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Lecture 06 : E-Logistics — Transcript

by NPTEL IIT Kharagpur · 6,569 words · 940 segments · language en · Watch on YouTube

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0:01[Music]
0:22[Music]
0:25so hello dear friends welcome to npdl
0:27online course on Logistics and Supply
0:29Chain man management uh today we'll
0:32discuss about e- logistics so what are
0:35the different players in e-commerce
0:38industry we'll introduce what the
0:40structure is in e- logistics when we are
0:42talking about what are the different
0:44challenges what are the different key
0:46elements and then we'll talk about uh uh
0:50the latest uh emergence which is coming
0:53out as same day delivery and it's not
0:55only the opportunity but as coming as
0:57Big Challenge when we are talking about
0:58logistics uh industry right so just
1:02before uh going further I just want to
1:05uh clarify here when we are talking
1:08about uh especially we are talking about
1:10e- logistics so how it is different when
1:14we are talking about a very traditional
1:16type
1:19of stores retail stores right so you
1:22might have seen when we are going uh for
1:25e- Logistics the level of services which
1:28are required the expectations from the
1:30customer this is from the
1:32customers
1:34what expectations are coming from the
1:37customer so Services level required or
1:39at very high level maybe in terms of
1:42Doorstep Delivery maybe in terms of your
1:47different payment
1:49options maybe in terms
1:54of returns coming from the e-commerce
1:59and and then maybe the variety required
2:03by the customer right and then maybe the
2:06quality level these are some of the
2:10expectations uh coming from the
2:13customers right when if you talk about
2:15compare this with the traditional stores
2:17if you talk only about this Return part
2:20you just imagine how many returns are
2:22coming back in case of traditional brick
2:25and motor store right how many how many
2:28in in your household also you can
2:30observe this how many times we are
2:32returning those items which we purchased
2:34from the local market or shop do we have
2:37that provision if yes you are known face
2:40to that shopkeeper then maybe sometimes
2:42if major fault is there then you can go
2:44for that right but then how many times
2:46you are doing that but similarly if you
2:48compare this with the online uh
2:51e-commerce uh platform then uh the the
2:55percentage is really very high we are
2:57almost 30 to 35%
3:00uh products are returned back and
3:02because of so many different issues
3:03we'll discuss about the issues as well
3:05right Services level so Doorstep
3:08Delivery even um it's not only Doorstep
3:11Delivery what time you want it that also
3:14you can mention if today you are
3:15available maybe 6: to 700 p.m. so your
3:20delivery should be done within that time
3:22so this is so why we this is just I want
3:26to uh clarify why special attention is
3:28required when we are talking talking
3:30about e-commerce industry when we are
3:32talking about traditional store maybe is
3:34covering one particular City area maybe
3:36one town or maybe one small village
3:40where the population is very well known
3:42right when population is known so what
3:45is going to be the demand is also you
3:47are well aware out of that right so for
3:50meeting those demands you can have all
3:52the inventory right and then you can
3:55plan your store accordingly so of
4:00traditional brick and motor store the
4:02challenges are not very high in terms of
4:04maintaining inventory variety quality
4:07services level with they you are sitting
4:09at one place and selling whatever
4:10products you are having right and
4:12customers are visiting your stores and
4:14so in that way it is more stabilized
4:17kind of industry and uh so yes
4:21challenges are there to meet the regular
4:23demand or maybe if there are some
4:25fluctuations in the demand because of so
4:27many reasons and so many different uh
4:30you know occasions so but still still in
4:33that particular reason we are still
4:35quite aware about that so challenges in
4:37terms of that somewhere we are
4:39mitigating those risks and all that but
4:41in e- logistics because this platform
4:44every day it is evolving right so you
4:47cannot imagine maybe next 5 years down
4:49the line or maybe a decade down the line
4:52uh what could be the speed uh the
4:55delivery speed right and what
4:57expectations are coming from the
4:58customers so that's why in this session
5:00particularly I just will highlight about
5:03the e-commerce industry worldwide Indian
5:06scenario what are those challenges right
5:09so just we'll Define e-logistics means
5:12all the physical flows of an
5:14organization that sells Goods on through
5:17an online platform that plat online
5:20platform maybe you are selling your
5:22hotel
5:23room uh by using your own website you
5:26can sell it through make my trip you can
