Flipkart-e-commerce supply chain management

1. Flipkart
Bhavik Thakkar
Kapil Makhija
Mehboob Bhatti
Aniket Katdare
Sagar Sawant
•Flipkart functions
•SCM of Flipkart
•Flipkart’s profitability
ITM SION
BATCH-91

3. Introduction To Flipkart
• Founder-Sachin Bansal (CEO Co-Founder) and
Binny Bansal (COO Co-Founder)
• Background- IIT Delhi and ex- Amazon
• Year-2007
• Investment-4 lacs ($9000)
• Headquarters- Bangalore
• Human Capital- 4500+ employees
2500+ developed on field in distribution & operations
• Current Valuation- 1$ Billion
• Revenue- 1180 crores (US 190$ million-2012-13)
• Investors- Tiger Global, Accel Partners and South
Africa‘s Naspers
• IPO Expected- In 1-3 Years

4. Product Portfolio
• Books
• Movies
• Music
• Games
• Mobiles
• Cameras
• Computers
• Healthcare and Personal Products
• Home appliances and electronics
• Stationary
• Perfumes
• Toys and many more…

5. Product Offering
• Wide Range of products
• Over 15 million products – still counting
11.5 million book titles
• With visit to transaction conversion
Rate of 6%

6. Ranking & Popularity
Website Ranking
• India rank-12
• World Rank-247
( Source- Alexa.com)
Popularity-0.538% of the total internet
users of the world have visited
Flipkart.com

7. USER INTERFACE (UI)
Graphical|Non-Graphical
EASY TO NAVIGATE | EASY TO SEARCH
EASY TO COMPARE | EASY TO ORDER

8. Payment Options
STARTED BY FLIPKART STARTED BY FLIPKART

9. RECEIPT GENERATION
• ORDER NO.:OD203579542
• THIS CONTAINS ALL INFORMATION I.e..,
PRODUCT CODE, DATE OF PURCHASE, REFERNCE
NO., DELIVERY AREA CODE
• HELPFUL IN EASY TRACKING OF ORDERS
ONLINE TRACKING
• ORDER NO:-OD203579542
• FLIPKART LOGISTICS AGENCY
• CUSTOMER ENTERS ORDER NO. , AND HE GETS
REAL TIME UPDATE OF THE SHIPMENT STATUS

10. AFTER SALES SERRVICE
1. 30-DAY Money back guarantee
Unsatisfied Calls/Connects Product
Customer with flipkart returned Replacement
customer service by logistics or money is
partners returned in the
account
2. E-WALLET Feature ( flipkart adds new dimensions to its operating cycle)
Loyal Deposit Use it for further
Customer more money purchases
3. Reporting & Analytics
On the basis of your past Schemes/ Discount/ Offers/
Behavioral purchase Recommendations are generated
4. Reviews
First to review Certified Buyer

11. Purchases and Procurement
Inventory Levels
+
Rare Ordered Product
Direct Procurement From
Companies
Stocked in the warehouse and
Delivery Centers
Credit period=14-30 days
Credit Limits= varies with products
Distributors of these companies
delivers the product in respective
flipkart’s Ware house (as per
requirement)
1.Weekly
2.Monthly
3.One-time
4.Urgent

12. Pricing & Margins
8-35%
On sale price of product
Parameter= Brand, Category margin,
Premium margin, Volume, Cost of
Delivery, Operating cost margin
High Margin Category
Toys, Watches, Beauty
& Healthcare, luggage
Mid Margin Category
Books, TV, Home & Kitchen,
Gaming, Belts,
Bags
Low margin
category
Mobiles & Cameras,
Computer accessories

13. Distributor Frame
in overall India
25 Warehouses -7 previously, other converted from delivery
centre
60 Delivery Centers - 35 previously, others newly formed (aim to
reduce the time of delivery)
Customer
order
Checked in
delivery centre
inventory
YES
Delivery Time 1-2 Days
SUCCESS!!!
Sent to logistics body
NO
Checked in the
nearest warehouse
inventory
Automatic inventory check
via Inventory
management system
Ordered to the company
YES
Delivery time 2-5 Days
YES
Delivery time 6-15 Days
NO

14. INVENTORY STOCKING
Delivery
Centers
Ware house
Stocking
Levels
INVENTORY
MANAGEMENT
SYSTEM
Threshold Forecasting
Product’s
Inventory
Frequency Of Order
Of The Product

15. Delivery & Logistics
No. of order served Daily > 30,000
Location of the
product
Is Identified
Logistic body is assigned
Customer product
delivery location
(Delivery cost-Free
If ordered > 300 Rs.
Else Rs. 30 Extra)
Parameter = city, locality, Type Of product,
Cost definition, inter-city agreement etc.
Logistics
Priority
Automated Software Sends Information about the product
Delivery to these logistics body

16. Customer Support
New Sale| Customer grievances| Other Info
24x7 Customer Support
Toll free phone:- 1800 425 3547
email- cs@flipkart.com

17. How are their products less expensive
than in retail shops?Retail store (organized) Online store
Need a shop floor or chain of shop
floor.
Managed by centralized
warehouses .
Need skilled sales and
management staff
Need customer service associates.
Need branding and displays No need for branding and displays
of the product
Need to pay overheads such as
electricity bill, telephone bill,
stationeries etc at every store.
Comparatively less Expensive as
overhead are born only for the
dispatch centers
Need furniture and equipments
which need maintenance at every
store
Need few furniture and
equipments which requires less
maintenance cost

18. Product stocking strategy
(to maximize the profit)
• Discontinued and old stock has been
allotted more discounts and highlighted
nicely.
• Mid priced ranged products are preferred
in each category.
• Exclusive products are avoided.
• Complex products which requires more
demonstration are kept less in stock.
• Combo-offer

19. FLIPKART
DISTRIBUTOR LOGISTICS PRICING BPO
Flipkart distribution
is getting designed
in such way that ,
flip-kart can become
official distributor of
several company’s
product future in
India. Eg –
Motorola/Google
Flipkart Logistics is
getting designed in
such way that,
other e-commerce
website can also
outsource delivery
to Flip-kart.
Flipkart Pricing getting
designed in such way
that, other e-
commerce website
can outsource
delivery of several
products through
flipKart.
(Motorola/Google,Cas
io)
Flipkart BPO
getting designed in
such way that, other
e-commerce website
can outsource
delivery of several
products through
flipchart
•Open loop for Value Added Service
•Adding extra source of income

20. SnapShot

21. Special thanks to
• Mr. Agasti Mhatre (Employee of Jaipan)
• Mr. Sanjay Chavan (Online Purchase Manager
of Jaipan)
• Mr. Sunil (Ex employee of Flipkart)
Sources:-
1. Google
2. Flipkart.com