BigBasket

G R O U P - 11
 BigBasket was There are 15,000+ More than 70
founded in the year products on their warehouses across
2011 platform the country 

About It is the India’s There is a customer

BigBasket largest online food
and grocery store
Offering delivery
services in 25 cities
base of over 10
million

Business Model of Big basket: Hybrid model

• Started with an inventory model -  company holds its own inventory
• Highly suited for the FMCG products with a 10 day worth inventory. For
perishables, BB has formed direct linkages with the farmers and serviced orders
in JIT model.
• Collaborates with nearly 1800 grocery stores across the country to enable the
hyper local delivery model
 •Challenge of ensuring timely delivery of fresh
food/perishables, storage and reducing the wastage

•Lower shelf life coupled with high value of these goods

has increased the inventory and wastage costs
Supply-chain
Problems •Delivery time was around 24 hours in 2015 whereas
faced by competitors like Hyperlocal startups grofers etc
BigBasket delivered in 90 minutes 
 Initiatives undertaken by the company

To overcome challenges in Fresh Food Supply chain, Bigbasket launched Farmer connect
program:
• Sourcing directly from farmers, supporting and involving in the growing process.
• Established around 40 collection centers across the country and ~ 80% of fruits and vegetables directly
sourced from 10500+ farmers thereby eliminating the middlemen. 
•  Price was fixed at these collection centers and higher than mandis (min 10% higher). Use of technology for
real-time price monitoring. This led to higher price discovery and predictability for farmers
• Digitization of backend supply chain - Tied up farm management startup- CropIn
 Initiatives undertaken by the company
• Collaboration with local grocery stores: With more than 2000 kirana
stores as partners, Big basket is one of the largest B2B chain across the
country.
• Picking and order processing at warehouse: Modified from
sequentially picking the orders to grouping the orders with respect to
items. Now picker has to go to one item location only once, saving
time and effort
• Grouping of orders: After picking, segregation and grouping of
orders used to be manual -resulting in delays and errors. New
automated system reduced manual errors and the cycle time by 30
minutes
• Shifted from ‘central warehouse to customer’ delivery mode to
‘Dark stores’ in the vicinity of customers, and quick-service
warehouses for faster delivery.
• Order management: 
1. Initially Bigbasket used two types of delivery systems viz.:1.
Next day delivery  2. 90-minute express delivery 
2. Merged the two slot deliveries. 90% of orders will get delivered
in two-three hours. The balance 10% later in the day or the next
day
3. Larger orders clubbed together for  van delivery, and smaller,
less urgent, ones for bikes
• Comprehensive route optimization and tracking solutions using
AI Tools: 
• To suggest the best fleet combination
• To enhance the capacity utilization considering historic
traffic data, weight & volumes parameters, customer time
slot preference etc.
 • Picking Process, efficient order processing saved one hour in the
delivery process

•  Partnering with farmers and grocery stores:

Impacts of • the inventory storage requirement was reduced drastically, the

these wastage of perishables was reduced by around 3-5% and total

inventory write-off in the supply chain is reduced to mere 0.5%
initiatives on
BigBasket • Fresh fruits and vegetables contribute 16-18% revenue,
(competitors average is 8-10%)

• Optimized routes resulted in fill rate of 99.6%  for 10mn+

customers and increased vehicle space utilization