Applicability of supply_chain_management

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Contents
Executive Summary...................................................................................................................2
E-Commerce Business in India..................................................................................................4
Flipkart.......................................................................................................................................6
Supply Chain Management of Flipkart......................................................................................8
Company Structure.................................................................................................................8
Logistics.................................................................................................................................9
Reverse logistics / returns processing..................................................................................10
Procurement.........................................................................................................................11
Warehouse Management System.............................................................................................13
Inward Processing................................................................................................................13
Storage Management............................................................................................................14
Outward Processing.............................................................................................................14
Order Processing..................................................................................................................15
Order Fulfillment.................................................................................................................15
Inventory Management........................................................................................................17
Supplier Management..........................................................................................................17
Customer Support.................................................................................................................18
Conclusion................................................................................................................................20
References................................................................................................................................21

Executive Summary

The concept of e-commerce is downloading at a fairly rapid pace in the psyche of the Indian

consumer. In the metros, shortage of time is a big driver for online shopping. On the other

hand, accessibility to a variety of products makes audiences from smaller towns and cities opt

for the online route. Major retailers face challenges in stocking their stores adequately. Often,

customers are unable to purchase items of their choice, thus prompting them to resort to e-

retailers.

A quick overview of India's Internet penetration shows a user base of approximately 100

million. The Government's National Broadband Plan, pegged at $4.5 billion, proposed to

connect nearly 160 million additional Internet users by 2014. The spread, and subsequent

adoption of e-commerce, thus, only seems logical. With several reputed brick-and-mortar

retailers also offering online services, it seems natural the trend of shopping remotely will

scale up substantially. As there is competitive environment in this sector, online retailers try

to provide various services such as flexible payment methods, warranties for electronic goods

and free home delivery with very competitive prices.

Though a large market, because healthy competition companies face many challenges such as

small basket size and high customer acquisition cost. Another important challenge is

uneasiness of the manufacturers to be on board with e-commerce and selling their goods

below the prescribed MRP. As an online retail provider flipkart also faces all these

challenges.

In spite of all these challenges Flipkart has over 10 million customer base and has 100,000

average shipments per day. It is a strategy that has enabled them to gain lion’s share of the

online retail market. There are several specialized online retailers like myntra.com or

infibeam.com who specialized in apparel or consumer electronics respectively, whereas

Flipkart handles more than 25 categories of products. Increased number of categories

complicates the entire supply chain design and this is something that has been studied in this

report.

The company structure of Flipkart is has three broad categories. First is Product and

Technology which is the core team of the company, second is Business Development which is

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Contents Executive Summary 2 E-Commerce Business in India 4 Flipkart 6 Supply Chain Management of Flipkart 8 Company Structure 8 Logistics 9 Reverse logistics / returns processing 10 Procurement 11 Warehouse Management System 13 Inward Processing 13 Storage Management 14 Outward Processing 14 Order Processing 15 Order Fulfillment 15 Inventory Management 17 Supplier Management 17 Customer Support 18 Conclusion 20 References 21 Executive Summary The concept of e-commerce is downloading at a fairly rapid pace in the psyche of the Indian consumer. In the metros, shortage of time is a big driver for online shopping. On the other hand, accessibility to a variety of products makes audiences from smaller towns and cities opt for the online route. Major retailers face challenges in stocking their stores adequately. Often, customers are unable to purchase items of their choice, thus prompting them to resort to e-retailers. A quick overview of India's Internet penetration shows a user base of approximately 100 million. The Government's National Broadband Plan, pegged at $4.5 billion, proposed to connect nearly 160 million additional Internet users by 2014. The spread, and subsequent adoption of e-commerce, thus, only seems logical. With several reputed brick-and-mortar retailers also offering online services, it seems natural the trend of shopping remotely will scale up substantially. As there is competitive environment in this sector, online retailers try to provide various services ...
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