Supply Chain Management of Localbanya.com

localbanya.com• Akshay Ikke 21

• Tejas Jadhav 22

• Swapnil Pawar 40

• Aditya Shetti 50

Team of LocalBanya.com(Launched in 2012) Amit Naik (CEO) MBA

from IIM Lucknow Rashi Choudhary

(COO) MBA from SP Jain Singapore

Karan Mehrotra (CFO) Engineer from IIT

History of LocalBanya.comPersonal experience with not having enough time to go out and do grocery shopping after a long day of work.

Too tired to deal with going to the store to pick up groceries, waiting in long lines and dealing with the journey involved.

The traditional Banya would most likely be shut or be out of stock of what we needed.

Increased the base to Thane and Navi Mumbai very recently

Swot Analysis for LocalBanya•Increasing Customer Base•Strong Distribution networks and expertise•User friendly website.•On time delivery rate 97 %•Only 2-3% is returned. (No questions asked returns policy)

Strength Weakness

• Easy replicable by distributor/ wholesellers• Less Profit Margin

Opportunity Threats

•Business Expansion in other Tier I cities•Improve customer and Merchant Relationship•Tie ups with more retailers for better distribution.•They can reduce the minimum delivery charges as compared to competitors

•New Entrants•Intense competition from traditional retailers•Maintaining repeat customers•May not find investors to fund operations anymore.

Marketing StrategyOffer discounts to acquire customers

Customer Relationship well managed under dedicated team led by founding member

Mobile advertising on company vehicles

Print Ads on Mumbai based Newspapers like Economic Times

Started off the business in the most busy city of India

Order over website and Facebook

Distributor Broker Model Value Proposition : Providing high quality products without wasting customer’s time or energy .

Revenue Model : Transactional

Pricing Strategy : Variable Discounts

Target Market : End Customers

Sustainability Strategy : On time, efficient and hassle free delivery of high quality products to customers.

Inventory and Supply Chain Low Inventory Model used existing warehouse for FMCG non perishable items

Tie-ups with wholesalers and cash-and-carry partners for perishable items

Tie-ups with retailers for unreachable and distant places

Tie-ups with niche stores Breadkraft, Bagelwala and Shor Sharaba

Delivery vehicles outsourced

Company employees for packaging, processing and delivery - On time delivery is 97%

Karan has a family business which included distribution for Hindustan Lever and catering services to BPOs which they leveraged for localbaniya.com also

Company Procurement

Wholesaler

Company

Retailer(Just In Time)

Cash n Carry

Urgent Requirement/Perishable Goods

Stocked/FMCG Non-Perishable Goods

Stocked/FMCG Non-Perishable Goods

Customer Order Fulfilment

Customer Order

Retailer

Warehouse

Delivery Time Slots Order fulfilment

Outsourced LocalLogistics Partners

Key ChallengesMargins as low as 2%

Supply Chain hard to replicate

Many Items are perishable

Scaling up is difficult

Competetion from Big Retail

Key Challen

ges

Achieving Scalabilit

y

Building Customer Base

Supply Chain

Stiff Compet

etion

Thin Margins

Value Addition by LocalBaniya.com

Value Addition by LocalBaniya.com

Value Addition by LocalBaniya.com

THANK YOU