5:28sell it by maybe uh goo you can sell it
5:32by by any other platform right so this
5:34is a kind of e marketplace where your
5:38goods or services are available on the
5:40uh digital platform so uh also known as
5:44electronic Logistics or digital
5:46Logistics it refers to the use of
5:48digital Technologies and electronic
5:50system to manage and optimize various
5:53activities so this is e-logistics right
5:56so when you you you are talking about
5:59e-logistics istics there are some major
6:01challenges like Operations Logistics
6:04operation how you'll make the delivery
6:06Doorstep Delivery or uh customer pickup
6:09locations whatever model you will pick
6:11and then visibility throughout the
6:13supply chain that is also very important
6:15part I want to uh all the time analyze
6:18where my inventory is how much inventory
6:20is left out in the store at retail store
6:22Distribution Center or maybe order
6:24fulfillment center right so that also I
6:26want and as a customer if I am placing
6:28order so ly I'm interested in tracking
6:32whether it has been dispatched whether
6:34the invoice has been generated then it
6:36has been dispatched whether it has
6:38reached the nearest Hub uh near to my
6:41location and then finally when it is out
6:44for delivery so I want to make myself
6:46available during that time whatever slot
6:48I have picked so so that that delivery
6:51can happen or maybe the urgency of the
6:53material as well and then in the end
6:55efficiency we also need to ensure during
6:58this right
7:01so so then again very important point is
7:05the withrawal period is also much longer
7:07in e-commerce whereas in traditional
7:09store if today morning you bought the
7:12product you are supposed to return
7:14within the same day right but in
7:16e-commerce platform you might have seen
7:18earlier the misho or eay or myantra
7:21especially so they were giving you on
7:23app perils so they were giving you
7:24around 20 22 days or somewhere 26 days
7:28uh time to return back you can easily
7:30you can try that and then you can if you
7:33feel comfortable you are liking that
7:34product then you can uh use that
7:36otherwise you can return it but because
7:38of this percentage is increasing and
7:40they face some challenges customers try
7:42to you know use that product and then
7:44after 20 22 days they they were you know
7:47sending those products back so this is a
7:50kind of loss for the organization so
7:52then they reduced this time period as
7:54well and they have changed uh some you
7:57know packaging also so we are they have
8:00put some permanent kind of pack uh tags
8:03if you'll remove those tags so product
8:05even if you are returning after one day
8:07without dag so that will not be returned
8:10so uh this is again if you see 35% of
8:14customers who have had a negative
8:16delivery experience we no longer order
8:18on the same e-commerce website right so
8:21this is challenge this is related to
8:23delivery only now let's say if something
8:25fraud happens if your uh money is
8:28deducted from the bank and and then your
8:30e-commerce player is saying that we did
8:32not receive the you know uh money and so
8:35we cannot process the order so anyhow
8:38you you'll get that money it will may
8:40take four or five uh working days but
8:43still you you are having that negative
8:45experience with the transaction so then
8:47you you will not feel safe right so
8:50already people have that mindset that
8:52you should not share your uh banking
8:54details and all you know password or CBB
8:57number whatever you are using for for
8:59the transactions right so even if I'm
9:01doing that and my maybe very first
9:04experience is like that money is
9:05deducted but I'm not getting the
9:07acknowledgement so then it is Big
9:09Challenge so just uh how the experience
9:12is this is one short ad by DHL uh
9:16through your e-commerce website how you
9:18can place the order how you can enjoy
9:20that order so here I have included some
9:23uh video links you guys can just quickly
9:26go through these videos and then we'll
9:28uh continue our uh discussion on the
9:30topic so you can just see how uh uh this
9:35uh DHL is doing the international uh
9:37delivery so swiftly and so smoothly
9:40right so you just imagine the product
9:42and it will be with you right so uh back
9:45end whatever uh is required they are
9:47completing all those uh things
9:49collecting the product packaging the
9:51product sorting the product and then
9:53maybe pin code wise you are sorting it
9:56cross docking you are doing in between
9:58so right so all those things whatever we
10:00discussed in logistics management so all
10:02those concept we will be using so we'll
10:04just go through this e-logistics Market
10:06if you talk about the international
10:09market you can see these uh Tao t-all
10:13and Amazon they are carrying almost more
10:15than 40% share if we we are talking
10:18about the global marketplace right
