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Flipkart

•Flipkart functions
•SCM of Flipkart
•Flipkart’s profitability
Bhavik Thakkar
Kapil Makhija
ITM SION Mehboob Bhatti

BATCH-91 Aniket Katdare


Sagar Sawant
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 SEARCH


EASY 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 SERRVICE
1. 30-DAY Money back guarantee
Unsatisfied Calls/Connects Product
Customer with flipkart returned Replacement
customer service by logistics or money is
partners returned in the
account
2. E-WALLET Feature ( flipkart adds new dimensions to its operating cycle)
Loyal Deposit Use it for further
Customer more money purchases

3. Reporting & Analytics


On the basis of your past Schemes/ Discount/ Offers/
Behavioral purchase Recommendations are generated
4. Reviews
First to review Certified Buyer
Purchases and Procurement
Inventory Levels
+
Rare Ordered Product 1.Weekly
2.Monthly
3.One-time
Direct Procurement From 4.Urgent

Companies
Distributors of these companies
Credit period=14-30 days delivers the product in respective
Credit Limits= varies with products flipkart’s Ware house (as per
requirement)

Stocked in the warehouse and


Delivery Centers
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 Mid Margin Category Low margin


Toys, Watches, Beauty Books, TV, Home & Kitchen, category
& Healthcare, luggage Gaming, Belts, Mobiles & Cameras,
Bags 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) YES SUCCESS!!!
Sent to logistics body
Customer Checked in Delivery Time 1-2 Days
order delivery centre
inventory Checked in the
NO
nearest warehouse
inventory

YES
Automatic inventory check NO
Delivery time 2-5 Days
via Inventory
management system
Ordered to the company YES
Delivery time 6-15 Days
INVENTORY STOCKING

Delivery Ware house Frequency Of Order


Centers Stocking Of The Product
Levels
Threshold Forecasting

INVENTORY
MANAGEMENT
SYSTEM

Product’s
Inventory
Delivery & Logistics
No. of order served Daily > 30,000

Customer product
Location of the Logistic body is assigned delivery location
product (Delivery cost-Free
Parameter = city, locality, Type Of product,
Is Identified Cost definition, inter-city agreement etc. If ordered > 300 Rs.
Else Rs. 30 Extra)

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
Retail store (organized) shops?
Online store
Need a shop floor or chain of shop Managed by centralized
floor. warehouses .
Need skilled sales and Need customer service associates.
management staff
Need branding and displays No need for branding and displays
of the product
Need to pay overheads such as Comparatively less Expensive as
electricity bill, telephone bill, overhead are born only for the
stationeries etc at every store. dispatch centers

Need furniture and equipments Need few furniture and


which need maintenance at every equipments which requires less
store 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 Flipkart Logistics is Flipkart Pricing getting Flipkart BPO


is getting designed getting designed in designed in such way getting designed in
in such way that , such way that, that, other e- such way that, other
flip-kart can become other e-commerce commerce website e-commerce website
official distributor of website can also can outsource can outsource
several company’s outsource delivery delivery of several delivery of several
product future in to Flip-kart. products through products through
India. Eg – flipKart. flipchart
Motorola/Google (Motorola/Google,Cas
io)
•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. Google
2. Flipkart.com