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Flipkart internship report

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0% found this document useful (0 votes)
85 views107 pages

Minin Project 1

Flipkart internship report

Uploaded by

ajjobhaiya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SUMMER TRAINING PROJECT REPORT

ON

“A STUDY ON SUPPLY CHAIN MANAGEMENT SYSTEM AT FLIPKART WITH

SPECIAL REFERENCE TO JAIPUR REGION”

Submitted in partial fulfilment of the requirement

for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

FACULTY OF MANAGEMENT STUDIES

UNDER GUIDANCE OF: SUBMITTED BY:

DR. GAJENDRA KUMAR GUPTA AKHILESH KUMAR

(ASSISTANT PROFESSOR) MBA III SEMESTER

Roll No. 2312090700007

DR. A.P.J ABDUL KALAM TECHNICAL UNIVERSITY, JANKIPURAM,

LUCKNOW

2023-2025
DECLARATION

I undersigned, hereby declare that the internship report entitled “A STUDY ON SUPPLY

CHAIN MANAEGEMENT SYSTEM AT FLIPKART WITH SPECIAL

REFERENCE TO JAIPUR REGION” submitted in partial fulfillment for the award of

Degree of Master of Business Administration of Dr.A. P. J. ABDUL KALAM

TECHNICAL UNIVERSITY, LUCKNOW I would like to dedicate my efforts in making

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

Date :- MBA III SEMESTER

Roll No. 2312090700007

I
CERTIFICATE

This is certified that AKHILESH KUMAR, MBA III SEMESTER has carried out the

internship report on this report entitled “A STUDY ON SUPPLY CHAIN

MANAEGEMENT SYSTEM AT FLIPKART WITH SPECIAL REFERENCE TO

JAIPUR REGION” for the award of MASTER OF BUSINESS ADMINISTRATION from

Dr. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW.

FACULTY MENTOR

DR. GAJENDRA KUMAR GUPTA

Faculty Of Management Studies

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

to extend my sincere thanks to all of them.

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

completion of this project.

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

completion of my Internship Report.

AKHILESH KUMAR

MBA III SEMESTER

Roll No. :2312090700007

IV
PREFACE

A professional course in (Master of Business Administration MBA) student and in order to

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

structure, how was the work done etc.

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

any sort of biases.

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

basket size and high customer acquisition cost.

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

11. (Chapter-3) SCM & Logistics Management 33-41


12. SWOT Analysis 42-45
13. Duties and Responsibilities 46
14. Flipkart Warehouse Management System 47-52
15. Inventory Management System 53-62
16. (CHAPTER 4) Research Plan 63-64
17. Data Analysis & Interprentaion 65
18. Narrative 66-67
19. Sample Survey 68-84
20. Findings 85-89
21. Conclusion 90
22. Limitations of Study 91
23. Annexure 92-98
24. 99
Reference

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

and that is so in a big way.

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

service for one time is very minimal.

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

financial year 2020. This is indeed a massive growth.

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

service based on the UPI.

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

detail to understand if the company really has a sustainable future.

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-

Bengaluru (Karnataka), India

5
Key people-

CEO – Kalyan Krishnamurthy

Founders – Sachin Bansal & Binny Bansal

Founded on- 5th September’ 2007

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

most friendly. service providers in the domain.

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

Digiflip (formerly for electronics and accessories). In 2017, Flipkart launched

additional house brands, including Billion (smartphones), Smartbuy (electronics

accessories, effectively replacing Digiflip), and MarQ (for large appliances, although

its launch was complicated by a trademark dispute with an existing company, Marc

Enterprises).

In 2019, Flipkart began selling Nokia-brand televisions. A 55-inch, Android TV-

based 4K Smart TV was the first product released under that licensing agreement. A

43-inch TV was unveiled on 4 June 2020.

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

launched. Over 3,400 shipments are delivered

2009: Flipkart hires its first full-time employee. Ambur Iyyappa, a veritable Human ERP. would

go on to become a dollar millionaire. In September, Accel Partners invests $1 million in Flipkart.

