TO PREPARE STANDARD OPERATING PROCEDURES FOR

SHIPPR.IN AND ITS ASSOCIATES

Summer Internship Project Report submitted in partial fulfillment of the requirements

for the degree of
Master of Business Administration
By

VARSHA VARDHAMAN DODDAMANI

REGISTER NUMBER
1727563

Under the Guidance of

PROF. JOSEPH FERNANDES

Institute of Management
CHRIST (Deemed to be University), Bengaluru

JUNE 2018
 TO PREPARE STANDARD OPERATING PROCEDURES FOR
SHIPPR.IN AND ITS ASSOCIATES

Summer Internship Project Report submitted in partial fulfillment of the requirements

for the degree of
Master of Business Administration

By

VARSHA VARDHAMAN DODDAMANI

REGISTER NUMBER
1727563

Under the Guidance of

PROF. JOSEPH FERNANDES

Institute of Management
CHRIST (Deemed to be University), Bengaluru

JUNE 2018
 Declaration

I hereby declare that the Summer Internship Project report entitled “To prepare Standard Operating
procedures for Shippr.in and its associates at Shippr Technologies Pvt. Ltd., Bengaluru has been
undertaken by me for the award of Master of Business Administration. I have completed this study
under the guidance of Prof. Joseph Fernandes

I also declare that this Summer Internship Project report has not been submitted for the award of any
Degree, Diploma, Associateship, Fellowship or any other title, in CHRIST (Deemed to be University)
or in any other university.

Place: Bengaluru ------------------------------------

Date: Varsha Vardhaman Doddamani

(1727563)
 Certificate

This is to certify that the Summer Internship Project report submitted by Varsha Vardhaman
Doddamani on the title “To prepare Standard Operating procedures for Shippr.in and its associates at
Shippr Technologies Pvt. Ltd., Bengaluru” is a record of summer intern project work done by her
during the academic year 2018-19 under my guidance and supervision in partial fulfilment of Master
of Business Administration.

Place: Bengaluru ____________________

Date: Joseph Marcellus Fernandes

Professor
Institute of Management
CHRIST (Deemed to be University)
Bengaluru
 Acknowledgment

I am indebted to many people who helped me accomplish this Internship successfully.

First, I thank the Vice Chancellor Dr. Fr Thomas C Mathew, CHRIST (Deemed to be
University) for giving me the opportunity to do my project.

I thank Dr. Suniti Phadke, Dean, Prof. Georgy Kurien, Associate Dean, Prof. Shrikanth Rao,
Head of the Department, Dr. Jeevananda S, Administrator, and Prof. Ramakrishnan N, Head-Lean
Operations, and Systems, Institute of Management, CHRIST (Deemed to be University) for their kind
support.

I thank Prof Joseph Marcellus Fernandes for his support and guidance during the course of my
internship. I remember him with much gratitude for his patience and motivation, but for which I could
not have submitted this work.

I wish to express my sincere thanks to my corporate mentor, Mr. Siva Venkataraman, Chief
Finance Officer, Shippr Technologies Pvt. Ltd., Bengaluru, for giving me an opportunity to work under
his guidance and successfully complete my internship.

I thank my parents for their blessings and constant support, without which this internship
project would not have seen the light of day.

_____________________
Varsha Vardhaman Doddamani
1727563
 Executive Summary
This project involved the study of the existing processes and providing suggestions to improve the
operations at Shippr Technologies Private Limited which is a Bengaluru based start-up providing a
platform for intra-city logistics in India. It is located in four different cities i.e. Hyderabad, Delhi,
Chennai, and Bengaluru. Their operation of a large fleet, controlled by technology and innovation is
designed for improved efficiency to provide customers with an unmatched performance experience.

The primary aim of the project was to understand the process as –is and suggest improvements to the
existing procedures. There are three aspects of study conducted as a part of this project.

1. To frame standard operating procedures(SOP) for the Amazon wholesale India Private
Limited operations handled by Shippr at Bengaluru.

2. To develop standard operating procedures for Grofers India Private Limited operations
undertaken by Shippr at KRPuram Bengaluru.

3. To build a master Standard operating procedure for the overall operations at Shippr
Technologies Private Limited.

Apart from this, other observations were also made based on which suggestions have been given for
streamlining the operations.

For understanding the current Operations of Amazon wholesale India Private Limited several field
visits to the Shippr Stations at Electronic city and Yeshwantpur were conducted. The observations on
the field and the interaction with the workers on the field helped gain first-hand knowledge of the
processes involved. Similarly, the operations at Grofers Warehouse KRPuram were studied
completely by attending the training given by Grofers to Shippr. The issues with the operations were
identified and analyzed. Recommendations have been given based on multiple research papers and
literature review.

With E-commerce becoming the most important business sector, Logistics management is given a lot
of significance as it is a key segment in boosting operational proficiency and accomplishing delivery
excellence which builds consumer loyalty level. To achieve this, it is very essential to follow some
set standards that help operations to be smooth and hassle-free.

Hence, this study aims at developing Standard operating procedures that will benefit Shippr and its
associates in their day to day operations.
Chapter Page
TABLE OF CONTENTS
No. No.
1 Introduction 1
2 Industry Profile 13
3 Company Profile 19
4 Objectives of the study 24
5 Project / Process Design and Methodology 26
6 Data Analysis / Process Study 42
7 Findings & Recommendations 52
8 Learning 56
9 References 58
Appendix

