Minin Project 1
Minin Project 1
ON
LUCKNOW
2023-2025
DECLARATION
I undersigned, hereby declare that the internship report entitled “A STUDY ON SUPPLY
this internship report to my parents, who have always motivated and encouraged me in every
step of my life. They have always been a source of constant inspiration for me and are always
pushing me to grow and nurture both as a human being as well as professionally. I cannot
forget the precious moments I have spent with them and I cannot thank them enough for
always being there whenever I need them. This report is my original report and has not been
previously formed the basis for the award of any degree, diploma, or similar title of any
University.
AKHILESH KUMAR
I
CERTIFICATE
This is certified that AKHILESH KUMAR, MBA III SEMESTER has carried out the
FACULTY MENTOR
II
III
ACKNOWLEDGEMENT
I have taken efforts in completing this project. However, it would not have been possible
without the kind support and help of members working for Flipkart (Last Mile) I would like
I thank Mr. PREM PRAKASH (Manager) and Mr. ATUL MUGDAL (Area Manager) for
his guidance and supervision as well as for providing necessary information regarding the
project work and for their kind and cooperation and encouragement which helped me in
I would also like to thank my Mentor DR. GAJENDRA KUMAR GUPTA, MASTER OF
BUSINESS ADMINISTRATION (MBA) for his regular support and help in the successful
AKHILESH KUMAR
IV
PREFACE
gain practical knowledge in the field of management, we are required to make an internship
report. The main objective behind is to compile our experience gained during our work. In
this report, I have written about my experience, about the organization. organizational
Doing this report helps me to enhance my knowledge regarding the work attitude of consumer
society and gained a lot of experience related with our topic concepts.
My experience has made me learn the importance of team work and role of devotion
towards work. I have tried my level best to be as a systematic as possible and to avoid
This has given me an altogether new experience, which would be immense help to me in my
days to come.
V
Executive Summary
The concept of e-commerce is downloading at a fairly rapid pace in the psyche of the Indian consumer. In
the metros, shortage of time is a big driver for online shopping. On the other hand, accessibility to a variety
of products makes audiences from smaller towns and cities opt for the online route. Major retailers face
challenges in stocking their stores adequately. Often, customers are unable to purchase items of their choice,
thus prompting them to resort to e- retailersA quick overview of India's Internet penetration shows a user base
of approximately with over 560 millioninternet users, India is the second largest online market in the world,
ranked only behind China. It was estimated that by 2023, there would be over 650 million internet users the
country. Despite the large base of internet users, the internet penetration rate in the country stood at around
50 percent in 2020. This meant that around half of the 1.37 billion Indians had access to internet that year.
There has been a consistent increase in internet accessibility compared to just five years ago, when the internet
penetration rate was around 27 percent. The spread, and subsequent adoption of e-commerce, thus, only
seems logical. With several reputed brick-and-mortar retailers also offering online services, it seems natural
the trend of shopping remotely will scale up substantially. As there is competitive environment in this sector,
online retailers try to provide various services such as very flexible and easy payment methods, warranties
for electronic goods and free home delivery with very competitive prices.
Though a large market, because healthy competition companies face many challenges such as small
Another important challenge is uneasiness of the manufacturers to be on board with e-commerce and selling
their goods below the prescribed MRP. As an online retail provider, Flipkart also faces all these challenges.
In spite of all these challenges Flipkart has over a 10 million customer base and has 100,000 average
shipments per day. It is a strategy that has enabled them to gain lion’s share of the online retail market.
VI
There are several specialized online retailers like myntra.com or infibeam.com who specialized in apparel
or consumer electronics respectively, whereas Flipkart handles more than 25 categories of products. An
increased number of categories complicate the entire supply chain design and this is something that has
been studied in this report.The company structure of Flipkart is has three broad categories. First is Product and
Technology which is the core team of the company, second is Business Development which is related to sales
and third is operations which deal with the supply chain management of the company.
Flipkart has accorded a lot of importance in trust building exercise that is why it has a strong Customer
Support Team which helps the customers with the website guidance and resolving issues.Flipkart uses its
in-house logistics (FKL) as well as third-party logistics (3PL) services as the logistics are one of the most
important for the success of any e-commerce venture. Along with the logistics, the reverse logistics of
Flipkart is also well developed with a 30-days return policy and Flipkart bearing courier charges for returned
products.Flipkart when it started employed the consignment model of procurement as it was the most risk-
free way to operate but then they changed to the Inventory model to ensure superior delivery times.But with
foreign direct investment (FDI) favoring the marketplace model in April 2013, Flipkart changed its business
model to the marketplace model.WS Retail a pet project of Flipkart now handles the inventory and
warehouse management. Flipkart has continued to fare very well in terms of the delivery time because of
their developed supply chain management and dedicated customer support team to ensure customer
delight.This causes them to build a lot of slack into their existing systems causing higher costs at several
pointsin the supply chain. How they address this challenge is what will determine their future success.
VII
1 INDEX
S.NO. CONTENTS PAGE NO.
1. Declaration I
2. Certificate II
3. Acknowledgement IV
4. Preface V
(Chapter-1) Company profile
5. Introduction 3-9
6. Achievement of flipkart 10-13
(Chapter-2) About Project
7. Objectives & Scope of the study 15
8. Procedures 16
9. Big Billion Days (BBD) Sale gallery 17-28
10. Company Structure / Literature Review 29-32
1
ChapterI
Company Profile
2
INTRODUCTION
Things are easier said than done! To realize our dreams also in such a grand manner is really a tough task. The
founders of Flipkart have probably conquered their dreams with the amazing success of Flipkart. The Flipkart
Group is one of India's leading digital commerce entities and includes group companies Flipkart, Myntra,
Flipkart Wholesale, and Cleartrip. Flipkart is something that hastily opened up the Indian e- commerce market
Flipkart was co-founded by Sachin Bansal and Binny Bansal in Oct 2007. Both are graduates from IIT-Delhi
and have prior work experience in Amazon.com They both were solid coders and wanted to open a portal that
compared different e-commerce websites, but there were hardly any such sites in India and they decided to
give birth to their own e-commerce venture - Flipkart.com Thus was born Flipkart in Oct 2007 with an initial
investment of 4 lac (co-founders savings). It was never going to be easy since India has had bad past
experiences with e-commerce trading. It was not an easy segment to break into, people were very particular
in paying money for something which they had not seen and received. The trust was missing in the Indian
customers. So what Flipkart had to do was to instill trust and faith in their customers. And they did exactly the
same, will discuss more on how they did so later in the post.
