Integrated E-Commerce

Logistics Solution

Agenda

• E-Commerce and Home Delivery- Future of Retail• WebXpress Solutions for E-Commerce• WebXpress Home Delivery and E-commerce Cases• About WebXpress

Home Delivery- Future of Retail

Why share of E-Commerce Delivery will increase

• Consumer will CHOSE shopping channel of preference

• CHOICE, AVAILABILITY and PRICE will decide shopping habits- as compared to shopping experience

• As disposable time in nuclear family reduces due to work pressure, commute and family needs- shopping will be treated more as chore than recreation

• OFFICE DELIVERY will increase as time at home reduces due to 6 day work weeks and long commutes

• A number of small businesses will start buying MRO, Gift and Computing items online

• As attitudes changes, consumers will buy high value items, brands online

Emerging Markets- A Natural Market for E-Commerce

• CULTURE AND DEMOGRAPHY– Historical culture of local store delivering goods on demand– Dense population areas, thus smaller delivery distances in last mile– Vertical growth in most cities rather combined with sprawl– Urban population already 40%, slated to go up to 60% by 2025 across markets

• SLOW GROWTH OF ORAGNIZED RETAIL– Very high and growing real estate cost makes spread of organized retail very difficult– After 15 years, organized retails and retail chains less than 5% of retail sales in many markets– FDI in retail restricted/ not permitted, but allowed in logistics

• GENERATIONAL SHIFT– Internet users with PC access over 100mn and with Mobile based Internet access over 300 mn– Most users in age group of 16 to 25, as they become comfortable with home delivery- purchasing

will shift towards online

E-Commerce Delivery Economics

• In-person delivery possible due to availability of large number of Delivery Boys• Delivery boy costs Rs. 5000-8000 pm in metro and Rs. 4000-6000 in mini-metro• Each delivery boy can handle 15-20 deliveries a day, thus about 500 deliveries per month• Thus, cost of delivery in last mile Rs. 10 to 15, fuel + bike cost Rs. 5-8 per delivery- thus last

mile cost of Rs. 15 to 30 per delivery• Thus cost of delivery is 0.1% to 2% of cost of goods- based on type of goods

• Thus, home delivery is an attractive option for E-commerce as well as Brick and Mortar stores

• With better planning tools, technology and right product mix- Home Delivery costs can be improved without reducing service levels

E-Commerce Logistics Chain

Central/ Regional Warehouse

Vendor 1 Vendor n

Transshipment Hub

Vendor 2

Delivery Control Location

Delivery Control Location

Delivery Control Location

Delivery Cluster Delivery Cluster Delivery Cluster

Role of Logistics in E-Commerce

Last Mile Delivery Management• Reduce cost per delivery, maximize delivery per person• Improve Attempt to Delivery Ratio, reduce failed attempts

Market Place and Drop Shipment• Integrated logistics systems for inventory visibility• Direct shipment from vendor to customer

Visibility across Order Life cycle• Data Integration between varied systems of stake holders• Visibility across supply chain from warehouse to door delivery

Cash Management and Reverse Logistics• Cash Collection and deposit as well as repatriation• Managing customer returns, warranty execution, Return to origin

WebXpress E-Commerce Logistics Solution

Order Integration• Web-service based integration• Auto creation of CN against orders• Order validation and pin-code based

allocation

Warehouse Management• INBOUND- Arrival GRN to put away • OUTBOUND- Order execution and

pick run• INVENTORY- SKU level and location

level tracking

Outbound Operations• In-scan to verify orders• Manifest and Bagging• Web-service integration with

logistics partner

Delivery Operations• Bag as well as CN level in-scan• Delivery Run Creation and Zip based

Allocation, Biker management

Mobility Solution• Mobile based delivery update• Routing based on GPS and Pin-code• Customer Signature Capture

Track & Trace• Web Service to update customer

web site • Customer Portal for bulk tracking

WebXpress E-Commerce Solution Components

Reverse Logistics• Order cancellation, failed

delivery, customer refusal• RTO management • Warranty execution and reverse

pickup

COD Management• COD Collection and reco• Cash Deposit and Update• Collection Repatriation to

customers

Drop Shipment• Pin code based Order allocation

for vendor pick-up• Pickup confirmation and direct

shipment

Customer Contracts• Rate Contract based on Metro,

Zones, Weight slab • Automated Rate Application on

booking• Contract re-invoke

Billing• Auto bill generation and e-mail• Bill generation to collection

cycle

Vendor Payment• 3PL vendor bill processing• Freight Audit and Payment

WebXpress E-Commerce Solution Components Contd.

WebXpress E-Commerce Solution Architecture

WebXpress E-Commerce

Solution

Long Haul 3PL System

Drop Shipment Vendor System

Customer Order System

Mobile

Network

Integration with Stakeholders

Customer System

Booking Data

Status Update

Handover Data

Operation & Delivery

Consignment booking

LSP Handover

WebXpress Solution

3PL Systems

Track & TraceStatus Update

Mobile Solution for Home Delivery

Hand Held

Terminals

Windows CE

Windows Mobile

Tablets

Android & iOS

Android/ iOS

Mobile

Android 2.2, 4.0

Mobile

Network

GPRS

3G

Wi-Fi

Customer Application/

WebXpress Solution

WebXpress Mobile

Application Middleware

Mobile Solution Features

• Integrated with WebXpress Home Delivery Solution web application• Ability to capture POD and update delivery information• Integration possible with payment software and hardware• GPS Location capture • Voice and Video Recording• SMS Alert on delivery attempt and actual delivery

E-Commerce Solution Cases

WebXpress for E-Commerce Delivery

Customer Jabong.com

Profile • Founded by leading German E-commerce group Rocket Internet

• Focus on range of fashion items and accessories

WebXpress Solution E-Commerce Fulfilment Solution- 35000 deliveries per day

Solution Brief • WebXpress solution handle transportation and home delivery for Jabong customers across India

• Solution integrated with Navision ERP to get order data and delivery addresses

• WebXpress determines routing based in Pin code of delivery locations

• Bar code enables solution for accurate delivery control

• Mobile enabled solution for last mile delivery update

WebXpress for E-Commerce Fulfilment

Customer The Mobile Store

Profile • Leading player in Mobile distribution with over 700 stores

• Brick plus click model for e-commerce delivery

WebXpress Solution E-Commerce Fulfilment Solution- 300 deliveries per day

Solution Brief • WebXpress solution handles order integration to fulfilment

• Automatic order allocation to over 26 inventory points

• Integration with LSP for online track and trace status update

Multiple E-Commerce Customer handling for LSP

Customer DotZot E-Commerce

Profile • Dedicated E-Commerce venture of DTDC India

• Specialized E-Commerce delivery for leading E-Com companies

WebXpress Solution E-Commerce Order to Delivery Management for over 5000 orders per day

Solution Brief • WebXpress handles integration of orders with multiple e-commerce companies

• Order pickup, allocation, handover to LSP

• Delivery management and reverse logistics management

• Mobile based delivery update

WebXpress for Home Delivery

Customer Hypercity India

Profile • Leading retailer with over 12 stores measuring 1.2 mn SQFT

• Home delivery of consumer durables, home furniture and electronics

WebXpress Solution E-Commerce Home Delivery Solution- 500 deliveries per day

Solution Brief • WebXpress solution handle booking of home delivery to execution

• Integration with JDA WMS and ERP of Hypercity

• SMS based delivery update

• Returns and exchange management