supply chain manangement

7/28/2019 supply chain manangement

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FLIPKART INDIA LIMITED


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Flipkart is an Indian e-commerce company founded by

Sachin and Binny Bansal, headquarteredin Bangalore, Karnataka .The company acts as a mediator

between sellers and customers and is regarded as the Amazon

of India.


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ABOUT FOUNDERS-:

Sachin Bansal

CEO and Co-founder

Sachin spent his early years in Chandigarh. He graduated from IIT-Delhiwith a degree in Computer Engineering. In 2006 he joined Amazon.com

in India which he later left to set-up Flipkart.

As CEO, Sachin oversees all the customer facing activities of thecompany ranging from technology to marketing. He is also in charge ofFlipkart's corporate divisions which include the finance and legal

departments.

An avid gaming enthusiast, Sachin likes to spend most of his free timewith his family


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Binny Bansal

COO and Co-founder

Born and raised in Chandigarh, Binny went on to get a degree inComputer Engineering from IIT Delhi. He had a brief stint at

Amazon before taking the entrepreneurial plunge with Flipkart. At Flipkart, Binny oversees all operational activities that come into

play from the time the customer places an order till the time ofdelivery. This spans across divisions like warehousing, logistics andcustomer support.

A big fan of Salman Rushdie as well as Stieg Larsson's 'Millennium'

series, Binny is also passionate about soccer and NBA. An activesportsman, he used to captain his school basketball and soccerteams.


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ABOUT THE COMPANY

Founded in 2007, by Sachin and Binny Bansal.

Flipkart -: Indian electronic commerce company headquartered

in Bangalore, Karnataka.

In its initial years, Flipkart focused on online sales of books but it later

expanded to electronic goods and a variety of other products

Currently has 11+ million titles of books and sells ~20 items per minute.

Other items include electronics, mobiles, Music, Games etc.

Ranks in top 30 websites in India-based on traffic rankings-8,000,000 visitsevery month and own delivery network in 27 cities.


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FUNDING OF FLIPKART: Initially funded by the Bansals themselves with 400,000,Flipkart has

since then raised funding from venture capital funds Accel India in 2009

and Tiger Global (US$10 million in 2010 and US$20 million in June

2011)


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LOCATIONS OF WAREHOUSES-: Bangalore, Karnataka

Chennai, Tamil Nadu

Delhi

Kolkata, West Bengal

Mumbai, Maharashtra

Noida, Uttar Pradesh

Pune, Maharashtra

Kochi, Kerala


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PRODUCTS Flipkart started with selling books. In 2010, they added to their catalogue

media (including music, movies and games) and mobile phones and

accessories.

In 2011, product launches included cameras, computers, pens & officesupplies, computer accessories, home and kitchen appliances, personal

care, health care, gaming consoles, audio players and televisions.

2012, product launches includes health & beauty products, Life styleproducts which includes watches, belts, bags & luggage


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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.

Building Infrastructure for Operations- The Company has 4 offices with

more than 500 employees. Warehouses of the company are located in 7

cities. 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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THE PROCESS OF SUPPLY CHAIN-:

Buying the products like books etc. online. Selecting mode of payment & making payments.

Enter the phone number and address where the items need to be delivered.

Purchased items are packed and shipped.

For delivering the items depending upon the area where the item need to bedelivered either courier, Indian post or own internal logistics arm is used.

The delivery time varies between less than 24 hours and 3 weeks depending onthe location and availability of the product.

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

For the local parts of the cities where the warehouses of the company existproducts are delivered using two-wheelers, bicycles.


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BUSINESS RESULT: Flipkart's reported sales were:

40 million in FY 20092010,

200 million in FY 20102011

750 million for FY 20112012.

In FY 20122013, Flipkart is set to cross the 5 billion (US$100 million)

mark as Internet usage in the country increases and people get

accustomed to making purchases online.On average, Flipkart sells nearly

20 products per minute and is aiming at generating a revenue of 50

billion (US$1 billion) by 2014.


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SCREEN SHOT-:


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HOW FLIPKART IS DIFFERENT

FROM OTHERS-:

Discoverability: They played well with the SEO thing. Eg-

Yahoo News

Different Modes of Payment:

CoD

Credit Card EMI and electronic wallet

30 day replacement guarantee

Expensive goods insured while in transit Order via phone and transaction via DD/Cheque


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CONTD

Maintains its own delivery status

Inventory

Delivery standards

In November 2011, Flipkart launched a new Electronic Wallet feature that

allows shoppers to purchase credit to their Flipkart account using credit

or debit cards, and can subsequently be utilised to make purchases on thesite, as and when required


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FLIPKARTS PROMOTIONAL STRATEGY-: Flipkart has been mostly marketed by word of mouth advertising.

Customer satisfaction has been their best marketing medium.

Flipkart very wisely used SEO (Search Engine Optimization) and Google

Ad-words as the marketing tools to have a far reach in the online world.

Flipkart.com official Facebook page has close to 9 lakh 'likes'.

Flipkart recently launched a series of 3 ads with the tag line - "NoKidding No worries". Kids were used to create the adverts to send out the

message - if a kid can do it, you can also do it.
http://www.mbaskool.com/business-articles/marketing/246-advertising-art-of-lying.htmlhttp://www.mbaskool.com/business-articles/marketing/246-advertising-art-of-lying.html


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EVOLUTION OF LOGOS-:


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SUGGESTIONS & RECOMMENDATIONS: The company has built a great brand name, they just have to

maintain and enhance the same.

It needs to keep introducing more products, adapting to the

changing needs of the customer with time. The entry ofAmazon.com in 2012 in the Indian e-commerce space has been

cited as a big challenge to Flipkart.

However I think that Flipkart is a respected Brand name in Indiaand should be able to compete with Amazon.


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CONCLUSION: India has 11 million online customers now which will increase to

30 million by 2015. The industry's size is expected to increase to$11.8 b. Seeing the prospects of growth a lot of new onlineretailers have come up and there is a price war going on to attractmore and more customers so it has become extremely importantto manage cost to increase profits which is only possible bybuilding an efficient nationwide delivery network, warehouses ,inventory management , logistics, efficient teams to manage allthis therefore supply chain management becomes an important

factor in this industry. Flipkart obtained funding from Tiger globalmanagement in 2010 which is being utilized by the company forstrengthening supply chain capacity and upgrading technologyplatforms, including automation at warehouses.


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SACHINS TIP FOR THE COMINGENTREPRENEURS

"Dont start out alone, it helps to have a co-founder when

things are not going your way. Perseverance and hard work is very important.

The core of any business is to earn money. You have not done your job well

until you find a stranger who is willing to open his/her wallet to give you

money for the services/products that you a offering. The next step after that

is to focus on scaling it up well."

Thank You..

supply chain manangement

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