E-Business Model Framework: Osterwalder, 2002
E-Business Model Framework: Osterwalder, 2002
Osterwalder,2002
Organization Structure
Product &
Technology
Website
Management
ERP Systems
Business
Development
Vendor
Management
Sales
Management
Pricing
Strategies
Operations
Procurement
Warehouse
Logistics
Customer
Support
Core Strength
Product & Technology Team
Website ERP
SEO
Pay zippy
Performance
Measurement
A/B
Framework
Business Development
Operations
Based In Bangalore
Website Guidance
Resolution Of
Issues
Top Call Drivers
1. Sales Assistance
2. General
Enquiries
3.
Product/Shipping
related enquiry
Started with
consignment
Model
Moved to
inventory
method
Inventory 75% &
JIT 25%
Intended ratio
9:1
Flip kart Logistics
Presence in Tier
1 Cities
Tie ups with 3PL
like Blue Dart &
First Flight
7 Major
Warehouses
500 Regional
Distribution
Centres
Tier 1 & High
Volume Tier 2
Cities
Procurement
Sourcing Regional & Central
Regional procurement team has a network of
local suppliers for made-to-stock as well as on on-
demand (Just in-time) procurement.
The central procurement team has visibility of all
the regional procurement teams views, and
therefore can monitor the stock levels for their
suppliers all over the country. The central teams
focus is on bigger suppliers with a country-wide
reach.
Logistics
90% of COD handled by FKL
60-70% of shipments are handled by FKL
3PL deliver in Tier 1 cities and Indian Postal
service in small towns
If 100 orders are for a destination FKL is used
Criteria for selection of logistics : Where to
deliver? ,product type and payment method
Indian Post deliveries are pre paid in nature
Reverse Logistics
Returns rate =2.6%
Delivery Cost Bore by Flip kart
Methods : Replacements, Store Credit , Actual
Cash Back
Warehouse
Order Processing
Inventory Management
Holts Forecasting Method (based on historic
trend)
FIFO method employed
Supplier Management
New Category Local Supplier or distributer
Established Category larger wholesalers or
directly from manufacturer
500 Suppliers of which several are International
Suppliers
Suppliers Graded as A B C based on performance
Other parameters are Price Considerations,
Quality Check Contract , Percentage of return
accepted