Flipkart began with selling books since books are easy to procure, the target market which reads books is in
abundance, books provide more margin, are easy to pack and deliver, do not get damaged in transit and most
importantly books are not very expensive, so the amount of money a customer has to spend to try out one's
Flipkart sold only books for the first two years. Flipkart started with the consignment model (procurement
based on demand) i.e. they had ties with 2 distributors in Bangalore, whenever a customer ordered a book,
they used to personally procure the book from the dealer, and pack the book in their office and then courier
the same. In the initial months, the founder's personal cell numbers used to be the customer support numbers.
3
So, in the start they tried their best to provide good service, focus on the website - easy to browse and order
and hassle-free and strove hard to resolve any customer issues. Since there were not any established players
in the market, this allowed them a lot of space to grow, and they did in fact grow very rapidly.
Flipkart had revenue of 4 crore in FY 2008 - 2009, 20 crore in FY 2009 - 2010, 75 crore in FY 2010 – 2011
and the revenue for FY2020 which ends on 31 Mar 2020 is amounting to approximately 34600 crore in
The company started from 2 employees and now has around 4500 employees. Flipkart started with a
consignment model as discussed above, since most of the customer issues like delivery delays etc. result from
the procurement model, the company started opening its own warehouses as it started getting more investments.
The company opened its first warehouse in Bangalore and later on opened warehouses in Delhi, Kolkata and
Mumbai. Today the company works with more than 500 suppliers. To date more than 80% orders of Flipkart
are handled via warehouses which help in quick and efficient service.
A humble beginning from books, Flipkart now has a gamut of products ranging from: Cell phones, laptops,
computers, cameras, games, music, audio players, TV's, healthcare products, washing machines etc. etc. Still,
Flipkart derives around 50% of its revenue from selling books online. Flipkart is the Indian market leader in
selling books both offline and online, it enjoys an online share of around 80%.
4
The service competes primarily with Amazon's Indian subsidiary and domestic rival Snapdeal. As of March
2017, Flipkart held a 39.5% market share of India's e-commerce industry. Flipkart has a dominant position
in the apparel segment, bolstered by its acquisition of Myntra, and was described as being "neck and neck"
with Amazon in the sale of electronics and mobile phones. Flipkart also owns PhonePe, a mobile payments
In August 2018, U.S.-based retail chain Walmart acquired a 77% controlling stake in Flipkart
for US$16 billion, valuing Flipkart at around $20 billion. and plans to use the capital raised to improve its
technology and supply chain capabilities, enhance its end user experience and for hiring.
But managing expansion at such break-neck speed is not an easy task. There are several questions raised about
Flipkart’s profitability figures and core competence of „delighting‟ customers. In fact, Flipkart’s philosophy
is so closely tied to ensuring customer delight that profitability often takes a back-seat. It is a strategy that has
enabled them to gain lion’s share of the online retail market – but their operations need to be studied in greater
From an operations point of view, one of the fascinating things about Flipkart’s growth has been the increase
in number of Stock Keeping Units (SKUs) and different categories that they now handle. While there are
several specialized online retailers like myntra.com or infibeam.com who specialized in apparel orconsumer
electronics respectively,
Flipkart handles more than 25 categories of products. Increased number of categories complicates the entire
supply chain design and this is something that has been studied in the latter half of this report.
Headquarter-
5
Key people-
6
FLIPKART SUBSIDIARIES:-
Flipkart at Indian Ecommerce Company headquartered in Bangalore and founded by Binny Bansal and
Sachin Bansal in 2007. Flipkart started as an online book retailer but soon branched out into consumer
electronics, fashion, groceries, and home essential Today Flipkart & the largest ecommerce site in India
where does battle with the Amazon-owned platform Snapdeal. The company and in subsidiaries secured an
impressive 60% of the total market share during the Indian festive sales period in fate 2021.
7
Flipkart USP
The USP of Flipkart is to provide the consumers with the best online shopping experience. The
company aims to provide its customers with good value and wants to be regarded as one of the
It is also looking to become the biggest e-commerce organization of India while retaining its focus
on serving the customers to the best of their abilities. It will also look to innovate in this domain
and try to expand its offerings so that customers have more to choose from.
8
House brands
Flipkart operates several house brands, including Citron (home appliances) and
accessories, effectively replacing Digiflip), and MarQ (for large appliances, although
its launch was complicated by a trademark dispute with an existing company, Marc
Enterprises).
based 4K Smart TV was the first product released under that licensing agreement. A
9
ACHIEVEMENTS OF FLIPKART
On September 15, 2007, Sachin Bansal and Binny Bansal, who met in 2005 at IIT-Delhi, launch
an internet business called Flipkart. The online bookstore promises to deliver anywhere in India.
Within weeks, the first customer, a young bookworm from Mahbubnagar, places an order. Amid
high drama, Sachin and Binny pull off the delivery. After 20 shipments that year. Flipkart is in
business.
2008: Flipkart's first office opens in Bengaluru at PIN code 560034. 24×7 customer service is
2009: Flipkart hires its first full-time employee. Ambur Iyyappa, a veritable Human ERP. would
The company Opens offices in Delhi and Mumbai. First book opens for pre-orders Dan Brown's
2010: Flipkart Pioneers Cash-on-Delivery payment mode and launches logistics arm Ekart, led by
fresher Vinoth Poovalingam. Introduces 30-day return policy, acquires social book
recommendation portal WeRead and expands categories to include Music, Movies, Games.
