NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

School of Business Management

Supply Chain Management

Dr. Ashu Sharma

Submitted By – Group 8
MBA Core

ROLL NO NAME

A035 Ashu Kumar

F051 Lokendra Singh Venawat

I005 Yashank Digga

I028 Pulkit Bhargava

I030 Akash Pulipalupula

I037 Somenath Karmakar

I057 Lithika Shivani M

 Roles and Responsibilities
Roll Name Work Done
Number
A035 Ashu Kumar Strategic Recommendations & SCM Restructuring
 Suggested specific restructuring or improvement
actions for Flipkart’s supply chain.
 Justified recommendations with data from primary
research and secondary sources.
F051 Lokendra Singh Company Analysis – Flipkart
Venawat  Led primary research - by conducting interviews
 Described Flipkart’s supply chain structure,
processes, and operational strategy.
I005 Yashank Digga Competitive Analysis
 Profile major competitors (Amazon, Meesho,
JioMart, Snapdeal) and their supply chain
approaches.
 Analyse strengths, weaknesses, and market gaps for
Flipkart.
I028 Pulkit Risk Assessment in VUCA Environment
Bhargava  Identify external and internal risks in Flipkart’s
supply chain.
 Explain the potential impact of each risk with
relevant industry examples.
I030 Akash Key Success Factors & Driving Forces
Pulipalupula  Identify and explain 4–5 key supply chain success
factors for e-commerce in India.
 Analyse industry driving forces such as regulation,
technology, and consumer behaviour shifts.
I037 Somenath Introduction & Summary
Karmakar  Led primary research - by conducting interviews
 Documented the research methodology, and
summarised key findings from all sections of the
report
I057 Lithika Shivani Industry Analysis - E-Commerce in India
M  Assisted in primary research - by coordinating
contacts
 Applied Porter’s Five Forces to analyse industry
competitiveness
 1 Introduction & Project Approach

1.1 Objective of the Project

The main aim is to analyse Flipkart's supply chain management, from purchasing and
warehousing to last-mile delivery, and assess how well it supports the company's expansion
in the Indian e-commerce sector.

1.2 Research Methodology

Our approach involves:

 Secondary research: getting information about the company and industry from trusted
sources like Wikipedia (e.g., market share of Flipkart, founding, and logistics wing
Ekart), company websites. We have further included research which explain Flipkart's
SCM technologies and architecture.
 Primary research: We conducted an interview with Tharun M. P., Manager – First
Mile Delivery, Flipkart Karnataka Division. The discussion covered key areas
including risk management, delivery innovations, storage strategies, procurement
processes, and last-mile delivery operations.

2 Industry Analysis: E-commerce in India

India’s e-commerce industry is one of the fastest growing in the world (with the second
largest shopper base globally of 280 million), and a value of $147 billion as of 2025, with a
CAGR of 18.7% projected till 2028 – attributed mainly to widespread digital adoption,
increasing disposable incomes, a growing aspirational middle class, and evolving consumer
expectations.
E-commerce spans multiple product categories – fashion, electronics, FMCG, groceries, and
lifestyle. Some key drivers of this exponential growth include smartphone penetration across
the country (including rural and tier 2/3 towns), affordable mobile data plans, the ‘FinTech’
revolution with the rise of UPI and digital wallets - making e-commerce payments seamless,
and the government-backed ONDC initiative – a system which allows small retail shops to
compete with larger online retailers.
2.1 Porter’s Five Forces: E-commerce Industry