10  SOP for Amazon and Grofers

 Feedback forms by the corporate mentor, CHRIST
(Deemed to be University) mentor, and the viva 60
panel
Table
No. LIST OF TABLES Page No.
2.1 PEST Analysis 15
Time and Efforts involved in the Amazon Wholesale
5.3 Operations 30
5.4 No of calls handled by Control tower 32
6.1 Rejects for the month of April 2018 from BLUD Station 44
6.2 Rejects for the month of April 2018 from BLRY Station 45
6.3 Rejects for the month of April 2018 from YBLB Station 47
Fig Page
No. LIST OF FIGURES No.
1.1 Hypotheses Research model 9
3.1 Shippr’s logo 20
3.2 Organization structure map 22
5.3 Process flow of Amazon Wholesale Operations 31
5.4 Route plan display which is rugged 37
5.5 Unloading process at BLUD 37
5.6 Shipments sorted based on the route no. 37
5.7 Loading of shipments into TATA Ace 37
5.8 BLRY Station- Haphazard arrangement of load 38
5.9 Barcode mismatch 38
5.10 Grofers Warehouse at KRPuram 39
5.11 Grofers Return desk -Amul Tetra pack damaged 39
5.12 Crates arranged on the Pallets 40
5.13 Poor Cold storage maintenance at Grofers 40
5.14 SOP sent to Grofers for review 41
6.1 Performance analysis of Amazon wholesale for the month of April 2018 43
6.2 Pareto Analysis of rejects from BLUD Station for the month of April 2018 45
6.3 Pareto Analysis of rejects from BLRY Station for the month of April 2018 46
6.4 Pareto Analysis of rejects from YBLB Station for the month of April 2018 47
6.5 Fishbone diagram 49
6.6 Why-Why Analysis 51
 CHAPTER 1

INTRODUCTION

1
1.1 Introduction
Logistics is the management of the flow of products between the point of origin and the consumption
point. The movement of things to meet the requirements of customers is a complex commercial
activity.

With the emerging E-commerce industry and fierce competition in the global market, Logistics plays
a vital role in reaching out to the customers on time. As a result of short product life cycles, changing
needs of customers and cost optimization strategies of Corporate companies, Logistics has gained a
lot of attention in the recent years.

Shippr, a logistics company was started in 2015 with an initial capital investment of 1.5 Crores.
Shippr entered the B2C market segment later shifting their business to the B2B segment. The
Clientele of Shippr includes Amazon wholesale, Big Basket, Grofers, Quikr Etc.

The main business idea of Shippr is to maximize asset utilization (space utilization of vehicles) and
at the same time maximize the revenue per vehicle by controlling the per-unit cost of shipment
delivered. Shippr has been maintaining decent margins and has turned profitable within three years
of starting operations (which is not usually expected of a start-up).

1.1.1 Standard Operating Procedures(SOP)

A standard operating procedure or SOP is a detailed instruction manual which elaborates the step by
step procedure followed by an organization to help workers carry out complex routine operations.

SOPs aim to achieve efficiency, standardization of work and high quality output without variance,
thereby ensuring no scope for miscommunication and confusion.

Established processes are of paramount importance to ensure effective and efficient operations,
which are crucial for any business.

2
1.1.2 Benefits of implementing Standard Operating Procedures.

Easier on-boarding –SOPs act as a standard protocol that new hires can follow and it will be helpful
for them to catch up faster.

Fewer Mistakes-Well-designed SOPs are developed to avoid most typical mistakes that can happen.
In Logistics industry small mistakes and unmarked details almost always cost money.

Professionalism- The company looks much more professional if all the representatives follow the
same processes and they can handle any situation themselves without having to check on every
single detail and verify everything with their supervisor.

Turnover- SOPs facilitate running of operations if people are replaced or switched to totally
different groups. This minimizes their coaching time and facilitates the backup employees/rest of the
team to step in and expeditiously perform their duties.

Efficiency-Overall, several corporations have proven that SOPs are the cornerstone of company
efficiency. By eliminating the guessing game, workers win better results by having a solid
foundation to build upon. It is noted that inefficient supply chain operations in a company cause
damage to its business, no matter which trade or industry it is.

Savings-Most significantly, SOPs save cash by streamlining the operations and eliminating mistakes.
Tiny mistakes in any logistics operations may lead to considerable financial losses if not caught in
time. To make sure the supply chain is functioning like a well-oiled machine, quality SOPs have to
be implemented.

1.2 Literature review

1.2.1 Importance of Logistics in Business

In this article “Business logistics-importance and some research opportunities “ (Ballou, 1997) we
come to know the importance of business logistics i.e. movement of goods from manufacturer
(origin) to the customer (consumption).

The stated mission of any logistics business is to get the right goods and services to the right place at
the right time and in the desired condition, while making a considerable contribution to the business.

Logistics is an important arm of any business because it creates value. Though it is a cost center and
costs are significant, it has a strategic aspect attached to it. Globalization of industries has resulted in
an integrated world economy and this heavily depends on the logistics performance and operations.

3
As this happens, transportation costs become the significant part of the total cost structure, after the
cost of goods sold.

Logistics is important to take strategic decisions such as penetrating new markets and increasing
market share and hence increasing profit. All this can be achieved with a robust logistics network
that connects you to the market and helps you in becoming time-responsive to the market demands.

Logistics is also key to customer service, as the delivery time is typically ranked highest among all
service variables. In addition to this, customers also expect customized quick response. So, logistics
has taken the support of information technology, to achieve higher performance levels.

Status of Logistics research

As the significance of logistics is increasing, it is gaining support to conduct research in various

areas like logistics network design which can be viewed as a triangle of three variables-location
strategies, inventory strategy, and transportation strategy. These three are in a trade-off with each
other, so based on the requirement, one is chosen over the other.

In a nutshell, business logistics is a vital area of business and with growing international trade,
dismantling of trade barriers, a good logistics strategy has become more critical in maintaining a
competitive edge and penetrating new markets.

1.2.2 How Standard Operating procedures help in Logistics

According to Martina in her paper titled “Work Standardization in Logistics Processes” (Martina
Džubáková, 2017), she discusses how the concept of Methods Time and Measurement (MTM) and
Training Within the Industry (TWI) can be used to establish a synergy and increase quality and
efficiency standards of logistics operations. A case study was conducted to arrive at the conclusion.

