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SCM OF FLIPKART

Presented By: Mayank Singhal

(Management Trainee at GLBIMR)

22-11-2016

2WHAT IS SCM?

Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies.

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3FLIPKART

Flipkart is an electronic commerce company founded by Mr Sachin Bansal and Mr Binny Bansal and among India’s largest online retailers with reported sales of $12.5million. Flipkart initially started with selling books online but has diversified today into a generic e-commerce website, selling CDs/DVDs, mobile phones and electronics.

The mission of the organization is to provide a memorable online shopping experience to the customers so that they come back again and they use innovative services like 30 day replacement, Cash on Delivery, free shipping, EMI options mainly for electronics and on-time delivery.

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4SCM OF FLIPKART

The role of logistics in the successful functioning of an e-commerce venture is indispensable. All these innovative services will be ineffective if the products do not reach the customers on time.

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5CONT….

Here are some Best Practices of the Supply Chain of Flipkart:

Building the Suppliers base- The Company has established a network of more than 500 distributors and only stocks frequently ordered items. Items like the 'Long tail' are almost always sourced from suppliers in real time and as and when the customer places an order.

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6CONT…..

Building Infrastructure for Operations- The Company has 4 offices in 4 metros cities with more than 500 employees. Warehouses of the company are located in 7 cities including the metros. Company has tie-ups with more than 15 courier companies like Blue Dart, First Flight etc. to deliver their products and Indian post for areas where courier do not reach.

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7CONT….

The Process of Supply Chain- The first step in buying the products like books online from the Filpkart.com site by making payments using payments options like credit/debit card, cash-on-delivery, net banking, cheque/DD and money order and enter the phone number and address where the items need to be delivered.

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8USER INTERFACE

EASY TO NAVIGATE EASY TO SEARCH EASY TO COMPOSE EASY TO ORDER

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9PAYMENT METHODS

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10DISTRIBUTION FRAME

Consumer order

Checked in delivery centre inventory

Automatic Inventory check via Inventor Management System

Delivery time 1-2 days

No Check in the nearest warehouse

inventory

no yes

delivery time 2-5 days

Ordered to the company

Success!!!!! sent to logistics body

Yes

Delivery time 6-15 days22-11-2016

11RECEIPT GENERATION ONLINE TRACKING

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12Purchases and Procurement

Inventory Levels + Rare Ordered Product

Direct Procurement from CompaniesCredit Period– 15-30 Days

Stocked in the warehouse and Delivery centres

Distribution of these companies delivers the product in flipkart’s warehouse

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13CONT….

Depending on items purchased they are packed and shipped accordingly for example mobile phones and books are packed differently as per requirement and also all items have transit insurance against theft and damages that may be caused while they are in transit. Flipkart bears the cost of delivery and this make them give a reason/motivator for improving efficiency at every point of supply chain. This also makes them differentiate from their competitors.

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14CONT….

Now for delivering the items depending upon the area where the item need to be delivered either courier, Indian post or own internal logistics arm is used. The delivery time varies between less than 24 hours and 3 weeks depending on the location and availability of the product like the products which are imported take 3 weeks time to get delivered to the customers.

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15CONT….

The inter-city, trans-zone deliveries are made using air cargo. For satellite cities and others in close proximity, products are transported overnight by train or truck.

For the local parts of the cities where the warehouses of the company exist products are delivered using two-wheelers, bicycles, or on foot depending upon the proximity of the place and because of this many of the deliveries are made within a day of the order being made. All the Team Members have been trained to work efficiently to meet customer expectations.

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16USE OF INFORMATION SYSTEM

Use of Information system: The Company use sales to predict the inventory levels. The warehouses are split into multiple areas — inventory, packing, shipping and so on.

The stocks are replenished every 24-48 hours. In the Back End, Flipkart stores details of all the transactions that need to be carried out. They have an understanding with their associates for order tracking, reconciliation and MIS (Management Information Systems) reports.

The private courier companies in turn have their own ways of tracking every package. The customer is also updated about the status of his shipment via message, email or through the website. 22-11-

2016

17THANK YOU

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