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I wish to express sincere gratitude to Mr. Manoj Pant, Marketing Management

professor for giving me a great opportunity to visit Flipkart Wholesale which
gave a great insight into the functioning of a wholesale store.

I also wish to express my gratitude to Mr. Gagan Katiyar and Mr. Ajab Singh for
their encouragement and guidance in carrying out this industrial visit. I also
sincerely thank the officials and staff members of Flipkart Wholesale store who
rendered their help during our visit to their store.

I also thank the BIMTECH Institute for providing us a great opportunity for this
visit which was a great learning experience for me.

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 OBJECTIVE OF THE VISIT

This tour was organized so that we can the get the practical knowledge of the
working process of a wholesale store and how does a store sell it products
directly to other business. It was organized to understand the strategies used
by the store the attract its customers, promotion techniques used to launch a
new product, the margins of store.

The tour’s other objective was to give a better understanding of how a store
controls its inventory on such a large scale.

The tour was organized in a very practical way so that the students gets to the
know the ground realities of the working process of a store rather than just
the theoretical knowledge.

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 INTRODUCTION OF COMPANY

 WALMART: Walmart is an American Retailing store which was founded

in 1962 by Sam Walton. Walmart focused its target on the rural parts of
America which helped them in avoiding direct competition with giants
like Kmart and Sears. As it grew, Walmart started to develop new
retailing formats such as Wal-Mart Supercenters and Sam’s Club
discount Wearhouse. Focus on consumer attention like direct mail
advertising, cost control strategies like low cost improts helped Walmart
to capture American retailing market.

Doug McMillion is the CEO of Walmart as of 2021. Its headquarters is

situated in Bentonville, Arkansas. Walmart’s net worth in 2021 is $386
billion with a net income of $13.70 billion. It employs about 2300000
people throughout the world.

 FLIPKART: Flipkart is an Indian electronic commerce company which was

established in 2007 . It started with a primary goal of selling books
online. Soon it expanded its operations to electronics, lifestyle products,
groceries and home essentials. Today Flipkart has emerged one of the
biggest online stores competing with giant like Amazon.

Sachin Bansal and Binny Bansal are the founders and Kalyan
Krishnamurthy is the CEO of Flipkart. Its headquarters is situated in
Bangalore, Karnataka. Its net worth is valued at $36.7 billion with a
revenue of $6.1 billion. It employees about 30000 people.

WALMART- FLIPKART MERGE

In 2018 American giant Walmart wrapped up the acquisition Indian e-

commerce giant Flipkart. Walmart had to pay $16 billion for 77% share
in Flipkart. The deal shook up one of the most exciting and thriving e
commerce market in the world.

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 This deal has had a huge impact on e-commerce market in India. It
helped in raising the confidence on E commerce market in India.
Merging with Walmart helped Flipkart to leverage Walmart’s impressive
omnichannel skill and attain the comprehensive information about
supply chain.

It has also had many positive impacts on Indian Economy such as:

 Employment
 Low prices and more verity
 Collateral benefits
 Research and Benefits
 Employee Stock Option Plan
 Efficient Supply Chain
 Economic growth

PROBLEM IDENTIFICATION:
 Congested working place
 Lack of proper Covid prevention measures
 Messy working space
 Lack of specialist and skilled personnel
 Poor layout and space utilization
 Suboptimal picking

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 OBSERVATION AND KEY LEARNINGS

We visited a Flipkart wholesale on 25th September. It worked on B2b model of

retailing, i.e., they only work on business-to-business transaction.

Firstly, we were made aware of the meaning of what B2B model of business
means.
It is form of transactions where there are two or more businesses are involved.
This model involves various parties such as wholesaler and manufacturer, or a
retailer and wholesaler. It only involves deals between various business and
not any business and individual customer.

First step performed by the Flipkart store is in awarding.

Flipkart wholesale’s focus is performing B2B business but permission to shop
was provided to few specific customers who have a particular license which is
accepted by Flipkart wholesale. We were told that the store accepts 64
different types of licenses.

 The store was located over a location of approx. 54000 square feet
 Their sale area was about 32000 square feet

Types of companies that the store usually deals with:

 ONI- Office and Industries
 Resellers-These are usually Kirana stores and retail stores
 Horeca- Restaurants and hotel deals with Flipkart wholesale

Store sales figures varies from 80 lakhs to 1 crore per day according to the
manager of the store, although this is just the sales figure not the profit. Sales
usually rises during festive seasons such as Christmas and Diwali. During these

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days store sales figures rises to 2-3 crores per day. But the store also have to
match up the big challenge of holding proper inventory during those days.

We were also provided with other information about the store as well like:

 They were holding approximately 22 cr. sum of stock on the day we

visited. Although the amount keeps on changing on the daily basis.
 Sales teams oversees decisions related to catchment area. Its currently
located in Ghaziabad
 They don’t sell products whose cost of storage is high, and sales value is
low like fruits and vegetables.
 They have a separate cold store for dairy product with a temperature
ranging from 0 degrees to -5 Celsius.
 Frozen products are kept in a different store where temperature is set
between -18 degree Celsius to -25 degree Celsius

This store deals in 98 different types of products that are separated with their
own article number, category number, item code, category number and
subcategory number.
 Different stands are used for active items like detergents, soaps, etc.
 S- Seasonal items such as coolers
 O- One time use
 D- Deleted items
 C- Cancel items

Some of the best priced brand that the companies own are:

 Main Stays
 Right Buy
 Onn
 Members Mark

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  Great Value

This store earns its main profit by selling its topline products that are daily use
and basic such as groceries. Such type of products is sold in bulk. Other topline
product includes soaps, breads, shampoos and detergents. They make up the
80% of the total sale.

The other 20% of the sale compromises of bottom-line product such

refrigerators, washing machine, Ac and they are usually high-priced products.

Price of food items is reduced if the store is unable to sell it in 3 months so that
the customer comes out to buy it before it gets spoiled.

Non-food items get the similar treatment as well but it is applied after 6
months.

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 SUMMARY
After the visit I have come to know that a DC performs two activities that
are inbound and outbound. Under which various activities takes place
for smooth and efficient running of a DC. The visit helped us gain
knowledge of various logistics. We were given a practical experience of
the various inbound activities by Mr. Chetan Sharma, the manager of the
store.

And in end a Q&A session was held so that we can clear all our doubts.
Mr. Chetan answered all our quarries with utmost grace which gave us
clearer picture of the DC working process.

I will always be thankful for this wonderful opportunity provided by

Retail Management Program. This has helped me gain much more
appreciation for practical knowledge of the working of a store.

Saurav Sharma
21RM953

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Glossary

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