RETURNS RE-LABEL PROCESS STANDARDIZATION

AT EKART LOGISTICS, CHENNAI

By

ARAVINTHRAJ N
312217631020

Of

SSN COLLEGE OF ENGINEERING, KALAVAKKAM

A PROJECT REPORT
Submitted to the
FACULTY OF MANAGEMENT SCIENCES

in partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY CHENNAI 600 025

May, 2019
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BONAFIDE CERTIFICATE

Certified that the Project report titled Returns Re-label Process Standardization is the

bonafide work of Mr. ARAVINTHRAJ N(312217631020) who carried out the work under

my supervision. Certified further that to the best of my knowledge the work reported herein

does not form part of any other project report or dissertation on the basis of which a degree or

award was conferred on an earlier occasion on this or any other candidate.

Signature of Supervisor Signature of HOD

Submitted to Project Viva Voce held on ……………….

Internal Examiner External Examiner

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DECLARATION

I hereby declare that the project entitled RETURNS RE-LABEL PROCESS

STANDARDIZATION submitted for the M.B.A. Degree is my original work and the

dissertation has not formed the basis for the award of any degree, associate ship, fellowship

or any other similar titles.

Place:

Date:

Signature of the Student

ARAVINTHRAJ N
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ABSTRACT

Flipkart is one of the biggest ecommerce companies in India. The major motive of the
company is customer first they always wanted to satisfy their customers.

In this study titled ―RETURNS RE-LABEL PROCESS STANDARDIZATION‖,

the re-label process that is being carried on for the return shipments in Mother Hub Chennai
is being examined in order to find the causes for the shrinkages that is being happening in the
process and to find ways to improve the process. The study is descriptive research and the
primary data is being collected by conducting time study, secondary data is obtained from the
company database. Various tools like cause and effect diagram and process flow diagram are
being used to understand and analyze the existing process flow. Finding of the research
suggest that by making some changes in the process flow, the process can be made simpler
and we can cut down the cost of operation. Based on the findings suggestions are being made
to the Mother Hub Chennai to improve the process and cut down their operation cost.
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ACKNOWLEDGEMENTS

I express my sincere thanks to our honorable Dean, Prof. B. SRINIVASAN, for

inculcating in us a passion for excellence in all our activities including this project.

I also express my sincere thanks to Ms. ANJALI VERMA, HR, Flipkart India
Pvt. Ltd for providing me the opportunity to carry out the project work in Ekart Logistics.

I sincerely thank our Project coordinator, Dr. K. HARIHARANATH, for

providing the necessary guidelines, which have facilitated the completion of the project
on schedule.

I also would like to give my sincere thanks to my company guide Mr.

M.PREMKUMAR, Regional Manager, Mother Hub Chennai, for giving me support
and guidance throughout my project duration.

With extreme sense of gratitude, I express my sincere thanks to my internal

guide, Dr.Vani Haridasan for his guidance at every stage of the project and technical
advice for improving the depth of the research and source of great support throughout
the project.

I would like to extend my thanks to Mr. S.Murugan, Hub In-Charge, Mother

Hub, Chennai and other staffs at the Mother Hub Chennai for their continuous support
throughout the project.

I would like to acknowledge with thanks, the support received from the other
faculty members, family and friends, which has been quite helpful for the successful
completion of the project.
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TABEL OF CONTENTS

CHAPTER TITLE PAGE NO

DECLARATION ii
ABSTRACT iii
ACKNOWLEDGMENT iv
TABLE OF CONTENTS v
LIST OF TABLES viii
LIST OF FIGURES ix

1 INTRODUCTION 1
1.1 INDUSTRY PROFILE 1
1.1.1 INTRODUCTION 1
1.1.2 ECONOMIC BUSINESS MODEL 2
1.1.3 KEY FACTORS RESPONSIBLE FOR E- 3
COMMERCE BOOM
1.1.3.1INCREASE IN INTERNET PENETRATION 3
1.1.3.2 ROBUST ONLINE PAYMENT SYSTEM 4
1.1.3.3 INCREASE IN DISPOSABLE INCOME OF 4
HOUSEHOLDS
1.1.4 ONLINE RETAIL INDUSTRY 4
1.1.4.1 BUSINESS MODEL 5
1.1.4.1.1 MARKET PLACE MODEL 5
1.1.4.1.2 INVENTORY MODEL 6
1.1.4.1.3 INVENTORY LESS MODEL 7
1.1.4.2 RECENT TRENDS IN ECOMMERCE 7
INDUSTRY
1.1.4.2.1 MOBILE FRIENDLY WEBSITE AND APPS 7
1.1.4.2.2 MORE PERSONALIZATION 8
1.1.4.2.3 IMPACT OF SOCIAL COMMERCE 8
1.1.4.2.4 VIDEO BASED MARKETING 8
1.1.4.2.5 ALWAYS ON SHOPPING COME TO 9
REALITY
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CHAPTER TITLE PAGE NO

1.1.4.2.6 FASTER SERVICE 9
1.1.4.2.7 ONLINE STORYTELLING TO BOOST 9
SALES
1.1.4.2.8 INCREASING TRUST IN E-COMMERCE 9
COMPANIES
1.1.4.2.9 INVENTION OF NEW TECHNOLOGY 10
AND DEVICE
1.2 COMPANY PROFILE 10
1.2.1 VISION 10
1.2.2 MISSION 10
1.2.3 OVERVIEW 10
1.2.4 HISTORY 11
1.2.5 JOURNEY OF FLIPKART 12
1.2.6 SWOT ANALYSIS 12
1.2.6.1 STRENGTH 12
1.2.6.2 WEAKNESS 13
1.2.6.3 OPPORTUNITY 13
1.2.6.4 THREATS 14
1.2.7 ACHIEVEMENTS 14
1.2.8 ACQUISITIONS 14
1.2.9 COMPETITORS 15
1.2.10 WALMART ACQUISITION OF FLIPKART 15
1.3 INTRODUCTION TO THE TOPIC 17
1.3.1 RE-LABELING PROCESS 18
1.3.2 RE-LABELING PROCESS IMPROVEMENT 18
1.4 NEED FOR THE STUDY 18
1.5PROBELM STATEMENT 18
1.6 OBJECTIVE OF THE STUDY 19
1.6.1 PRIMARY OBJECTIVE 19
1.6.2 SECONDARY OBJECTIVES 19
1.7 SCOPE OF THE STUDY 19
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CHAPTER TITLE PAGE NO