The company Opens offices in Delhi and Mumbai. First book opens for pre-orders Dan Brown's

The Lost Symbol. The companys' Headcount leaps to 150!

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.

Electronics and Mobiles.

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

600 cities in India!

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

in October, Introduces Same Day Delivery Guarantee.

2015: Launches Home and Maternity categories. Acquires Adlquity and Applterate. Launches Ad

Platform and Strategic Brands Group. Launches Flipkart Lite.

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"

by Straits Times of Singapore as part of the 'The Disruptors' group.

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

largest shareholders of the company

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

and, thus, help grow the market.

VISION

"To become Amazon of India".

MISSION

"Providing a delightful and memorable customer experience".

OBJECTIVE

"Completely hassle free shopping experience with best prices in India".

TAG LINES

➢ Ab Har Wish Hogi Poori.

➢ Abhi Nahi Toh Kabhi Nahi.

➢ If It's Trendy, It's On FLIPKART.

➢ Be Trendy, Always.

➢ Itne Mein, Itnaa Milega.

➢ The Online Mega Store.

12
ChapterII

About Project

13
OBJECTIVES OF STUDY

• To study the concept of Electronic Data Interchange.

• To study the Inward & Outward process.

• An overview of Mother Hub (MH) and Delivery Hub (DH).

• To study of First Miles (FM), Mid Miles and Last Miles (LM).

14
Learn to Time management and manpower management as well. Ellram,

(2004), According to himthe process of supply chain management exist bothservice

and manufacturing organization.

Although there may be managerial complexity in the chain varies greatly from industries

and different firms.

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

understand operational decision.

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

manage the flow of inventory form supplier to customer easily.

It also builds the customer to the time delivery of the product.

15
The above drawn table is showing how Flipkart manages it’s process with different tools andtechniques.

Flipkart’s 2022 Key Supply Chain Expansion Efforts -

• 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

are providing an elegant experience.

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

people think and I have data to back this up.

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 company’s needs above theirs.

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

from every team member.

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

my communication skills, especially how to convey ideas

succinctly to ensure a maximum effect in minimum time.

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,

gathering information, and assessing alternative resolutions. Using a step-by-step decision-

making process can help you make more deliberate, more confident, and will help in problem

solving as well.

Management: Management is the administration of an organization, whether it is a business, a

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 –

Here’s Some Flipkart Love, From India's Happiest Warehouse!

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,

and meet the people that make it tick.

Happiest warehouse among all other warehouses in India

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

inventory view through smart fulfilment by Flipkart warehouse.

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

partner which delivers across 3800+ zip codes.

The ecommerce major began this smart fulfilment solution with three cities in the beginning

establishing Flipkart warehouse locations – Bangalore, Delhi and Hyderabad. Flipkart

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

which works very smoothly in the warehouse of the Flipkart.

Types of Fulfilment Services-

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

everything is managed by the fulfilment centre.

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-

Fig 1 – Comparison of percentage of shoppers (globally) visiting Flipkart visits competitor

sites – Infibeam.com, homeshop18.com, indiaplaza.com and myntra.com.

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 detail to understand if the company really has a sustainable future.

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

primarily onthe operations side of Flipkart’s business.


29
From an operations point of view, one of the fascinating things about Flipkart’s growth has been

the increase in number of SKUs and different categories that they now handle. While there are

several specialized online retailers like myntra.com or letsbuy.com (recently acquired by

Flipkart) who specialized in apparel or consumer electronics respectively.

Flipkart handles more than 14 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.

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

customers too as customers are the first priority of the company.

Providing The Whole Process To The New Delivery Executives.

30
DISADVANTAGES ARE SHOWN BELOW

• Lack of availability in towns & cities

• High cost of shipping charges

• High product value

• Fake images are shown

• Low product quality

• Late delivery

• Products exchanged by the customers

• Wrong updation regarding shipments

• Lack of suitable vendors and 3rd parties

• Delivery unattempted on given TAT, due to which breaches occurs.

