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Flipkart Functions - SCM of Flipkart - Flipkart's Profitability
Flipkart Functions - SCM of Flipkart - Flipkart's Profitability
Flipkart functions
SCM of Flipkart
Flipkarts profitability
Bhavik Thakkar
Kapil Makhija
ITM SION Mehboob Bhat
BATCH-91
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
Companies
Distributors of these companies
Credit period=14-30 days delivers the product in respective
Credit Limits= varies with products flipkarts Ware house (as per
requirement)
8-35%
On sale price of product
YES
Automatic inventory check NO
Delivery time 2-5 Days
via Inventory
management system
Ordered to the company YES
Delivery time 6-15 Days
INVENTORY STOCKING
INVENTORY
MANAGEMENT
SYSTEM
Products
Inventory
Delivery & Logistics
No. of order served Daily > 30,000
Customer product
Location of the Logistic body is assigned delivery location
product (Delivery cost-Free
Parameter = city, locality, Type Of product,
Is Identified Cost definition, inter-city agreement etc. If ordered > 300 Rs.
Else Rs. 30 Extra)
Logistics
Priority
email- cs@flipkart.com
How are their products less expensive than in
Retail store (organized) retail shops?
Online store
Need a shop floor or chain of shop Managed by centralized
floor. warehouses .
Need skilled sales and Need customer service associates.
management staff
Need branding and displays No need for branding and displays
of the product
Need to pay overheads such as Comparatively less Expensive as
electricity bill, telephone bill, overhead are born only for the
stationeries etc at every store. dispatch centers
Need furniture and equipments Need few furniture and
which need maintenance at every equipments which requires less
store 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
FLIPKART
Sources:-
1. Google
2. Flipkart.com