Shopclues

Shopclues Operations

1. SHOPCLUES.COM DEEPAN ILANGKAMBAN R JARNAIL SAINI SHARIF IQBAL WANI SHUBAM PAL

2. INTRODUCTION SHOP + CLUES AND E – COMMERCE INDUSTRY Shopclues is an Indian based E-Commerce online platform which was founded on 2011 in Gurugaon . The main target sector was on Tier – 2 and Tier – 3 cities of India. It is an American based E- Commerce company Clues Network. It was established in Silicon Valley by a renowned entrepreneur. It is the 35 th E-commerce entrants in 2011 and now it was a 4 th online platform on the queue of Amazon, Flipkart and Paytm . Unlike selling a same online platform for every consumer across the world, Shopclues came up with a new market place model of selling a Unstructured product in the industry, In order to show the competitive advantages to the existing players.

3. PROBLEM STATEMENT At its initial level Shopclues faced a big competitive advantage among its competitor. And the cost of expenses also in the peak for Shopclues because they used Airways at the time as their mode of transport for faster delivery, this is the bad Logistics strategy which have been implemented by Shopclues . TURNAROUND LOGISTICS STRATEGY

4. SHOPCLUES LOGISTICS STRATEGY MARKETPLACE MODEL Market place model is the online platform which have been provided b an online e – commerce facilitator to be the bridge between the Seller and the Customer. Marketplace is platform that enables a large, fragmented base of buyers and sellers to discover price and transact with one another in an environment that is efficient, transparent and trusted. The main feature of the market place mode is that the e – commerce like Shopclues will be providing a platform for customers to interact with a selected number of sellers.

5. INVENTORY LED MODEL It’s when company sources directly from brands and sellers and stock it. There are no multiple sellers selling one product, unlike marketplaces where buyers get to choose from several merchants.

6. LOGISTICS HAS A COMPETITIVE ADVANTAGE Third-party logistics providers typically specialize in integrated operation, warehousing and transportation services which can be scaled and customized to customers' needs based on market conditions, such as the demands and delivery service requirements for their products and materials.

7. ORDER FULFILMENT CYCLE ORDER PROCESSING INVENTOR MANAGEMENT AND ORDER FULFILMENT SHIPPING TRACKING ORDER DELIVERY REVERSE MATERIAL

8. ORDER PROCESSING CUSTOMER INBULD SOFTWARE – PRICE, TAX, COD, CARDS DECISION SUPPORT SYSTEM (3PL) SLA (PICK UP, SHIPPING, RTO)

9. INVENTORY MANAGEMENT APPLICATION PROGRAM INTERFACE (API) FULFILMENT TYPES VELOCITY PREMIUM VELOCITY BASICS MERCHANT DIRECT FULFILMENT

10. VELOCITY PREMIUM Under the velocity premium the company managed the complete fulfilment process, from pickup, quality inspection, packaging and delivery through third party Logistics partners. HIGH VALUE AND LOW VOLUME PRODUCTS VELOCITY BASICS Under this the service offered shipment and delivery only, with other fulfilment process managed by the sellers MERCHANT DIRECT FULLFIMENT Under this merchant will process the product without the intervention of the Shopclues . The option was limited to the sellers who handled special products such as Furniture, Sports goods etc.

11. SHIPPING DSS API STATUS 3PL

12. SHIPPING Order status information was floated to 3PL partners selected by Decision Support System through pickup Application Program Interface

13. TRACKING Customer can track the order with the help of Application Program Interface. Regular order detail of the products also sent to the customers via sms or mail. 3PL SLAs are classified based on the destination of the orders. ORDER DELIVERY The 3PL partner was required to make at let three order delivery attempts before initiating an RTO. The Return to Origin meant that the order delivery as unsuccessful and the product were sent back to the seller.

14. REVERSE MATERIAL FLOW – DOOR STEP QUALITY CHECK AND RETIRN TO SELLER To protect the customer interest Shopclues has a well structured return and replacement policy for products that were damaged, unsatisfactory, or the wrong product as Nuvoex and pickndel , for handling 4,000 reverse orders per day across 14,000 PIN codes.

15. CONCLUSION Shopclues follows a Marketplace model and Inventory led model to reduce the cost reduction. They concentrated equally on the Reverse Logistics to achieve sky level success by the help of 3PL logistics partners. Shopclues wants to increase it’s just in time concept and they want to concentrate more on reverse logistics

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