2011: Flipkart Launches digital wallet, expands shopping categories to include Cameras,
Computers, Laptops, Large Appliances, Health, Personal Care, Stationery and acquires Chakpak
and Mime360. It also launches 30-day replacement policy. The company starts delivering to over
2012: Flipkart launches its mobile shopping app. Launches Fashion, Perfumes, Watches,
Menswear, Toys, Posters, Baby Care. Launches electronics private label Digi Flip
10
2013: The company Introduces Next Day Shipping Guarantee. Raises $160 million in funding.
Adopts marketplace model, opening up platform to sellers. Sells 1,00,000 books in a single day.
2014: Becomes the first Indian internet retailer to register $1.9bn gross merchandise value
(GMV). Acquires fashion e-tailer Myntra. Acquires majority stake in Jeeves and ngpay. Launches
Flipkart First and In-a-Day Guarantee. Launches Scheduled Delivery. Begins exclusive
associations, starting with Moto and Xiaomi. Kicks off India's largest online sale - Big Billion Day
2015: Launches Home and Maternity categories. Acquires Adlquity and Applterate. Launches Ad
2016: Binny Bansal takes over as CEO. Sachin Bansal becomes Executive Chairman. First Indian
mobile app to cross 50 million users. Crosses the milestone of 100 million registered customers.
Launches No Cost EMI. April 2016 - Sachin Bansal & Binny Bansal named Time100 list of
most influential people by TIME magazine. Acquires UPI-based payments. startup. Acquires
Jabong. Launches Flipkart Assured. Sachin Bansal and Binny Bansal named "Asian of the Year"
2017: Ten years of Flipkart! Kalyan Krishnamurthy named new Flipkart CEO. Binny Bansal takes
on reins of Flipkart Group as Group CEO. PhonePe crosses 10 million downloads on Google Play
store. Rahul Dravid launches #FlipkartBig 10 logo as Flipkart celebrates a decadeof game-
changing innovation. Flipkart raises $1.4 billion from Tencent, eBay & Microsoft eBay India
becomes part of the Flipkart Group. Softbank Vision Fund invests in Flipkart to become one of the
AIMS
To become the largest retailer of India. Flipkart wants to be present across all categories,
except in groceries and automobiles, the CEO said. "Our target is not just those who shop
11
online". We want to highlight the convenience of e-commerce to traditional offline shoppers
VISION
MISSION
OBJECTIVE
TAG LINES
➢ Be Trendy, Always.
12
ChapterII
About Project
13
OBJECTIVES OF STUDY
• To study of First Miles (FM), Mid Miles and Last Miles (LM).
14
Learn to Time management and manpower management as well. Ellram,
Although there may be managerial complexity in the chain varies greatly from industries
FLIPKART - The mission of the organization is to provide a memorable online shopping experience
to the customers so that they come back again and they use innovative services like 30 days
replacement, Cash on Delivery, exchange options, free shipping, EMI options mainly for electronics
and on-time delivery. Hence, it provides hassle free experience to the customers and that’s the priority of
theteammembersandtheentireorganization.
Chopra and Meindl (2003) According to him supply chain management is the way to
The importance of understanding the order of processes and flows in a supply chain is a
strong prerequisite to clearly understand the operational requirement and meet customer
needs.
Lambert and Cooper, (2000) Trust the identity of key chain members to link with, and the
processes that need to be linked are part of the implementation of the supply chain
management, whose goal is to create maximum value for the entire supply chain network.
Mentzer et al., (2001) According to him supply chain management is a managerial tool to
15
The above drawn table is showing how Flipkart manages it’s process with different tools andtechniques.
• 1,15,000 people, jobs to be created by Flipkart of which 15% are women and people with
disabilities.
• 66 new fulfilment and sortation centres added by Flipkart across the country.
• These facilities are covering 10 million square feet area and around 20 million cubic feet
of storage space.
• 1,000 delivery hubs added reaching the farthest corners of the country.
• 100 facilities have been added from brand partners for faster deliveries.
16
• The alternate delivery method of Kirana’s as delivery partners strengthened with 1,00,000
Kirana partners.
• During pandemic time, Flipkart played an important and crucial role in the millions of
homes, that had definitely gave an excellent experience to the people and regular
customers.
• Customer’s satisfaction and their happiness is the first priority of the Flipkart hence they
17
Objectives for Flipsters to work in the organization –
Customer-first approach: Customer is the king! - we all might have heard this famous
anecdote. At Flipkart, you live this way. Each decision, each new product that you launch, every
new offer that you design, or any sale that is planned, all need to pass the test of – “Whatis in it
for the customer?” If the answer is not clear, you are back at the drawing board trying to
understand how the customer will be affected by the decision that you take. Only because of this
reason today, the Flipkart brand is associated with the words “Trustworthy” and “Customer
Friendly.” And I am not saying just for the sake of it, my project dealt with understanding what
Integrity: Be transparent in all your dealings; be it within the organization or outside. Each
Flipkart employee takes pride in being faithful to the more significant cause and always keeps
The Project: To enhance the learnings there were various leadership sessions that were held for
the interns. Even though everyone was stretched because of the WFH experience and everyone
was trying to adjust to the new normal, we had easy access to the top leadership and all of them
were a mail away. The open culture and the emphasis on learning at Flipkart is something that is
given the utmost importance. As any Flipster would tell you, the journey at Flipkart is not only
about securing a PPO but proving to the top mettle that you have it in you to be the next CEO!
And maybe that is the reason that Flipkart is proud of the numerous start-ups that have come up
18
The Team: I was mentored by one of the senior-level executives in the firm. This helped me in
two ways: being trained by highly experienced people gave me the necessary understanding of
the field and secondly helped me understand the way top leadership thinks. I was able to improve
Punctuality: Punctuality refers to the habit of a human being completing their tasks on time.