10:21e so if you talk about tal and too this
10:25is coming from the same group that is
10:27Alibaba that is
10:30from China right and you are not
10:33surprised because this is 30% they are
10:36taking globally and you will be
10:38surprised to know that they are
10:39contributing towards maybe 5 to 6% to uh
10:44China's GDP so this is so big player you
10:47can just imagine how they are you know
10:50now internationally they are evolving
10:52the very next session will be on
10:54International Logistics right so these
10:56two are very connected right so uh if
11:00you'll talk about specifically t-all
11:02they are into branded products right
11:04they are selling all the Branded
11:06products right uh Nike Adidas so Zara so
11:10these are some of the major players they
11:12are selling the products right Tao is
11:15basically this is a b Toc
11:18usually uh business to you know customer
11:21and this they are uh this Tio is for
11:24small retailers or
11:26entrepreneurs right so there are some
11:29sometimes they are this model is known
11:31as C Toc customer to customer right
11:34so uh they are actually uh selling the
11:38local uh products right local Brands
11:41which are only famous in Chinese market
11:43but still it is carrying 15% share and
11:46then Amazon is another big player from
11:48us you know that and uh the other
11:51players are jd.com eBay and uh Walmart
11:54is also obviously uh big competitor of
11:57Amazon uh the fight is stting in from us
12:00itself right this is this is the
12:02international scenario talking about
12:03Indian market we know these two are
12:05major players flip cart and Amazon so
12:08Flipkart if I'll talk about the
12:10electronics appliances and mobile phones
12:12they are carrying somewhere around 60%
12:14share this is the overall share and
12:16because this now this this is uh earlier
12:19this was reducing maybe 2 three years
12:21back because of the strong entry of
12:23Amazon but now because flip cart is
12:25backed up by Walmart and uh they are uh
12:29claiming around 80% stake through Equity
12:33they have already invested in in in
12:35Flipkart right so uh they have taken
12:38over that so you can see around 63% uh
12:42of Indian market is just taken by these
12:45uh uh two big players Amazon and
12:48Flipkart so this is the international
12:50scenario right and Indian e-commerce
12:53market so let's talk about the different
12:56Industries and how they are penetrating
12:58as per as e-commerce industry is
13:00concerned and the first bars very high
13:04and belongs to this color belongs to
13:06China and you can see they are leading
13:08all uh in in everywhere if you talk
13:11about Mobile Electronics fashion or
13:13general merchandise home delivery or
13:16grocery items as well but if you talk
13:18about Indian Market grocery home
13:21delivery we are means taking only uh
13:23that LE less than 1% share right us is
13:26also in between so because China
13:29after China India may be the next
13:32potential market so because of obviously
13:35potential Market because of the
13:36population size we have right so when we
13:39are claiming that much population
13:41obviously that is something unexplored
13:44population so how we can increase the
13:47experience of this unexplored population
13:50so that the this Market size of from 1%
13:54or 5% or 10% 10% 30% we can increase
13:58right this trend is increasing already
14:00right but because e-commerce is
14:02something in India it started little
14:04late right so I think uh if you talk
14:07about Flipkart is the very I think uh
14:10not the first player but first biggest
14:12player right if you talk about in India
14:15so they started somewhere in
14:172007 or 8 and then Amazon entered this
14:21is flip cart right then Amazon entered
14:24somewhere around
14:262013 right so in that way uh it is not
14:30that old so still it is growing right so
14:32there is huge Market potential we need
14:34to tap that so if we talk about uh
14:38different industry share in Indian e
14:40e-commerce Market 40% is electronics
14:43followed by another 40% is apperal
14:46industry then Grocery and food jewelry
14:49and Furniture obviously when we'll go
14:51down the line so those items are there
14:54which actually we want to you know see
14:56physically we want to touch physically
14:59we want to feel those items so there the
15:02penetration is uh not that much High
15:05because we want and when we we we are
15:07buying uh maybe apparel or maybe
15:09consumer electronics so already you know
15:12if you want to buy a mobile phone and
15:14that fixed model is there if you want to
15:16buy maybe let's say iPhone 14 right or
15:1915 so already it specifications are well
15:22known to you you only thing you you need
15:25Complete product right as long as you
15:27are getting the Complete product from
15:28where you are getting it is hardly M
15:31matters uh you right the reason is why
15:34hardly matters to you because the
15:36promise of the quality is coming from