It is noted that work standardization is not a new concept. There are many theories and scientific studies
conducted for the further development of work standardization and Predetermined Motion Time
Systems (PMTS). One of the important advantages of PMTS is that it requires a detailed description
of the working method and is useful for studying how work is done, how it can be improved and how
much time it should take.

To make the profitability sustainable, it is important to understand and meet customer requirements of
quality and price. Therefore, companies are forced to find out the ways to improve logistics processes.
Quality and efficiency of logistics on stability and capability of the process and one of the most
substantial criteria for stability and capability control in logistics is TIME. The MTM study gives the

4
details of repetitive cycles of manual work. The basic motions are combined, substituted or eliminated.
A certain sequence of steps and rules is accepted by all. Eventualities are identified easily if standards
are established. The time to perform particular processes were studied to come to know that time is
wasted in individual processes.

To continually improve, the traditional approach of 3J Program was implemented to solve the
following issues.

 Operators lack a deeper understanding of work instructions.

 Rarely can it be used as a problem-solving measure to eliminate waste from workplace
operation.
 Often it cannot fully reflect real situation on the line.
 There is only a weak motivation for internal improvement measures.

The first J, Job Instruction (JI) in the program aims at training and instructing. The second J, Job
method (JM) is used to avoid logistics MUDA by eliminating wasteful tasks. The third J is JR Job
relations- to maintain the relations at work. This article discusses work standardization based on the
MTM method where the continuous improvement is achieved through the application of the JI and
JM methods respectively.

1.2.3 Quality of service in Logistics

In another paper, “Assessment of logistics service quality using the Kano model in a logistics-triadic
relationship” (Sohn, Woo, & Kim, 2016) a triadic approach to logistics is used wherein three parties
are buyer, third-party logistics provider (LSP) and the supplier. Since Logistics is a source of
competitive advantage for firms, it is important to assess the level of logistics service quality in
comparison to their customers’ requirement and satisfaction level. The LSPs handle buyer as customer
and supplier also as a customer.

The paper discusses about the use of Kano model to understand the different role of logistics service
quality attributes in satisfying customers. A survey research was conducted in a Semiconductor
equipment manufacturing firm which involves logistics. The broad categories that were studied were
as follows

 Reliable delivery
 Condition of delivered products
 Logistics cost reduction

5
  Lead time
 Accident management
 Visibility
 Responses to customers
 Order convenience
 Order management
 IT capability
 Organizational expertise
 Organizational soundness

These attributes increase dissatisfaction if not met. Delivery without damage and on time delivery are
some basic requirements. IT capability is considered to be attractive factor. However, the IT-based
service is fast becoming a necessary core competency. Logistics, being a dynamic industry, requires
Capability to negotiate with carriers, response to unexpected requests from customers and visibility-
tracking systems to improve customer satisfaction. Firms should take action to identify the gaps and
work accordingly to continuously improve customer satisfaction.

1.2.4 Role of skilled workforce in Logistics performance

To satisfy the must-be attributes it is required to have resources who strive to improve customer
satisfaction. But, it is not that easy to find skilled human resources. This can be seen in the case study
- Analysis of the skilled workforce effect on the logistics performance index—case study from India
(Jhawar, S.K., & Khera, 2014) to analyze the impact of the skilled workforce on the logistics
performance index(LPI). It discusses the effect of training, employee welfare, working conditions and
wages on the LPI.

The paper talks about the importance of Logistics by emphasizing the growth of Industries due to
Globalization. Logistics has now become a part of sustainable competitive advantage. Until recently,
logistics was considered operational function rather than strategic. However, we see that there is a
scarcity of skilled workforce in this sector which leads to improper handling of products, rash driving,
losses, redundant procedures and assigning a separate person for each activity rather than multitasking,
lower standard of living etc. This research paper throws light upon many studies conducted to
understand the role of human resources in logistics management. Authors propose 4 hypotheses to
study the relationship.

Hypotheses:

6
H1: Skilled workforce has a positive effect on corporate reputation building, recruitment, and retention
of employees.

H2: Skilled workforce has a positive relationship with reduction in cost, reduction in time,
improvement in reliability, flexibility, and safety of a logistics system.

H3: Skilled workforce has a positive relationship with logistics performance index.
H4: Logistics performance index has a positive relationship with profit.

The methodology followed is to develop a system dynamics model. A causal loop diagram and the
Stock and Flow diagram have been developed to show the significant improvement in the logistics
performance index.

It shows that investment done in Human resource development activities in logistics company will
have a positive impact on the performance. This creates availability of skilled and experienced
workforce leading to a reduction in logistics cost, logistics time and making the system more reliable
and safe. With this study, it is proven that skilled workforce strongly affects the performance of any
logistics system.

1.2.5 Significance of Employee behaviour in Supply chain management

As the fact is now established that skilled workforce is very crucial for high-performance logistics, it
is also important to understand how these employees behave. While various research activities are
being conducted in logistics, often overlooked key issue is the human behavior. This paper “
Behavioral research in logistics and supply chain management” (Tokar, 2010) advocates the effects
of human behavior such as judgment and decision making in logistics. These issues are significant
for logistics because people often fail to make choices consistent with the normative policy.
According to Council of Supply Chain Management Professionals also says behavioral research is
important in logistics and supply chain as it involves the coordination and collaboration of multiple
parties.
The neoclassical theories of economics assumed that people remain completely rational in their
decision making. Empirical tests showed that this is not true always. Further, the empirical validation
of decision making called prospect theory was developed which better predicts economic behavior
under conditions of uncertainty. Behavioral experiments are used to increase the predictive accuracy
of predictive models. There are certain assumptions about people made usually which are not
absolutely true always. Boudreau et al. (2003) discuss several behavioral assumptions commonly
employed by quantitative models; namely:

7
  People are not a major factor for the focal issue.
 People are deterministic and predictable (e.g. have perfect availability and no need for
breaks; are never absent; do not make mistakes or only do so randomly; have the same speed,
intelligence, motivations, beliefs, and responses to incentives).
 People are independent and unaffected physically or psychologically by one another.
 People are stationary, such that no learning or problem solving takes place, and fatigue is not
an issue.
 People are not part of the product, service, or customer experience, so no consideration of the
impact of system structure on customers’ interactions with workers is necessary.
 People are emotionless and unaffected by pride, loyalty, or embarrassment.
 Work is perfectly observable, and any impact of observation on performance can be ignored.