Threat of new entrants: Moderate to High - Digitalization is prevalent, and it is extremely

easy for any entrepreneur to launch an online storefront on sites such as Shopify. However,
fulfilment networks are extremely capital intensive and may take years to establish
nationwide coverage.
Bargaining power of suppliers: Low to Moderate - The seller base is highly fragmented,
and their collective bargaining power is reduced. There are some exceptions, such as sellers
with exclusive tie-ups (Realme launches only on Flipkart), and they hold more bargaining
power.
Bargaining power of buyers: High - The low switching cost, the price-sensitive mindset of
Indian consumers, the demand for fast delivery (reduced from days to hours/minutes due to
Q-Commerce) have classified the bargaining power of buyers as high.
Threat of substitutes: Moderate - Traditional retail still commands a majority of the market,
and many consumers prefer in-person purchases for perishables. Additionally, the concepts of
click-and-collect (Decathlon, Reliance Trends) are gaining prevalence as well.
Industry Rivalry: Very High - Top players such as Amazon and Meesho control roughly
60% of the market, and have invested heavily into their infrastructure. Additionally, Q-
Commerce player such as Zepto and Blinkit add to the competition in case of grocery and
FMCG sectors.
While the Indian e-commerce industry is highly attractive in terms of its projected growth
and market potential, it is also characterized by intense competitive pressures, thin margins,
and logistical complexity. Unlike other mature markets where profitability is the core focus,
in India, scale and reach are initial priorities, and companies often tend to prioritize customer
acquisition through discounts, delivery speed, and bundled offerings.
What distinguishes successful players from others is not just their focus on front-end
interface and customer experience, but their supply chain design and execution as well. As e-
commerce makes a shift to Tier 2 and Tier 3 cities with a reduced distribution network as
compared to Tier 1 cities, the ability of these companies to fulfil orders quickly, affordably,
and reliably will determine long-term sustainability in the industry.
The pressure to offer same-day or next-day delivery while keeping logistics costs low creates
a tension between customer satisfaction and profitability. Success in this industry is
contingent upon building adaptive supply chains and achieving scale without sacrificing
service level to the consumer.

2.2 Driving Forces in the Ecommerce Industry

1. Digital Demand Expansion & Tier-II/III Penetration: As of 2024 the Ecommerce
Industry in India is valued at $147.3 billion dollars. Estimates suggests that this
number can reach up to $292 billion dollars by 2028 with a CAGR of 18.7%. This
increase is due to the digital penetration of smartphones coupled with ease of access
to various products from the companies operating in this industry. In 2024, there were
270 million people who shop online and this number is expected increase and reach
400 million users by 2027. This increase can be attributed to digital/smartphone
adoption in Tier 2 and Tier 3 cities. For logistics and supply chain to cope up with the
digital expansion, it requires a network of micro fulfilment centres, region specific
inventories and real time demand forecasting which caters to the customer
preferences.

2. Technology Adoption & Automation Acceleration: Technologies such as Artificial

Intelligence, Internet of Things, Machine Learning etc are redefining how the supply
chains operate in India. As per KPMG in 2024 nearly 50% of the supply chain
organizations in India have invested in AI and advanced analytics to enhance
forecasting, route optimization and warehouse robotics. With the increase in digital
users and advancements in technologies available companies are looking to
incorporate predictive analytics, IoT based inventory monitoring, AI leveraged sorting
systems to improve their financial metrics.

3. Quick Commerce: Quick Commerce is the fastest growing segment in the

Ecommerce industry in India. This segment is expected to reach a valuation of $5
billion dollars by 2025. Consumers present in the urban cities now expect delivery
within 15 to 20 minutes. This forces companies to develop hyper local inventory
storage, fast order picking systems and dynamic last mile delivery network. To better
adapt to the growing needs of customers companies are setting up micro ware house
near high demand regions which are supported by real time fleet optimization tools.

4. Open Network for Digital Commerce: The Open Network for Digital Commerce
(ONDC) is an initiative by the Government of India to establish a decentralized,
 protocol-based marketplace. ONDC allows sellers, buyers, and logistics providers to
interact independently which help them to gain a market for them in an industry
which is dominated by few large players. Successful implementation of ONDC
seamless API integration with third party logistics, decentralized inventory
management etc. As of 2024 ONDC has 3,70,000 sellers and supports 2,00,000 daily
retail orders.