15:38directly from the apple right so they
15:40are the uh authorized distributor so
15:43whosoever is selling that you'll get
15:45that quality right but but the thing is
15:48still uh Indian as that uh e-commerce
15:51industry still it is growing and the
15:53faith is still we need to develop in the
15:56uh customer's mind
15:59so this is very interesting if you talk
16:01about the festive season so growth in
16:05merchandise value if you talk about flip
16:07card is carrying 62% share thanks to Big
16:10billion days the big billion days they
16:14are coming with the offers and there you
16:16are sometimes getting even 80 to 90%
16:20offers on especially on home
16:26appliances or maybe these mobile items
16:29right Electronics items you can say and
16:32uh uh so that that hike in the market is
16:36quite obvious even if you talk about
16:39order quantity the number of units sold
16:41so even then wall this flip cart is
16:43leading with 49% share after that uh
16:47Misha 21% share so these are some of the
16:51figures your mobile sales will increase
16:54by seven times Electronics and
16:56appliances will increase by five times
16:58and then fashion two uh three times now
17:01this is okay that we we are able to
17:03generate that much sales or we are able
17:05to push the product into the market but
17:08what are the challenges which are coming
17:09through this you know push strategy the
17:13heavy promotional strategy the thing is
17:15first thing is we are not sure about the
17:18Demand right so you might have seen
17:21during this time usually we are stock
17:23out so if you will order your uh any
17:27product mobile
17:29through your flip cart during big
17:31billion days or any from Amazon during
17:34those you know prime prime days they are
17:36having that concept of Amazon Prime
17:39Prime Time or they uh they they sell the
17:42products with the heavy discounts right
17:44so there usually they are stock out
17:46right and then you are waiting for maybe
17:485 days it is this seasonal offer is
17:50going on so you are waiting for that
17:53stock is stock out is one uh problem
17:56with the the inventory because that
17:58demand is sudden rise in the demand and
18:00you are not sure that how much rise
18:02there will be if it is if if you talk
18:05about on this parameter Walmart is doing
18:07fairly well in the market because they
18:10have this very unique strategy is of
18:13everyday low pricing everyday low
18:16pricing means you come in the morning in
18:20the evening daytime whenever you will
18:22come you you place order through our
18:24website any time of the day right any
18:27week any month so you'll get the same
18:30price as a customer I will feel little
18:32safe because I'm getting the stabilized
18:34price right and in return what Walmart
18:37is getting is that they can channelize
18:40very smoothly their inventory because
18:42the demand pattern is fixed to them
18:45almost 90 to 95% is fixed small
18:48variation is there so that's why we are
18:49managing that much Safety stock but if
18:51you are talking about uh these kind of
18:54seasonal offers of big billion days then
18:57you see the stock out rate is very high
18:59in case of flip cart and if they are
19:01promising during those days maybe your
19:03mobile will be delivered within 10 days
19:05it may take somewhere between 15 or 20
19:08days even more than that right so you
19:12might you might have also experienced
19:13these things so because of these
19:15seasonal or Festival sales this this is
19:18happening this is big challenge for
19:20Logistics industry right if you talk
19:23about fashion e-commerce Market in India
19:25so again that is dominated by flip cart
19:2827% followed by myantra and then Amazon
19:32and misho uh standing at 15 15% right so
19:36here I just want to highlight the you
19:39know rise in myantra and they they are
19:43you know continuously investing uh into
19:46marketing strategies one strategy which
19:48I personally liked about Mantra is their
19:51sustainable
19:52packaging so you might have seen they
19:55are uh Now using paper pack
19:59packaging and they are writing it in
20:01very bold letters on uh the packaging
20:04itself that it is 100%
20:08recyclable so when it is 100% so there
20:11are now I I initially talked about the
20:13customer view point now they are getting
20:16you know more aware about these kind of
20:18initiatives where we need to you know
20:21whatever products we are using or
20:23Services we are using we we are just
20:25evaluating what is the carbon footprint
20:28right and then we are also evaluating
20:30the stakeholders or players who are
20:32providing those product and services
20:34whether they are uh talking about the
20:36sustainability parameters whether they
20:37are trying to implement those things
20:39into their product and services right so
20:41in that way we are evaluating so I'm
20:44pretty sure that this 100% this uh paper
20:47packaging will help uh to uh you know
