Flipkart Supply Chain Management Case Study
Supply chain management is one of the crucial factors for e-commerce business organization. A company with effective supply chain management strategies can easily boost up the sales and profit rates of their business.
Flipkart is a renowned Indian Ecommerce website which recently made a deal with Walmart India. The company is taking strong steps to improve its logistics and technological implications.
Inventory management includes a series of essential tasks, like tracking and auditing inventory, reordering stock, and making sure that it’s stored in the right location. These techniques can help you save time and money while minimizing waste.
Managing the amount of inventory that your business keeps in storage is key to reducing risk and improving cash flow. You can do this by using a system to track sales trends and order replenishments according to a predetermined formula. This will prevent inventory levels from dropping too low and ensure that you’re always selling products customers want.
Other inventory management techniques include identifying low-turn stock and using different strategies to get rid of it, such as offering discounts on slow-selling items. In addition, you should also periodically perform a physical inventory to verify that the actual amount of stock on hand matches what your computerized system reports.
To manage its inventory, Flipkart has warehouses in major cities and smaller regional distribution centers. It uses sales data to predict the number of units that will need to be shipped and then places orders for the needed raw materials and components. It then stores the finished goods in the warehouses. Afterwards, it ships the orders to customers via courier companies or, in some cases, uses India Post for areas that can’t be served by either. The company has a returns policy that offers buyers a full refund or replacement in case of damaged or incorrectly shipped items.
Managing Order Fulfilment
Flipkart’s ecommerce supply chain management processes are very complex. They deal with a large number of variables that impact the bottom line such as prices, inventory, orders and logistics. This is why it is important for retailers to choose the right eCommerce fulfillment partner.
Retailers that opt for Flipkart Fulfillment can enjoy all the benefits offered by the online marketplace including a warehouse network, customer service and reverse logistics. However, they are limited in their ability to use the platform for other selling channels as they will have to integrate multiple accounts with Flipkart.
Fulfilling orders for customers on a large scale takes up a significant amount of storage space and requires efficient workflows between the warehousing and shipping processes. Sellers can either opt for using a third-party 3PL fulfillment company like WareIQ or fulfill Flipkart orders themselves. Both approaches have their advantages and drawbacks.
With WareIQ, sellers have access to a wide network of warehousing and fulfillment centers across the country. These facilities are strategically located based on the demand for certain products. For example, electronics are stored in warehouses close to areas with high demand.
The company also ensures that all products are inspected rigorously to mitigate any potential quality issues and reduce any returns due to faulty goods. The warehousing and distribution networks are supported by an array of delivery companies and Indian Post for areas where couriers cannot reach.
For companies that rely on ecommerce to drive revenue, effective reverse logistics is a key to profitability. Reverse logistics involves the process of shipping products back to the manufacturer, distributor or retailer after the customer has taken possession of them. Reverse supply chain management aims to minimize costs, reduce product waste and optimize the flow of goods to and from the warehouse.
Reverse logistics can be a complex business, especially when it comes to ecommerce fulfillment. Consumers are hesitant to buy new products online without seeing them or touching them first, so return policies are a common part of ecommerce fulfillment processes. Many e-retailers offer 30 day return policies while others, such as footwear giant Zappos, have 365 days of returns.
Optimizing reverse logistics can also save a company money by reducing inventory holdings and costly product losses due to overstocking. This can be achieved through accurate inventory forecasting and improved supplier relationships that improve transparency for each stocked item.
Companies can also reduce unnecessary costs and product waste through reverse logistics initiatives such as reselling, repairing, repackaging and recycling. These initiatives can benefit customers as well as the environment by reducing the number of products that end up in landfills. GE Healthcare and Cisco are among many big brands that use their reverse logistics to reuse or remanufacture their products after they’ve been sold to consumers.
Flipkart has an excellent customer service policy. They have a 24/7 customer support team that is able to answer questions via email or telephone. The company also provides free shipping on all orders and offers a variety of payment options including credit cards.
The company also has a return policy that allows customers to exchange or refund their products if they are not satisfied with them. This helps to build trust in the brand and encourages customers to make purchases. The company has a network of warehouses that allow it to store and ship products quickly and efficiently. The company also uses a centralized order management system that tracks each product’s status throughout the supply chain.
In addition to the in-house logistics team, Flipkart partners with courier companies and Indian post to deliver their products. This enables them to reach the entire country in a timely manner. The company also has a large distribution center in Mumbai that is used to fulfill online orders for the city.
One of the biggest challenges for Flipkart is attracting and retaining customers. The company invests heavily in advertising and marketing. One of the most effective strategies is using Google Ads to remarket to potential buyers who leave their website without buying. This is especially important when competing with Amazon, which has a strong presence in India.