The paper uses Intention, Action, Reaction (IAR) framework and Judgment – Decision-making
framework. Time pressures are a negative determinant of decision-making tasks.
Environmental/Ecological limitations and realities also affect decisions. Research has shown, due to
the fact that they possess visual perception and strategic assessment, humans are proficient in
addressing routing, loading problems and outperform computers.

1.2.6 Prominence of IT know-how and Organizational Culture in Logistics

As we see the shift towards technology, every industry is moving towards Information technology
(IT) adoption, so is Logistics. Bihter and Ali in their paper – “The Roles of IT Capability and
Organizational Culture on Logistics Capability and Firm Performance” correlate information
technology (IT) capability and organizational culture with the logistics capability in order to explain
logistics performance and eventually firm performance achieved. IT capability is the ability to
mobilize resources and also facilitate intra-organizational communication flow.

Different researchers have examined relationships become Informational capabilities and logistics
performance and have found that IT capability has an indirect impact on financial performance of the
company, it helps to develop inimitable competencies in the firm which help to reduce costs and
differentiate their offerings. Any business for that matter requires information and ability to share
that information to control their daily operations, to manage the planning process and to develop
contingency plans.

8
Employees form the backbone of the operations of logistics firms and we know that they have a
shared pattern of values and beliefs which forms the organizational culture. The systematic
management and control of processes promote the understanding of market, technical knowledge.
And IT knowledge-based skills are increasingly accepted as key decisive factors. A positive
relationship is observed between IT and logistics performance, as it increases income and reduces
cost

Figure 1.1: Hypotheses Research model

The study was conducted in 259 logistic companies where a questionnaire was asked to be filled and
the research model proved that there is no relationship between IT capability and logistics capability.
However, IT capability and logistics performance are related.

1.2.7 Evaluation of Logistics Providers

With all these important aspects in mind, companies now-a-days analyze the logistics service
provider. In the paper- “Analytical modeling of third-party service provider selection in lead logistics
provider environments” (Bhatti, Kumar, & Kumar, 2010) we can study the analytical modelling
method to evaluate 3PL providers.
In the recent days, companies are outsourcing their entire set of “non-core competency” processes to
other organizations, which have proven professional excellence in those areas. They assess, design,
and execute/run “integrated total supply chain solutions”. However, the international 3PL giants have
failed to provide domestic services in India.

The Lead Logistics Provider-LLP concept builds on the foundations of 3PL and additionally delivers
a comprehensive supply chain solution with integrated skills aimed at an optimally leveraged supply
chain.

9
It is a business process outsourcing provider with a competitive advantage over the 3PLs to bring
value and a re-engineered attitudinal approach to the customer and his needs. The basic purpose of
this evolution is to infuse a maximized the overall benefit to the end-user/the customer.

Therefore, the LLP is a logistics chain integrator who synchronizes and manages the resources,
capabilities, and technology of its own organization with those of complementary service provider to
deliver a comprehensive supply chain solution. The LLP thrives by leveraging the competencies of
the 3PLs and the business process managers, to deliver a comprehensive and integrated supply chain
solution through a centralized point of contact. LLPs run as asset free organizations.

Based on extensive survey conducted through questionnaire method few important criteria were
identified which a client desires to have in a logistics partner

1.Vendor status

 Scale of operations

 Operational boundaries

 Local market ranking

 Global market ranking

2.Logistics competence

 Logistics technology

 Logistics apparatus

 Throughput capabilities

 Maintenance costs

3.Quality of service

 Article of trade wastage

 ERP competencies

 Scope of services

 Time to transport

4.IT-based competencies

10
  I-T enabled network

 Achievement monitoring capabilities

 Process data handling capabilities

The combination of these criteria is weighed and a common index is found to rate several 3PL
providers. Based on this, a suitable logistics provider can be identified.

With the growth of retail E-commerce, there is huge pool of opportunities opening up for Logistics
companies.

1.2.8 Growth of Retail E-commerce

In the paper “The Emerging Landscape of Retail E-commerce” (Bakos, 2001), the author discusses
the substantial growth of online sales and how it is affecting the digital market. E-commerce has
reduced the search costs for buyers and sellers. It is this fact that, buyers can find the goods on the
internet and does not have to spend time on traveling. Similarly, sellers have new ways of reaching
out to customers through targeted marketing and one-on-one marketing.

Also, new capabilities offered by information technology has set complex market dynamics in E-
commerce. And the online markets have lower prices and costs which attract more and more
customers. This development has led to the shifting of roles of intermediaries in the retail sector.
Certain new intermediaries are emerging who provide their logistic expertise in making sure the
product reaches the customer.

1.2.9 E-Commerce Logistics in Supply chain management

In another paper “E-commerce Logistics in Supply Chain Management: Practice Perspective” (Yua,
Wang, Zhong, & Huang, 2016), we can see the author discussing how modern logistics has improved
the efficiency of material flow, reduce distribution costs in the industry, at the same time it has
helped in the expansion of logistics market. The paper summarizes various logistics models and
supporting techniques for the E-commerce logistics. It discusses worldwide implementations in
various practices from the real-life companies like Home Depot, Lowe’s, Amazon, IKEA,,
JingDong, and GuoMei. When we look at the practices of Amazon, it is noted that when dealing with
inter-city transportation, Amazon identifies some transportation hubs where customers are highly
concentrated to save cost. Orders are integrated in the Distribution centres first, then from there
Truck load shippers or less than truck load shippers carry them to transportation hubs. The logistics
performance and customer loyalty are closely associated in E-commerce business than in any other

11
industries. Hence, it is very crucial to have a well-built transportation and logistics model based on
the business and industry. It also throws light upon the technology aspects as logistics involves
dispose of order, delivery and return of goods. Logistics relies on data sharing in real time,
integration of shipment flow, capital flow, information flow etc. Due to this, IT plays a key role in
improving the efficiency of Supply chain management. In the future, it is expected to be disrupted by
Internet of Things, Big Data Analytics and Cloud computing to enhance E-commerce logistics.