20:50push the sales further as far as manra
20:52is
20:54concerned so e-logistics what are the
20:56various solutions to the customers offer
20:59several delivery methods right and uh
21:02home delivery is one which we are very
21:05frequently talking about pickup point is
21:07another one maybe for the office people
21:09when we we are no one is at home we are
21:12not sure at that time where we will be
21:14so then we are fixing one location maybe
21:16near to our office or maybe near to our
21:18home and then picking that particular
21:20slot and then we are saying okay we are
21:21okay with picking the product from your
21:24pickup location and this is very very
21:26popular when we talk about France right
21:28and and anything D plus days whatever
21:31you promise that within 3 days you'll
21:33get and you are taking one extra day
21:35that is something unbearable right so I
21:38I would like to avoid that but this is
21:40consistently this is happening with flip
21:42cart during the festival seasons and
21:44Amazon as well right so deliveries are
21:47delayed and I told you the major reason
21:49so but still they are coming with those
21:51promotional office offers because now
21:53customers are now evident to that they
21:56are waiting eagerly if if they want to
21:59buy something they are waiting okay
22:01maybe we'll wait for another one or two
22:02months and then big billion days will be
22:04there and we'll buy uh maybe on the
22:07reduced price right so uh although now
22:11because it is a kind of repetitive
22:13activity so they can you know forecast
22:15in a better way but still uh customers
22:18are experiencing those uh you know
22:21delayed deliveries and sometimes after
22:23the promise time as well right and then
22:26we are talking about The Greener
22:27delivery method so I talked about the
22:30last mile delivery how you can use the
22:32bicycles or electrical vehicles and
22:35there is one survey which talk about
22:37that 87% of French people would be
22:40interested if the last mile delivery is
22:43done through using those you know
22:46sustainable options like bicycles and
22:49electrical Vehicles free deliveries so
22:52obviously this is another survey showing
22:55that 43% of the French online buyers
22:58they have already left their shopping
23:00baskets vacant because they are they
23:02want free deliveries right obviously you
23:05are providing all the services and then
23:08uh with no sympathy we are just with one
23:10click we are returning the product that
23:12also you are bearing but still uh
23:14customer is not ready to pay extra so we
23:17want free shipping right so that is very
23:20important and you have to provide that
23:22so uh obviously then cost structured and
23:25profitability is a big question for any
23:28organization ation okay so then you can
23:30come up that with minimum maybe minimum
23:32purchase price should be this much only
23:34then you will get the free delivery or
23:36maybe then you can say that if you are
23:39uh you know paying for this delivery the
23:42next delivery will be free so in that
23:43case you can make the customer more you
23:45know loyal to you because he will return
23:48back to your uh platform because he'll
23:50get the free delivery or maybe if
23:53returns for returns I I don't think
23:54there is any policy right now but maybe
23:57uh if e-commerce website they can think
23:59that if the last 10 orders you have not
24:02you know uh return back uh because of
24:05this you did not simply you did not like
24:07the product if if there is something
24:09wrong with the product you have returned
24:11it back then it is okay but simply you
24:13did not like the product or because of
24:15the color or all those options which
24:17were obvious when you picked that uh
24:19product right and last 10 deliveries uh
24:22were accepted by you by any rejection so
24:25then maybe next two or three deliveries
24:27will be free of so those kind of things
24:29can be there so you can be more
24:31efficient in that delivery tracking
24:33already this is now customer is thinking
24:37as a you know special feature so I'm
24:40placing the order immediately I should
24:42get the uh uh intimation that okay uh my
24:45order is accepted and now it is
24:47processed right but yes now because
24:50because of the busy schedule uh we all
24:53are facing right and then we don't have
24:55time to you know go through all the
24:56messages so your package uh package is
25:00done that message I'm getting it is
25:02shipped that message is getting then it
25:04is uh it has reached to near your
25:06bearhouse that message also I'm so many
25:09messages now it is out for delivery so
25:11that maybe some customers may be aned or
25:14irritated with this Behavior right so
25:16they don't want all those messages maybe
25:18so but maybe few are very interested so
25:21how you can give one link you click on
25:23that link and then you can get the