2 LITERATURE SURVEY 20
3 RESEARCH METHODOLOGY 22
3.1 RESEARCH DESIGN 22
3.1.1 DESCRIPTIVE RESEARCH 22
3.2 DATA SOURCE 22
3.2.1 PRIMARY DATA 23
3.2.2 SECONDARY DATA 23
3.3 DATA ANALYSIS TOOL 23
3.3.1 CAUSE AND EFFECT DIAGRAM 23
3.3.2 PROCESS FLOW DIAGRAM 24
4 ANALYSIS AND INTERPRETATION
4.1 EXISTING PROCESS FLOW DIAGRAM 26
4.2 DMH SHIPMENT 27
4.3 MARKET PLACE SHIPMENT 28
4.4 3PL RTO SHIPMENT 30
4.5 3PL RVP SHIPMENT 32
4.6 PROCESSING TIME 34
4.7 ANALYSIS ON CYCLE TIME 35
4.8 CAUSE AND EFFECT DIAGRAM 36
4.9 PROCESSING TIME PER DAY 37
4.10 IMPROVED PROCESS FLOW 37
4.11 3PL RETURN ANALYSIS 39
5 CONCLUSION 42
5.1 SUMMARY OF FINDINGS 42
5.2 SUGGESTIONS 42
5.3 CONCLUSION 43
6 REFERENCE 44
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LIST OF TABLES

TABLE NO TITLE PAGE NO

1.1 TYPES OF REVENUE MODEL 3
4.1 PROCESSING TIME OF SHIPMENTS 34
4.2 STAGING AND CYCLE TIME 35
4.3 PROCESSING TIME PER DAY 37
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LIST OF FIGURES

FIGURE TITLE PAGE NO

NO
1.1 TYPES OF ECOMMERCE INDUSTRY 2
1.2 TYPES OF BUSINESS MODEL 5
1.3 JOURNEY OF FLIPKART 12
1.4 FLIPKART SUPPLY CHAIN 17
2.1 PROCESS FLOWCHART SYMBOLS 25
3.1 EXISITING PROCESS FLOW 26
3.2 DMH SHIPMENT FORWARD LABEL 27
3.3 DMH SHIPMENT RETURN LABEL 28
3.4 MP SHIPMENT FORWARD LABEL 29
3.5 MP SHIPMENT RETURN LABEL 30
3.6 FLO IN SCAN WINDOW 30
3.7 FLO NEW TRACKING ID CREATION 31
3.8 ERP WINDOW 31
3.9 ERP RELABEL PRINTING SCREEN 32
3.10 FLO INSCAN SCREEN 32
3.11 FLO WEIGHT UPDATE SCREEN 33
3.12 FLO OUT SCAN SCREEN 33
3.13 CAUSE AND EFFECT FOR RELABEL PROCESS 36
3.14 IMPROVED PROCESS FLOW 38
3.15 RTO STICKER 39
3.16 BLUEDART VEHICLE ARRIVAL TIME 39
3.17 DELHIVERY VEHICLE ARRIVAL TIME 40
3.18 DOTZOT VEHICLE ARRIVAL TIME 40
3.19 ECOM VEHICLE ARRIVAL TIME 41
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CHAPTER-1

INTRODUCTION

1.1 INDUSTRY PROFILE

1.1.1 Introduction

The Indian e-commerce industry has been on an upward growth trajectory and is expected
to surpass the US to become the second largest e-commerce market in the world by 2034.
The E-commerce market is expected to reach US$ 200 billion by 2027 from US$ 38.5 billion
in 2017. India's e-commerce market has the potential to grow more than four folds to US$
150 billion by 2022 supported by rising incomes and surge in internet users. Online shoppers
in India are expected to reach 120 million in 2018 and eventually 220 million by 2025.
Average online retail spending in India was US$ 224 per user in 2017. E-commerce and
consumer internet companies in India received more than US$ 7 billion in private equity and
venture capital in 2018. Online retail sales in India are expected to grow by 31 per cent to
touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall. Online
retail is expected to contribute 2.9 per cent of retail market in 2018. Much growth of the
industry has been triggered by increasing internet and smartphone penetration. Internet
penetration in India grew from just 4 per cent in 2007 to 34.42 per cent in 2017, registering a
CAGR of 24 per cent between 2007 and 2017. As of September 2018 overall internet
penetration in India was 42.87 per cent. The number of internet users in India is expected to
increase from 560.01 million as of September 2018 to 829 million by 2021. Internet
penetration in rural India is expected to grow as high as 45 per cent by 2021 compared to the
current rate of 21.76 per cent.

The e-commerce retail logistics market in India is estimated at US$ 1.35 billion in 2018 and
is expected to grow at a 36 per cent CAGR over the next five years. A young demographic
profile, rising internet penetration and relative better economic performance are the key
drivers of this sector. The Government of India's policies and regulatory frameworks such as
100 per cent foreign direct investment (FDI) in B2B e-commerce and 100 per cent FDI under
automatic route under the market place model of B2C e-commerce are expected to further
propel growth in the sectors. As of August 2018, the government is working on the second
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draft of e-commerce policy, incorporating inputs from various industry stakeholders. In

February 2019, the Government of India released the Draft National e-Commerce Policy
which encourages FDI in the marketplace model of e-commerce. Further, it states that the
FDI policy for e-commerce sector has been developed to ensure a level playing field for all
participants. According to the draft, a registered entity is needed for the e-commerce sites and
apps to operate in India.

There are many segments in e-commerce business. Those are online travel, Online retail,
Online Classifieds, Financial services and Digital Downloads. Out of these segments online
travel comprised 70% of the e-commerce market size. But gradually online retail is catching
up with online travel and both make up to 90% of total e-commerce market.

Figure1.1- Types of ecommerce Industry

1.1.2 E commerce Business Models

Companies in the E- commerce industry are using different kinds of unique business models
to attract customer and increase profitability. Players in online retail segment are following
one either marketplace model or inventory based model. Some have gone a step ahead and
are using a model which is a hybrid of both. E.g. Flipkart is using a hybrid model to serve its
customer. It has gone a step ahead and has invested in currier business (Ekart) which is a
vertical integration in its supply chain. This has increased its control over its supply chain and
has increased reliability of the delivery process.

Apart from this E-commerce companies use different revenue models to jack up their cash
flows. Some examples are given in the table below.
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Table1.1- Types of Revenue models

Revenue Model Company Segment

Advertising Yahoo Online search engine

Subscription based Gaana.com Digital Download

Transaction Fee e-Bay Online Marketplace

Sales Revenue Model Amazon Online Retail

1.1.3 Key Factors Responsible for E-commerce boom

In the last decade or so several factors have come together and created a perfect conducive
environment for the e-commerce to boom. Those are increase in internet penetration, increase
in smartphone penetration, robust online payment systems, and finally increase in disposable
income of households.

1.1.3.1 Increase in Internet penetration

In the last decade India has witnessed a surge in internet penetration. Internet user base has
increased from 5.5 million in 2000 to around 250 million in 2014. Similarly broadband
subscriber base has increased form a meager 51000 in 2001 to more than 100 million in 2014.
But the major boost to the e-commerce industry came after the proliferation of smartphones.
Now India has more than 200 million smartphone users with internet connection. The appeal
of smartphone is so much that an Indian company ―Myntra‖ decided to go app only.
Moreover the proliferation of 3G and 4G phones have made the internet more reliable and in
turn helped the e-commerce industry.
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1.1.3.2 Robust Online Payment System

The online payment system has evolved to be very efficient and reliable in the last five years.
It has cleared a major bottleneck for the e-commerce industry. Earlier the rate of online
payment failure was pretty high which kept customers away from online shopping. With the
increase in reliability of online payment system with multiple authentication layers,
customers are now turning towards e-commerce industry. To add to this the use of credit
cards and debit cards has grown over the years to a great extent. This has become a prime
factor fueling the growth of e-commerce because of its convenience.