5. Logistics Infrastructure & Multimodal Transportation: Logistics infrastructure in

India is undergoing significant changes to develop multimodal transportation system
which include rail, road, air and inland waterways. Government initiatives like PM
Gati Shakti, National Logistics Policy and dedicated Freight corridors are developed
to help companies reduce their logistics cost from 13% of GDP to 8% of GDP. These
policies are driving the development of logistics parks, multimodal hubs, and regional
sortation centres to enable faster and reduce the transportation cost.
6. Sustainability and Compliance: In the VUCA world, Sustainability is a key
differentiator for the companies operating in the Ecommerce industry. Global
warming, Climate change and regulatory norms are forcing companies to take
measure for adopting ethical sourcing of material and green supply chain.
Government initiatives like ONDC focus on low cost and sustainable delivery
channels. Majority of the companies are also focusing on the usage of electric
vehicles for last mile delivery and reverse logistics networks to reduce the carbon
emissions.

2.3 Key Success factors for the companies operating in the

Ecommerce industry
1. Seamless Digital & Mobile-First Experience: Over the past few years there has
been a significant increase in the number of people who use smartphones in India due
to the affordable internet access. Estimates suggest that India has over 800 million
smartphone users and the average usage of mobile phone is around 8 hours per day
per user. This suggest that for ecommerce players to be successful and reach a wide
consumer base they must develop a seamless and frictionless mobile apps with less
latency. Vernacular interface with UPI payment feature will further aid in capturing a
wide customer base.

2. Logistics & Fulfilment Centres: With the Ecommerce Industry growing at 18.7%
CAGR there is need for companies to develop efficient logistics centres to
differentiate themselves from their competitors. To ensure low delivery lead times and
high service levels while providing the option of same day or next day delivery
companies need to have micro fulfilment centres and regional sortation centres.
Companies need to leverage AI based routing to achieve high order fulfilments.

3. AI & Data Driven Operations: Many companies are embedding AI into their supply
chain at various stages. AI and advanced analytics are being used to develop the
capabilities of predictive demand modelling, dynamic price optimization, inventory
management and automated warehousing. Companies that successfully implement
 these capabilities can outperform the competitors by improving their metrics of order
accuracy, cost per deliver, inventory turnover etc.

4. Inclusive Market Reach & Local Adaptation: Tier 2 and Tier 3 cities represent
approximately 60% of the new shoppers and sellers. D2C brands market share is
increase at a CAGR of 40%. For companies to be successful they should focus on
developing marketing, logistics, and technology strategies to accommodate vernacular
and local preferences while maintaining low average order values and Cash on
Delivery payment preferences

5. Network Interoperability (ONDC): The ONDC initiative by the government is

spanning across cities with 14 million monthly transactions. Platforms that seamlessly
integrate APIs, logistics partners and sellers as per ONDC protocols can offer a wide
range of products, provide the delivery at low costs and gain open access to thousands
of micro merchants across India. Companies that adapt their platforms for seamless
ONDC interconnectivity can further improve their operational flexibility.

3 Competitive Analysis
3.1 Major Players and their Business Strategy

3.1.1 Amazon India:

It is one of the most important competitors for Flipkart. It is a highly technologically-driven
corporation which continuously tries to improve its speed and reliability. Its business strategy
is very customer-centric and it focuses on robust tech-integration.
Amazon Transportation Services (ATS) is its own delivery network which operates more than
75 fulfilment centres (FCs) across 19 states India.
Key aspects of the Supply Chain:
 Amazon follows a strong inventory-led model. Amazon Fulfilled products, or which
is commonly known as Fulfilled by Amazon (FBA), is an innovative logistics
management system that enables faster delivery to the customers.
 Project Agile launched by Amazon leverages machine learning to anticipate regional
demand for high-turnover products.
 It operates high-tech warehouses with advanced automation, robotics and AI
technology.
 Customers with prime membership get their products delivered in 1-2 days. Amazon’s
Prime Now 2.0 facility in metropolitan cities enables ultrafast 2-hour delivery for
groceries and electronics.
 It has invested heavily in returns infrastructure and predictive analytics for forecasting
the demand more accurately.
This integration of technology throughout the supply chain and superior last mile efficiency
provides Amazon with a competitive edge.