25:25updated order so if you are interested
25:27you can click on it the same link the
25:29way companies are doing right now okay
25:31so uh that is uh delivery tracking and
25:35obviously some key elements of e
25:37Logistics is supply chain visibility we
25:39talked about we want to track the
25:41movement of goods monitor inventory and
25:43then potential bottlenecks we want to
25:45find out transportation management
25:47system so that we can optimize the route
25:50we can pick the route uh and then uh
25:53which carrier we'll take whether we'll
25:55go by Road by Ship by train by air then
25:59load planning we can do and we can track
26:01the shipments so warehouse management we
26:04talked about we have some software we
26:06can uh you know uh manage properly the
26:09inventory and then order fulfillment
26:12picking packing shipping everything can
26:14be done using that warehouse management
26:15system and we can you know utilize the
26:19maximum capacity of the warehouse as
26:21well as we'll ensure this using these
26:24softwares that no item should go overd
26:27outdated in the warehouse so we'll move
26:30that inventory in that way so uh again
26:33inventory management is another point in
26:35E Logistics so because uh demands are
26:39coming from different platforms so you
26:41have to consolidate the demand and you
26:43have to provide that that can only
26:45happen if you are providing the realtime
26:47tracking of the inventory and management
26:50of that so and obviously another thing
26:53is maybe you can have uh storage houses
26:56near to customers so that easily you can
26:58reach to the customer electronic data
27:01inter uh interchange uh obviously
27:04manually entry if you are doing that
27:06obviously you can uh uh make the
27:08mistakes and then somehow you can uh
27:11keep some safe level if the maybe demand
27:14is only 10 items you will say 12 items
27:16to the wholesaler wholesaler will say 14
27:20items to the manufacturer manufacturer
27:22will maybe again plan for 16 items and
27:25will import the raw material from all
27:27the raw material suppliers as per 16
27:30items so actual demand was 10 but then
27:32it is hyped to 16 so that is wrong
27:35information so how we can avoid that
27:37this can only happen when there is
27:39electronic data interchange so global
27:42trade management so we can use some
27:45software to you know uh to know about
27:47the regulations tariff management
27:49customs duties and what are the
27:51international trade Norms so that we can
27:54know and then we can manage
27:56that last mile delivery already we
27:59talked about when you are reaching to
28:02the End customer that is last mile
28:04delivery okay so how you can do that uh
28:08optimize uh uh you can use the
28:10optimization software and then delivery
28:13tracking apps sometime we can use you
28:16know uh automated delivery vehicles as
28:19well where there is no Manpower involved
28:21so you can make the deliveries using
28:23robots as well so uh here the important
28:26point is uh how long you will go to
28:29cover you know maybe if I'll cover 100
28:32meters more maybe I can cover 10 more
28:34customers but that is advisable or not
28:36so proper we can use make the cost
28:39benefit analysis in the software and
28:42then we'll say which route I should take
28:44which area I need to cover already it is
28:47divided into so many different reasons
28:49and then accordingly we can plan reverse
28:51Logistics already we talked about we'll
28:53just go through what are the different
28:55facts and figures if as long we are
28:57talking about about the reverse
28:58Logistics okay but this is very very
29:00important point when we are talking
29:02about e-logistics and you need to
29:06remember this that for any if you go to
29:08post office you are doing the speed post
29:11or maybe registered post uh anywhere
29:13somewhere around maybe uh the cost will
29:15be 7200 rupees but if you are returning
29:19the product I'm not getting even single
29:21rupee out of that so I'm making four
29:24deliveries and I'm getting single rupee
29:26four deliveries how so so first delivery
29:29maybe from the manufacturer I'm
29:31delivering to the Distribution Center
29:34this is first delivery then from
29:36Distribution Center to the final
29:38customer this is the second delivery
29:40again it will be returned back to the
29:42Distribution Center if there is any
29:43problem or maybe there is no demand we
29:46return back to the seller or the
29:47manufacturer from where it is coming
29:49right so this reverse Logistics uh
29:53platform should be uh you know is a kind
29:56of challenge but we we need to go for
29:58the efficiency then analytics and
30:00predictive insights obviously machine
30:02learnings and data analytics will help
30:04us to uh predict the demand more
30:07accurately right and we can make
30:09informed decision we can optimize the
30:11processes and we can anticipate the
30:14future demand and supply chain