Punctuality is an etiquette which encourages us to complete our work in a timely fashion. It also
makes us realize the importance of time. A person who is punctual will always know how to
respect their time and others as well. Being punctual is a key of success.
Decision making: Decision making is the process of making choices by identifying a decision,
making process can help you make more deliberate, more confident, and will help in problem
solving as well.
non-profit organization, or a government body. It is the art and science of managing resources of
the business. Companies and organizations need effective management to achieve business goals.
19
Pictures during Big Billion Days (BBD) -
20
(Last Mile Hub At The Time Of BBD )
21
HAPPIEST WAREHOUSE OF FLIPKART IN INDIA –
2.2 lakh square feet, over a million products, and cutting-edge technology —the
Flipkart warehouse is where the magic happens. But it’s not all machines and mechanisms. Over
10,000 employees work in shifts, 24 hours a day, 7 days a week to put a smile on your face and
get your Flipkart order delivered to you on time. Take a virtual tour of India’s happiest warehouse,
What looks chaotic to the untrained eye is, in fact, a synthesis of precise calculations — each
second of every movement, every process, is thought out, tested, and planned to the minutest detail.
Flipkart has emerged as one of the best ecommerce marketplaces among the Indian audience. It
22
provides a platform to small and big sellers. To reduce the delivery duration for customers and
enhance the order processing for sellers, Fulfillment by Flipkart was introduced. Everything that
these centers do right from the point when order is placed to the point where the order is delivered
to the customer, this entire process can be termed as fulfillment. Flipkart has a large number of
sellers on its marketplace across India and not all of them had modern practices to ship the orders
faster and warehousing practices. So to overcome this, this plan was implemented.
The cases of returns and exchanges by the customer or courier companies are also handled by
Flipkart. Sellers can easily track their inventory, have an automated workflow and get the entire
Flipkart warehouse or Flipkart Fulfilment Centre is a third party service by Flipkart which
provides services of warehousing and shipping to the sellers. The sellers can store theirinventory
across fulfilment centres of Flipkart and they will take care of the rest. Flipkart has their own
logistics – Ekart which delivers the products to customers. Ekart is said to be the biggest logistics
The ecommerce major began this smart fulfilment solution with three cities in the beginning
warehouse in Hyderabad is said to be the biggest and busiest warehouse. When orders are
received, Flipkart will pack, ship and deliver the order to the customer.
23
The cases of returns and exchanges by the customer or courier companies are also handled by
Flipkart. Sellers can easily track their inventory, have an automated workflow and get the entire
inventory view through small fulfilment by Flipkart. The businesses which do not have a
warehouse of their own, those who find it difficult to manage their inventory and do not have
enough manpower for their warehouse or those who have a warehouse but only for B2B shipments
and not for B2C can opt for the fulfilment service by Flipkart.
24
Flipkart tracks the performance of sellers and approaches the top sellers for Fulfilment services.
For more queries, sellers can involve their Account Manager or the Flipkart Seller Support team
1. Seller Fulfilment :
Once registered as a Flipkart seller, by default the seller’s fall under this fulfilment type. Seller
is responsible to process, pack, ship the orders and manage the inventory all by themselves. Once
the order is packed and ready, Ekart executives will collect the order.
2. Smart Fulfilment :-
Smart Fulfilment helps the sellers to manage their inventory by arranging them in the warehouses
by Flipkart, order processing and inventory management, packing and shipping theorders. So
3. Flipkart Fulfilment :-
All the packaging and customer service will be provided by Flipkart. This is one of the best
service for Flipkart sellers to increase visibility and sales of their products.
26
27
Some Pictures from Last Mile Hubs
28
Comparison of percentage in Flipkart visit-
But managing expansion at such break-neck speed is not an easy task. There are several
customer delight that profitability often takes a back-seat. It is a strategy that has enabled
them to gain lion‟s share of the online retail market – but their operations need to be studied
While there have been multiple questions raised about creative accounting techniques and
other apparent financial irregularities on Flipkart’s books, in this report will concentrate
the increase in number of SKUs and different categories that they now handle. While there are
complicates the entire supply chain design and this is something that has been studied in the
In Flipkart, they have chosen numerous sellers for their products to fulfill the requirements of
the customers. The motive is they always taking care of their customers on priority this is the
excellent thing over everything in the system. Flipkart always works for their employees and for
30
DISADVANTAGES ARE SHOWN BELOW
• Late delivery
31
Company Structure-
depicted below.
• Customer Support
The product and technology team is the core strength of the company. The team is
responsible for the management of the website as well as the ERP system. It has developed
a state of art system in-house using open source software. Website is a backbone of any
online retail shop and Flipkart’s website is also managed by this team only. The team
manage the entire process right from listing of item to search engine optimization.
32
Business Development Team-
Business development team is responsible for all the activities related to sales including
vendor, sellers, and sourcing team from where the origin of products have to order, and also
management to pricing and discount strategy in whole process of Flipkart fulfilment center.
Operations Team-
Operations team deals with all the supply chain aspects of the company right from
procurement and warehouse management till customer support. The team support the
Flipkart has a strong focus on customer service with customer delight as the top most
priority. The customer support team is also known as Issue Resolve Team (IRT).
33
And to fulfil it the company guarantees a 24/7 full customer’s support (assistance)
and to cater this facility it has a dedicated customer support team which offers both inbound
and outbound support. There are two prime responsibilities of support team that are keep
o Website Guidance:
The team basically provide guidance to new users of the website on how to navigate through
it. It also handles order processing functions like order verification calls ,payment related
queries etc.
o Resolution of Issues:
This includes intimation to customer about issues such as any delay in delivery as well as
If you want to know more about Flipkart services or have a query to be addressed by the
Flipkart Customer Support team, reach out by calling 1800-202-9898, or connect with
Flipkart's 24×7 Customer Care, their executives will assist the customers and help them in
resolving their queries and issues and ensure them that within a given time period their issue
will be resolved.