1.2.10 E-Commerce Logistics Strategy

The paper “Shaping the E-Commerce Logistics Strategy: A Decision Framework” (Ghezzi,
Mangiaracina, & Perego, 2012) talks about how E-commerce has changed the way customers shop. It
discusses the relationship between logistics strategies and logistics problems in the E-commerce. As
logistical problems faced in E-commerce are typically different than the one faced in offline channels
it is required to understand their relationship with logistics strategy.

Some factors that affect logistics problems are:

 Delivery cost of low value density products becomes an issue for profitability of business.
 Product range defines the complexity of the network resulting higher procurement costs.
 Ineffective returns management negatively impacts the service level.
 Order cycle time and Punctuality matters in providing superior customer satisfaction level.

The Logistics strategies that are prevalent in the E-commerce industry are:

 Inventory ownership and location

 Order picking policy
 Order delivery policy

This gives us insights on the how to analyze logistics problems in terms of customer service level and
product features and then drive the logistics strategy. However, logistics problem is not the only
element that affect the logistics strategy. It is the business model which has to predominantly identify
the causes that affect the problems and then formulate strategies accordingly.

After reviewing the literature, we understand the importance of logistics and the criteria on which
logistics performance is based.

12
 CHAPTER 2

INDUSTRY PROFILE

13
2.1 Industry Profile

The economic survey 2017-18 tabled in Parliament read that India logistics industry is expected to
grow at CAGR 10.5%. With the implementation of GST, the Indian logistics market is likely to
touch USD 215 billion in the next two years (by 2020).

India is one of the largest and fastest growing economies in the world. However, a large sector of
logistics in India remains unorganized. It also faces challenges such as high cost of transport,
underdeveloped material handling infrastructure, fragmented warehousing, lack of seamless
movement of goods among others.

Amidst this, companies are looking at logistics as a differentiator. Today’s customers do not just
want satisfaction but also expect that cooperation and alignment with their service for mutual
benefits and revenue growth.

Therefore, it is necessary to manage this sector more professionally in order to increase operational
efficiency, to improve customer services and satisfaction levels and to become more competitive in
global markets.

The top 3PL intra-city logistics companies in India are as follows -

1. Aegis Logistics Ltd.

2. Agarwal Packers & Movers Ltd.

3. Allcargo Logistics Ltd.

4. Blue Dart Express Ltd.

5. Container Corporation of India Ltd.

6. DHL Express India Pvt Ltd.

7. FedEx Express TSCS India Pvt Ltd.

8. First Flight Couriers Ltd.

9. Gati Ltd

10. Globe Express Services Pvt Ltd

11. Transport Corporation Of India Ltd

14
2.1.1 PEST Analysis

Political Economic
Tax regulations changing-GST Growing GDP indicates growth of
Variation in commodity prices manufacturing, giving scope to Logistics
Oil activities.

PEST

Social Technological
Online shopping Real time tracking systems
Social Issues with drivers Technology adoption in delivery

Table 2.1: PEST Analysis

2.2 Drivers of success in the logistics industry.

 Customization of Services as Per Customer Needs

Industrial customers, like individual customers, are expecting to get shipments faster, more flexibly
and with more transparency - at a lower price. As described earlier, logistics is being treated as a
differentiating factor. There is no surprise, that across the industry, both profitability and operating
models are under pressure and strain. And the speed of revolution and transformation for large
manufacturing and retail customers may turn out to be faster than for end and private consumers.

This explains that different customers, whether it’s the B2B or B2C, have different needs. And thus,
it is very important that the company transporting goods, products or even services customize their
solutions as per customer needs.

15
 Training and Employee Benefits to Blue Collar Employees.

It is very vital that the blue-collar workers at these logistics startups are offered employee advantages
and receive comfortable on the job training just like the other regular employees.

It is extremely indispensable that the blue-collar employees at these Logistics startups are offered
worker points of interest and get settled at work by training them well like the other normal
representatives.

Offering benefits and training not only makes these blue-collar employees more efficient in what
they are required to do but also makes them more loyal towards their employers.

 Processes Should be in Place

The processes one develops to run a certain product or service is very crucial. If it is not followed to
the core, it can at times backfire. The processes that are made to follow are meant to develop
products and services that create ideal value for customers.

 Communication and Tracking

For successful logistics and supply chain management, communication and a good customer support
team are essential and significant. Services offered to customers depend on proper communication
amongst the delivery teams for a smooth process.

With technologies like automated updates, reporting, and tracking facilities, it is very convenient for
firms to let end users know about the status of the consignment at any point in time and provide
hassle-free experience throughout the delivery process.
The right balance in adopting a good technology platform and with strong execution systems,
logistics start-ups can start being profitable and run successful businesses.

2.3 Last mile delivery and E-commerce industry

E-commerce has been very successful in providing impetus to the growth of freight companies. This
has fuelled the growth of the economy and continues to drive the logistics. According to the CEO of
FedEx, Henry Maier, E-commerce sales, and shipments quickly went up by more than a hundred
percent from 2012-2014 (Berman, 2015). The continuous growth through e-commerce will be
momentous for all freight and retail companies.

16
A decade ago, logistics were perceived as the biggest challenge in e-commerce. However, times have
changed and logistics have turned out to be the strategic differentiator of e-commerce players along
with being a critical link between e-tailers and customers.

