Supply chain

Team – Blaze
Abid Ilahi
Deepak Singh
Arghyadeep Singh
 Problem Statement Supply Chain Model of E-commerce
Seller First Mile Delivery
Cu s to me r Se gmen t-
a tio n
Fulfillment Center
27%
73%

Customer outside the top 8 metro cities Storage

Customer from top 8 of metro cities

• Internet commerce demand is Sortation center

shifting from bigger cities to
smaller ones like Tier 2 and 3
cities. This has implications for
Flipkart, which is seeing a dip in Distribution center
average selling price and need for
low cost supply chain.
• Customer and seller experience are key Consumer
Last Mile Delivery Tier 2 cities
to Flipkart's business model. The
company has to balance low cost supply Flipkart supply operations work on Hub and spoke model where intermediary
chain with preserving customer distribution centres are strategically positioned at nearly equal distance from a bunch
experience. (8-10 towns) of targeted local destinations. The goods are transferred from this
• Supply chain cost is driven by multiple intermediary distribution centres to multiple local destination centre in vicinity
input drivers, and Flipkart/Ekart is looking
at supply chain solutions to support its
low-cost, scale-up business model.
Solutions

Identification of frequent order items in Tier-2 and Tier-3 cities

Based on past frequencies of ordering, prepare forecasts for these items on a long-term basis, identifying trends and seasonality patterns
Directly transport bulk quantities of these frequent order items to local delivery hubs and maintain a significant inventory
This reduces delivery time, improves customer experience, and ensures utilization of freight carriers to a maximum possible extent

Merge Sortation and fulfillment centers in Tier-2 cities where inbound goods will be directly sorted and dispatched to delivery hubs OR directly
to customers.
This model is sustainable in Tier 2/3 cities as demand is shifting to these cities unlike in Tier 1 cities. This model will save the delivery time as well
as infrastructure cost

Big Data and Data Analytics can be used in Logistics. Using sensors and integrating them with Big data will give the real time data of speed of
truck, fuel consumption, driving behavior which will help us in bringing down the logistic cost as well as route optimization can be done.

Uniform packaging can be introduced in First Mile as that not only protects and contains products but also plays a key marketing role. Truck
space optimization in transporting orders can be achieved as more deliverables can be transported compared to earlier.
 Solutions
Solutions

‘ON THE
GO’ Service

On-the-go service of providing frequently ordered items to the delivery executive will literally bring
the shop directly to customers’ doorsteps. In this, the delivery boys will carry some extra inventory Delivery

which is the low ASP, and most frequently ordered products, and will offer it directly to the customers Delivery Executive Push
or it may remind the customer of the small items they might have forgotten to order. Marketing

The on-the-spot offering of items will promote impulsive buying behavior resulting in accelerating the Extra Inventory
sales of low ASP products.

LANDMARK ISSUE
A massive 73% of online shoppers belong to tier 2/3 cities where they prefer providing local landmark
information instead of an exact address.
Impact
Failed deliveries, lost times, customer dissatisfaction & lower customer retention.
Solution
• In addition to Pin code option, local landmarks dropdown should also be incorporated in the Order
placing process.
• Verification of landmarks and addition of new ones in the database can be done both from the An example citing how some semi-
urban people make use of local
customer’s end and from the delivery person’s end.
landmarks as delivery address
Thank You