31
Company Structure-

The entire organizational structure of Flipkart is organized in three broad teams as

depicted below.

Product and technology Business Development Operations

• Website Management • Vendor Management • Procurement

• ERP System • Sales Management • Warehouse

• Pricing Strategies • Logistics

• Customer Support

Product and Technology Team-

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.

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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

customers both onlinevia telephone as well as offline via email.

Customer Support Team-

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).
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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

trying to resolve queries :-

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

resolution of complaints both pre-purchase and post purchase.

o Sort out Queries of Customers:

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.

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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,

Flipkart Plus, etc.

35
LITERATURE REVIEW

Sharma and mittal (2009) “prospects of e-commerce in India” India is showing

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

partners and one of the first sponsor of Flipkart as an angel investor.

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

be cheap in web shop as compare to offline store.

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

role in the terms of operations and Supply Chain and logistics.

D.k.gangeshwar. (2013),” e-commerce or internet marketing: A Business Review from

the Indian Context", International Journal of U- and e-Services, Science and Technology.
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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

but still there is a bright future fore-commerce.

Handfield and Nichols (1999) According to him relationship is more important for

effective supply chain management.

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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

is presently available in major tier 1 cities including metros only.

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

depending on the location and availability of the product

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;

products are transported overnight by train or truck.

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

product to Flipkart.The delivery cost is borne by Flipkart.

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

the same amount.

3. Actual cash-back:

Given out as cash for cash-on-delivery payment or refunded for online payment.

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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.

Procurement of items could be for:

(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

sellingitems and items with relatively long shelf life.

(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

slow sales growth.

As of now, the number of orders served from the inventory is roughly 75%, with 25% orders

being served by procuring just-in-time. Procuring just-in-time is comparatively more

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

demand and cannot be stored.

Sourcing at Flipkart is conducted at two levels:-

(a) Regional: By Regional Procurement Teams

(b) Centre: By the Central Procurement Team

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

as Flipkart’s suppliers (as last updated).

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

focus is bigger suppliers with a country-wide reach.

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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

kept in special security of the higher authority teams.

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Flipkart sells a numerous products to fulfill their customers’ needs-

Provide virtual training to the Material Handlers And Delivery


Executive:-

45
SERVICES PERFORMED DURING THE INTERNSHIP

46
SWOT ANALYSIS OF THE COMPANY-

Strength-

➢ India’s largest e-commerce business

➢ Flipkart has its own logistic

➢ Flipkart has subsidiaries like phonePe, 2GUD, and E-kart.

➢ Tie-ups with best brand like Xiaomi, Real me, Motorola, etc.

Weakness-

➢ Only limited area access, many sub urban and towns are not covered.

➢ Flipkart invests in a lot of advertisements to improve and maintain its brand

awareness, which is expensive.

➢ Website failures.

➢ Late

Opportunity

➢ Growth in retail industries

➢ Great opportunity to expand its business

➢ Indian customer are attracting toward online shopping.

Threats-

➢ Market competition with international players like Amazon & E-Bay

➢ Technology up gradation by competitor.

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THE JOB AT A GLANCE

The job that I was offered at FLIPKART (eKart) was the position of Intern asa

Trainer in Warehouse & Logistics Management. It was a 45 days long internship

program. ln L&D department, all the team members had to work almost whole the

week and sometimes 24/7 ase-commerce is the most interactiveand challenging

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

and a day was week-off.

➢ 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

Successful Bbd (Big Billion Days) Sale.

➢ Conduct Learning Program CRT, Refresher Training and Evaluating Their Performance

throughout the Phase.

➢ Induction, OJT (On Job Training) Process Training for New Joiners Along with

Assessment. Emphasizing Awareness on The Gaps Identified Through Knowledge

Assessment in The Key Process Which Impacts Business Metrics.

