SCM 101 HOWARD ( Flipkart Supply chain)

Biggest issues in Last Mile

India: Customer not present, Cash not present
Forward logistics - Value Chain
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Demand planning and Forecasting

Purchase and Insourcing
Inbound logistics (First mile) Primary Transportation
Storage and warehousing (FC, MH, RC, TC)
Outbound Logistics (to DH/TC)
Distribution (LM) Deliveries

If failed: REVERSE LOGISTICS

Other parameters:
CHA: Customs House Agent
NVOCC: A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel
operating common carrier (NVOCC), is a person or company that organizes shipments for
individuals or corporations to get goods from the manufacturer or producer to a market,
customer or final point of distribution.
Warehousing Cost
Cost of warehousing in THANE: INR 50/square foot
Cost of warehousing in FLIPKART: INR 17/square foot
Adjustable Pallet racking: Warehouse stocking methodology

Size of a pallet in India average: 1.1 by 1.2

Size of an APR Slot: 2.8 (can put in 2 pallets) [A B] Slots
TEU (Twenty Foot Equivalent Unit) is the unit of the capacity of a container ship, a container
terminal and the statistics of the container transit in a port. The two most common international
standardised containers are those of twenty and forty foot
FEU (Forty foot Equivalent Unit)

Warehousing operations:
1. Got a pallet
2. QA done , pallet is correct
3. System says go and put in 3A (in APR)

4. Goto 3A to put
5. BUT a Pallet already present in 3A
6. Wrong item picked previously (must be coming back now via reverse logistics)
Stock transfer

When a stock transfer happens, u must keep the stock in the place for 24-48 hours to allow for a
checks
Or inspections. Must be done while crossing STATES in INDIA
X-DOCKING avoids the same since u dont have to store while stock transfer
NOKIA
27 DH in India, 33 - 61 days of tied up working capital
3 Distribution Centers in EU (36 countries), 0.5 days of tied up working capital
GST

(Goods and Service Tax)

Single tax laws, therefore, no need to stock transfer when changing states (or border crossin
Speed of TAT when selling and sending interstate will LOWER
Average speed of transit for commercial vehicles in INDIA: 17 KMS/Hour

Assume changing speed to 25 KMS, then, TAT will reduce by 33%

Transportation Industry
85% Unorganized sector
80% use transportation
Average truck size: 20 Metric tonnes
Time to get ready with documents, etc: 50-60 mins
Europe: 45 Metric Tonnes @ 60 mins @ 65 KMPH (CASE FOR GST)

STOBART Transportation Big trucking companies coming to India as they know about GST an
have trucks, loading capacity and driver trainings
Warehouse Equipment
Flexible Forklift: Can get into AISLES in WH with very little SPACE, to CONSERVE on WH SPACE

GST In India
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Remove multiple Warehouses present across multiple states across INDIA

Lesser warehouses, BETTER TRANSPORTATION Perfectly fluid
Result: 7 Distribution centers needed, reach anywhere in India within 24-48 hours
Government is enhancing the arena by providing subsidies for getting into asset building in
Regions as well