SHOPCLUES: TURNING
LOGISTICS INTO
COMPETITIVE
ADVANTAGE &
NOKIA SUPPLY CHAIN
MANAGEMENT
23000588 SHARVI SALUNKE
23000691 ANSHUL MISTRY
SUPPLY CHAIN
MANAGEMENT
INTRODUCTION & BACKGROUND
Market Leadership (2000): Nokia dominated the global cell
phone market.
Financial Highlights: Generated $19.9 billion in net sales.
Employment Strength: Workforce of 60,000 employees
worldwide.
Revenue Dependency: Mobile phones contributed
approximately 70% of Nokia's total revenue.
Industry Challenge: Short product cycles (approx. 18
months), making speed to market essential for profitability.
Impact of Delays: Even a one-week delay could hinder R&D
cost recovery.
SUPPLIER & SOURCING MANAGEMENT
Supply Chain Disruption: On March 17, 2000, a power surge caused a fire at the
Philips plant in Albuquerque, New Mexico.
Critical Supplier Impacted: The plant produced semiconductor chips essential
for Nokia’s mobile phones.
Initial Production Delay: Philips estimated a one-week delay in
production recovery.
Extended Downtime: Philips later extended the timeline,
stating full production would take six weeks.
Risk to Nokia: Potential production delays threatened
millions of Nokia handsets due to chip shortages.
CRISIS
Immediate Response: Daily communication
with Philips; crisis team of 30, led by CEO
MANAGEMENT
Jorma Ollila.
Alternative Sourcing: Secured suppliers from
& U.S. and Japan within five days, avoiding
major disruption.
FLEXIBILITY Production at Risk: Intervention prevented
loss of 4 million handsets (5% of annual
output).
Flexible Supply Chain: Engaged secondary
suppliers, reducing reliance on Philips.
"Hit Squads": Empowered teams to quickly
resolve bottlenecks.
Strengthened Risk Management: Introduced
risk assessments and contingency plans for all
suppliers.
Real-Time Monitoring: Nokia's IT systems
provided early alerts for inventory drops,
allowing swift action on chip shortages.
Enhanced Tracking: Daily updates from
Philips on chip availability kept Nokia
informed and responsive. REAL TIME
INVENTORY
Data-Driven Adjustments: Real-time &
data allowed Nokia to adapt plans PRODUCTION
quickly to maintain production flow. MANAGEMENT
DISTRIBUTION
& SPEED TO
Global Reach with Local
Flexibility:
MARKET Strategic distribution centers
allowed regional adjustments
to minimize delays.
Optimized for Speed:
Fast distribution network Reliable Logistics
essential for Nokia's short Support for Market Partnerships:
product cycles and Leadership:
market demand. Strong partnerships
Efficient logistics network ensured rapid
reinforced Nokia's delivery, helping
position as an industry maintain market
leader. share amid supply
challenges
RISK MANAGEMENT &
LONG TERM IMPROVEMENTS
Supplier Risk Assessments: Regular evaluations and contingency plans for natural
disasters, geopolitical risks, and delays.
"Hit Squads" for Crisis Response: Empowered teams made quick decisions on sourcing
and logistics to avoid bottlenecks.
Comprehensive Contingency Plans: Pre-set protocols enabled Nokia to navigate crises
with minimal impact.
Supplier Diversification: Formalized relationships with multiple suppliers to reduce
dependency on single sources.
Enhanced Risk Infrastructure: Investment in dynamic tracking and forecasting
strengthened supply chain resilience.
SUPPLY CHAIN
MANAGEMENT
INTRODUCTION & BACKGROUND
Founded in 2011: ShopClues, headquartered in
Gurgaon, India, targeted Tier 2 and Tier 3 cities.
Zero-Inventory Model: Operates a marketplace without
holding inventory, unlike other e-commerce players.
Customer Focus: Targets low to middle-income
households in underserved areas.
"Unicorn" Status: Reached $1 billion valuation by
February 2016.
IPO Goal: Aiming for Nasdaq IPO by early 2018 as India’s
first profitable e-commerce firm.
OUTSOURCED LOGISTICS STRATEGY
3PL Logistics Model: Entire logistics managed by third-party logistics (3PL)
partners for both forward and reverse logistics.
Extensive Network: By 2016, partnered with 37 forward and 10 reverse
logistics providers, covering 30,000+ PIN codes.
Regional Partnerships: Collaborated with local providers
(e.g., The Professional Couriers) to ensure coverage in rural and
remote areas.
Cost-Effective Delivery: Regional 3PLs enable affordable delivery
to Tier 2 and 3 cities, aligning with ShopClues’ customer
focus.
TECHNOLOGY-
Plug-and-Play Platform: Integrates with 3PL
partners via APIs for real-time data exchange,
DRIVEN ORDER improving communication with sellers and
logistics providers.
PROCESSING & Decision Support System (DSS): Automatically
FULFILMENT
assigns orders to the best 3PL partner based on
SLAs, costs, and performance, optimizing
delivery.
Order Fulfillment Models:
1. SCVP: Full-service fulfillment managed by
ShopClues for high-value items.
2. SCVB: Basic shipment and delivery; sellers
handle other tasks.
3. MDF: Sellers manage entire fulfillment
independently for large or special items
Inventory Visibility: No physical
inventory; merchants manage orders via
an online interface, with live order
tracking and coordination with 3PLs.
Reverse Logistics Network: Covers 12,650
PIN codes with 10 reverse logistics
partners; essential as 5% of orders are
returned. INVENTORY &
Efficient Returns: Customers can request REVERSE
returns within 10 days, with 95% receiving LOGISTICS
refunds within 12-24 hours of pickup.
END - TO - END Real-Time Tracking for Customers:
Customers get SMS, email,
SHIPPING & and portal updates on
order status; delays prompt
TRACKING Non-Delivery Reason (NDR)
alerts.
Order Pickup and Dispatch:
·3PL partners receive Delivery SLAs:
pickup notifications
SLAs vary by
via API; collect orders
destination, with city-
from sellers and
based deliveries
update the status as
targeted for 3-5 days.
“shipped.”
Orders beyond five
days are monitored to
ensure timely delivery.
SCALING FOR GROWTH &
MARKET REACH
Fulfillment Expansion: Plans to add 10 new centers with an additional
9,000 sq. meters to support growing demand.
Outsourced Logistics Focus: Outsourcing logistics allows ShopClues to
prioritize sales growth.
Scalable and Cost-Effective: Regional 3PL partnerships and tech
integration enable scalability without heavy capital investments.
COMPARATIVE INSIGHTS
& CONCLUSION
ShopClues: Nokia:
Cost-effective, Resilience-focused
technology-driven with proactive risk
logistics optimized management to
for underserved handle disruptions
markets and and maintain
efficient scaling. production continuity
Model Alignment: Each approach supports Final Takeaway: Effective supply chains align
distinct business models and target markets strategy with business objectives and market
(global tech vs. regional e-commerce). needs to drive competitive advantage
THANK
YOU