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They work on 6S strategy-

1. SORT - Organization (Keeping only what is necessary and discard

everything else)

2. SET IN ORDER - Orderliness (arrange and label only necessary items

for easy use and return by anyone)

3. SHINE -Cleanliness {keeping everything swept and clean for inspection (for

safety and preventative maintenance)}

4. STANDARDIZE -Standardized cleanup (the state that exists when the

1st 3-pillars or “S’s”are properly maintained)

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5. SUSTA IN - Sustaining the discipline (making a habit of properly

maintain correct procedures)

6. SAFETY – Safety (this is important measure in the warehouse environment as

it ensures the safety and security for the workers, subordinates and employees of

the flipkart as well.)

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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 through the logistics of manufacturer of manufacturer's distribution channel. The

Flipkart puts order for the manufacturer for product to be delivered

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

locations spread across Tier I and high volume Tier II cities.

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.

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Flipkart’s Warehouse Management System-

In Flipkart’s Warehouse Management System (WMS), there are three major segments

namely, Inward Processing, Storage Management and Outward Processing. Discussed

below are the some of the details regarding each of the sub-processes involved in the

WMS. It includes 4 major departments that are Inbound, Outbound, Inventory

Management Team (IMT) and Return Centre (RC).

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Inward Process – (INBOUND)

1. Physical Inwarding: This is the area where physical delivery of goods from

suppliers to the warehouse is taken with passing of some given parameters.

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

depending on the contract that Flipkart has signed with them.

3. Pre-packing of products: At this stage, an initial packing of each of the

products is done. This pre-packing varies according to product. For instance, a

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.

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INVOICE SANITY CHECK

IRN CREATION

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55
RECEIVING

MANUAL PUTLIST CREATION & PUT AWAY

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Abbreviation-

IRN- Invoice Received Notes

GRN- Goods Received Notes

SRN- Seller Received Notes

IPP- Item Per Person

AWB- Air Way Bill No.

NPS- Net Promoter Score

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Inventory Management Team- (IMT)

1. Put-list generation: When the input of all products is done on the IT


systems, a system generated list of shelves corresponding to the products is

generated to facilitate placement of products on shelves. This is called Put-list

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

the Final Packaging Area for Outward Processing.

3. Physical placement on shelves: Based on the Put-list, the products


are placed on the respective shelves. If the marked shelves are not empty, the

product is put on an empty shelf, and the respective shelf number is updated on the

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Put-list.

4. Closing Put-list: Once the product placement is done, Put-list is updated


with the actual placement information and the list is Closed at the instant time of

putting the goods in the shelves of the Inventory.

Outward Processing (OUTBOUND)-

1. Pick-list generation: Based on the orders to be delivered for the day, a Pick-list is

generated by the IT system.

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

towards Final Packaging Area.

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

differently from stationery.

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

during the day.

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60
Some issues identified at the Warehouse
Management level:
1. All the scans while conducting inward processing for each of the

products are done manually. There is some scope of automation at this

stage.

2. Due to packaging litter, there emerge chances of difficulty in mobility

within the warehouse. Disposal of packing material may be addressed

for better streamlining and ease of mobility.

3. Currently, there are separate sections for separate categories in the

storage area, e.g., in the Bangalore warehouse, a whole floor is

dedicated to books, while the other floor is dedicated to other

categories. With the increase in the number of SKUs that Flipkart is

undertaking for sale, the Warehouse management system’s complexity

will increase and its scalability in the current form might come under

question. Hence, pre-emptive efforts may be made to make sure that

the systems and processes are scalable based on increasing variety and

quantity of SKUs handled.

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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

all the records are maintained with reference to this Id.

The payment can be made by using debit card, debit card, Net banking or COD(Cash on

Delivery). The payment gateway used is powered by CC Avenue. Flipkart is working to

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

availability of the products.

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

and delivered to the customer.

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

possible given the understanding with the vendors.