With several e-commerce players fighting tooth and nail to emerge as market leaders, e-tailers are
looking at improving all kinds of allied services to edge out their competitors, and operational
efficiency is a significant part of the same. Ensuring speedy delivery of goods, for instance, improves
the customer experience of a particular product and often becomes the pivotal point of a consumer
completing a purchase or not.

As e-commerce players try to ensure faster delivery of products, its direct impact can be felt in the
logistics sector, which is expanding and digitizing itself at a great speed. The brisk e-commerce
growth in retail and other segments has given birth to multiple third-party logistics operators which
are transforming the disorganized Indian logistics industry into a digitized and systemized arena.
They are using their prowess in technology to provide improved services in metro areas as well as
Tier II and Tier III cities.

The tech-savvy and GEN NEXT buyers pressed for time in cities and towns across India now find
online shopping as one of the most convenient mediums to buy different products. The logistic needs
of the e-commerce players are evolving in line with the changing business requirements. Amazon
wholesale India Private Limited is one such example of E-commerce moving to the different sector –
wholesale business (B2B segment).

Most of the logistics companies are now functioning 24X7 so that they can sort, screen, pack, and
ship products efficiently and reduce the total time taken from the point of sale to that of delivery. The
competition is so fierce that if it’s not you there is someone else ready to deliver the goods ahead of
you. The implementation of GST has also made the need to keep warehouses in every state
redundant, and we might see the emergence of large capacity trucks as the go-to vehicles with
delivery routes becoming longer as e-commerce spreads far and wide all across India.

17
2.4 Challenges faced in the Last mile delivery process

 Small deliveries to many places cause complex routing problems.

 Deliveries are time-bound and are restricted to time periods and certain routes.
 Due to the dispersed customer location, it is difficult for the delivery personnel to find the
customer location
 Lack of real-time coordination
 Ineffective technology application
 Run sheet creation
 Admin work
 Visibility of field workforce
 Handling Ad-hoc requests

18
 CHAPTER 3

COMPANY PROFILE

19
3.1 Company Profile

Shippr has successfully blended together technology and operations and has created very effective
intra-city transportation. Shippr provides solutions to all its clients and believes that no one size fits
all. So it has different services offered, which are customized to its client’s business model.

With a fleet capacity of more than 600 vehicles across India ranging from Tata Ace to 19-feet Canters
(407), it provides a viable logistics solution for any use case. They operate in four different cities across
India viz.- Bengaluru, Chennai, Delhi, and Hyderabad. The areas of operations Shippr is involved
mainly includes Last mile delivery and Vehicle aggregation.

Figure 3.1 Shippr’s logo

Some of the current Shippr clients include-

 Amazon Wholesale India Pvt Ltd

 Amazon heavy bulky goods
 Grofers
 Big Basket
 Quikr
 Pratham Motor
 Spell Foods

Shippr.in is a technology based logistics solution provider. The drivers can attach their vehicles with
Shippr and drive for Shippr. They have incorporated an online GPS tracking system to track their
respective assigned vehicles right from the vehicle arriving time, to the loading of goods, transferring
to the desired location, unloading, and till the billing of the particular transaction.

20
Main features of services offered by Shippr are

 Customised transportation solutions

Shippr provides customized first mile, middle mile, and last mile transportation solutions in the intra-
city segment.

 Warehousing and distribution

This service aims at fulfilling the warehousing and distribution needs of large retailers whose
delivery points are massive and vary on a daily basis. These solutions are used by some of the large
E-commerce companies in India.

 Plug and play logistics

Not only the small and medium Enterprises but also the E-commerce giants use the fleet as and when
required for their logistics operations. The vehicle co-ordinators play an important role to serve these
needs regularly.

 Vehicle policy

Shippr does not own any vehicle in its name, however, it aggregates all the vehicle owners with the
help of Vehicle Co-ordinators.

Business value offered by Shippr

 Customer First approach: As each customer is different, Shippr offers agility

and flexibility to deliver customized service to meet their needs and
expectations.

 Reliable, all the time: Most reliable in time-sensitive or same day deliveries.

 Efficiency and Optimization: At Shippr combination of technologies like live track-

ing and, planning methods are used to optimize the operations.

21
3.2 Organization structure

The organization structure at Shippr technologies Pvt Ltd is as follows. Apart from key executive roles,
there are different teams such as Accounts/Finance team, Operations team, Control tower.

CEO

CFO COO HR CTO

Acc. TEAM VP Ops Dy. HR VP Engineering

City CIty City City

Tech team
manager(BLR) manager(HYD) manager(CHE) manager(DEL)

Vehicle vehicle Vehicle vehicle Vehicle vehicle Vehicle vehicle

coordinator 1 coordinator n coordinator 1 coordinator n coordinator 1 coordinator n coordinator 1 coordinator n

Vehicle Vehicle Vehicle Vehicle

coordinator 2 coordinator 2 coordinator 2 coordinator 2

Station
Station manager Station Manager Station Manger
Manager(BLRY)

Station
manager(BLUD)

Station
manager(YBLB)

Figure 3.2 Organization structure map

22
Different functional departments at Shippr

 Operations

The Operations department at Shippr is the backbone of all the business activities carried out by
Shippr. They manage resource requirements, allocating vehicles, drivers, training new recruits,
developing new operating policies and they strive hard to improved productivity.

 Human resources

The HR department has to play its role in the smooth functioning of the organization and mainly has
to take charge when there are disputes and conflicts (handling drivers). Hiring new recruits suitable
for the company and conducting an orientation program for the employees is also the responsibility
of HR department.

 Finance

The company’s Finance activities such as billing, GST compliance, payments, and receivables are
handled by Finance team. They plan cash flows and based on that the funds are arranged. Auditing
the accounts is also an important work conducted by the department.

 Tech team

The Tech team has created the company’s website which helps in direct booking online. It has also
built in-house Application – Field Ops to manage the attendance of vehicle and drivers which notes
down the vehicle reporting time, distance traveled, vehicle out time etc.