34
o Resolve escalations:
You can dial 1800-208-9898 to speak to the Flipkart customer service executive. Once you
are connected, explain the issue concisely and clearly. Keeping your order number handy
saves a lot of time. Apart from helping you with your orders and/or your delivered product-
related issues, you can find various other support at Flipkart Help Centre. You can select from
three types of issues here - help with your issues, help with your order, and help with other
issues. You can track your orders here, manage your orders, get help with your returnsand
refunds issues, and even get help related to various other issues, such as offers, payment,
35
LITERATURE REVIEW
tremendous growth in the e-commerce. The real estate costs are touching the sky. Today e-
commerce has become an integral part of our daily life. There are website providing any
number of goods and services. The e-commerce portals provide goods and services in a
variety of category. To name a few: apparel and accessories for men and women, health and
beauty products, books and magazines, computers and peripherals, vehicles, software,
consumer electronics, household appliances, jewelry, audio, video, entertainment, goods, gift
articles, real estate and services. Ashish gupta, senior managing director of hellion venture
Miyazaki and Fernandez (2001) the prior experience was found to effect the intention and
behavior significantly and in different ways. The result of this study implies that the technology
acceptance model should be applied e-commerce with caution. To develop successful and
profitable e-commerce business, understand customer’s needs. Be ensuring that product must
Arabzad (2015) To be specific, the place-list problem is to find the best The place to set up a
Distribution Center (DC) to distribute the products As per the plan provided with minimum
transportation for the customers Plus the cost of stocking up. Hence, it all plays an important
the Indian Context", International Journal of U- and e-Services, Science and Technology.
36
It concluded that the future of e-commerce in India is very bright, although security, privacy
and reliance on technology remain some of the challenges. E-commerce has its drawbacks
Handfield and Nichols (1999) According to him relationship is more important for
37
Logistics Management-
Logistics is one of the most important facets of any successful ecommerce venture. Flipkart
ships more than 30000 items a day which makes management of the logistics a cumbersome
task for the company. Furthermore, the cost of the delivery is born by the company itself making
logistics a financially complex issue also. Hence in order to successfully manage logistics
Flipkart uses its in-house logistics (FKL) as well as third party logistics (3PL)services.
While more than 90% of the Cash on delivery (COD0 shipments and about 60-70% of the overall
shipments are delivered by the FKL the rest of shipments are catered by 3PL service providers.
Moreover, if there are more than 100 deliveries for a particular destination the company uses
FKL. In case of FKL, the shipment is first transported to Mother hub andthen to delivery
huband subsequently from delivery hub the last mile delivery is done using suitable mode of
transport such as two-wheelers, bicycles, or on foot. The company has tie-upswith more than 15
courier companies like Blue Dart, First Flight etc. to deliver their products and Indian post for
areas where courier do not reach. And to manage the 3PL providers efficiently the company
allocates time slots to different logistics partners and they can pick up deliveries on specified
time slots only.
38
For delivering the items the logistics service among the three is decided based on the area
where the item needs to be delivered as well as product type and payment method.FKL
The company uses India Post only in caseif the shipment location is not serviced by any of
the 3PL as well as FKL primarily because of the higher delivery time. Moreover, India Post
orders are of prepaid nature only. The delivery time varies between 3 days to 3weeks
For example imported products take about 3 weeks‟ time to get delivered to the customers
whereas if product is available in local warehouse it gets deliver within 3 days. The mode
of transportation is also dependent on the location. For example, the inter-city, trans-zone
deliveriesare made using air cargo whereas satellite cities and others in close proximity;
For the local parts of the cities where the warehouses of the company exist products are
delivered using two-wheelers, bicycles, or on foot depending upon the proximity of the
place.
Logistics part plays a crucial role in any of the organization, specially in the e-commerce
company.
39
Reverse Logistics / Returns Centres-
The returns for Flipkart are 2.6%. If follows a 30 day return policy. This policy which is
primarily aimed to build trust with the consumers, has led to many customers duping
Flipkart. For example there have been several incidents when a customer buys a book only
to read it andthen return it within 30 days. Similar incidents have been observed with
mobile phones as well.Flipkart, through its data management systems, has tried to identify
such frauds.
Return of a product to Flipkart can happen if the 3rd party cannot deliver to the address or
the customer does not accept the product. Some orders are cancelled while the delivery is
being processes by the courier company. Such order is not recalled but delivered to the
address and then cancelled. Customers can call the customer support and courier back the
When a customer requests return of a product, there are 3 paths this request can take:
40
1. Replacement:
Flipkart returns the product to the supplier and obtains a replacement that isdelivered
to the customer.
2. Store credit: If the customer is not satisfied with the product, he or she is given store credit of
3. Actual cash-back:
Given out as cash for cash-on-delivery payment or refunded for online payment.
41
Procurement-
When Flipkart started its operations, they had employed the consignment model of
procurement. In this model, the retailer (in this case Flipkart) holds the inventory owned by
the supplier, and buys it from the supplier only when it is sold to the end consumer.
Since the channel was new and unproven, this was the most risk-free way to operate.
However, they have now discontinued this now and inventory now is purchased.
(a) Inventory: These items are pre-ordered based on previous sales data to stock as
inventory. This category includes items with relatively low demand elasticity, fast
(b) Just in-time: Items procured just-in-time are used to serve immediate outstanding orders.
Items with low or unpredictable demand are typically procured on an order-to-order basis.
