Logistics of Two E-commerce Players

Akank Raghuvanshi(240)

Gaurav Chatterjee (67)

Ishaan Rana (218)

Mohit Keswani (280)

Nitin Arora (147)

Sahil Dudeja (199)

3/23/2015 1Group-7

Logistics:

The word “logistics” is derived from the

Greek word “logistike” meaning “the science of

computing and calculating”.

3/23/2015 2Group-7

Principals of Logistics

Every company dreams of achieving the seven R’s

• Delivering the Right product

• In the Right quantity

• In the Right Condition

• At the Right place

• At the Right time

• For the Right customer

• At the Right Cost

3/23/2015 3Group-7

3/23/2015 4

Types of Logistics

Inbound Logistics

Outbound Logistics

Third Party Logistics

Fourth Party Logistics

Reverse Logistics

Group-7

3/23/2015 5

• Founder- Sachin Bansal & Binny Bansal

• Launched in October 2007

• India’s leading e-commerce marketplace

• 20 millions products across 70+ categories

• Turnover- US$ 1Billion(2013-2014)

• 26million registered users

• 5 million+ shipment per month

• 20,ooo employees

Flipkart Overview

Group-7

• eKart's history - eKart is what was earlier known as Flipkart Logistics

• eKart is part of WS Retail Services Private Limited, the business-to-customer

company of Flipkart

• It is more economical than other 3rd party logistics companies

• Being able to service more orders through other ecommerce websites will allow

eKart to scale and expand its network, which will in turn benefit Flipkart as well

• eKart's reach - 150 Cities, the largest such network set up by an online retailer

in India

• eKart currently offers services such as delivery logistics, reverse logistics and

pay on delivery

3/23/2015 6Group-7

Customer Places order on Website

Order downloaded to Order Mgmt

System

Order transmitted to nearest warehouse

Inventory mgmt system looks for

the product

Order allocated from inventory

New PO raised for replenishment

Item sent for packing & shipping preparation

Item Shipped

Item Received at distribution Centre

Last mile delivery by Courier cos / Flipkart

Internal Delivery arm / Indian Postal Service /

DC personnel

Flipkart-Order Processing

Order Management

System

FlipkartGenerated

Barcode

Shipping & Tracking ID

Via courier companies / Flikart Self

Delivery

2 Wheeler / Small van / Postal

Service

3/23/2015 7Group-7

Purchases and Procurement

Inventory Levels

+

Rare Ordered Product

Direct Procurement From

Companies

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

Stocked in the warehouse and

Delivery Centers3/23/2015 8Group-7

Distribution Frame (in overall India)

25 Warehouses

500 Delivery Centers – previously it was 150, others newly

formed (aim to reduce the time of delivery)

Customer

order

Checked in

delivery centre

inventory

Delivery Time 1-2

DaysChecked in the

nearest warehouse

inventory

YES

NO

SUCCESS!!!

Sent to logistics body

Automatic inventory check

via Inventory

management system

Ordered to the company

Delivery time 6-15 Days

Delivery time 2-5 Days

YESYES

3/23/2015 9Group-7

Delivery & Logistics

Location of the productIs Identified

No. of order served Daily > 30,000

Customer productdelivery location

(Delivery cost-Free If ordered > 300 Rs.

Else Rs. 30 Extra)

Logistic body is assigned

Parameter = city, locality, Type Of product,Cost definition etc.

Automated Software Sends Information about the product Delivery to these logistics body

3/23/2015 10Group-7

3/23/2015 11

Snapdeal Overview

• Founder-Kunal Bahl

• Started - February 2010

• India’s largest online marketplace

• Coverage - 4000+ number of town & cities

• 6000+ featured brands

• 4,000,000+ listed products

• 500+ categories

• 20,000,000 registered users as for 2013

Group-7

3/23/2015Group-7 12

• Snapdeal is only the technology provider, for both sellers and buyers

• They do not maintain any inventory of their own

• Snapdeal’s business and platform model is anchored by an innovative

system that incorporates updates from both sellers and shoppers

• The Snapdeal.com platform enables sellers to list products for sale on

the site, manage inventory and make pricing changes in real-time

based on what is happening in the marketplace

Contd…

• Bluedart is the logistics partner for Snapdeal.com

3/23/2015 13

Bluedart Overview

• Started- In 1991 it begun its operations

• Coverage- 34,248 location(Domestic)

• Service more the 220 countries & territories

• Warehouse- 72 location across the country

• Deals in- Ecommerce,B2B and B2C initiatives

• ISO 9001 - 2008 countrywide certification by Lloyd's Register Quality Assurance for its entire operations, products and services

Group-7

• Blue Dart is south Asia’s leading integrated air express carrier and

premium logistics-service provider

• Though its sales alliance with DHL, the premier global brand name

is express distribution services

• In 2005 DHL acquired 81% of its stake

3/23/2015 14Group-7

3/23/2015 15

Transportation Size Type Ownership

Ekart 40 Delivery Vehicles 30 bikes and 10 Vans Self Owned

Blue Dart 102 Delivery Vehicles 44 Bikes, 26 Vans,32 Tempo

Company Owned

Comparison of Ekart and Buledart

Delivery Hub Surveyed – Okhla, New Delhi

Group-7

3/23/2015 16

Size No of Shipment Size of hub Location Storage

Ekart 1500-2000 18000 sqft LajpatNagar,Kalakaji, Jamia , Okhla

10000 units

Blue Dart 1000-2000(200-250/day of Snapdeal)

Avg order size /personal is 100-120

15000 sqft South Delhi 40-50 tons

Contd….

Group-7

3/23/2015 17

Workforce No of workers

Upstream Downstream Process Access

Ekart 80 5 60 Receiving- Sorting Pin Code- Routing-Scan- DRS- Delivery

12 hubs

4 Ware house

Blue Dart 100-120 - - Receiving- Sorting Pin Code- Routing-Scan- DRS- Delivery

20 hubs

12 Warehouse

Contd….

Group-7

3/23/2015 18Group-7

3/23/2015 19Group-7

3/23/2015Group-7 20