1.1.3.3 Increase in Disposable income of Households

Disposable income of people in India is rising over the years. More and more households are
growing out of poverty and joining the work force. This has affected the demand in all the
sectors. Apart from this more and more are rural population is moving towards urban areas in
search of jobs. This has made life easy for the e-commerce players as urban customers are
easier to serve and bulk of demand comes from them. This is another factor adding to the
growth of e-commerce.

1.1.4 Online Retail Industry

This is the fastest growing e-commerce industry in India. The total retail industry is currently
valued at $530 billion and has grown at a CAGR of 15% in the last five years as per a KPMG
report. But it‘s mostly fragmented with unorganized sector forming the major part. As per the
same study there are 12 to 15 million retail outlets in India and constitutes 92% of total retail
market size. But the organized sector is growing at an impressive rate and is predicted to
touch $95 billion in 2019 from $15 billion in 2009. This gives a unique opportunity to
organized retail sectors like online retail as organized sector penetration is going to increase
further.
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Figure1.2 – Types of Business models

1.1.4.1 Business Models

Players in online retail sector typically follow one of the two models i.e. Vertical focused and
Multi-category players. Vertical focused players cater to a particular sector such as garments,
food, etc. For example Myntra.com only focuses on garments whereas Flipkart caters to
multiple categories of products. Another form of differentiation is Marketplace model Vs
Inventory led model. In the marketplace model the online retail website works as a channel
between sellers and buyers. On the other hand an inventory led model allows the online retail
store to keep stocks in warehouse and sell it themselves. Apart from this now most product
based companies are now selling their products through both online and offline channels. For
example Mahindra recently launched its online retail platform M2ALL where it plans to sell
all Mahindra products.

1.1.4.1.1 Marketplace Model

A Marketplace model is an online store where multiple vendors come together to sell their
products and services to make the profit. In another word, it is a type of eCommerce that
helps sellers and buyers to find each other online and hence they can interact. Amazon,
Flipkart, eBay, Snapdeal etc are the examples of Marketplaces.

The main feature of marketplace model is that it provides a platform for customers to interact
with a selected number of sellers. When a customer purchases a product from Flipkart, it
means he doesn‘t buy it from Flipkart. Actually, he is buying it from a registered seller in
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Flipkart. The product is not directly sold by Flipkart. Here, Flipkart is just a website platform
where a consumer meets a seller.

The Stocking of Product and Pricing is done by the respective sellers and not by the
eCommerce website. In this case, there are chances that customers will find different price
options and shipping options for the same products, depending upon the seller from whom
they choose to buy the product. Inventory, Stock management, Logistics etc are not involved
in this model.

Pros:

Marketplace finds many sellers who want to sell their products through its website.

Marketplaces don‘t need to stock products or even worry about maintaining the inventory.

Marketplace just has to bring more customers to its website and help them in making
transactions.

Cons:

The marketplace needs costs for day to day running and maintaining its website.

It needs to run the advertisements of the seller‘s products, which costs more.

Sometimes, Marketplace applies low transaction fee to the sellers, as a result, it bears a loss.

1.1.4.1.2 Inventory Model

In this model, Retailers or Company sources the products directly from Brands or Sellers and
then Stock these. There are no multiple sellers selling one product. The Seller is the e-
Commerce company and invoice is issued to the customers on the company‘s name.

This model is considered good if you have enough money to buy all the stuff at wholesale
price and then sell it forward according to your own set price. Yes, here you can earn a more
profit but still, you have to stock everything. BigBasket, YepMe, Jabong etc., are the
examples of an Inventory-led model.
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Pros:

More benefits because sellers are their own owners.

Sellers can stock more products and earn more profits.

All the products are in sellers inventory and they can manage these easily.

Cons:

The most important problem here is that sellers have to stock everything.

Sellers have to invest lots of money in buying products at a time.

Another cost is to maintain an Inventory which will incur the cost as well as rent, worker,
light etc.

1.1.4.1.3 Inventory-Less Model

Is it possible to run an e-Commerce business without an Inventory? Yes, it is possible

through Dropshipping Model of business. The best part of DropShipping model is that there
is no any type of restrictions for any particular country. In addition, one can manage this
business from anywhere and any part of the world.

DropShipping helps you to manage your online store without any hassle or tension of
managing the entire inventory. You just have to create an online store and display the
products you want to sell. After this whenever a customer orders from your store, you just
have to forward the order to the Drop Shipper. After this, they will pack and ship the product
to the customer directly. In this whole process, your role is only to showcase the product on
your online store and maintain a relationship with your customers.

1.1.4.2 Recent Trends in ecommerce industry

1.1.4.2.1 „Mobile Friendly‟ Website and App‟s

Now a day‘s large number of shoppers use smart phones, tablets and other mobile devices are
the main tools for accessing Internet or browsing E –commerce company website for their
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convince. In the recent few years we can see that majority of E- commerce sites will go
‗mobilefriendly‘ or ‗responsive design‘. If online stores capable of operating well on mobile
devices will get more visitors, customers , revenues and also save users time, effort and
money. Responsive design emphasizes a better user interface and viewing experience, with
easy reading and navigation enabled through resizing, panning, and scrolling. Today,
majority of the top E-commerce sites use responsive design, as mobile becomes the prevalent
platform for online shopping and E-commerce business.

1.1.4.2.2 More Personalization

Personalized product recommendations aid to customers discovers products and service more
quickly according to their choice. It is the powerful marketing tool that may help better and
long term customer relationships, exciting shopping experience, and also improve customers
order and the sales. Now a day‘s an increasing number of Ecommerce vendors will start
tapping into big data to deliver an extremely personalized shopping experience to visitors.

1.1.4.2.3. Impact of Social Commerce

Social commerce is a subset of electronic commerce that involves social media and online
media that support social interaction and assist to online buying and selling of products and
services. Social media may still only a small portion of total sales, but its impact is becoming
impossible to ignore. In social commerce the customer enters the e-store, make comparison,
makes questions and this communication helps select their products or services. Social
networking services that allow customer to share their experience with their friends, receive
their recommendations, reviews, advices and communication. In the recent years we can see
that social media plays most important role and boost sales and popularity of E-commerce
companies.

1.1.4.2.4 Video-Based Marketing

In the present era, video based marketing is inevitable or unavoidable in our shopping
experience. Product videos can have an incredible capability to increase sales by better
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helping people perceive their choice. Video will become a center part to convey product
details and also provided more information to the customers such as usage, comparison,
specifications, reviewers, product description etc. now videos are great way to deliver high
quality content, and it benefits E-commerce by leading to increasing orders and sales. In the
recent time more and more online stores will create and integrate videos on their sites.