For example, in case of electronics, warranty and after-sales service is largely

manufacturer’s responsibility. Whenever required, Flipkart facilitates a smooth interaction

between the customer and manufacturer/service center.

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

average thedelivery time is 3-4 days with a typical breakup as follows:

• 1 day for order processing

• 2 days for delivery

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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

Hold’smethod is based on historic trend and seasonality in not accounted.

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

are shipped first.

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

enough demandgenerated, they approach the larger wholesalers or manufacturers directly.

This serves two main purposes:

1. It helps them to get better deals from the bigger manufacturers if they can order in

larger quantities frequently enough.

2. It avoids the channel conflict dilemma that large suppliers face when they agree to

similarterms with a smaller volume online player like Flipkart as compared to an

established offline distributor


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An example of this strategy mentioned by Pawan Raghuveer, Mgr. Flipkart Supply Chain

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

sourced directly from publishers.

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,

B and C grades based on their past performance.

There are several other secondary considerations while placing an order with a supplier:

1. Price considerations – As mentioned before – credit lines and discount

terms play an important part in selecting suppliers.

2. Quality Check contract – Depends on whether QC will be done at

supplier’s place and then product will be shipped to Flipkart’s warehouses or if the

QC has to be done at Flipkart’s warehouses.

3. Percentages of Returns Accepted – Higher the percentage of returns

accepted by asupplier, the better for Flipkart.

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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

is an integral part of that

Flipkart prefers to train its own support staff rather than outsourcing the function to a

BPO agency.

At present, a customer calls due to one of the below reasons:-

1. Sales Assistance

2. General Enquiries

3. Product/Shipping related enquiry

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

order is placed within 6 clicks on the website.

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There is also an outbound call-center that performs the following tasks:

1. Pro-actively inform customers about any delay in deliveries.

2. Pro-actively check the status of refunds or returns.

3. Inform the user in case any delivery has not been successful due to the

customer notbeing present at his address.

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RESEARCH PLAN

Major AIM of the Research-

• To find out the mode by which the customer became aware of flipkart.com

• To reveal the satisfaction level of the customer

• To improve the services provided by the company for motivating the customer

• To analyze the customer perception regarding the price of the products

Future Approach of the Research–

• Finding out the strengths and weakness of the flipkart.com

• Finding the number of future purchases

• Finding the customer satisfaction and their means of awareness of flipkart.com

• Finding the position among the competitors

• Finding out the perception of the customers about flipkart.com

Sampling Plan of the Research-

The research is to be carried out with the sample size of 100 respondents, The

geographical area is limited within an area of JAIPUR (U.P).

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Analysis of the Data and Interpretation-

• It was further analyzed using statistical methods and techniques like tables, percentage,

average etc.

• Graphical representation was done by using details of the questionnaire.

• 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

is based on that aspect.

Reason for prefering Flipkart-


69
PROCEDURES

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

the workingof the industry and understand its dynamics.

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.

With their inputs on procurement, logistics, order processing, supplier

management and customer support and secondary research we formulated a

draft. However, we identified certain gaps and interviewed the two gentlemen

again along with Ex-Flipkart employee Ms. Shuchi Shukla and our batch mates

who interned at Flipkart.

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SAMPLE SURVEY

What type(s) of commodities are stored in the warehouses?

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

working in grocery products warehouse.

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How much time picking department take to pick the singleproduct

and complete dispatch?

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.
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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

respondents shop on Flipkart because of installment, 22.7% of respondents shop on Flipkart

because of quality of product. And 9.1% of respondents shop on Flipkart because of wide

choice of product.

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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

years and around 12% above 36 years.

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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.

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Supply chain members are actively involved in

standardizing supply chain practices and operations?

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.

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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.

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Do you feel safe in shopping through Flipkart?

INTERPRETATION:-

As per survey 50% respondent feel safe on flipkart website for

purchase, 14.3% respondent does not feel safe on flipkart

website for purchase and remaining 35.7% of respondent are

not sure either it is safe or not.

