Flipkart

Flipkart functions
SCM of Flipkart
Flipkarts
profitability

ITM SION
BATCH-91

Bhavik Thakkar
Kapil Makhija
Mehboob Bhatti
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
Africas 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
( SourceAlexa.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
customer service
by logistics
partners

Replacement
or money is
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
Offers/
Behavioral purchase
generated
4. Reviews
First to review

Schemes/ Discount/
Recommendations are

Certified Buyer

Purchases and
Procurement
Inventory Levels
+
Rare Ordered Product

Direct Procurement From

Companies
Credit period=14-30
days
Credit Limits= varies with
products

1.Weekly
2.Monthly
3.One-time
4.Urgent

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

Stocked in the warehouse and

Delivery Centers

Pricing & Margins

835%
Parameter= Brand, Category
On sale price of

margin,
Premium margin, Volume, Cost
of Delivery, Operating cost
High margin
Margin
Mid Margin CategoryLow
Category
Books, TV, Home & Kitchen,margin
Gaming, Belts,
category
Toys, Watches, Beauty
product

& Healthcare, luggage

Bags

Mobiles & Cameras,

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!!!
Customer
order

Checked in
delivery
centre
inventory

Automatic
inventory check
via
Inventory
management
system

Sent to logistics bo
Delivery Time 12 Days
Checked in the
NO
nearest warehouse
inventory
YES
NO
Delivery time 2-5 Days

Ordered to the
company

YES

Delivery time 6-15 Days

INVENTORY STOCKING
Delivery
Centers

Ware
Frequency Of Order
house
Of The Product
Stocking
Levels Thresh
INVENTOR
Forecasting
old

Y
MANAGEM
ENT
SYSTEM
Products

Delivery & Logistics

No. of order served Daily >
30,000

Customer
Location of Logistic
the
body is assigned product
product
delivery
Parameter = city, locality, Type Of product,
Is Identified
Cost definition, inter-city agreement etc.
location
Logistics

Priorit
y

(Delivery costFree
If ordered > 300
Rs.
Else Rs. 30
Extra)

Automated Software Sends Information

about the product

Customer Support
New Sale| Customer grievances| Other
Info

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

How are their products less

Retail store
expensive
(organized)
than in
Online
retail
store
shops?
Need a shop floor or chain
of shop floor.
Need skilled sales and
management staff
Need branding and displays

Managed by centralized
warehouses .
Need customer service
associates.
No need for branding and
displays of the product
Need to pay overheads such Comparatively less
as electricity bill, telephone Expensive as overhead are
bill, stationeries etc at every born only for the dispatch
store.
centers
Need furniture and
Need few furniture and
equipments which need
equipments which requires
maintenance at every store 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

FLIPKAR
T
LOGISTICS
DISTRIBUTO
PRICING
R
Flipkart
Flipkart
Flipkart Pricing
distribution is
Logistics is
getting designed
getting designed getting
in such way that,
in such way
designed in
other ethat , flip-kart
such way that,
commerce
can become
other ewebsite can
official
commerce
outsource
distributor of
website can
delivery of
several
also outsource
several products
companys
delivery to Flipthrough flipKart.
Open
loop
Service
product
future
in for
kart. Value Added
(Motorola/Google,
India.
Eg
Casio)
Adding
extra
source
of
income
Motorola/Google

BPO
Flipkart BPO
getting designed
in such way that,
other ecommerce
website can
outsource
delivery of
several products
through flipchart

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