1.1.4.2.5 “Always-On Shopping” Come To Reality

With the tremendous growth of communication, information technology and internet

‗Always-on shopping‘ come to the reality. It is the important feature of Ecommerce now
people are shopping wherever and whenever is convenient for them. This highlights how it
important it is for merchants to provide a flexible buying experience that adapts to their
customers buying habits and shoppers can use their time more efficiently.

1.1.4.2.6 Faster Service

E-commerce trends drive to constantly improve the customer experience. Now E-commerce
companies are trying to reduce the processing time of search, selection order, customer
service and delivery of products and service. E-commerce companies focus on improving the
overall customer experience and reducing friction wherever possible, to drive and support
sales. Delivery services are also improving, and customers can easily track their product at
any point of delivery.

1.1.4.2.7 Online Storytelling to Boost Sales

Storytelling is essential to any E-commerce business for great way of selling. In the present
time E-commerce vendors discover this truth, more of them will incorporate stories around
their products, by way of written text or videos, reviews and other suitable format on their
online stores. It boosts up sales and confidence in e-business.

1.1.4.2.8 Increasing Trust in E-Commerce Companies

In the context of E-commerce trust is as great factor as anything. In the Past few years
majority of the public looked upon equivocal about E-commerce business. Now the situation
is changing-E-commerce companies could build up trust between buyer and sellers,
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electronic payment system, better security mechanisms and delivery systems. It helps
increase in trust and sales of e-commerce companies.

1.1.4.2.9 Invention of New Technology, and Device

New technologies like Facial Recognition, Virtual Fitting Rooms, etc play most important
role in current E-commerce system. The modern device like Google Glass, I Watch and other
electronic devices help to ecommerce is greater access to consumers, easy like smart phones,
laptops etc. And also these devices will put the Internet within easy reach and customers can
rapid updates on price changes, promotions, and marketing incentives offered to more
consumers more of the time.

1.2 COMPANY PROFILE

1.2.1 Vision

The Vision of Flipkart is to become ―Amazon of India‖.

1.2.2 Mission

The mission of Flipkart is to ―provide their customers a memorable online shopping

experience‖.

1.2.3 Overview

Flipkart is one of India‘s leading e-commerce marketplaces. It was founded in October 2007
and its headquarters are in Bengaluru. It was founded by Sachin Bansal and Binny Bansal.
This online venture was initially started as an online bookstore and as the popularity of the
company grew, it expanded and diversified its operations.

It started selling other items such as music, movies, and mobile phones. As the revolution of
e-commerce gained momentum in India, Flipkart grew at an accelerated pace and added
several new product lines in its portfolio.

As of now, the company offers 80 million+ products spread across more than 80 categories
such as mobile phones & accessories, computers and accessories, laptops, books and e-books,
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home appliances, electronic goods, clothes and accessories, sports and fitness, baby care,
games and toys, jewelry, footwear, and the list goes on.

Flipkart has 100 million registered users and more than a million sellers on its electronic
commerce platform. To ensure prompt delivery to its customers, the company has invested in
setting up warehouses in 21 states.

This online platform attracts ten million page hits every day and around eight million
shipments are processed every month. Flipkart has also introduced its mobile application,
which has become quite popular, with 50 million+ app users. Flipkart is a billion dollar
company and its valuation in 2016 was INR 15,129 crore (US$2.3 billion). It is also fulfilling
its social responsibility by providing huge scale employments (employs more than 33,000
people).

1.2.4 History

Flipkart was originally started as an online book store in October 2007. To start
Flipkart, the founders Sachin Bansal and Binny Bansal left their jobs at Amazon and took a
huge risk to start a venture of their own. When the founders thought of starting Flipkart as a
company the market at that time was not so much vibrant and was not adapted to the e-
Commerce sector that much.

This means e-commerce in India was mostly non-existent at that time and there was no
certainty about its future. Still, the Bansals decided to take this risk and now it has turned out
to be a huge success.

One of the major problems that Flipkart tackled during its initial years was online
payments because at that time, people in India were averse to make online payments to a
virtual store, due to fear of frauds and loss of money.
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To deal with this issue, Flipkart launched its ‗Cash on Delivery‘ service, which helped
to build confidence among online buyers. It also made significant efforts to improve the
supply chain system, which helped the company to ensure timely delivery to its customers.

1.2.5 Journey of Flipkart

Figure 1.3 – Journey of Flipkart

1.2.6 SWOT Analysis

1.2.6.1 Strength

 India‘s Largest E-commerce Retailer: Flipkart is the India‘s largest E-commerce

company & had sold GMV (gross merchandising value) of $1 billion till now.
 Experienced founders: The Founders of Flipkart, Sachin & Binny bansal are Ex-
Amazon employees. Having prior experience in the E-commerce industry helped the
founders to work strategically and differentiate their business in a highly competitive
market.
 Acquisition: With its series of acquisitions like Letsbuy.co,, chakpak.com,
weread.com, Mine360 & the recent one Myntra in 2014 has helped the company to
expand in the E-commerce space & used the capabilities and existing resources of
acquired companies.
 High Brand recall: Flipkart has established itself as a renowned E-commerce
company in India through TV ads, online branding and through its presence on social
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media. Brand activities like the ―Big billion day‖ have really increased the brand
recall of the company.
 Own Payment gateway & Logistic arm: Having its own Logistics arm E-kart &
payment gateway Payzippy has helped the company to control its Expenses. Thereby
passing the benefits to the end customers.
 Exclusive & broad range of products: From having Exclusive rights to launch some
products like MotoG MotoX, Xiaomi Mi3 as well as personal designers segments in
garments category, has helped the company to differentiate and localize its offerings.

1.2.6.2 Weakness

 Limited Distribution channel reach: Although its logistics arm has kept cost‘s low, the
reach has been affected which is a weakness for Flipkart. Due to use of outsourcing,
Global giants like Amazon & eBay can deliver the product anywhere in the country.
However, Flipkart is still struggling in this field.
 Cost of Acquisition: Due to stiff competition in the market & low customer retention,
the cost of Acquisition is high because Flipkart acquires a lot of customers through
online advertising. As per Flipkart data, the company spends R.s 400/- on acquiring a
new customer on an average.
 Power in the hand of buyers: Since this industry is flooded with many players, buyers
have a lot of options to choose. Switching costs are also less for customers since they
can easily switch a service from one online retail company to another. Same products
will be displayed in several online retail websites. Product differentiation is almost
absent and the fight then begins on the basis of price only.

1.2.6.3 Opportunities

 Expansion of business: By targeting other emerging markets company can increase

their revenues as well as it can have Economies of scale.
 Expanding their Product categories: This will increase their customer base & at the
same time will reduce the cost of acquisition and customer switch.
 Changing mentality of Indian customers: With increasing numbers of customers
getting comfortable with online shopping & increase in numbers of Internet users in
India, there is huge potential in this Industry.
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 Supply chain: By optimizing their supply chain they can compete with the other
players & can manage the loosing sales on account of not making the product
available due to delivery constraints.
 Establishing in other developing economies: Like Amazon, Flipkart can slowly start
expanding out of India and establish operations in other countries as well which will
help improve revenues.