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INTERPRETATION:

• Most respondents (80%) fall in the income brackets of "Less than 2 Lakh"

and "2 Lakh to 5 Lakh."

• Higher income groups (above 5 Lakh) form a minority at just around 20% of

respondents.

• This indicates a relatively lower-to-moderate income distribution among the

surveyed participants.

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INTERPRETATION:

• Flipkart is the overwhelmingly favored e-commerce website, with nearly

three-quarters of the preferences.

• Amazon is a distant second, accounting for about a quarter of the

preferences.

• Snapdeal and Ajio fail to attract any preference in this group, suggesting

limited competitiveness in this sample.

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INTERPRETATION

• A large majority of respondents (74.3%) have advanced education

(Postgraduate or higher), with over half also having at least a graduate

degree.

• Respondents with only high school or secondary school education make up a

minority, emphasizing a well-educated population in this sample.

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INTERPRETATION

• The vast majority of respondents (94.3%) either "most likely" or "likely" use

e-commerce websites, showing how essential online shopping is among this

population.

• Only a negligible portion (5.8%) are hesitant or do not participate in e-

commerce activities, suggesting a minimal resistance to digital platforms for

shopping.

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INTERPREATION

• Flipkart enjoys nearly complete brand awareness among the

respondents, reflecting its strong presence and popularity in the

e-commerce space.

• The extremely low unawareness rate indicates that Flipkart is a

household name within this demographic.

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INTERPREATION

• Users primarily value comparison features (product and price),

which collectively account for 80% of preferences,

demonstrating their importance in enhancing the shopping

experience.

• While payment options and website speed are important, they

are less prioritized in terms of user-friendliness by this sample.

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INTERPREATION

The data reveals that e-commerce websites are a crucial tool

for pre-shopping research, with 88.6% of respondents

frequently or always using them to inform their in-store

purchases. This trend highlights the importance of maintaining

accurate and detailed product information online to influence

consumer behavior.

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INTERPREATION

The chart reveals that convenience is the most critical factor for

shoppers, followed by delivery speed and product variety. The

product trial experience is the least important aspect, suggesting

that customers are more focused on efficiency and selection

when evaluating shopping models.

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INTERPREATION

Clothing is the most preferred product category for online

shopping, followed by mobile devices/laptops and digital

products. Personal products are less popular in

comparison. This suggests that e-commerce is particularly

favored for clothing and technology-related items, likely

due to variety, convenience, and trust in the online

shopping experience

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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

in furniture and 33.3% work in non-large electronic goods, 29.2% work in

fashion products, and 20.8% work in the grocery product industry.

• 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

of products, 9.1% of respondents shop on Flipkart.

• 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,
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• 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%

are unsure for sure.

• 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

old accounted for the second-highest number of res*ponders.

• 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

comparatively lower-to-moderate income distribution.

• With over three-quarters of the preferences, Flipkart is the most popular e-

commerce website. At over 25% of the preferences, Amazon comes in a far

distant second. There appears to be little competition in this sample, as Snapdeal

and Ajio do not garner any preference in this group.

• More than half of the respondents (74.3%) had at least a graduate degree, and the

vast majority have advanced education (postgraduate or higher). A well-educated

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population is highlighted in this sample by the minority of respondents who have

only completed high school or secondary school.

• The overwhelming majority of respondents (94.3%) indicated that they "most

likely" or "likely" use e-commerce websites, demonstrating the importance of

online buying to this demographic. There appears to be little opposition to using

digital platforms for shopping, as just a small percentage (5.8%) are cautious or

do not engage in e-commerce activities.

• Flipkart's significant visibility and popularity in the e-commerce industry are

reflected in the respondents' almost total brand awareness. Given the incredibly

low unawareness percentage, Flipkart is well-known among this group.

• Consumers place the highest value on comparison elements (price and product),

which together account for 80% of preferences, indicating how crucial they are

to improving the purchasing experience. Although payment methods and website

speed are crucial, this sample places less emphasis on them in terms of user-

friendliness.

