RK

Rajesh Kumar, Partner

Good morning! I'm Rajesh Kumar, a Partner in our Operations practice. Today we'll be discussing a critical challenge facing one of India's largest e-commerce companies. Are you ready to begin?

Client Context: Flipkart

India's Leading E-commerce Platform

Metric	Value	YoY Growth
Annual GMV	$23 Billion	+35%
Daily Orders	1.5 Million	+42%
Active Customers	350 Million	+28%
Delivery Network	28,000 Pincodes	+15%
Delivery Fleet	150,000 Partners	+55%

The Challenge

Flipkart's last-mile delivery costs have increased by 45% over the past year, now representing 38% of total logistics costs (₹12 per order). Despite expanding the delivery network, customer complaints about delayed deliveries have increased by 25%, particularly in Tier 2 and Tier 3 cities.

The CEO has engaged us to optimize their last-mile delivery operations with the following objectives:

Reduce last-mile delivery cost per order by 20% within 12 months
Improve on-time delivery rate from 82% to 95%
Maintain or improve customer satisfaction scores

Select Your Approach

Choose a framework to structure your analysis

Operations Excellence

Focus on route optimization, capacity utilization, and process efficiency

Technology & Analytics

Leverage AI/ML for demand prediction, dynamic routing, and automation

Network Design

Redesign hub-spoke model, dark stores, and partner ecosystem

RK

Rajesh Kumar, Partner

Good framework choice. What information would you need to analyze this problem effectively?

Information Gathering

Select up to 3 key questions to ask (choose wisely)

RK

Rajesh Kumar, Partner

Let's dive into the data. Analyze these exhibits and identify the key cost drivers and optimization opportunities.

Delivery Cost Breakdown

Cost Component	Cost per Order (₹)	% of Total	Industry Benchmark
Rider Compensation	₹4.50	37.5%	₹3.80
Fuel & Vehicle	₹3.20	26.7%	₹2.50
Failed Delivery Attempts	₹2.10	17.5%	₹0.80
Technology & Support	₹1.20	10.0%	₹1.50
Hub Operations	₹1.00	8.3%	₹0.90
Total	₹12.00	100%	₹9.50

Delivery Performance Metrics

City Tier	Orders/Day	Avg Distance (km)	Orders per Rider	On-Time %	First Attempt Success
Metro (Tier 1)	650,000	5.2	28	89%	85%
Tier 2	550,000	8.7	18	78%	72%
Tier 3	300,000	12.3	12	71%	65%

Calculate Potential Savings

Rider Utilization Improvement (%)

First Attempt Success Rate Improvement (%)

Route Optimization Efficiency Gain (%)

RK

Rajesh Kumar, Partner

Good analysis. Now, what are your key insights and how would you prioritize the improvement initiatives?

Key Insights Identification

Based on your analysis, rank these insights by impact potential

Failed Delivery Crisis: Failed attempts cost 2.6x industry benchmark, driven by poor address quality and customer unavailability in Tier 2/3 cities

Rider Underutilization: Tier 3 riders deliver only 12 orders/day vs. 28 in metros, indicating massive capacity optimization opportunity

Distance Inefficiency: Average delivery distance in Tier 3 (12.3km) is 2.4x metro cities, suggesting poor hub placement and routing

Technology Gap: Below-benchmark tech spend indicates opportunity for AI-driven route optimization and predictive delivery

Implementation Challenges

Select the top 2 implementation challenges to address:

Delivery partner resistance to new technology/processes High upfront investment in technology infrastructure Customer behavior change required for delivery success Competitive pressure to maintain fast delivery promises

RK

Rajesh Kumar, Partner

Excellent work so far. You have 60 seconds to present your final recommendation to the CEO. Make it compelling and actionable.

Final Recommendation

Structure your recommendation with clear actions and expected impact

60

seconds remaining

1. Immediate Actions (0-3 months)

2. Medium-term Initiatives (3-9 months)

3. Expected Impact

Case Complete!

0

out of 100

Category	Score	Weight
Case Structuring	0/20	20%
Information Gathering	0/15	15%
Quantitative Analysis	0/30	30%
Qualitative Insights	0/20	20%
Final Recommendation	0/15	15%

Flipkart’s Last-Mile Delivery Optimization

Flipkart Last-Mile Delivery Optimization

Client Context: Flipkart

The Challenge

Select Your Approach

Information Gathering

Delivery Cost Breakdown

Delivery Performance Metrics

Calculate Potential Savings

Key Insights Identification

Implementation Challenges

Final Recommendation

1. Immediate Actions (0-3 months)

2. Medium-term Initiatives (3-9 months)

3. Expected Impact

Case Complete!

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