 square feet. The warehouses are equipped with
state-of-the-art technology, such as automated conveyor systems, to help with the efficient
movement of goods.

● Transportation:
Flipkart uses a combination of modes to transport products from its warehouses to
customers. The company has its own fleet of delivery trucks, which are used for last-mile
delivery. In addition, it partners with third-party logistics providers and courier companies
to deliver products to customers in remote locations. Flipkart also uses air and rail transport
to move products quickly across the country.

● Technology:
Flipkart uses cutting-edge technology to manage its logistics operations. The company has
developed its own logistics management software, which helps with the tracking and
monitoring of products from the warehouse to the customer's doorstep. This software also
helps with route optimization, inventory management, and real-time tracking of delivery
vehicles.

Warehousing:
Flipkart's warehousing system is designed to ensure that products are stored safely and efficiently.
The company has invested heavily in technology to automate its warehousing operations, which
helps with inventory management and order fulfillment.

6
 ● Storage:
Flipkart's warehouses are equipped with state-of-the-art storage systems, such as
automated storage and retrieval systems (ASRS), to help with the efficient storage and
retrieval of products. The company uses a combination of bulk storage and shelving
systems to store products based on their size and weight.

● Order Fulfillment:
Flipkart uses a combination of manual and automated systems to fulfill customer orders.
The company's warehouse management software helps with order processing, inventory
management, and order picking. Flipkart also uses automated conveyor systems and
robotic pickers to help with the efficient fulfillment of orders.

● Quality Control:
Flipkart has a strict quality control process in place to ensure that products are stored and
handled safely. The company uses temperature-controlled storage systems for products that
require specific storage conditions, such as perishable goods. Flipkart also conducts regular
quality checks to ensure that products are not damaged or expired.

Flipkart has a sophisticated logistics and warehousing system in place to ensure that products are
delivered to customers on time and in good condition. The company has invested heavily in
technology to automate its operations, which helps with the efficient movement of goods and order
fulfillment. Flipkart's extensive network of warehouses and transportation partners also helps with
faster delivery to customers across India.

7
PUSH AND PULL PROCESSES

Push Processes for Fast-Moving Consumer Goods (FMCG)

Flipkart uses push processes to manage its inventory and distribution of FMCG products such as
groceries, personal care items, and home essentials. These products have high demand and
relatively stable consumption patterns, allowing Flipkart to predict their demand and plan for
production and distribution accordingly. For example, Flipkart may use historical sales data and
seasonal trends to determine the optimal quantity of products that should be manufactured and
distributed to various warehouses and fulfillment centers across the country.

Pull Processes for High-Value and Low-Volume Products

Flipkart uses pull processes for high-value and low-volume products such as smartphones, laptops,
and other electronic devices. These products are sourced from manufacturers based on actual
customer orders, which are then fulfilled by Flipkart's logistics partners. For example, when a
customer places an order for a laptop on Flipkart, the order is transmitted to the manufacturer, who
then produces and ships the laptop directly to the customer. This helps Flipkart to avoid the
expensive overstocking of products, reduces inventory holding costs, and minimizes the risk of
stock obsolescence.

Push-Pull Hybrid for Fashion and Apparel

Flipkart uses a push-pull hybrid approach for fashion and apparel products. While some of these
products have stable demand patterns and can be managed using push processes, others are highly
seasonal and require a more flexible approach. For example, Flipkart may use push processes to
manage the inventory and distribution of staple items such as jeans and t-shirts while using pull
processes for seasonal items such as winter jackets and summer dresses. This allows Flipkart to
optimize its inventory and reduce the risk of stockouts while also being responsive to changing
customer preferences.

Overall, Flipkart uses a combination of push and pull processes in its supply chain to manage
inventory, optimize logistics, and provide customers with a seamless shopping experience. By
leveraging data analytics and machine learning, Flipkart can continuously optimize its supply
chain processes and drive operational efficiencies.

8
STRATEGIC LEVEL DECISIONS IN FLIPKART
Flipkart is an Indian e-commerce company that operates in the online marketplace segment. The
company offers a wide range of products, including electronics, fashion, home appliances, books,
and more.

At the strategic level, Flipkart focuses on long-term planning and decision-making aimed at
achieving its overall goals and objectives. The company's strategic decisions are centered around
ensuring sustainable growth, expanding its market share, and maintaining a competitive edge in
the e-commerce industry.

One of Flipkart's most significant strategic decisions has been its focus on expanding its operations
beyond India. The company has made strategic investments in companies such as Myntra and
PhonePe and has launched its services in international markets such as the United States, Canada,
and Singapore. This expansion helps Flipkart to diversify its revenue streams and reduce its
dependence on the Indian market.

Another critical strategic decision made by Flipkart is its focus on diversifying its product
offerings. The company has launched its own brand of products in various categories, such as
fashion, electronics, and home appliances. This diversification helps Flipkart to reduce its reliance
on third-party sellers and creates new revenue streams. Additionally, it allows the company to offer
exclusive products that are not available on other e-commerce platforms, providing a unique value
proposition to its customers.

Strategic partnerships are also a critical part of Flipkart's strategy. In 2018, the company announced
a strategic partnership with Walmart, which helped to strengthen its supply chain and logistics
capabilities. This partnership also allowed Flipkart to leverage Walmart's expertise in retail
operations, customer service, and technology. Additionally, the partnership helped Flipkart to
compete with Amazon, which has a dominant presence in the Indian e-commerce market.

