Flipkart

Bhavik ThakkarKapil Makhija

Mehboob BhattiAniket KatdareSagar Sawant

•Flipkart functions•SCM of Flipkart

•Flipkart’s profitability

ITM SION BATCH-91

Introduction To Flipkart• Founder-Sachin Bansal (CEO Co-Founder) and Binny Bansal (COO Co-Founder)• Background- IIT Delhi and ex- Amazon• Year-2007• Investment-4 lacs ($9000)• Headquarters- Bangalore• Human Capital- 4500+ employees 2500+ developed on field in distribution & operations• Current Valuation- 1$ Billion• Revenue- 1180 crores (US 190$ million-2012-13)• Investors- Tiger Global, Accel Partners and South

Africa‘s Naspers• IPO Expected- In 1-3 Years

Product Portfolio• Books• Movies• Music• Games• Mobiles• Cameras• Computers• Healthcare and Personal Products• Home appliances and electronics• Stationary• Perfumes• Toys and many more…

Product Offering

• Wide Range of products

• Over 15 million products – still counting 11.5 million book titles• With visit to transaction conversion Rate of 6%

Ranking & Popularity

Website Ranking• India rank-12• World Rank-247 ( Source- Alexa.com) Popularity-0.538% of the total internet

users of the world have visited Flipkart.com

USER INTERFACE (UI) Graphical|Non-Graphical

EASY TO NAVIGATE | EASY TO SEARCHEASY TO COMPARE | EASY TO ORDER

Payment Options

STARTED BY FLIPKART STARTED BY FLIPKART

RECEIPT GENERATION

• ORDER NO.:OD203579542• THIS CONTAINS ALL INFORMATION I.e.., PRODUCT

CODE, DATE OF PURCHASE, REFERNCE NO., DELIVERY AREA CODE

• HELPFUL IN EASY TRACKING OF ORDERS

ONLINE TRACKING• ORDER NO:-OD203579542• FLIPKART LOGISTICS AGENCY• CUSTOMER ENTERS ORDER NO. , AND HE GETS

REAL TIME UPDATE OF THE SHIPMENT STATUS

AFTER SALES SERRVICE1. 30-DAY Money back guaranteeUnsatisfied Calls/Connects Product Customer with flipkart returned Replacement customer service by logistics or money is partners returned in the account2. E-WALLET Feature ( flipkart adds new dimensions to its operating cycle)Loyal Deposit Use it for furtherCustomer more money purchases

3. Reporting & Analytics On the basis of your past Schemes/ Discount/ Offers/ Behavioral purchase Recommendations are generated4. Reviews

First to review Certified Buyer

Purchases and Procurement

Inventory Levels +Rare Ordered Product

Direct Procurement From Companies

Stocked in the warehouse and Delivery Centers

Credit period=14-30 daysCredit Limits= varies with products

Distributors of these companies delivers the product in respective flipkart’s Ware house (as per requirement)

1.Weekly2.Monthly3.One-time4.Urgent

Pricing & Margins

8-35% On sale price of product

Parameter= Brand, Category margin, Premium margin, Volume, Cost of Delivery, Operating cost margin

High Margin Category

Toys, Watches, Beauty& Healthcare, luggage

Mid Margin Category

Books, TV, Home & Kitchen, Gaming, Belts,Bags

Low margin categoryMobiles & Cameras,Computer accessories

Distributor Frame in overall India

25 Warehouses -7 previously, other converted from delivery centre

60 Delivery Centers - 35 previously, others newly formed (aim to reduce the time of delivery)

Customer order

Checked in delivery centre

inventory

YES

Delivery Time 1-2 Days

SUCCESS!!!Sent to logistics body

NOChecked in the nearest warehouse inventory

Automatic inventory check via Inventory management system

Ordered to the company

YES

Delivery time 2-5 Days

YES

Delivery time 6-15 Days

NO

INVENTORY STOCKING

Delivery Centers

Ware house Stocking Levels

INVENTORY MANAGEMENT

SYSTEM

Threshold Forecasting

Product’s Inventory

Frequency Of Order Of The Product

Delivery & LogisticsNo. of order served Daily > 30,000

Location of the productIs Identified

Logistic body is assignedCustomer product delivery location (Delivery cost-Free If ordered > 300 Rs. Else Rs. 30 Extra)

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

Logistics

Priority

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

Customer Support

New Sale| Customer grievances| Other Info

24x7 Customer Support Toll free phone:- 1800 425 3547

email- cs@flipkart.com

How are their products less expensive than in retail shops?

Retail store (organized) Online store

Need a shop floor or chain of shop floor.

Managed by centralized warehouses .

Need skilled sales and management staff

Need customer service associates.

Need branding and displays No need for branding and displays of the product

Need to pay overheads such as electricity bill, telephone bill, stationeries etc at every store.

Comparatively less Expensive as overhead are born only for the dispatch centers

Need furniture and equipments which need maintenance at every store

Need few furniture and equipments which requires less maintenance cost

Product stocking strategy (to maximize the profit)

• Discontinued and old stock has been allotted more discounts and highlighted nicely.

• Mid priced ranged products are preferred in each category.

• Exclusive products are avoided.• Complex products which requires more

demonstration are kept less in stock. • Combo-offer

FLIPKART

DISTRIBUTOR LOGISTICS PRICING BPO

Flipkart distribution is getting designed in such way that , flip-kart can become official distributor of several company’s product future in India. Eg – Motorola/Google

Flipkart Logistics is getting designed in such way that, other e-commerce website can also outsource delivery to Flip-kart.

Flipkart Pricing getting designed in such way that, other e-commerce website can outsource delivery of several products through flipKart. (Motorola/Google,Casio)

Flipkart BPOgetting designed in such way that, other e-commerce website can outsource delivery of several products through flipchart

•Open loop for Value Added Service•Adding extra source of income

SnapShot

Special thanks to

• Mr. Agasti Mhatre (Employee of Jaipan)• Mr. Sanjay Chavan (Online Purchase Manager

of Jaipan)• Mr. Sunil (Ex employee of Flipkart)

Sources:-1. Google2. Flipkart.com