Flipkart WiRED 6.0 2022 — National Semi Finalist Deck

Flipkart faces supply chain inefficiencies when servicing low Average Selling Price (ASP) products in Tier 2+ geographies characterised by low demand density. Existing supply chain costs average Rs. 40 per order, where last mile delivery accounts for 50% (Rs. 20), line haul accounts for 20% (Rs. 8), and first mile accounts for 15% (Rs. 6). With 70% of Flipkart monthly orders originating from Tier 2 cities and 40% classified as low ASP orders, optimising unit delivery economics is critical. Team Steppers evaluated the supply chain using a matrix assessing feasibility, cost impact, scalability, and customer experience across first mile, line haul, and last mile operations. The proposed approach restructures fulfilment through technology-driven route optimisation, local partner onboarding, flexi-delivery options, electric vehicle partnerships, and local reverse logistics. Key recommendations include introducing Flexi-Delivery to enable customer date selection for load optimisation (yielding Rs. 156 L monthly savings), establishing F-Local partnerships with Kirana stores for local fulfilment (saving Rs. 114 L to Rs. 539 L monthly), deploying smart secured lockers, partnering with EV aggregators during first and last mile, and launching Go-Local reverse logistics to resell failed delivery items locally at deal prices. Combined implementation lowers supply chain costs per order from Rs. 40 to Rs. 33 for return logistics (an 18% cost reduction). Demand aggregation, asset-light Kirana partnerships, and route restructuring deliver cumulative cost savings across all delivery phases while improving customer satisfaction in price-sensitive Tier 2+ markets.