3.1.2 Meesho:
Meesho’s strategic focus is on cost-efficiency and is highly dependent on 3 rd Party Logistics.
Small businesses are encouraged to sell on Meesho because of the zero-commission policy
and extremely low logistics cost.
It does not own an in-house logistics but outsources the entire function to 3 rd Party Logistics
Providers like Delhivery and Shodowfax
Key aspects of the Supply Chain:
 It employs an asset-light model with minimal warehousing, which drives down its
fixed costs to a minimum. Meesho’s logistics costs are 20-25% lower than Flipkart or
Amazon, highlighting its cost leadership strategy.
 Prefers low-cost shipping to faster delivery speed. Maintains 4-6 days average
delivery time.
 Maintains cross-docking centres instead of large warehouses.
 Supply chain is geared toward Tier-2 and Tier-3 cities. It recently signed MoUs with
XpressBees and EcomExpress to consolidate its presence in Tier 2/3 cities.
So, even if its deliveries are not quick and consistent, Meesho turns out to be highly
affordable and accessible for unorganised sellers.

3.1.3 JioMart:
JioMart has an omni-channel presence and is strategically integrating offline Reliance Retail
stores with its online presence to a hyperlocal supply chain.
It leverages Reliance’s robust network of more than 18,000 retail stores as fulfilment nodes,
meanwhile it is also working on building its proprietary logistics.
Key aspects of the Supply Chain:
 Reduced delivery time in urban areas due to store-level fulfilment and AI-based route
optimization.
 Makes optimum use of Reliance Retail’s warehouse infrastructure.
 Has access to great insights from customer data and operational analytics with the
help of Jio platforms
 Targeting FMCG, grocery, electronics and daily essentials through proximity-based
fulfilment
 Integration with Jio Financial Services is enabling smarter backend financing for
Kirana partners and better data flow.
The existing retail store network and vertical integration across retail and telecommunications
gives it a unique competitive advantage in last-mile proximity.
3.2 Comparison of Supply Chain Capabilities
Feature / Flipkart Amazon Meesho JioMart
Metric India
Logistics Ekart (in-house) ATS (in- 3PLs Reliance Retail
Network house) (Delhivery, + 3PL
Shadowfax)
Fulfilment More than 100 More than 75 Few DCs, Over 18,000
Centres FCs mostly cross- Reliance Retail
docking stores
Delivery Speed 1-2 day in 1-day Prime; 4-6 days 2-3 days (pilot)
metropolitans 2-hour Prime average
Now 2.0
Return Robust reverse Seamless via Return friction Limited support
Management logistics app exists
Tech AI in inventory & Predictive Low Backed by
Integration routing logistics technology Reliance’s
usage technology
stack
Sustainability Electronic EV fleet, solar Not a focus Early-stage EV
Measures Vehices, reusable FCs area adoption
packaging

3.3 Strengths and Weaknesses of Competitors

Platform Strengths Weaknesses

Flipkart Strong last-mile control via Ekart. It also High return rates, strained
has logistics expertise during festive season delivery capacity in Tier-3 cities
Amazon Robust tech use, fast delivery with Prime, Higher costs, local store
reliable returns partnerships are limited
Meesho Low-cost logistics, fast growth in Tier-3 Weak in delivery timelines, lacks
towns full control
JioMart Strong offline integration via Reliance Still scaling tech and logistics
Retail operations
3.4 Opportunities for Flipkart
 To counter Amazon’s sustainability edge, Flipkart can expand its fleet of electronic
vehicles and invest in green warehousing. Flipkart is currently considering an EV-
based delivery fleet expansion in metropolitan cities like Bengaluru and New Delhi.
 Demand forecast, return prediction and customer data analytics can be further
improved using artificial intelligence
 JioMart is leveraging its Reliance Retail offline stores to enable 2-hour delivery. To
match this strategy, Flipkart can collaborate with local Kirana stores to speed-up its
last mile delivery. Flipkart has already started capitalizing on this opportunity with
Ekart partnering with over 1.5 lakh Kirana stores across 1200+ cities in India