Just-in-time procurement is also used for expensive items or products that haveseen
As of now, the number of orders served from the inventory is roughly 75%, with 25% orders
expensive as the volumes for such orders are low, and the supplier discount offered
therefore is considerably lower. However, when ordering for inventory, bulk purchase is
made and hence a much better price is realized. Therefore, the company would ideally like
to move to a ratio of 9:1 ratio of orders served through inventory to those procured just-in-
42
time.As a caveat however, there is an inherent trade-off between the company’s long term
objective ofreducing just-in-time procurement, and its motto of “Consumer Delight”. This
is because in order to maximize consumer delight, the company would have to strive to
serve all types of consumer orders and provide them with the maximum possible variety of
products, which would require just-in-time procurement since many products have limited
Each regional procurement team has a network of local suppliers for made-to-stock as well as on on-
demand (Just in-time) procurement. They also have visibility of the stock for different SKUs with these
suppliers, as last updated on the procurement team’s system by these suppliers. From Flipkart’s
perspective-
Stock out: Defined as when the product is unavailable in the inventory (held in the warehouses) as well
The central procurement team has visibility of all the regional procurement teams‟ views, and
therefore can monitor the stock levels for their suppliers all over the country. The central team’s
43
EXCLUSIVE PRODUCTS-
Motorola Mobility, formerly owned by Google, but then sold to Lenovo. In an exclusive
tie-up with Flipkart and it launched its budget smartphone in India on 5 February 2014, over
20,000 units were sold on Flipkart within hours of its launch. After this flipkart has to
continue its partnership for long term sell its devices in India, even as it’s Chinese rival Xiaomi
launch his smartphone Xiaomi mi3 in India The first batch was sold on 22 July 2014 in 39
minutes, the second on 29 July 2014 in 5 seconds. The sale had proceeded on pre-registration
where over 150,000 buyers were registered for the 5 August sale. On September 2, 2014.
Flipkart organized a flash sale of Xiaomi redmi 1s budget android the smartphone which was
launched in India in July 2014. 40,000 units were priced at Rs 5999 sold out within seconds.
So that’s why expensive and precious goods are falls under Exclusive Products, which are
44
Flipkart sells a numerous products to fulfill their customers’ needs-
45
SERVICES PERFORMED DURING THE INTERNSHIP
46
SWOT ANALYSIS OF THE COMPANY-
Strength-
➢ Tie-ups with best brand like Xiaomi, Real me, Motorola, etc.
Weakness-
➢ Only limited area access, many sub urban and towns are not covered.
➢ Website failures.
➢ Late
Opportunity
Threats-
47
THE JOB AT A GLANCE
The job that I was offered at FLIPKART (eKart) was the position of Intern asa
program. ln L&D department, all the team members had to work almost whole the
platform now-a-days, in this we had serve our customers hassle free shopping
experience with in time limit. Like the team members, I also had towork 6 days
➢ Training of Off-Role and On Role Employees (Both White Collar and Blue-Collar) As Per
Requirement.
➢ As BBD 2023 Trainer, Trained Newly as Well as Active Manpower and Ensured
➢ Conduct Learning Program CRT, Refresher Training and Evaluating Their Performance
➢ Induction, OJT (On Job Training) Process Training for New Joiners Along with
48
They work on 6S strategy-
everything else)
3. SHINE -Cleanliness {keeping everything swept and clean for inspection (for
49
5. SUSTA IN - Sustaining the discipline (making a habit of properly
it ensures the safety and security for the workers, subordinates and employees of
50
DUTIES AND RESPOSIBILTIES-
After spending 2-2 days in every department i.e. Inbound, Outbound, Inventory and Returns, my
OJT was decided in Inbound Department. In this department, the FLIPKART obtains its
products from different manufacturers' and these are sent to warehouses or delivery centers of
Flipkart has 7 major warehouses spread across the country in Mumbai, Kolkata, Delhi, Noida,
Pune, Chennai and Bangalore. They have smaller regional distribution centers at over 500
Apart from helping you with your orders and/or your delivered product-related issues, you can
find various other support at Flipkart Help Centre. You can select from three types of issues here
- help with your issues, help with your order, and help with other issues. You can track your
orders here, manage your orders, get help with your returns and refunds issues, and even get help
related to various other issues, such as offers, payment, Flipkart Plus, etc.
51
Flipkart’s Warehouse Management System-
In Flipkart’s Warehouse Management System (WMS), there are three major segments
below are the some of the details regarding each of the sub-processes involved in the
52
Inward Process – (INBOUND)
1. Physical Inwarding: This is the area where physical delivery of goods from
2. Quality Check + Scan: As soon as the goods are received, they go through an
initial quality check at this stage. After this, they are scanned to make an
electronic entry to record the input of goods into the warehouse on the IT
systems. This step of quality check is also undertaken at the supplier’s premises
book-mark and think transparent film packing will be done for a book.
4. Similarly, if there is a freebie attachedto a product, then the two products will be
packed together.
53
INVOICE SANITY CHECK
IRN CREATION
54
55
RECEIVING
56
Abbreviation-
57
Inventory Management Team- (IMT)
generation, which marks the place where the respective items need to be put.
2. Order pending check: As soon as the system gets the input of the
incoming products, system checks if any of the orders for the incoming products
are pending or not. If orders are pending, the respective product is sent directly to
product is put on an empty shelf, and the respective shelf number is updated on the
58
Put-list.
1. Pick-list generation: Based on the orders to be delivered for the day, a Pick-list is
2. Pick-up from shelves: The respective products from the Pick-list are picked up
from the shelves as per the IT system entries and gathered together to move
Final packaging: The picked-up products are packed in Flipkart- branded boxes. At this stage,
packaging is done according to the Category of the product, e.g., electronic items are packed
1. Placement in respective delivery hubs’ bags: After the final packaging, a product
is placed in a specific bag which is dedicated for that destination area delivery
hub. These bags are dispatched to their respective delivery hubs on a fixed timing
59
60
Some issues identified at the Warehouse
Management level:
1. All the scans while conducting inward processing for each of the
stage.
will increase and its scalability in the current form might come under
the systems and processes are scalable based on increasing variety and
61
Order Processing-
Flipkart uses its own ERP systems to process orders and track the details of all the transactions
that need to be carried out. A typical order at Flipkart starts with the customer searching,
selecting the required item and placing the order. This on an overage takes around 8-10 clicks to
get the order placed. The email Id is considered to be the unique identification of a customer and
The payment can be made by using debit card, debit card, Net banking or COD(Cash on
have its own payment gateway which has not been possible so far because hosting a
payment gateway requires fulfillment of Payment Card Industry Data Security Standards
(PCI DSS).