30:16disruptions as well so some of the
30:18disruptions obviously natural if you are
30:20talking about some natural disruptions
30:23obviously that we can uh we cannot avoid
30:26but yes uh the other disruptions related
30:29to raw material supply related to the
30:32distribution Network or transportation
30:34thing we can somewhere we can analyze
30:36that we can predict that using
30:38Predictive Analytics and then blockchain
30:40technology already I told you that we
30:42are sharing our bank details on that
30:44platform so I should feel that there is
30:47minimum risk when I'm sharing I'm making
30:49the online transactions so transparency
30:52security traceability should be at the
30:54highest end throughout the supply chain
30:56even it's not only about the transaction
30:58but it's also about the product which is
31:00flowing through that so what are some
31:02major challenges if you see 30% of the
31:05products are returned back and if you
31:07talk about brick and motor stores or
31:09retail shops only 9% products are
31:12returned back so this is big big
31:14Challenge and already we talked about
31:16and people are looking for whether you
31:18are doing the free deliveries or not so
31:2149% right and when I'm return returning
31:25the product back so what are the reasons
31:27receive receiv damaged product is
31:29obviously is my responsibility as
31:32manufacturer product received looks
31:34different okay maybe on the website it
31:36looked different and then you received
31:38you did not like that and received wrong
31:40items and other reasons maybe some other
31:42reasons sometimes size or Comfort or all
31:44that you did not lie but this is
31:46something 23% straight away we need to
31:48check this this is wrong item delivered
31:51how we can ensure the system where the
31:55the item is reaching to the right
31:57customer so at least this we can avoid
31:59and then how fairly we can provide the
32:01information that we can Target the next
32:03next 22% right so uh you can see this
32:0867% of the Shoppers check the returns
32:11page before making any purchase which is
32:13quite obvious because I want hassle pre
32:15return and if you are in the end you are
32:17saying that uh this cannot be returned
32:20back so then it is a problem right so
32:2362% of the Shoppers are more likely to
32:25shop online if they can return an item
32:28in the store right so these are some of
32:30the challenges related to returns so uh
32:34some quick information this is for
32:36February month the survey was done by
32:38Amazon so results are obvious how the uh
32:42this return rate is but the other point
32:44which I want to uh just highlight here
32:47is if you talk about the return products
32:49sellable items are 59% those we can sell
32:52directly but then customer are damaging
32:5632% right even these sell level items
32:59let's say if you uh return one shirt
33:02back so in shirt the packaging is
33:04different right they have so many pins
33:06and all that just to properly package
33:09that shirt so that when you firstly you
33:12interact with that packaging you should
33:14feel that uh delighted that you got the
33:18uh right product right so those pins we
33:20are never getting back then we are using
33:23specific packaging for you know binding
33:25the collar so that also is damaged we
33:27need to use these packaging material
33:30again we need to use and then obviously
33:31you need to wash it again and iron it
33:34again so that means that much processing
33:36is required even it is directly sellable
33:39so this is a big challenge right so uh
33:42related to return so these are some of
33:44the small cases if you talk about uh
33:47same day delivery is going to be the
33:48next normal or fashion and Amazon Prime
33:52is giving you that you just take the
33:53Prime Membership one time you need to
33:55pay this is not only for delivery
33:57obviously you will get the same day
33:59delivery on the selected items and then
34:01you will get uh free delivery for all
34:04the items and then you have access to
34:06Amazon Prime videos as well right so
34:08this is the added Advantage basket they
34:11as a basket they are uh giving you so
34:13Amazon is uh using this strategy to
34:16compete with Walmart and other players
34:18uh in the market right so for achieving
34:22the same day delivery they are deploying
34:24their warehouses near to customer and I
34:27told you if you are near to customer any
34:29day you can deliver the product so if
34:32you are ordering your product by noon
34:34you'll get it by uh 900 p.m. so that is
34:37their promise 7 days a week and free
34:39delivery for over 35 if you are
34:42purchasing uh order for more than $35
34:45but now if you see these are obviously
34:48the buy coverage for them but now if
34:50you'll take Prime Membership from Amazon
34:53you'll get 100% free so how Walmart
34:56started you know with the competing
34:58strategy they partnered with the UPS uh