1.2.6.4 Threats

 Competition: Stiff competition from the global players like Amazon, eBay as well as
local player like Snapdeal, Tolexo and Shopclues who are continuously trying to eat
each other‘s market share.
 Government regulations on the issues related to FDI in multi branding retail has been
a big hurdle in the success of the E-commerce industry in India.

1.2.7 Achievements
The company created a record by selling 1 lakh books in a single day in 2013. Flipkart
crossed the 100 million mark in registered customers in 2016.

Flipkart achieved the Young Turk of the Year Award at CNBC TV 18‘s ―India Business
Leader Awards 2012‖.

1.2.8 Acquisitions
There is cut-throat competition in the e-commerce market and the biggest Rival of Flipkart is
Amazon. In the recent years, many mergers and acquisitions have been witnessed in the e-
commerce market and Flipkart has also made many acquisitions to expand its business and
boost its sales and earnings.

The major acquisitions made by Flipkart include Myntra, eBay India, PhonePe, Jabong,
Letsbuy(dot)com, WeRead, Mime360, chakpak(dot)com, Appiterate, FX Mart, and ngpay. It
has recently acquired its former competitor Snapdeal. It has acquired Snapdeal at a cost of $
950 million.
 15

1.2.9 Competitors

After acquiring Snapdeal the major competitive left against Flipkart is Amazon India. Still, it
is facing stiff competition from Amazon India because Amazon has really captured a larger
share of the market.

Amazon Company profile is betting big on India‘s e-commerce revolution and has recently
captured an investment of $5 billion in Amazon India. The company has already received
funds of $2 billion and $3 billion more are planned. Amazon India has been consistently
expanding its customer base, which has resulted in cut-throat competition for Flipkart.

1.2.10 Walmart Acquisition of Flipkart

Walmart has wrapped up Flipkart acquisition for $16 billion, a valuation of over $20 billion,
which makes it the world's biggest ecommerce deal. Walmart will own around 77 per cent of
the Bengaluru-based company in what is also being seen as the largest buyout for the US
firm.

The deal, which will see founder Sachin Bansal exit completely, will now pit US-based
giants Walmart and Amazon in the Indian market.
The deal is going to shake things up. The world's biggest retail deal will impact the whole
segment, the competitors and the consumers.

Walmart has for years tried to enter India but has remained confined to a 'cash-and-carry'
wholesale business amid tough restrictions on foreign investment. It currently operates 21
such stores in India.

Flipkart is being positioned as the arrowhead for Walmart to have another crack at the Indian
market, four years after it broke its joint venture with Bharti for a cash-and-carry business.
This time around, Walmart‘s choice in India is starkly different. While Flipkart has absorbed
billions of dollars of investor money to rapidly grow its business, its main bait has been deep
discounts. Walmart's investment would give Flipkart not just additional funds to fight
Amazon, but also arm it with a formidable ally with extensive experience in retailing,
logistics and supply chain management.
 16

Walmart has been engaged in a bruising battle with Amazon — in the US and elsewhere.
While its home turf is under threat from Amazon, which is pushing more and more people to
shop online and even buying old-school players like Whole Foods, Walmart has been
desperate to globalise its business and build its own technological arsenal. It has acquired
Jet.com, Shoebuy and Bonobos to beef up its tech muscle. The results have been mixed. In
China and Japan, it struggled to make a mark. Now, Flipkart‘s last steps as an independent
company may also be Walmart‘s first steps to redeem its India business.

Amazon closely trails Flipkart, which along with its fashion units controls nearly 40 per cent
of India's online retail market, according to estimates by researcher Forrester. Walmart's push
into e-commerce comes as Amazon has embraced offline retail, with an affiliate of the
Seattle-based company picking up a $27.6 million stake in Indian retailer Shopper's Stop Ltd.

War between an empowered Flipkart and Amazon will shrink the space for smaller players
because it will ensure that prices, quality and delivery remain highly competitive.

The battle between Amazon and Flipkart for leadership in the Indian market will grow more
intense with Walmart buying into Flipkart. Amazon has committed investments to the tune of
$5 billion for its operations in India. In a recent investor call, Amazon CFO Brian Olsavsky
said the company would continue to invest in India as it saw great progress with both sellers
and customers here.

The war between Flipkart and Amazon will not only create a vast infrastructure of supply
chain but also a large number of jobs.

India‘s total consumption is expected to rise to $3.6 trillion in 2027 from $1.3 trillion in
2016, according to industry data. The retail market is expected to hit $1.8 trillion from $650
billion in 2016. Of this, the biggest driver is expected to be food and grocery, pegged at $1.1
trillion in 2027 from $420 billion in 2016, which will drive a separate and similarly
substantial investment by Walmart in agriculture.
 17

Agriculture and infrastructure sectors will get a big boost due to competition between
Flipkart and Amazon. Farmers will benefit from increasing demand. It can also boost overall
consumer demand.

The American giant Walmart, with huge experience in a first-world economy, will
revolutionise Indian retail with low prices and a vast variety of consumer goods. Amazon's
fight-back will ensure that prices remain competitive.

1.3.INTRODUCTION TO THE TOPIC

The Project that is being carried is titled as ―Returns Re-label Process Standardization‖.
In Mother Hub Chennai the shipments from the various other Mother Hubs from other state
and the shipment from the Chennai Fulfillment Centre is being processed and it is being
sorted based on the Courier Operating Code (COC) and then it is being sent to the
respective Delivery Hubs (DH), finally it reaches the end customer.

Market Place

Fulfillment Centre Mother Hub Delivery Hub Customer

Chennai

Mother Hub
(Other State)

Figure 1.4 – Flipkart Supply Chain

The forward shipments which are being cancelled by the customer are called return
shipments. The return shipments are of two types,
1. Return to origin (RTO) – The shipment gets cancelled before it reaches the customer.
2. Reverse Pick Up (RVP) – The shipments which are returned after the seal is opened
by the customer.

These shipments need to be sent back to the origin from where it has been dispatched for
delivery. For this purpose the shipments will undergo the re-label process in the Mother Hub
(MH) Chennai. The shipment which gets RTO‘d at the Delivery Hub (DH) is already pasted
with the re-label in the DH itself.
 18

The shipments which undergo the re-label process in Mother Hub Chennai are those
which are being RTO‘d during processing at Mother Hub and those shipments which are
being returned by the third party logistics provider, these shipments are called as 3PL
Shipments.

The third party logistic (3PL) service providers used in Mother Hub Chennai are,
1. BlueDart
2. Delhivery
3. Ecom
4. DotZot

1.3.1. Re-labeling Process

The forward shipments which are being cancelled will be marked as RTO during the
Primary Sorting which is being done in the Primary Station. These shipments are then placed
in separate bin and taken to the re-labeling area where the shipments are being processed and
the return label is being printed on the returns shipments in order to dispatch the shipments to
their respective destination.
.
1.3.2. Re-labeling Process Improvement
The project is being carried on to improve the re-labeling process that is being carried
on in Mother Hub Chennai.