Order Fulfilment-
Customer orders are fulfilled either via Inventory or JIT procurement depending upon the
1. As soon as the order is placed and approved, there is an inventory check done at
the localwarehouse.
2. If the item is not found at the local warehouse, then the order goes to
the nearest and then other warehouses. The product is then packaged
Flipkart, with its focus on customer delight, ensures an excellent after-sales service to its
customers with regard to the delivery and/or addressing grievances related to any faulty or
62
unsatisfactory products.
The return of such items is done in an effective manner without any disputes. This is
Flipkart has fared very well in terms of the delivery time. It varies between less than 24
hours and 3 weeks depending on the location and availability of the product. On an
63
Inventory Management-
The inventory stocks are replenished whenever it goes below Reorder point. In order to
decide on reorder point and demand forecasting of each SKU, the company employs Holt‟s
forecasting method. Holt‟s method is useful in cases where linear trends are present and
requires separate
smoothing constants for slope and intercept. The forecasted demand used at Flipkart using
The company employs FIFO (First In First Out) method for its inventory management,
under which for any shipment request to a particular warehouse the oldest inventory items
Supplier Management-
Flipkart has always operated on the philosophy of starting out small and then scaling up
as demand grows. It has been the same with selection of suppliers. For a new category,
they generally start of by sourcing from local suppliers and distributors. Once there is
1. It helps them to get better deals from the bigger manufacturers if they can order in
2. It avoids the channel conflict dilemma that large suppliers face when they agree to
Excellence Division, is that given that Flipkart is now India’s largest online retailer of
books andthey are larger than many offline stores as well – most of Flipkart’s books are
Across product categories, Flipkart works with over 500 suppliers including several
internationalsuppliers as well. Flipkart’s steady rate of growth has allowed them to get the
best credit lines from their suppliers. They signed their first international supplier deal
with Ingram Books in 2008 and they prefer working with them due to high level of
predictability.
In fact, considering that customer delight is Flipkart‟s primary motto, any delay in
supply can lead to late deliveries to the end-customer. So Flipkart follows a grading
system of its suppliers based on their fill-rate performance. Suppliers are grouped into A,
There are several other secondary considerations while placing an order with a supplier:
supplier’s place and then product will be shipped to Flipkart’s warehouses or if the
65
Customer Support-
Customer Support function for an e-commerce website is one of the most important
touch-points for the business in terms of building trust, customer acquisition and
maintaining customerloyalty.
Flipkart’s Customer Support team consists of call-centre agents who handle in-bound and
out- bound calls and also a team that handles e-mail queries. The entire team is based out
of Bangalore and forms a core part of Flipkart’s 6,000-strong employee base. Given that
Flipkart tries to differentiate itself on superior shopping experience and customer service
Flipkart prefers to train its own support staff rather than outsourcing the function to a
BPO agency.
1. Sales Assistance
2. General Enquiries
One of the major reasons for these calls is Indian consumers poor familiarity with
online shopping protocols. It is important to note that Flipkart tries to ensure that any
66
There is also an outbound call-center that performs the following tasks:
3. Inform the user in case any delivery has not been successful due to the
67
RESEARCH PLAN
• To find out the mode by which the customer became aware of flipkart.com
• To improve the services provided by the company for motivating the customer
The research is to be carried out with the sample size of 100 respondents, The
68
Analysis of the Data and Interpretation-
• It was further analyzed using statistical methods and techniques like tables, percentage,
average etc.
• Data has been prepared among the surveys of customers overview and employees of the
company as well.
• The data was collected from 100 respondents who are using flipkart.com.
• A set of structured questionnaires were issued to 100 respondents and thus the analysis made
We started with secondary research of the internet retail industry and the major players
through news articles, industry reports and databases. This helped us to get an overall idea of
Then we went on to do extensive secondary research on Flipkart, its business model and all
elements of its supply chain. Then we did primary research in the form of interviews of Mr.
Shini Patel, and Mr. Pavan Raghuveer both managers-operations and in-charge of SCM and
delivery.
draft. However, we identified certain gaps and interviewed the two gentlemen
again along with Ex-Flipkart employee Ms. Shuchi Shukla and our batch mates
70
SAMPLE SURVEY
INTERPRETATION:-
According to the survey 50% said that they are working in large electronic goods Flipkart
warehouse, 41.7% said that they are working in beauty product, 33.3% in furniture & 33.3% in
non-large electronic goods, also the 29.2% in fashion products and 20.8% said that they are
71
How much time picking department take to pick the singleproduct
INTERPRETATION:-
According to survey 47.8% respondent said that he will take 2-3 minute to pick and
dispatch single product, 39.1% respondent said that he will take 4-6 minute and 13% of
respondent said that he will take 7-10 minute to pick and dispatch single product.
72
What is the reason for shopping in Flipkart?
INTERPRETATION:-
As per the survey 36.4% of respondents shop on Flipkart because of offers. 31.8% of
because of quality of product. And 9.1% of respondents shop on Flipkart because of wide
choice of product.
73
The table showing the age of the respondent?
INTERPRETATION:-
From the above table we can see that out 100 respondents 35% were between 20-25
years of age, exactly 30% were among 26-30 years, around 22% were among 31-35
74
Table showing dislike thing in Flipkart:
INTERPRETATION:-
Above graph shows along with whom they purchase most, 32% of people purchases
alone, 46% of them purchases by discussing with friends, 12% of them purchases
with suggestions of their family and only 10% of them purchases others influence.
