Enigmas Case 2020Contents taal a =a ta(Boic-) {ee Recent Trends - 03 Your Challenge - 05 Current Delivery Model - 06 Drone Specifications and costs - 07 Appendix - 08Setting the stage A i i Conver nce, as a retail concept, once meant providing a product or experience within a reasonable walk or drive, perhaps on the way home from work or ina town nearby. Maybe we could pick up that carton of milk we need in the morning, or a pint of ice cream for a late night sugar fix. Or perhaps, if the need were not too urgent, we could order online and expect a delivery within a few days. Today, Millennial and Gen-Z customers play by a different set of rules and expectations. Driven by technology and an on-demand culture, younger generations of consumers have grown up with media and services that are available at the push of a button, anytime and anyplace. You can call this the Amazon Effect or just what modern consumers expect from top-tier modern brands. Millennials generally prefer not getting in a car to pick something up if cost and product availability are equal. True convenience, in a digital landscape, means the products and services is available to come to you. So the definition of convenience has changed, and the expectations are that retailers must be willing to bring their product closer to this new consumer. That means fast home delivery at a good value.Understanding this shift in consumer behavior led to the idea for Taclo in 2012, when the founders realized that there was a huge gap in the food ordering and delivery space. Restaurants often faced manpower problems and their delivery personnel were also not trained to deliver food in time. Taclo started as a small setup in Bangalore in 2012, with a team of six delivery personnel and covering 20 restaurants. However, the idea soon became a huge hit among customers and restaurants alike. Taclo now has operations in 500+ cities and more than 2 lakh restaurants on its platform Today, Taclo is a leading food ordering and delivery startup in India. Taclo works by acting as a bridge between customers and restaurants. It utilizes an innovative technology platform that allows customers to order food from nearby restaurants and get it delivered at their doorstep. With Taclo, customers do not have to keep the contact numbers of various restaurants and eateries in their locality. Taclo works as a single point of contact for ordering food from all restaurants that may be there at a particular location. Taclo has its own team of delivery professionals who pickup orders from restaurants and deliver it at the customer's doorstep. This has made the task of ordering food a lot easier for customers. Restaurants also gain by getting more orders and avoiding costs and efforts associated with maintaining their own delivery personnel. e@ @ Taclo 200K EateriesRecent Trends Consumer appetite for food ordering is set to rise with Indias online food ordering market expected to grow at a compound annual growth rate of 25-30% to touch $7.5- $8 billion by 2022, up from $4 billion. Increased access to internet and changing customer lifestyle are the major reasons behind driving this wave. Taclo is the market leader and most loved food technology brand in India today. Two most important reason behind Taclo's explosive growth in the recent years are its obsession towards customer's needs and constant investment in technology to deliver the best user experience To increase presence, Taclo is also focusing on creating private brands in various cuisines. As a pilot, Taclo is planning to invest significantly towards the development of menu for these brands and building of high-tech kitchen facilities at various strategic locations in Bangalore. 7 0 % Currently, 70% of the orders are placed on the platform during the peak hours of lunch and dinner. In metro cities, high traffic during these peak hours limits the serviceability of restaurants to a few kilometers. To solve this issue and further improve Orders during peak customer experience, Taclo now intends to explore drone time enables delivery system for its on demand supply chain.‘Average monthly orders 8,000,000. 6,000,000. 4,000,000. 2,000,000. or a3. 201420152015 207.2011 2ZD 2022 @ Monthly Orders Revenue per order 70 65 60 % < 55 50 45 2013 2014 «2015-2016 «= 2017-2018. 2019-2020 2022 50 NPS vs Query Resolution Time NPS movement with Delivery Time . —— _ FAC 2 2 50 50 2 65 10 1 2 20 15 30 4506075 Minutes Minutes ‘© Net Promoter Score(NPS) @ Net Promoter Score(NPS)Your Challenge Design an efficient drone enabled delivery system TTR ALUM CAS TCH OCR a cred Cui Glare TH TCS) er] (cs RUC na aCe Design a rollout plan for the new systemincluding the investment schedule PUTER TDM CORUNA AC AM SETH ROME MSIT) EO UML ESTA MURS eee E NS Se CT AITTTIUM CUT (es Fach team need to submit a ppt (max 10 slides) and 1 supporting document if needed before midnight, 15th September 2020 ' Ifyou are taking any assumptions, please provide a logical explanation of how you | Cr RU ? TH CHUN ela CORA ree Ge lise OOO TORO ORM EU TUE RU Csr cn RE EMA EI CLE CPUC M URC RAR Oy CM URS UU LCR OM UI eo versatility of usage; the summary of the case and abstract. Innovation (20%): The judges are seeking innovative materials, not TE OST NUS IC MUL ema MHS Interaction with Mentor (10%): mentors will allocate some marks to teams basis their interaction with them. “ByDrone Specifications and Costs = Outdoor navigation Flying range : 7-8km. systems GPS& Visual Sensing Autonomous flight features INR 130K Cost per Drone INR 6.5K Maintenance Cost/month INR 13K Cost per battery 40 Km/hr Average Speed‘s ~ Appendix 4 ~ Ellen — Taclo commands one of the biggest fleet of delivery executives in India. A Taclo delivery executive earns INR 55 (inclusive of bonus) from a successful delivery on top of his fixed salary of INR 4000. A Delivery executive delivers 350 to 500 orders per month. City wise orders @ Bangalore 24% — Hyderabad 16% — Delhi NCR 12% @ Chennai 11% gj Mumbai 9% @ Kolkata 8% @ Pune 8% @ Other Cities 12%The attrition rate of delivery boys in very high across the industry. As a result, Taclo replaces ~10% of its delivery fleet every month. Due to high churn rate of the Delivery executives and high traffic, company is facing difficulties in serving orders during high demand hours. Taclo's algorithm is also designed in such a way that it automatically reduces the serviceability of a restaurant for closer distances if active orders per delivery executive increase drastically. 10% attrition every month rereereret reenenenet Following is the distribution of orders received by a typical restaurant as a function of customer distance from the restaurant. Distribution 40% 35% 20% 0% Distribution of orders in a week Tue Mitre} ane) ST 12% 12% 13% 13% 14% 17% 19% Order DistributionCuisine Consumptions North India Biryani Chinese Others Continental 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% @ Monthly Orders Complaints @ Missing Items 15% @ Quality Issue 18% f@ Quantity Issue 10% Wrong Delivery 13% @ Packaging Issues 19% Late Delivery 25% -10-J Enigmas