1.4.NEED FOR THE STUDY

At the Mother Hub the return shipments undergo a re-labeling process where the
shipments are being pasted with return label in order to send to its origin and during this
process mistakes happen which lead to shrinkages.
The purpose of this study is to understand the process thoroughly and identify the
issues which are happening in the process and to suggest ways to improve the process.

1.5.PROBLEM STATEMENT
The returned shipments which undergo the re-label process at Mother Hub Chennai is
not being handled properly by the operation executives which lead to shrinkage and finally
result in operational and functional breaches.
 19

1.6.OBJECTIVE OF THE STUDY

1.6.1. Primary Objective
The primary objective of the study is to reduce the shrinkages (Received Pending or loss)
that is happening due to the mistake or fault that is made during the re-labeling process.
1.6.2. Secondary Objectives
The secondary objectives of the project are,
 To determine the causes for the shrinkage.
 To determine ways to reduce the manpower required for the process.
 To determine some ways to improve the re-labeling process.

1.7.SCOPE OF THE STUDY

The scope of this study is confined to the 3PL and Market Place seller returns Re-label
process carried out in Mother Hub, Chennai.
 20

CHAPTER – 2

LITERATURE REVIEW

1. Zasadzien, Michal and Zarnavosky, Jozef (2018) in their study explains that increase
in the number of orders, the increasing quality requirements and the speed of order
preparation require implementation of new solutions and improvement of logistics
processes. Any disruption that occurs during execution of an order often leads to
customer dissatisfaction, as well as loss of his/her confidence. The article presents a case
study of the use of quality engineering methods and tools to improve the e-commerce
logistic process. This made it possible to identify and prioritize key issues, identify their
causes, and formulate improvement and prevention measures.

2. Dzubakova, Martina and Koptak, Michael (2017) in their study explains that the
article presents a concept of synergy between MTM (Methods Time Measurement) and
TWI (Training within the Industry) methods through a case study conducted on
elementary logistics processes. MTM brings optimization into logistics operations and
creates quality and efficiency standards. TWI provides the means of application of these
standards at work to drive improvement.
3. Bhaskar and Hari Lal (2018) explains in their study that business systems are made up
of processes. Processes are collection of activities of businesses that results in an output.
And when processes become old and inefficient and can't deliver results they must be
redesigned or replaced. Business process reengineering is a tool for transformation of
business process and unconstrained reshaping of all business processes. This study uses
case and critical literature analysis (CLA) to investigate and focus on the development of
business process reengineering (BPR) application concept and its outcome to the
industrial set-up.

4. Edward, David K, Edgell, Robert C and Richa Carlos C (1993) in their study explain
about the significance of standard operations and the requirements and benefits of the
successful implementation of Just-in-Time (JIT) manufacturing. The reason for this lies
in the way capacity is acquired in a traditional plant. Standard operations provide the
mechanism to balance operations and adjust the production rate to customer demand,
 21

thus avoiding overproduction, drive and provide a visual tool to track improvements in
productivity, quality, and responsiveness, and are used to communicate standard
procedures and ensure the job is always performed in the most efficient manner.
Implementation of standard operations requires a multi-skilled work force without
restrictions on flexibility. In order to implement standard operations, certain
commitments must be made to the work force to enlist their participation, first among
them is employment security. Work-force participation in the determination of work
methods is a tangible benefit from standard operations and a significant step toward total
employee involvement.
 22

CHAPTER – 3

RESEARCH METHODOLOGY

3.1. RESEARCH DESIGN

The research design refers to the overall strategy that one choose to integrate the
different components of the study in a coherent and logical way, thereby, ensuring one will
effectively address the research problem. It constitutes the blueprint for the collection,
measurement, and analysis of data. It defines the study type (descriptive, correlational, semi-
experimental, experimental, review, meta-analytic) and sub-type (e.g., descriptive-
longitudinal case study), research question, hypotheses, independent and dependent variables,
experimental design, and, if applicable, data collection methods and a statistical analysis
plan. A research design is a framework that has been created to find answers to research
questions.

3.1.1 Descriptive Research

Descriptive Research Design is being used to describe characteristics of a population
or phenomenon being studied. It does not answer questions about how/when/why the
characteristics occurred. Rather it addresses the ―what‖ question.
Descriptive Research Design is a scientific method which involves observing and
describing the behavior of a subject without influencing it in any way. The subject is being
observed in a completely natural and unchanged natural environment.
In this project Descriptive Research design is being used. The re-label process is
being carefully observed in the natural working environment in order to identify the area
where mistakes happen and improvement needs to be carried on. During this observation
quantitative data‘s like cycle time and processing time are being calculated.

3.2 DATA SOURCE

Data is one of the most important and vital aspect of any research studies. Researchers
conducted in different fields of study can be different in methodology but every research is
based on data which is analysed and interpreted to get information.
 23

3.2.1 PRIMARY DATA

Primary Data is the data which is being collected by the researcher from first hand
sources, using methods like surveys, interviews or experiments. It is being collected with the
research project in mind, directly from the primary source.
In this project the primary data is collected by conducting an experiment called Time
study, using which the processing time and cycle time of the shipments is being calculated
which is being used in the Analysis.

3.2.2 SECONDARY DATA

Secondary Data is the data which is being collected by someone who is other than the
researcher. Common sources of the secondary data are census, information collected by
government departments, organizational records and data that was originally collected for
other research purpose.

Secondary data analysis can save time that would otherwise be spent collecting data
and, particularly in the case of quantitative data, can provide larger and higher-
quality databases that would be unfeasible for any individual researcher to collect on their
own. In addition, analysts of social and economic change consider secondary data essential,
since it is impossible to conduct a new survey that can adequately capture past change and/or
developments. However, secondary data analysis can be less useful in marketing research, as
data may be outdated or inaccurate.

Secondary Data used in this project are organizational records named as Returns
Inbound Register and Seller Returns Drive, which gives details regarding the Vehicle arrival
time and the number of shipments that is being processed daily. These details are being used
in analysis to find a solution.

3.3 DATA ANALYSIS TOOL

3.3.1 CAUSE AND EFFECT DIAGRAM

A Cause-and-Effect Diagram is a tool that helps identify, sort, and display possible
causes of a specific problem or quality characteristic (Viewgraph 1). It graphically illustrates
 24

the relationship between a given outcome and all the factors that influence the outcome. This
type of diagram is sometimes called an "Ishikawa diagram" because it was invented by Kaoru
Ishikawa, or a "fishbone diagram" because of the way it looks.

Constructing a Cause-and-Effect Diagram can help your team when you need to
 Identify the possible root causes, the basic reasons, for a specific effect, problem, or
condition.
 Sort out and relate some of the interactions among the factors affecting a particular
process or effect.
 Analyse existing problems so that corrective action can be taken.