Currently, they are working on a route optimization software application called ‘Navigatr’ which will
be ready for use in upcoming months.

 Control tower/ Customer support

The control tower takes care of operations from the back-end. It ensures on-field activities happen
smoothly. They also handle customer queries and provide a solution.

23
 CHAPTER 4

OBJECTIVES OF THE STUDY

24
4.1 Primary Objectives

 To frame standard operating procedures so that there is no deviation from the process.

 To understand the operations of logistics; in particular- last mile delivery in the wholesale
business.

 To understand the intricacies of last mile delivery and customer service in the E-commerce
industry.

 To identify the major issues which affect the efficiency of operations.

4.2 Secondary Objectives

 To frame standard operating procedures for Shippr’s business operations for its client Amazon
Wholesale India Private Limited mainly (AWIPL or Amazon) focusing on the field activities.

 To prepare a standard manual for overall operations at Shippr.

 To prepare Standard operating procedures and also train the employees working for its client
Grofers India Pvt. Ltd.

25
 CHAPTER 5

PROJECT/PROCESS DESIGN AND

METHODOLOGY

26
5.1 Project Methodology

5.1.1 Introduction

In this section, the theoretical concepts studied have been discussed in the light of issues observed in
the operations at Shippr.

The project/study/internship mainly includes –

To frame Standard Operating Procedures (SOPs) and suggest improvements to the existing processes
carried out for handling the operations for one of its major client –Amazon wholesale India Pvt Ltd.
and Grofers India Pvt Ltd.

The process followed to build SOPs is based on Observations made during field visits, frequent
interaction with ground level workers and a day out with delivery associates to see the delivery on
road.

The Principle of Genchi Genbutsu, that is ‘to go and see’ has been followed throughout the study.
The process is documented AS-IS and some suggestions are given based on the impact of issues.

5.2 Problem Statement

5.2.1 Pretext

Shippr, a logistics company works on Vehicle aggregation model and Last mile delivery operations.
Amazon Wholesale India Pvt. Ltd is a high profile client of Shippr. It also has other E-commerce
players such as Grofers, Big Basket, Quickr. Recent addition to its client base is Flipkart.

5.2.2 Problem

The Operations at Shippr mainly involves drivers, delivery associates, loaders and station managers.
However, there is no standard document which acts as a guiding light for all of them, when there is an
issue and no immediate assistance available. Also, the logistics industry involves many people issues
which hamper the operations. This is a problem of process standardization as well as knowledge
management. Hence, manuals of Standards come in handy in such situations.

27
5.2.3 Tools Employed

 Process Flow diagram

 Why? Why? Analysis
 Fishbone diagram
 Pareto Analysis

5.2.4 Limitations

 Past data collected is only for limited period of time.

 People don’t follow the standard practices during peak seasons.
 Data gathered by interaction with employees is not always reliable.
 Data from the Software systems was not accessible as it is proprietary software provided by clients.

5.3 Methodology

The Operations for Amazon and Grofers are studied separately. The processes were observed keenly
during the field visits to understand the operations. In addition, contract documents were studied to get
the details of expectations of the client.

5.3.1 Operations of Amazon Wholesale India Pvt Ltd.

Shippr has three different warehouses (named ‘stations’) in Bengaluru region for Amazon Wholesale
Operations.

The station codes are as below.

BLUD-Yeshwantpur BLRY-Electronic city YBLB- Hoskote

Observations have been made at BLUD and BLRY Stations during the field visits conducted. Data has
also been gathered by interacting with the Station managers, loaders, Delivery Associates security
guards and the customers directly.

The list of activities that were observed is as follows.

5.3.1.1 Receiving the shipment load.

Regular field visits to the station were conducted to see the number of movements that take place while
unloading the shipments. The Load is received twice a day (around 1:30PM and 10:30PM) from
Amazon Fulfilment centre(FC). It was observed that the loaders unload the shipment and place them
on the palettes. In-scan is done to confirm the receipt of goods. COMP (Carrier Operator Management

28
Platform) is updated when the shipment is received and in the scan is done. It is also updated when the
out scan is done before sending the vehicle out for delivery.

Then the helper moves the palette to the centre of the warehouse. After this, the sorting is done to keep
the packaged cartons and the tote boxes in their place according to the route plan. The loaders have
the knowledge of pin codes that fall under different routes.

It was noticed that, there was no start time and end time set for the processes as it depends on manual
effort and the load for the day. Rounds of direct interaction with the staff uncovered several issues
like the mismatch of barcodes on the shipments sent by Amazon, loaders don’t report to the station
regularly which overburdened the resources present.

5.3.1.2 Pre-Delivery process

Going out for delivery to get the first-hand knowledge of delivery process made it supportive for
understanding the behaviour of drivers, Delivery associates and the customers. The process observed
was noted down.
Out-Scanning and Loading of shipments happens at the Station. Station supervisor Assigns delivery
associates to delivery vehicles which goes to a particular route. Then the Delivery run sheet (DRS) is
generated which will have the details of the shipments like the address, customer contact no. etc.
Before going out for delivery, the signature of the respective DA is taken and the Station manager
briefly explains to the DA about the cash collection, and recommended behavior of DA with the
customer.

5.3.1.2 On field delivery Operations

The progress of delivery is updated on a real-time basis. DA uses RABBIT App (Provided by
Amazon) to scan the shipment tracking ID and mark the status of delivery. During the delivery, if
there are any issues such as rejects or attempts; the DA calls control tower to update the same. If
there are any rejects, such shipments are brought back to the DC.

5.3.1.4 Post delivery process

This process marks the closing operation for the day. The cash is collected from the DA and the
stock is tallied. The signed DRS is collected from the DA. Station manager reconciles the cash
collected during the whole day. Cash is handed over to the cash collector the following day. If there
are any returns/reject shipments, in-scan is done. These shipments are sent back to AWIPL FC with
the feeder vehicle at night once all return shipments are collected.