75
Supply chain members are actively involved in
INTERPRETATION:-
According to survey 75% respondent said that everyone actively has involve in supply
chain & 25% respondent said that not everyone actively has involve in supply chain process.
76
Graph showing how often respondents shop online:
INTERPRETATION:-
Above graph shows that majority of respondents that is 46% of them purchases after
discussing with friend and next highest is 32% of them purchases alone.
77
Do you feel safe in shopping through Flipkart?
INTERPRETATION:-
78
INTERPRETATION:
• Most respondents (80%) fall in the income brackets of "Less than 2 Lakh"
• Higher income groups (above 5 Lakh) form a minority at just around 20% of
respondents.
surveyed participants.
79
INTERPRETATION:
preferences.
• Snapdeal and Ajio fail to attract any preference in this group, suggesting
80
INTERPRETATION
degree.
81
INTERPRETATION
• The vast majority of respondents (94.3%) either "most likely" or "likely" use
population.
shopping.
82
INTERPREATION
e-commerce space.
83
INTERPREATION
experience.
84
INTERPREATION
consumer behavior.
85
INTERPREATION
The chart reveals that convenience is the most critical factor for
86
INTERPREATION
shopping experience
87
FINDINGS
• The survey found that 50% of respondents work in the Flipkart warehouse for
large electronic goods, 41.7% work in the beauty product industry, 33.3% work
• The poll found that 47.8% of respondents said it would take them two to three
minutes to pick and ship a single product, 39.1% said it would take them four to
six minutes, and 13% said it would take them seven to ten minutes.
• 36.4% of respondents to the survey said they purchase on Flipkart because of the
deals. Instalment is the reason why 31.8% of respondents shop on Flipkart, while
product quality is the reason for 22.7% of respondents. Due to the large selection
• According to the above table, of the 100 respondents, 35% were between the ages
of 20 and 25, precisely 30% were between the ages of 26 and 30, around 22%
were between the ages of 31 and 35, and roughly 12% were over the age of 36.
• Along with who they buy from, the above graph reveals that 32% of people buy
alone, 46% buy after talking to friends, 12% buy after family recommendations,
88
• According to the poll, 75% of participants stated that everyone actively
participates in the supply chain process, while 25% stated that not everyone does.
• The graph above demonstrates that the majority of respondents, or 46%, make
purchases after consulting a friend, with 32% making purchases on their own.
• The study indicates that 50% of respondents feel comfortable making purchases
on the Flipkart website, 14.3% do not feel safe doing so, and the remaining 35.7%
• After looking at this figure, we can conclude that the majority of survey
participants were between the ages of 26 and 30. The age group of 20–25 years
• Eighty percent of those surveyed have incomes between "less than 2 lakh" and
"between 2 lakh and 5 lakh. Just 20% of respondents are in the higher income
bracket (above 5 lakh).This suggests that the participants in the survey had a
• More than half of the respondents (74.3%) had at least a graduate degree, and the
89
population is highlighted in this sample by the minority of respondents who have
digital platforms for shopping, as just a small percentage (5.8%) are cautious or
reflected in the respondents' almost total brand awareness. Given the incredibly
• Consumers place the highest value on comparison elements (price and product),
which together account for 80% of preferences, indicating how crucial they are
speed are crucial, this sample places less emphasis on them in terms of user-
friendliness.
90
• Convenience is the most important feature for consumers, according to the
infographic, followed by product variety and delivery speed. The least significant
factor is the product trial experience, indicating that consumers are more
• The most popular product category for online shopping is apparel, which is
products are less common. This implies that e-commerce is especially popular
for apparel and tech-related products, most likely because of the convenience,
91
Conclusion
significantly.
New global competitors with better best-practices are arriving in India shortly.
Amazon is the biggest example of the same. Increased competition will put
further pressure on margins and will need better handling of supply chain
issues.
Last but not the least; Flipkart has very clearly prioritized customer delight
as its chief avenue for customer acquisition and retention. This causes them
systems causing higher costs at several points in the supply chain. Will this
70
LIMITATIONS OF STUDY
The conclusion will be based only on the research of single online store; hence the
conclusion drawn cannot be generalized to all the online retailers. More over in the global
competitive and dynamic market it is always necessary to identify different strategies to lead
a successful business of which the supply chain management system is only one factor.
Researcher can identify different factors on which the sustainability and growth of the
business is dependent on. It has only focus on how to make low piece of the product by
using proper supply chain management which helps to cut down different intermediate cost
from procurement to delivery of the products but there are many factors to which the success
71
Annexure
o OFFER LETTER
o EXPERIENCE LETTER
o INDUCTION TRAINING
72
73
74
75
FIRST_NAME Hub Name State
76
FIRST_NAME Hub Name State
77
NAME HUB NAME
VIKASH SATELLITEHUB_FRD
HARSH SATELLITEHUB_FRD
ABHISHEK SATELLITEHUB_FRD
TUSHAR SATELLITEHUB_FRD
ANJALI SATELLITEHUB_FRD
MANISHA SATELLITEHUB_FRD
ANKIT SATELLITEHUB_FRD
NIKHIL SATELLITEHUB_BLP1
DINESH SATELLITEHUB_BLP1
RAHUL SATELLITEHUB_BLP1
YOGESH SATELLITEHUB_BLP1
PRIYANSHU SATELLITEHUB_BLP1
NITESH SATELLITEHUB_BLP1
SOYAB SATELLITEHUB_BLP1
SANDEEP SATELLITEHUB_BLP1
DEEPAK SATELLITEHUB_BLP1
MANJEET SATELLITEHUB_BLP1
NIKHIL SATELLITEHUB_BLP1
1.
78
REFERENCES
Wikipedia
Google scholar.
shopping-inertia/so-article1-780440.aspx
businesstoday.in
79