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SUPLLY CHAIN
A supply chain is a system of organizations, people, activities, information, and
resources involved in moving a product or service from supplier to customer. Supply chain
activities transform natural resources, raw materials, and components into a finished product
that is delivered to the end customer.
Supply chains underlie value-chains because, without them, no producer has
the ability to give customers what they want, when and where they want, and z the price they
want. Producers compete with each other only through their supply chains, and
no degree of improvement at the producer's end can make up for the deficiencies in a supply
chain which reduce the producer's ability to compete.
Value Flow
This is the most obvious and visible part of a supply chain, moving largely from the
vendor to the customer. Physically, the flow manifests itself as goods flows and service flow.
Goods flow constitute raw materials (including material being stored or transported), work in
process (including what is begin converted and what is in between operations), finished
goods (includes material being stored or transported), spares, etc.
Information Flow
This is a significant part of the supply chain in that it is the enabler and driver of the
concept of a supply chain. It consists of flows both from vendor to the customer and from the
customer to the vendor. The major components of the backward flow (against the direction of
the major value flow) are inputs for forecasts, marketing plans, dispatch plans, production
plans and procurement quantities and timing, orders from customers and dealers, quality
feedback, warranties that are invoked, etc.
In the forward direction (in the direction of the major value) there are important components
like capacity estimates for plans, stocks available, dispatch advices, stock transfer notes,
quality assurance reports, warranties, etc.
Cash Flow
This is the commercially significant part of the chain, which is largely in a direction
opposite that of the major value flow. The major part of this flow is the money paid for goods
and services received. But there are other features to the cash flow, such as credit periods
advances for payments from customers/dealers, and to vendors. Any credit/advance is with
respect to the transfer of title and/or service delivery in the supply chain. The cash flow
determines how a given value flow is financed by the various actors in the supply chain.
Chapter-2
Company profile
2011: Chakpak.com, a Bollywood news site that offers updates, news, photos and
videos.
As per Alexatraffic rankings, Flipkart is among the top 20 Indian Web sites and has
been credited with being India's largest online bookseller with over 11 million titles on offer.
The store started with selling books and in 2010 branched out to selling CDs, DVDs,
mobile phones and accessories, cameras, computers, computer accessories and peripherals, an
di n 2 0 11 , p e n s & s t a t i o n e r y, o t h e r e l e c t r o n i c i t e m s s u c h a s h o m e a p p l i a
n c e s , k i t c h e n appliances, personal care gadgets, health care products etc.
Further in 2012, Flipkart added A.C, air coolers, school supplies, office supplies, art
supplies & life style products to its product portfolio. As of today, Flipkart employs more
than 4500 people.
Initially funded by the Bansals themselves with 400,000, Flipkart
h a s r a i s e d funding from venture capital funds Accel India (US$1 million in 2009) and
Tiger Global(US$10 million in 2010 and US$20 million in June 2011). Flipkart.com, on
August 24, 2012 announced the completion of its 4th round of $150 million funding from
MIH (part of Naspers Group) and ICONIQ Capital.
Chapter-3
THE SUPPLYCHAIN PRACTICE IN FLIPKART
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
manufacturers distribution channel. The flipkart puts the order for the manufacturers for
product to be delivered. The ware houses are located in the cites which are near to airport,
Bangalore, Chennai, Delhi, Hyderabad, Mumbai, Noida, Pune and Kolkata.
The customer processing cell of the flipkart receives the order from the customer via
website and processes the order and sends the product to the delivery centers of the flipkart.
From those delivery centers according to the geographical location the product can take two
routes.
In metropolitan citys like Bangalore, Mumbai, Delhi, etc. The flipkart has its own
delivery service. The delivery person of the flipkart goes to the customer to deliver the
product through the flipkart logistics. In the other places the courier services like DTDC,
BLUE DART and FIRST FLIGHT. These are the courier partners of the flipkart.
The product from the delivery center of a city reaches to the courier service office of
the same city. From there the product reaches the respective cities where to product must be
delivered to the customer. Then the delivery person of the respective courier service delivers
the product to the customer.
Downward stream:
The downward stream follows from manufacturers to warehouses and delivery centers
of the flipkart , from there the product reaches to the delivery centers, to own transit services
or courier services, to respective places of deliver, to the customer. In downward flow
information and value flow happens.
Upward stream:
In the upward stream information flow and cash flow happens. The customer pays
the amount for the product he purchases through debit card, credit card, net banking, flipkart
wallet and COD (cash on delivery). Customer keeps the order via website.
Internal stream:
In the internal stream information flow and value flow takes place. Low stock ware
houses contacts with the other warehouses for stocks and gets the delivery of the product
within promised time.
The reverse
In both ways the next step in the supply chain is logistics either it may be agent or
courier service. Through logistics the product reaches to the returns processing cell. After
thourghly checking the product if the product is in a good condition or as stated condition by
the customer the processing cell initiates the process to return the money to the customer.
There are two ways in returning the money one is crediting money to the flipkart
wallet which will be valid for 1 year to use for further shopping and the other is to directly
deposit to the bank through which the customer has made the payment. But the courier
charges incurred if any will be credited to flipkart wallet only.
Chapter-4
Findings
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Flipkart still needs to work on its core competences that are books and stationary.
Flipkart needs to improve its services especially in the delivery period.
Some of the courier partners of flipkart are weak in some of the locations. Flipkart
need to identify them and take steps accordingly.
Flipkart need to concentrate on its products as customers frequently complain about it.
Conclusion
Overall flipkart is a successful E.Com firm running with profits and changing itself
with the trends.
Flipkart is a cost effective firm which provides products to the customers with low
prices.
Flipkart is outsourcing its delivery which may be a issue to the flipkart not now but in
future.
If flipkart takes care of some of the issues in delivery and product miss match etc. it
will be a leading online retailer in the near future and can earn a huge range of profits.
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