Overall, Flipkart's strategic decisions are focused on sustainable growth, diversification, and
maintaining a competitive edge in the e-commerce industry. By expanding its operations beyond
India, diversifying its product offerings, and forming strategic partnerships, the company is
positioning itself for long-term success in the global e-commerce market.

9
TACTICAL LEVEL DECISIONS IN FLIPKART

At the tactical level, Flipkart focuses on implementing specific actions and strategies to achieve
its strategic goals. Tactical decisions are aimed at addressing short-term challenges and
opportunities in the e-commerce market.

One of the most significant tactical decisions made by Flipkart is its pricing strategy. The company
offers discounts, deals, and cashback offers during festive seasons to attract more customers and
increase sales. This pricing strategy helps Flipkart to remain competitive with other e-commerce
platforms and increase its market share.

Another important tactical decision made by Flipkart is its advertising strategy. The company
invests heavily in advertising campaigns during peak shopping seasons, such as Diwali and
Christmas, to create brand awareness and attract new customers. These campaigns are designed to
highlight Flipkart's unique value proposition, such as exclusive product offerings and attractive
pricing.

Customer service is another critical tactical area for Flipkart. The company offers a 24/7 customer
service helpline, allowing customers to seek help and resolve issues quickly. This helps to ensure
customer satisfaction and increase customer loyalty. Additionally, Flipkart offers easy return and
exchange policies, which helps to build trust and confidence in its brand.

In recent years, Flipkart has also made significant investments in technology to improve its
platform's user experience. The company has introduced features such as personalized
recommendations, one-click checkout, and real-time tracking of orders, among others. These
technological advancements help to attract and retain customers, reduce cart abandonment rates,
and improve overall efficiency.

Overall, Flipkart's tactical decisions are aimed at addressing short-term challenges and
opportunities in the e-commerce market. By adopting innovative pricing and advertising strategies
and investing in customer service and technology, the company is positioning itself to remain
competitive in the fast-paced and dynamic e-commerce industry.

10
OPERATIONAL LEVEL DECISIONS IN FLIPKART

At the operational level, Flipkart focuses on the day-to-day operations of its e-commerce platform.
The company's operational decisions are aimed at ensuring smooth and efficient processes to
deliver products and services to its customers.

One of the most critical operational decisions made by Flipkart is its logistics and supply chain
management. The company has built a vast logistics network across India, comprising warehouses,
fulfillment centers, and last-mile delivery partners. This allows Flipkart to ensure fast and reliable
delivery of products to its customers, even in remote areas.

To manage its logistics and supply chain efficiently, Flipkart has invested heavily in technology.
The company uses advanced algorithms and data analytics tools to optimize its inventory
management, transportation, and delivery processes. This helps to reduce delivery times, minimize
shipping costs, and improve overall operational efficiency.

Another important operational decision made by Flipkart is its seller management system. The
company has a large network of third-party sellers who use its platform to sell its products. To
ensure that sellers meet Flipkart's quality standards, the company has implemented a rigorous seller
onboarding process. Additionally, the company provides sellers with tools and resources to
manage their inventory, sales, and payments efficiently.

Customer service is another critical operational area for Flipkart. The company has set up multiple
customer service centers across India to handle customer queries, complaints, and requests.
Additionally, Flipkart provides customer service training to its employees to ensure that they can
handle customer issues effectively and efficiently.

To ensure a seamless and hassle-free shopping experience for its customers, Flipkart has also
invested in its website and mobile app. The company regularly updates its platform to improve its
user interface, speed, and functionality. Additionally, Flipkart uses advanced security and
encryption technologies to protect customer data and ensure secure online transactions.

Overall, Flipkart's operational decisions are aimed at ensuring smooth and efficient processes to
deliver products and services to its customers. By investing in logistics and supply chain
management, seller management, customer service, and technology, the company is positioning
itself to maintain its dominant position in the Indian e-commerce market.

11
CONCLUSION

Flipkart has implemented an effective supply chain management system that enables the company
to deliver products to customers promptly and efficiently. The company's approach to supply chain
management includes a focus on innovation and technology, a strong network of suppliers and
logistics partners, and a commitment to sustainability.

Flipkart's use of technology in its supply chain management, such as its proprietary logistics
platform and data analytics tools, has enabled the company to optimize its operations and improve
delivery times. In addition, the company has developed a robust network of suppliers and logistics
partners that allows it to source products quickly and efficiently.

Furthermore, Flipkart's commitment to sustainability is evident in its efforts to reduce waste and
carbon emissions in its supply chain. For instance, the company has implemented eco-friendly
packaging solutions and is working to reduce its dependence on fossil fuels.
Overall, Flipkart's supply chain management strategy has been a vital driver of the company's
success and has enabled it to maintain its position as one of India's leading e-commerce platforms.

REFERENCES

1. https://www.episteme.net.in/content/73/3834/attachments/10-A_case_study.pdf
2. www.flipkart.com
3. https://stories.flipkart.com/supply-chain-growth-2022/
4. https://www.livemint.com/Companies/VXr8oJzNJ4daOYSO5wNETN/Inside-Flipkarts-complex-
structure.html
5. Analysis of supply chain and inventory management of FlipKart.com | IIMB-

12