3.5 Supply Chain Structure and its Vulnerabilities

4 Company Analysis – Flipkart

4.1 Flipkart's Business Model
Flipkart's core business is e-commerce and its supply chain serves this by prioritizing
reliability and customer satisfaction. Its top priority is to deliver the fulfilment of the
"Customer Promise Date" so as to have orders going out on schedule. Its prioritization of
reliability is an important element of its own model and another area of strength in this case is
reaching high order volumes.

Scale and Reach:

 Ekart PIN Code Coverage: Flipkart’s Ekart supply network covers over 19,000 PIN
codes across India, which has made it one of the biggest networks in the country
 Warehousing Infrastructure: Flipkart has over 70 fulfilment centres across more than
20 cities, and 80+ sorting centres and 3,500+ delivery hubs supplement these facilities
 Monthly Deliveries: Ekart delivers over 10 million shipments per month, supporting
Flipkart’s burgeoning order volume.
 Employees: Over 40,000 direct employees and over 200,000 supply chain and
delivery employees.

4.1.1 Supply Chain Structure

Flipkart’s supply chain follows a Hub and Spoke model. It’s established across five primary
entities: suppliers, fulfilment centres (FCs), sorting hubs, delivery hubs, and end customers.
Suppliers supply and get ready merchandise, stored, selected, and packaged at FCs. Parcel
orders are processed into sorting hubs for clustering and regional routing via automated
processes. Delivery hubs, nearer to customers, perform final sorting and allocation of parcel
orders to delivery agents via best-of-breed final mile delivery. The journey concludes with
the product reaching the end customer, who may even generate returns initiating the reverse
supply chain. This disciplined flow ensures seamless, timely, and consistent order fulfilment
with a set of defined activities across each critical entity.

Last-mile Delivery (Ekart): Ekart, the delivery network owned by Flipkart, has the
responsibility of handling the whole delivery process from buyer end to seller end. Its
network offers end-to-end tracking and management of shipments. Parcel end-to-end delivery
by a delivery personnel member of the name "Wish master" from the delivery sorting centre
to buyer doorstep is an integral component of the last-mile delivery system.
Coordinated across supply chain functions: Flipkart synchronizes suppliers, warehouses,
logistics personnel, and information technology infrastructure thru integrated technologies
and vendor alliances. Seamless order tracking and centralized inventory management
minimize waste like the Bullwhip effect and enable smooth inter-flows across multiple
supply chain tiers.

Reverse Logistics: Dedicated flow of customer returns, exchanges, and refunds, connected
with warehouse and delivery centres to eliminate reconciliation and reshipment bottlenecks.

Multi-Modal Transport: Flipkart makes use of trucks and flights in order to move goods as
quickly as possible across various regions.

4.1.2 Warehousing & Fulfilment

 Continuous Improvement and Supply Chain Performance: Key performance

indicators of order quantity per day, lead delivery, adoption of automated processes,
and fulfilment coverage are shown by Flipkart. The company utilizes benchmarking
technologies like SCOR model to quantify and enhance supply chain performance and
consistent enhancements in technology and processes.
 Just-in-Time Inventory: Flipkart’s JIT approach reduces unwanted inventories and
storage needs in warehouses, and thus helps to reduce operational expenses and
provide newer product availability for dispatching.
 Vendor-Managed Inventory: Flipkart VMI enables better inventory turns and achieves
order fulfilment rates of nearly 99%, assisting in keeping stocks at an optimum level
and minimizing stockouts.
 Category-Specific Sourcing: Flipkart’s electronics just-in-time procurement maintains
lean and fresh stocks; fashion is sourced seasonally for festival seasons; groceries are
replenished often through powerful FMCG tie-ups and local procurement to keep
them fresh.
 Put-List and Pick-List Generation: Computerized lists direct streamlined product
placement and subsequent picking, packaging, and consolidation of product into
shipments according to customer orders.