35:02which is United Parcel Services very
35:05strong Network again talking about in
35:07terms of logistics right so but if you
35:10talk about the Walmart cost is $10 per
35:12purchase right and they are giving to
35:15some selected locations and Amazon as
35:18well so uh they have given some flat 10%
35:21delivery uh $10 uh delivery fee right so
35:25no minimum order required so you can
35:28place that order and then you can go for
35:30this is Walmart counter move eay how eay
35:33started competing that only three steps
35:36shop from your nearby retail store that
35:38means localized stores you need to visit
35:41so I'll partnership with the local
35:43stores and then those are some dedicated
35:47local players so you place uh order in
35:50the morning by noon you'll get the order
35:52because I'm making sure that deliveries
35:55will happen uh uh from the local stores
35:58and using the local career Partners so
36:01that is how eay used this strategy and
36:03you can see how this Market of same day
36:06delivery is increasing either you talk
36:08about B2 do B2B because we are saying
36:11that just in time we want so when we are
36:14talking about we don't want to make
36:16inventory because inventory is carrying
36:18huge cost reduces so we want just in
36:21time so same day delivery we want right
36:23we want uh business to customer
36:26obviously customer to customer so this
36:27trend is increasing you can say this
36:312027 13.8% will be expecting this you
36:35know same day delivery market and why
36:38same day delivery is important because
36:4049% of the customers are more likely to
36:43shop online if same day delivery is
36:45happening 51% of online customers
36:48between 18 to 34 years of age young
36:51people they they don't have that
36:53patience to wait right if you're saying
36:55that you wait for another two days
36:57you'll get this product in the best way
36:59no we want it right now right maybe
37:01another two days then they will change
37:02their mind they are into something else
37:05right and then your product is totally
37:06obsolete for them so almost 99% of
37:09retailers plan to offer same day
37:11delivery by 2024 this is their target
37:15and this is increasing your 85%
37:18Competitive Edge it is providing if you
37:20are giving same day delivery right if
37:22you're talking about quick Commerce in
37:24India and already I think I have shown
37:26one video on blinket and jepo so they
37:30are saying that 10 minutes delivery how
37:3210 minutes delivery is happening usually
37:35they are into Grocery stales and you you
37:38you just started thinking of Let's Make
37:40a cup of tea and then you realize that
37:42oh sugar is not there so maybe you can
37:45wait maximum 30 minutes obviously so if
37:49more than 30 minutes then you'll say
37:50okay I'll go to some shop I'll take that
37:52and then I'll go to my office right so
37:55if you are saying that 10 minutes you'll
37:56get the shoar
37:58I will be just preparing for other
38:00things and tea will be at my doorstep so
38:03blinket and jepo and swiggy because
38:05already they they have that USP of
38:08minimum order there is no such concept
38:11of minimum order even one piece of Suite
38:14can be delivered so they they they
38:17started exploiting that existing network
38:20of subi with swiigy instamart where they
38:23are providing the grocery items uh
38:25within half an hour or one hour right so
38:28what are those items which we want
38:30quickly delivered obviously milk egg
38:33bread CD fruit and vegetables we don't
38:35want to wait for longer if you're saying
38:37after 2 days there is no sense
38:39Indulgence items soft dring dessert
38:41chocolate cigarette we want
38:43instantaneously right and then both last
38:46minute and insulted items 23% all
38:49grocery items we we cannot plan because
38:52in your kitchen there are so many
38:54different items so you cannot say that
38:57uh uh you can keep the inventory track
38:59of every item unless your industry your
39:02this kitchen is not industry 4.0
39:05supported right or AI is not working on
39:07your kitchen and giving you alarm before
39:09reaching the Safety stock that yeah you
39:11have depleted the inventory of sugar and
39:13now only maybe for next five cup of teas
39:16you are having the sugar and you need to
39:18replace the order so so that means this
39:21is we can conclude that this is the uh
39:25industry uh e-commerce platform facing
39:28huge challenges but still we are you
39:30know stretching it further and further
39:32we want same day delivery we want
39:34delivery within 10 uh minutes because we
39:37are dealing with the parish items anyhow
39:39we are not going to leave so this the
39:42next uh challenge we have is how we can
39:46be so so responsible uh with the uh
39:49providing those services to the customer
39:51and at the uh same time how we can be
39:53efficient so that's all for this thank
39:56you very much

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