Aanchal Gupta Arvindha Raajan Vishnu Prasath

35001 35007 35054

 E commerce industry analysis- Overview

eB2B

Connects Sellers (Brands,

manufacturers, MSME`s ) with
Buyers (Retailers)

Companies in eB2B

Udaan
ShopX
Maintenance,
BigBasket
repair and Jumbotail
Operations
 E commerce industry analysis- Growth in eB2B

Faced with lot of challenges in traditional retail eB2B will grow at a CAGR >80% in all categories like FMCG, Groceries ,
Consumer durables and electronics and fashion & accessories.
Traditional vs eB2B retail value chain

Source(s): RedSeer
 Started in 2016 , B2B model which is leading wholesale food and grocery platform connects
thousands of mom & pop grocery retailers and supermarkets with brands and staple producers

Empowering Retailers with Technology Distribute More Products to More Retailers at Lower
Cost
Diverse Product Portfolio Multiple Brands and Services
Larger range of products, better availability, better margin. Distribute multiple brands and services that are currently
unavailable to the distributor due to size and volume
Lower investment in inventory
constraints.
Invest less per product, rotate your working capital faster and
SMART Network Management
better across multiple products.
Technology platform to easily manage retailer on-boarding
One-stop Shop More Brands for the Buck
Enhanced set of categories such as accessories, FMCG, home Investment into “virtual” stock of a wide variety of
products and others. products as opposed to blocking very specific singular
Earn More brands.
More products and services, higher margins, wider range
Supply chain and logistics solutions
Credit and payments
Full stack tech-driven supply chain and logistics to provide
We provide payment solutions, and provide access to working
warehousing and fulfilment
capital credit from our lending partners
Plug and Play Distribution Model for Brands
Expand Market Share Drive Incremental Sale of Products Launch Products/ Introduce New Brands
Robust distribution network that helps Drive sales of non-standard SKUs or Reduce time-to-market, leverage
increase market share of brands, cost- services that current distribution platform to introduce and launch new
effectively channels do not uptake products.
Udaan - Business Model
Udaan - Business Model
Udaan -Inventory based assisted & People led

Feet on street model Moving to

Demand technology led, through retailers
fulfillment adapting ordering online

Determined through the strength of

Product supply chain sourcing and seller
Availability
partnerships

Determined through controlled

Product Quality inventory management procedures
control
and oversight

3PL partnerships, robust SOP`s ,

Logistics technological oversight and
warehousing network

Fintech partnerships, buyer quality

Credit Facility and regions, categories catered by
the platform

Determined through effective asset

utilization, strength of network ,
Pricing exclusive partnerships , multiple
monetizing levers and managed
invoicing procedures
 Issues raised by the people involved in the retail chain and what Udaan
solves

Lose consumers during purchase of stock- Small Long timelines

retailer Goods flow through multiple intermediaries
Retailer have to shut shop for a duration of purchasing
stock.
Efficiency loss due to multiple intermediaries
Issues in predicting the future needs and wants of
consumers- Big retailers Pricing inflation for end consumer
Despite big, they have no information on future trends
and preferences
Product assortment and quality issues
Price competition is high – Wholesaler
As there are many wholesalers Operational issues- reliance on un-organized
credit and logistics
Warehouse management and logistics issue-
Distributor
Growth drivers

• Higher receptiveness of small buyers and sellers towards Udaan

• Logistics management which saves cost and time for retailers and stakeholders

• Reliable technology platform (Mobile app and Website)

• Payment between the supplier and the retailer/customer. Udaan gives credit to the suppliers/retailers ranging from 10000 INR to
200000 INR

Strategic Challenges

• Identifying reliable manufactures across the geography it serves to ensure quality of sourcing

• Matching category demand geography with nearest manufactures to ensure efficient and faster transportation

• Since in B2B trade credit is important. Digitalizing transaction from retailer side to ensure better credit system
 Hayes and Wheelwright model of operational effectiveness

Give an Operations Redefine the Externally • Efficient logistics

Advantage ons industry’s supportive
• Empowering MSME`s

rati expectations • Huge customer base

e
f op
Link Strategy
ono Be clearly
Internally
With ti
ribu the best in • On boarding of popular
supportive
Operations ont the industry brands
gc
• Cold storage facilities

a sin • Distribution network

re Be as good as • Tier 2 and Tier 3

Adopt best c Externally
In competitors
Practice • Platform to neutral
connect
• Logistics
management
Stop holding • Human resources
Correct the the Internally
Worst Problems organization neutral
back
STAGE 1 STAGE 2 STAGE 3 STAGE 4
The The ability The
ability to Support ability
to strategy to
Implement Drive strategy
strategy
Growth Plan
• Frozen food market in India is around Rs.7500 cr in which very players are present
• It has huge growth potential if it enters that segment which is growing at 20% per
annum
• It has to build Cold storage warehouses and cold storage containers in order to do
efficient distribution to retailers.
Business Strategy of Udaan
• Building operational capability to include small manufacturers (MSME`s) products
in their catalogue apart from leading brands.
• Onboarding buyers from all categories (Retailers, Hotels, restaurants, etc.) in all
Tiers.
• More fulfillment centers and tie up with third party logistics to service till last
mile.
• Better credit system to attract more retailers and sellers by having more fintech
partners.
• Scale up faster by connecting more brands, distributors and retailers to become
better in terms of reliability and cost efficiency
Product Life Cycle
Growth