4.1.3 Technology & Automation

 ERP: Flipkart’s sophisticated ERP system utilizes AI and automations in real-time to

maximize inventory turns, simplify logistics, and enable seamless order fulfilment,
achieving 30% greater efficiency and 25% acceleration in delivery throughout its
national supply chain.
 Warehouse Automation: Warehouse automation tools like conveyor systems, robots,
and automated guided vehicles are utilized by Flipkart for sorting and picking
efficiencies.
 Real-time Tracking: The organization offers real-time tracking from order booking
time to delivery and provides customers and in-house teams with order delivery
tracking updates through dashboards.
  Address Intelligence: For rapid last-mile delivery, Flipkart makes use of address
intelligence, including geocoding of customer addresses and smart clustering of
addresses to minimize routes.
 Predictive Analytics: The firm utilizes predictive analytics, using data and machine
learning to make demand predictions—particularly around sales events—for more
intelligent inventory management.
 Network Optimisation: Flipkart places warehouses and hubs close to end-customers to
reduce delivery lead times and make the most of network utilisation.
 Current Operations vs Growth Targets for Flipkart: Below are the summarized current
operations of Flipkart and future targets of growth, entailing prominent dimensions of
scale, delivery speed, technology adoption, and reach. These indicate the expansion
plans of Flipkart to enhance capacity, introduce innovations through automations, and
enhance coverage to accommodate future expansion and changing customer demands.

Aspect Current Operations Growth Targets (2026)

Fulfilment Centres 80+ nationwide Expand to 100+, Tier 2/3

Delivery Speed Same/next day metro Same-day for Tier 2/3

Orders/Day ~1.5M (2024) 2M+ by 2026

Tech Adoption Robotics, AI in hubs Full automation, predictive

Ekart Reach Most Tier 1/2/3 cities 100% pin coverage

4.1.4 Alignment with Key success factors in Indian e-commerce industry

 Seamless Digital & Mobile-First Experience: Flipkart’s mobile-first approach

appealed to a huge base of users, reaching more than 82 million active users in India
 by 2023, and was the country’s top e-commerce app and catalyst of rapid UPI
payments and multi-linguistic access for mass-market penetration.
 Logistics & Fulfillment Centres: Flipkart has a network of 83 fulfillment centers
across the country, serving over 19,000 PIN codes and delivering over 10 million
shipments per month. These expansions have brought with them more than 100,000
new supply chain jobs.
 AI & Data Driven Operations: Flipkart utilizes AI/ML to accurately predict
demands and optimize inventory; AI-driven customized shopping and automations
have decreased delivery times in rural locations by 4 days and accounted for up to
25% sales volume growth in electronics business.
 Inclusive Market Reach & Local Adaptation: Coverage of Tier2/Tier3 cities by
Flipkart has expanded 1.3–4 times in the past few years, and customer revenue has
increased 1.3–1.4 times. Localization in regional language and the availability of
cash-on-delivery have promoted further penetration—40% expansion of the rural
customer base and more than 60% increase in active users beyond urban locations.
 Network Interoperability (ONDC): ONDC integration allows more access to the
market for Flipkart buyers and sellers with secure payments; the ONDC protocol
extends Flipkart’s delivery and food order network reaching the 500 million internet
users in India—enabling domestic players and MSMEs to access e-commerce without
costly infrastructure, and making access more democratic and flexible

5 Risk Analysis in a VUCA World

Flipkart operates one of India’s largest e-commerce supply chains, supported by a network of
800 motherhubs, 4,000 delivery centres, and over 40 fulfilment centres spread across the
country. While this network allows it to handle millions of shipments daily, it also exposes
the company to a variety of risks stemming from volatile, uncertain, complex, and ambiguous
(VUCA) market conditions. Reliability is the organisation’s central operational priority, yet
both external and internal factors can disrupt performance. This section examines those risks,
their likely timelines, and their potential impact on Flipkart’s supply chain.

