2. WHAT IS SCM?
Supply chain management (SCM) is the
oversight of materials, information, and
finances as they move in a process from
supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain
management involves coordinating and
integrating these flows both within and
among companies.
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3. FLIPKART
Flipkart is an electronic commerce company founded by Mr Sachin Bansal and
Mr Binny Bansal and among India’s largest online retailers with reported sales
of $12.5million. Flipkart initially started with selling books online but has
diversified today into a generic e-commerce website, selling CDs/DVDs,
mobile phones and electronics.
The mission of the organization is to provide a memorable online shopping
experience to the customers so that they come back again and they use
innovative services like 30 day replacement, Cash on Delivery, free shipping,
EMI options mainly for electronics and on-time delivery.
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4. SCM OF FLIPKART
The role of logistics in the successful
functioning of an e-commerce
venture is indispensable. All these
innovative services will be ineffective
if the products do not reach the
customers on time.
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5. CONT….
Here are some Best 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. Items like the 'Long
tail' are almost always sourced from suppliers in real time
and as and when the customer places an order.
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6. CONT…..
Building Infrastructure for Operations-
The Company has 4 offices in 4 metros cities with
more than 500 employees. Warehouses of the
company are located in 7 cities including the metros.
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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7. CONT….
The Process of Supply Chain- The first step in
buying the products like books online from the
Filpkart.com site by making payments using
payments options like credit/debit card, cash-
on-delivery, net banking, cheque/DD and
money order and enter the phone number
and address where the items need to be
delivered.
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8. USER INTERFACE
EASY TO NAVIGATE
EASY TO SEARCH
EASY TO COMPOSE
EASY TO ORDER
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10. DISTRIBUTION FRAME
Consumer
order
Checked in
delivery
centre
inventory
Automatic Inventory check via Inventor
Management System
Delivery time 1-2 days
No Check in the
nearest warehouse
inventory
no yes
delivery time 2-5
days
Ordered to the company
Success!!!!!
sent to logistics body
Yes
Delivery time 6-15 days
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12. Purchases and Procurement
Inventory Levels
+
Rare Ordered Product
Direct Procurement from Companies
Credit Period– 15-30 Days
Stocked in the warehouse and Delivery centres
Distribution of these companies
delivers the product in flipkart’s
warehouse
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13. CONT….
Depending on items purchased they are packed and
shipped accordingly for example mobile phones and
books are packed differently as per requirement and
also all items have transit insurance against theft and
damages that may be caused while they are in
transit. Flipkart bears the cost of delivery and this
make them give a reason/motivator for improving
efficiency at every point of supply chain. This also
makes them differentiate from their competitors.
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14. CONT….
Now for delivering the items depending upon the
area where the item need to be delivered either
courier, Indian post or own internal logistics arm is
used. The delivery time varies between less than 24
hours and 3 weeks depending on the location and
availability of the product like the products which
are imported take 3 weeks time to get delivered to
the customers.
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15. CONT….
The inter-city, trans-zone deliveries are made using air cargo. For satellite cities
and others in close proximity, products are transported overnight by train or
truck.
For the local parts of the cities where the warehouses of the company exist
products are delivered using two-wheelers, bicycles, or on foot depending upon
the proximity of the place and because of this many of the deliveries are made
within a day of the order being made. All the Team Members have been trained
to work efficiently to meet customer expectations.
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16. USE OF INFORMATION SYSTEM
Use of Information system: The Company use sales to predict the inventory levels.
The warehouses are split into multiple areas — inventory, packing, shipping and
so on.
The stocks are replenished every 24-48 hours. In the Back End, Flipkart stores
details of all the transactions that need to be carried out. They have an
understanding with their associates for order tracking, reconciliation and MIS
(Management Information Systems) reports.
The private courier companies in turn have their own ways of tracking every
package. The customer is also updated about the status of his shipment via
message, email or through the website.
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