A Cause-and-Effect Diagram is a tool that is useful for identifying and organizing

the known or possible causes of quality, or the lack of it. The structure provided by the
diagram helps team members think in a very systematic way. Some of the benefits of
constructing a Cause-and-Effect Diagram are that it
 Helps determine the root causes of a problem or quality characteristic using a
structured approach.
 Encourages group participation and utilizes group knowledge of the process.
 Uses an orderly, easy-to-read format to diagram cause-and-effect relationships.
 Indicates possible causes of variation in a process.
 Increases knowledge of the process by helping everyone to learn more about the
factors at work and how they relate.
 Identifies areas where data should be collected for further study.

3.3.2 PROCESS FLOW DIAGRAM

A process flow chart is an instrument that visualises and analyses the various systems
and procedures (e.g. delivery of services, decision-making, funds allocation, accounting and
monitoring) within an organisation.

The flow chart analysis helps to identify the bottlenecks in the different processes
within the organisation. It identifies unnecessary involvement of people, loopholes in
decision making or unnecessary delays in the process. It assists to make the organisation
more efficient in its operations.
 25

The process flow chart helps to design new processes for the primary process,
support processes and supervisory processes, and helps to analyse the bottlenecks in existing
procedures. It is very useful to help participants understand the interrelation of the work
activities and to realise how the work of one person influences the others.

The basic symbols used in process flow chart is shown below in the diagram,

Figure 2.1 – Process Flow Chart Symbols

 26

CHAPTER -4

ANALYSIS AND INTERPRETATION

4.1 EXISTING PROCESS FLOW DIAGRAM

The process flow diagram for the re-label process of Market Place and DMH
shipment that is being carried out in the Mother Hub Chennai is being shown below,

Figure 3.1 – Existing Process Flow

The shipment will be processed in the Primary Station where the sorting being
carried on, during which the cancelled shipments will be marked as RTO which will be
 27

indicated as a popup message in the Hand Held Device (HHD), these shipments will be kept
on the separate trolley and once trolley is filled the shipments are taken to the re-label staging
area.

The shipments are being kept in the staging area and then the shipments are being
processed. There are various processing steps for DMH shipments, Market place Shipments,
3PL RTO and RVP shipments.

4.2 DMH SHIPMENTS:

For DMH Shipment the tracking ID is being Scanned and the ID is being pasted
in the ERP window in the track shipment tab. Then the Print Return label window will open,
we need to print the return label and paste the label on the shipment.

Figure 3.2 – DMH Shipment Forward Label

 28

Figure 3.3 – DMH shipment Return label

The data is being recorded in the Excel sheet for the future reference and the
shipment is being placed in the trolley and once the trolley is filled the trolley is being moved
to the staging area.

4.3 MARKET PLACE SHIPMENTS:

For DMH shipment the process is different than the DMH shipment,
1. When the shipment is being processed in primary station, after which when the shipment
gets RTO‘d then the processing done in the Re-label area for those shipments is same as the
DMH shipments.
 29

2.But when the shipment gets RTO‘d before processing in the primary station then the
processing is different, the shipments needs to be In scanned in FLO app under the Shipment
tab selecting the receive shipment option by entering the Tracking ID.

Figure 3.4 – MP shipment Forward label

 30

Figure 3.5 – MP shipment Return label

Then a new Tracking ID is created which is being copied and pasted in the ERP window
under the track shipment tab and the return label is being printed and pasted on the shipment.

4.4 3PL RTO SHIPMENTS:

The 3PL RTO shipments are being received from the 3PL vendors after proper
inspection and these shipments are being taken to the re-label staging area.

The process is same as that of the Market Place shipment. The shipments are In
scanned in FLO app under the Shipment tab selecting the receive shipment option by entering
the Vendor Tracking ID.

Figure 3.6 – FLO In Scan Window

 31

Figure 3.7 – FLO New tracking Id creation

Then a new Tracking ID is created which is being copied and pasted in the ERP
window under the track shipment tab and the return label is being printed and pasted on the
shipment.

Figure 3.8 – ERP window

 32

Figure 3.9 – ERP reliable printing screen

4.5 3PL RVP SHIPMENTS:

The processing of the 3PL RVP shipments takes long time, because there are various
steps in processing these shipments.

First the shipment is being In scanned in the FLO app under the Shipment tab by selecting the
receive shipment option by entering the Vendor Tracking ID.

Figure 3.10 – FLO In Scan Screen

 33

Then the weight of the shipment is being updated as these shipments are returned by the
customer after the seal is being opened, hence the weight of the shipment is being updated
under the shipping tab by selecting update weight in the FLO app.

Figure 3.11 – FLO weight update Screen

Then the shipment is being dispatched in the FLO app under the shipping tab by selecting the
dispatch shipment option and new tracking ID is generated.

Figure 3.12 – FLO Out Scan window

Then finally the new Tracking ID created is being copied and pasted in the ERP window
under the track shipment tab and the return label is being printed and pasted on the shipment.
Then finally the shipment is being kept in trolley, once the trolley is filled the trolley is kept
in the staging area for further processing.
 34

Then the shipments are being taken from the staging area to the Primary station where the
shipments are being processed further.

4.6 PROCESSING TIME:

From the observation that is being done to collect the primary data, the processing
time for these shipments by the operation executive is being calculated i.e. the time taken to
process one shipment by the operation executive.

It is observed that the processing time of the 3PL RVP shipment is higher
(i.e.30sec for one shipment) then followed by the 3PL RTO shipments (15-20 sec per
shipment) and then MP shipment and then finally DMH shipment.

Table 4.1 - Processing Time of Shipments

Processing time

Type Shipment Processed per min Time for processing 1 Shipment

3PL- RTO 3 or 4 15 - 20 secs

3PL – RVP 2 30 secs

MP 3 or 4 15 - 20 secs

DMH 5 or 6 10 - 12 secs
 35

4.7 ANALYSIS ON CYCLE TIME:

From the observation that is being done to collect the primary data, the cycle time for
the shipment that is being processed is calculated. The observation led to the result that the
overall cycle time of the shipment is 6 hours 28 minutes of which the staging time is 6 hours.

The staging of the shipment for long duration lead to the accumulation of more
number of shipments in the staging area which lead to the shrinkages, as the forward
shipment which come for re-labelling as it is not scanned properly will mix up the return
shipments in staging area and it will not be connected in respective cutoff time leading to
functional breache
Table 4.2 – Staging and Cycle Time

STAGGING AND CYCLE TIME

Time
Time Total
Total Reachin
when Stagin Time- Time- Time
Stagi processi g
S.N Shipment ID Mark g Relabeli Relabeli Take Avera
ng ng primary
O ed as (Befor ng ng n ge
After time(mi after
RTO e) started finished (min
ns) Relabeli
s)
ng
FMPC0476717
1 12:18 01:42 14:00 14:30 03:35 00:30 18:05 347 388
610
FMPC0476409
2 11:52 02:18 14:10 14:45 03:20 00:35 18:05 373 388
972
FMPC0477123
3 10:39 03:51 14:30 14:55 03:15 00:25 18:10 451 388
012
FMPC0477007
4 10:32 04:18 14:50 15:05 03:05 00:15 18:10 458 388
291
FMPC0477199
5 11:44 03:16 15:00 15:20 03:00 00:20 18:20 396 388
509
FMPC0476210
6 13:20 02:00 15:20 15:40 02:40 00:20 18:20 300 388
791
Avera
02:54 Average 03:09
ge Total 2325

Average processing
time = 24 secs
Average Total Staging
Time = 363 mins
Average Total Time
Taken = 388
 36

4.8 CAUSE AND EFFECT DIAGRAM:

Cause and effect diagram graphically illustrates the relationship between a given
outcome and all the factors that influence the outcome.