• Expanding the categories

and brands rapidly so there
is no better forecast
• Supply chain and operations
process reliability
• At this stage it is trying to
onboard brands which are
preferred by retailers than
focusing on all products in
the categories
• It needs to increase the
customer base so that it can
operate at full truck load
which is cost efficient
 Competitive dimensions

Quality
• Source quality is ensured by Udaan before onboarding
the manufacturers Order Qualifiers Order Winners
• Product quality is insured till the delivery of the product
from the company side and then later by Udaan Accessibility High quality service

Cost Technology platform Lower logistics cost

• It saves cost for both manufacturers and retailers.
Pricing Credit system
 Flexibility 
• The brands can be flexible with the service based on the Reliability
market requirements.

Delivery
• Scheduled delivery and timely is a key differentiator as
retailers can't rely much on the local distributors
 Polar Diagram

Performance (In Crore) Udaan Udaan

Performance (In Crore)
Udaan
Cost
Year 2016-17
10
100

50
5
Quality Speed
Udaan

Year 2019-20 0 Year 2017-18 0

Flexibility Dependability
Year 2018-19
 Prof Terry Hill’s Framework

Order Qualifiers & Order Operations Strategy

Corporate Objectives Marketing Strategy
Winners
Operation design Infrastructure
• Transparency in • Wide range of • Accessibility choices
supply chain categories including • Running an • Business
lead winners brands • Technology
efficient logistics development
• Bring B2B business to under each platform system
online platform categories • Warehouses
• Pricing • Online platform based on type of
• Providing value to • Education of online goods
both • Reliability • Credit system
platform • 3PL
distributors/manufact • High Quality service • Tiers of inventory
urers and retailers • Providing credit system at • Push to online
policy • Lower logistics cost warehouse payment
• Expanding portfolio of
products and services • Door step delivery • Credit System

• Delivering higher
volumes to maintain
higher efficiency in
logistics
Retailer
• Transparncy in pricing Capabilities OPERATIONAL
• Availablity of lead brands
• Higher Credit cycle
• Flexibilities • Warehouse limitation
• Logistics • Only FTL
Distributor • Own plus 3PL
• Business development • Types of goods have limitation
• Faster financial transaction in inventory
• Higher volumes • Online Platform
• Reliability demand • Credit availability
• Higher margins

MARKET Requirements Loose Fit

Market Requirements
Looser fit between
market requirements
and operational
resources preserves
alignment

Level of operational resource capability

 Market requirements Gap Identification using
Achieved performance
Platts-Gregory procedure
Delivery lead-time Not significant Long
Immediate

Reliability Critical: Project delay

Into stock point Variable

Many Category with Lead brands

Features Fit for purpose few Categories

Total reliability essential

Quality Acceptable at price Acceptable High

Highly Flexible ; Customised for

Flexibility design
customers
Standard range only

Highly cyclic variable market

Volume Volume variations high
Little variation required Volume

Non-price competition dominant

Price cost High
Price competition dominant
Low
 The importance-performance matrix

Excess
GOOD

Appropriate
Platform
Improve
Volume Urgent Action
Performance against

Network Quality
Lead Brands
competitors

Price/Cost Flexibility

Categories
Lead time
BAD

Importance for customers

LOW HIGH

QUALITY of products and
services
Speed and dependability
combined to indicate
AVAILABILITY
FLEXIBILITY of response
to sales and customer
trends
COST in terms of
minimizing…
• operating cost
• capital cost
• working capital
Pivotal
• Volume of trade
Critical
Secondary
Operation Strategy Matrix- Udaan
Resource deployment
Distribution centre based
on category of product
3PL to increase the
replenishment time
Increasing replenishment
cycle
Increasing volume of
trade will bring down
operating cost
• Number and type of • Online Platform
distribution centers
• Order and stock
replenishment
CAPACITY SUPPLY NETWORKS
Credit delivery system Signing up with lead
based on trades brands’ distributors
Design of supply network
Sophisticated delivery
Competitiveness
for newer categories for
route designer better value delivery
Market
Increasing forecast
Sales executives to sign in
accuracy to reduce
new customers
working capital
• Increase in category
• Lead Brands
• More customers in
platform
DEVELOPMENT AND
PROCESS TECHNOLOGY
ORGANIZATION
Thank you