5.1 External Risks

1. Weather-related disruptions: Severe rainfall and flooding have been reported to
create last-mile delivery delay, increase turnaround times, and, in extreme instances,
damage inventory. These problems are likely to come without much notice and are
hence important to have contingency plans in place. Similar disruptions in other
organizations, including Amazon’s during the floods in Chennai, indicate that mature
networks may suffer extensive service disruptions.
 2. Regional prohibitions and political intervention: Some locations pose operational
difficulties because of administrative constraints or political sensitivities. Flipkart
does not have a motherhub operational in Jammu & Kashmir, which could be an
indication of such barriers. Online shopping sites have previously had to temporarily
discontinue service in some of the unrest-hit places and thereby interrupt delivery and
return processes.
3. Changes in regulations and policies: Indian e-commerce has experienced
intermittent changes in foreign direct investment (FDI) regulations, data localisation
policies, and compliance obligations. Any of these changes may necessitate changes
to Flipkart’s seller configurations, technology infrastructure, or ownership models of
warehouses. For instance, the amendments to FDI in 2019 forced Flipkart and
Amazon to revisit their seller networks and restructure them.
4. Fuel price volatility: Sharp increases in fuel costs have a direct effect on
transportation expenses and third-party logistics (3PL) rates. With Flipkart relying on
both in-house delivery and external partners, sustained fuel price hikes can raise per-
shipment costs and pressure margins. Similar spikes in 2022 reduced profitability for
logistics players such as Delhivery and Blue Dart.
5. Competitive pressure: Rivals such as Amazon, Meesho, and JioMart keep expanding
aggressively. Concepts such as Meesho’s no commission model have drawn away
sellers from mainstream players, and Amazon’s faster delivery commitments are
raising consumer expectations further. Servicing such levels of service requires
incremental investment in network capacity and technology.

5.2 Internal Risks

1. Dependence on 3PL partners: While most shipments are taken care of by Flipkart’s
in-house unit, Ekart, a substantial percentage of rural and overflow shipments rely on
third-party providers like Shadowfax. During peak times such as the Big Billion Days
sale, contracted partners cannot or are unwilling to fulfil surge demands, and service
levels are violated.
2. Manpower shortages and skills gaps: Our key research indicates pockets of training
deficiencies among a percentage of delivery staff, and some sales staff are tardy in
supplying staff during peak times of the year. These delays slow up processing and
contribute to delivery mistakes, especially if accompanied by peak volumes of the
season.
3. KPI breaches and turnaround time delays: Flipkart has stringent key performance
indicators (KPIs) for reliability and turnaround time. Breach of these standards on a
sustained basis may erode seller trust and buyer satisfaction. This is more of a concern
during peak sales volumes when delays have broader downstream implications.
4. Technology and system failure: The firm has invested substantially in automation,
such as robotics, automated guided vehicles (AGVs), and its own ERP system (“Bi-
frost”). These enhance efficiency but if an outage or technological glitch occurs, they
 are able to freeze parts of the fulfilment infrastructure and impact several hubs
simultaneously.
5. Forecasting errors during peak events: Big Billion Days and other large campaigns
are planned months in advance, with shipment volumes forecast to determine staffing
and inventory placement. Inaccurate forecasts risk either overstocking, which raises
storage costs, or understocking, which leads to missed sales opportunities.
Events like extreme weather or political bans can undercut the trust on which Flipkart’s brand
is established. Internal threats, including 3PL reliance, talent deficiencies, and forecasting
mismatches, are continuous operational threats. Together, these threats have the potential to
drive up expenses, restrict scale, and degrade customer trust, even in flagship event days like
the Big Billion Days.