In this project we need to identify the causes for the shrinkages and breached that are
happening in the re-label processing area. From the cause and effect diagram the cause for the
shrinkage in the re-label area is categorised as Man, Machine, Method and Environment.

Figure 3.13 – Cause and Effect for re-label process

From all the causes it is observed that the Man is the major cause which influence the
shrinkage of shipments in the re-label process.
 37

4.9 PROCESSING TIME PER DAY:

The total shipments processed per day for 3 Month data is being collected from the
organisations data record i.e. the seller return details drive. These data is being analysed to
identify on an average how many MP and DMH shipments are being processed per day.

Table 4.3 – Processing Time Per Day

MP Shipment DMH Shipment

Average shipment Processed per

day 149 671

Processing time Per

shipment(Seconds) 24 12

Total Time spent per Day 1 hour 2 hour 14 minutes

From the calculation it is observed that the total time spent on processing the MP and
the DMH shipment is 3 hours 14 minutes per day on an average.

4.10 IMPROVED PROCESS FLOW:

The process can be improved by making some changes in the process, which is being
shown in the process flow chart below.
 38

Figure 3.14 – Improved process Flow

The MP and DMH shipment get retuned in the same tracking ID, in the old process
the mapping gets changed when the shipment is being printed with the return label. But in the
improved process flow the mapping will get changed when the shipment is being scanned
second time in the primary.

The first time when we scan the RTO shipment it will popup RTO shipment scan to
change mapping. On Scanning the Second time the Mapping gets changed to the return origin
then the shipment will be pasted with the return sticker in order to differentiate with the
forward shipments and the shipment placed in the respective station bins.

The return shipment processed in the primary station is pasted with the different
sticker mentioned as RTO to differentiate the return shipment from the forward shipment.
 39

Figure 3.15 – RTO Sticker

These mapping can be changed by requesting the design team to change the
processing design. By doing this the 3hours 14 minutes of the labour time per day used in
processing the MP and the DMH shipment is being saved.

4.11 3PL RETURNS ANALYSIS:

The 3PL shipments are being returned to the Mother Hub Chennai by the 3PL
vendors at their respective cutoff time. From the secondary data that is being obtained from
the Return In-Bound Register, the vehicle arrival time for the 3PL vendors is being analyzed.
At present 6 operation executives work in 3 shifts in the 3PL return area for collecting the
return shipments after proper inspection.

BLUE DART
14:24:00

12:00:00
Vehicle IN Time

09:36:00

07:12:00
BLUE DART
04:48:00

02:24:00

00:00:00
1 3 5 7 9 11 13 15 17 19 21 23 25 27

Figure 3.16 – BlueDart Vehicel arrival time

 40

DELHIVERY
11:16:48
11:09:36
11:02:24
10:55:12
Vehicle In Time

10:48:00
10:40:48
10:33:36 DELHIVERY
10:26:24
10:19:12
10:12:00
10:04:48
09:57:36
1 3 5 7 9 11 13 15 17 19 21 23 25 27

Figure 3.17 – Delhivery Vehicle arrival Time

DOTZOT
16:48:00

14:24:00

12:00:00
Vehicle IN Time

09:36:00

07:12:00 DOTZOT

04:48:00

02:24:00

00:00:00
1 3 5 7 9 11 13 15 17 19 21 23 25 27

Figure 3.18 – DotZot Vehicle arrival Time

 41

ECOM
16:48:00

14:24:00
Vehicle InTime 12:00:00

09:36:00

07:12:00 ECOM

04:48:00

02:24:00

00:00:00
1 3 5 7 9 11 13 15 17 19 21 23 25 27

Figure 3.19 – Ecom Vehicle arrival Time

The graph shows the vehicle arrival time for the 3PL return shipments, it is observed
that the return time for the shipment is between 10 AM to 5 PM. On analyzing this data we
can suggest some ways to deploy manpower as per the requirement at the proper time thereby
cost of manpower is reduced.
 42

CHAPTER – 5

CONCLUSION

5.1 Summary of Findings

F1 - The major cause for the shrinkage to happen is due to human error, mistakes happen in
the relabeling area due to the fault of operation executives which lead to pasting of the wrong
re-label on the shipments.

F2 - The processing time for MP and the DMH shipment is less and these shipments are
being mapped to return address on the same forward tracking ID, processing of the 3PL
shipments takes more time.

F3 - For MP and DMH shipments the staging time is 6 hours of the overall cycle time of 6
hours 30 min, leading to the accumulation of huge number of shipments in the re-label area
resulting in the forward shipment getting mixed with the return shipments. As a result the
forward shipments are not being properly connected on their respective cut off time.

F4 - The average time spent by an operation executive per day in processing the MP and the
DMH shipment is 3 – 4 hours.

F5 - The 3PL return shipments are being returned by the 3PL vendors at the Mother Hub
Chennai between 10 AM to 5PM regularly.

5.2 SUGGESTIONS

 By implementing the improved process flow, the relabeling process for the MP and DMH
shipment can be eliminated and this process can be carried down in the primary station
itself, this will eliminate the human error that is being caused by the operation executive in
the relabeling area and will reduce the shrinkages.
 43

 This will save the 3 - 4 working hours of operation executives per day in processing the
MP and DMH shipments and thereby the accumulation of these shipments in the staging
area is being reduced, thereby reduction in the shrinkages.
 The return MP and DMH shipment processed in the primary station in improved process
flow is pasted with a sticker mentioning RTO as these shipments need to be differentiated
from the forward shipments.
 As the 3PL return timing is between 10 AM to 5 PM, we can deploy 4 operation
executives in two shifts to process these shipments. This will eliminate the necessity of
two operations executive being used for relabeling process in morning shift, thereby
reduction in manpower which can be utilized for other operations.

5.3 CONCLUSION

From the above study, the causes for the shrinkage happening during the re-labeling
process at Mother Hub Chennai is being thoroughly examined which is leading to the
breaches in operation. It is observed that the human error is the major cause for the
shrinkages and by implementing the new process flow the shrinkages can be drastically
reduced and the labor hour is also saved. From the study the manpower used for the
relabeling process is also reduced based upon the requirement. By implementing these the re-
label process carried out in Mother Hub Chennai can be improved.
 44

CHAPTER – 6

REFERENCE

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