It’s time for taking the partnership a step ahead! Flipkart and its year old partner Myntra would now be sharing logistics and warehousing. Work is already in progress to consolidate both the supply chains.
With a rapid increase of brands boarding the ecom bus with etailers like Myntra and Flipkart, need for effective logistics is the key to cater to a highly diverse consumer market. Both the companies will now consolidate parts of their supply chain and create a common facility to be utilized by both.
The supply chain is one of the costliest functions in e-commerce firms after marketing. The decision to share logistics will benefit both companies by cost reduction in shipping, timely deliveries to consumers and by implementing flexible models of logistics. This will further lead to better business credibility and higher consumer satisfaction.
A recent report by retail advisory Technopak says that typical online retailers spend 6 to 8 percent of their gross merchandise value on logistics, to improve customer satisfaction. However the Indian e-commerce players have been spending 7 to 15 percent of its sales on logistics.
Myntra is currently outsourcing its deliveries to third-party logistics firms on a demographical basis. Flipkart has already tied up with various trade associations to facilitate the delivery program.
Another key advantage is the absorption of delivery charge within the selling price for larger goods like ACs, refrigerators, etc. Gradually, this will be extended to other commodities as well, like garments and footwear. This will help reduce the cost of products for the consumers and increase their purchasing power. Both the companies are constantly trying to explore new ways of enhancing customer experience and be able to cater to more and more customers across the country.