6 Strategic Recommendations

Based on primary research insights from a Flipkart supply chain expert (Tharun, 1.3 years of
experience with Flipkart and prior experience with Amazon and Croma background) and
extensive secondary research, we suggest the following recommendations

6.1 Strategic Restructuring Framework

 Dark Store Network Expansion for Urban Markets: Cut the pace of developing
800 dark stores by 2025 in locations particularly within the city that have special
infrastructure that includes cold storage rooms to store products used by Flipkart
grocery service. Primary research also validates the fact that, dark stores are
predominantly located in urban centres and have special warehouses like cold control
storage etc. of Flipkart Grocery. The present dark store strategy is already in operation
in the urban centres, which forms a foundation of swift expansion.
 Peak Season Workforce Scaling Model: Introduce systematic scaling up of
manpower during high demand times which Flipkart have already successfully done
during the Big Billion Days when they had 50 lacs pickups in a day which was
achieved with 2 times the workforce. Risk Management: Arrange to mitigate the
various struggles with the workforce used during the big religious events like Kavad
yatra by making a plan to arrange to get the workforce in the course of contingencies.
 Customer Promise Date Optimization System: Make Customer Promise Date
(CPD) the key performance indicator and a priority will be put on reliability rather
than speed. Emphasis should be laid on trustworthiness. Amazon is concerned with
inter-regional deliveries, whereas Flipkart is concerned with Pan India and as a result,
strong promise date calculation mechanisms are needed to ensure that delivery
remains reliable in a variety of geographies.
 Enhanced Fulfilment Centre Network: Continue aggressive Fulfilment Centre
expansion leveraging the networked approach across Tier-1, 2 and 3 regions, building
on current infrastructure advantage over Amazon. In rural areas maintain the hub-and-
spoke model where delivery hubs are outsourced while strengthening urban FCs.
  Kiarna Partnership Model Enlargement: Expand the current 300+ partner stores
unique Kirana model to leverage the competitive advantage that is a big competitive
weapon that Flipkart has that no other large competitor has. This model will be in
favour of Flipkart as compared to Amazon focussed on specific regions allows
Flipkart the ability to deliver goods hyper locally in underserved markets.
 Warehouse Automation Acceleration: Expand AI and robotics automation across
all major fulfilment centres, building on current implementation where automation is
already used in automation of tasks inside warehouses. Target 50% reduction in
turnaround time across all major FCs, extending current 30-35% improvements.
 Focus on supporting technologies including route optimization software, predictive
inventory management, real-time visibility systems, and IoT-enabled tracking to
complement the core strategic initiatives.


6.2 Flipkart's Strategic Advantages

 Market Leadership: Keep ahead of Amazon in terms of reliability-oriented

differentiation
 Customer Satisfaction: Better Customer Promise Date performance leads to
enhanced customer loyalty
 Scalability: Better ability to cope up with peak seasons with 2X workforce scaling
model

7 Conclusion

In India's quickly changing e-commerce market, Flipkart's supply chain is a key component
of its competitive edge. The company has acquired deep market penetration throughout Tier
1–3 cities through a strong hub-and-spoke architecture, a vast Ekart network, technology-
driven operations, and strategic collaborations with Kirana retailers. The report does,
however, show enduring difficulties, from operational vulnerabilities in personnel
management, forecasting, and 3PL dependence to legislative changes and competitive
pressures. Maintaining service dependability and market leadership will require addressing
these risks through focused restructuring, workforce scaling models, automation acceleration,
and customer promise date optimisation. Further enabling quicker, more effective fulfilment
while satisfying the many demands of India's price-conscious, convenience-driven customers
would be possible by utilising AI, predictive analytics, and dark shop growth. In addition to
defending its market dominance against Amazon, Meesho, and JioMart, Flipkart can establish
new standards for Indian e-commerce supply chain excellence by striking a balance between
scale, speed, sustainability, and trust.