• According to the study, 88.6% of respondents regularly or always use e-

commerce websites to research before making in-store purchases, demonstrating

the importance of these platforms for pre-shopping research. This trend

emphasizes how crucial it is to keep up-to-date, comprehensive product

information online in order to affect customer behavior.

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• 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

concerned with selection and efficiency when assessing shopping models.

• The most popular product category for online shopping is apparel, which is

followed by digital goods and mobile devices/laptops. In contrast, personal

products are less common. This implies that e-commerce is especially popular

for apparel and tech-related products, most likely because of the convenience,

variety, and confidence that come with online buying.

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Conclusion

In conclusion, through several interviews with industry insiders, it was evident

that Flipkart is a learning organization. They do not spend a lot of time in

addressing a problem till it becomes a burning issue and affects profitability

significantly.

The company is extremely CEO-driven and encourages entrepreneurial

thoughts. This has enabled a lot of in-house innovation and organically

developed best-practices - that have now become the industry standard.

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

to build a lot of slack into their existing

systems causing higher costs at several points in the supply chain. Will this

strategy ultimate succeed in the long run –is anybody’s guess.

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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

of the company depends and can be achieved.

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Annexure

o OFFER LETTER

o EXPERIENCE LETTER

o INDUCTION TRAINING

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FIRST_NAME Hub Name State

Dharmraj SATELLITEHUB_PWL Haryana

Sachin SATELLITEHUB_PWL Haryana

Nikhil SATELLITEHUB_PWL Haryana

Arun SATELLITEHUB_PWL Haryana

Arman SATELLITEHUB_FRD1 Haryana

Ravi SATELLITEHUB_FRD1 Haryana

Montu vimal SATELLITEHUB_FRD1 Haryana

Anshuman SATELLITEHUB_FRD1 Haryana

Vijay SATELLITEHUB_RWR1 Haryana

Rajesh SATELLITEHUB_RWR1 Haryana

Dinesh SATELLITEHUB_RWR1 Haryana

Lokesh SATELLITEHUB_RWR1 Haryana

Ashish SATELLITEHUB_RWR1 Haryana

Mangej SATELLITEHUB_FTH Haryana

Prince SATELLITEHUB_FTH Haryana

Akshay SATELLITEHUB_FTH Haryana

Amit SATELLITEHUB_FTH Haryana

Sahil SATELLITEHUB_FTH Haryana

Jagroop SATELLITEHUB_FTH Haryana

76
FIRST_NAME Hub Name State

Pradhum SATELLITEHUB_GGN1 Haryana

Durgesh bhaskar SATELLITEHUB_GGN1 Haryana

vinay SATELLITEHUB_GGN1 Haryana

Pawan SATELLITEHUB_GGN1 Haryana

Saurav Kumar SATELLITEHUB_GGN1 Haryana

Himanshu SATELLITEHUB_GGN1 Haryana

Pankaj kaundal SATELLITEHUB_UNAA Himachal Pradesh

Arjun sharma SATELLITEHUB_MND Himachal Pradesh

Vishal Sharma SATELLITEHUB_MND Himachal Pradesh

Sourav Sharma SATELLITEHUB_MND Himachal Pradesh

Brijender kumar SATELLITEHUB_MND Himachal Pradesh

Pawan Kumar SATELLITEHUB_SNP Haryana

Sahin Malik SATELLITEHUB_SNP Haryana

Ravinder SATELLITEHUB_SNP Haryana

Ankush SATELLITEHUB_SNP Haryana

Anil Kumar SATELLITEHUB_SNP Haryana

Deepak SATELLITEHUB_KNL1F1 Haryana

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.

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REFERENCES

 Wikipedia

 Google scholar.

 Google (forms ,sheets)

 shopping-inertia/so-article1-780440.aspx

 businesstoday.in

 Images from Google Images.com

 Commercials from Youtube.com

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