29
 Time–Effort involved in the process as observed at BLRY Station

Activity The time required to Resources involved

complete the activity

Receive shipment – Approx. 1 hour 3

Unloading

In-scan 1 hour 1

Segregation 1 hour 3

Loading local vehicles for 2.5 hours 3-4

delivery after out-scanning

Out for delivery 4-6 hours generally 12(DA)+12(driver)

Control of operations thru CT Continuous process 6+1

Stock reconciliation 1 hour 2

Cash reconciliation & 1 hour 1

reporting

Table 5.3: Time and Efforts involved in the Amazon process

30
Figure 5.3 Process flow of Amazon Wholesale Operation

31
5.3.1.5 Control tower/call center
The control tower ensures smooth delivery of shipments by continuous monitoring of vehicles and the
Delivery associates. At the same time, it also manages customer queries and issues. There are several
cases handled every day and some of them have been described below. The main job of control tower
is to ensure that deliveries happen within the timeframe at the same time achieve 100% delivery
attempt rate by following up with the Delivery associates.

Control tower pulls the data of deliveries to be made next day and pre-delivery calling is done in the
evening to the customers who have orders above 5 shipments.
Also, if there are any issues like rejects/attempts the DA calls control tower to update the same.
Control tower confirms with the customer if the DA has come to the address for the delivery or not
and they also try convincing the customer to get the delivery done. If there are any issues they
confirm the reason to mark attempts/rejects. Generally, control tower lead deals with Amazon
directly regarding pressing issues.
No of calls handled per day

Control Number of calls/day

tower Team (Approx.)

BLRY 120

BLUD 150

YBLB 100

Control
tower lead 50

Table 5.4: No of calls handled by Control tower

Customer complaints are typically unpredictable. For instance, suppose there are two different shops
with the same name, but the pin code is different. DAs tend to deliver it to the wrong shop. Some of
the DAs do not count the money when they receive cash (Denomination of Rs.10 and Rs.50)
The shipments will be rejected by customers for various reasons. However, Control tower tries to
deliver goods and only if the reason is verified, the shipments are marked as rejected

32
Attempts

 Customer requests next day or future day delivery

 Payment not ready
 Customer unavailable –Shop closed
 Door-locked

Rejects

 Ordered by mistake
 Payment not ready
 Price mismatch
 Excess load/quantity
 Order mismatch
 Product expired
 In case of tote box, the customer may not accept the shipment if he is not present during the
delivery.

Undeliverable

 Damage during transit (FC to DC)

33
5.3.1.6 Observations

The observations were noted down during the field visits and then the same would be discussed with
the Chief Operations Officer of Shippr.

Below is the table (affinity diagram) which lists down the discrepancies of Amazon wholesale
operations.

Delivery Associate/Drivers
related Station related The way of handling the load
First-mile delivery –
Sellerflex –Pick up the
load from the seller and get
it to the station, if it
belongs to the station,
delivered from the station.
If not they send it to FC,
instead that can be sent to Improper way of handling the
other station. Floor planning products
Technical issues of tracking Taking too long to finish basic
Training the DAs Id mismatch cause delay. scanning
Safety measures to be taken-
Unavailability of DAs in Fire extinguisher and first aid Stacking is improper in the trucks
the last minute. kits because of lack of monitoring.
There are 3 Shutters available
in the stations but only 2 are
As DAs are responsible to used. So 2 shutters can be Some of the heavy bulky goods do
achieve 95% of attempts used for wholesale and 1 can not fit inside the vehicle very first
(performance) be used for heavy bulky time they load it, so the loader
Bonus/Incentives scheme shipments to minimize unloads and loads the shipment again
to be introduced. loading time. -Effort is wasted
Drivers are not on contract
currently- they will be Proper positioning of CCTV Cartons of similar size should be kept
reliable if Shippr camera in the same place

34
establishes a contract with
the drivers.
Totes are bulkier than the carton,
Attempt rate can be loaders find it heavy to load. They
improved. also take more space.

Observations made during delivery

Issues with
Issues with Totes Issues with Cash Collection operations Other Issues
All the shipments
are unloaded from
the vehicle into
the warehouse
first. Then, the
scanning and
Generally, traders do not segregation take
pay cash immediately. The place. Running Multiple copies of
DA has to go for a second parallel operations bills were issued to
All customers round to collect the cash. A would reduce time Udaya Enterprises.
complained about lot of time gets wasted in and effort spent in Consolidated bill is
totes this process. the process. expected.
Udaya Enterprises
generally has many
issues like missing
shipments, the
difference between
Traders pay cash in smaller quoted price and
Totes are problematic denominations (10s and price on the bill
during busy schedule 20s). This sometimes etc., He also
as the traders cannot creates problems in cash DA has not complained about
empty them and return handling and results in received any kind the old stocks sold
immediately missing cash. of formal training by Amazon.

35
 Network issues in
using Rabbit App.
No safety The sim provided
Totes are heavy and measures were by Amazon has
sometimes DAs get Naga traders do not agree taken at the network issue so,
hurt while handling to put a signature on the warehouse in the DA uses his
them bill case of emergency own sim card.
During
Very few items found segregation,
in a tote (3 Tea- shipments often Customers have
powder boxes of 1 kg end up in the issues with bonus
each) which causes wrong dues, offers, and
wastage of space station(old/new) returns.
Durga traders were
unhappy with totes
and were not ready to
accept them
Goods delivered in
totes get damaged as
there won’t be any
packaging box
available later.
One of the totes had
carton box inside.

36
Figure 5.4 Route plan display which is rugged Figure 5.5 Unloading process at BLUD

Figure 5.6 Shipments sorted based on the route no. Figure 5.7 Loading of shipments into TATA Ace

37
Figure 5.8 BLRY Station- Haphazard arrangement of load Figure 5.9 Barcode mismatch

5.3.2 Operations of Grofers

Shippr handles last mile delivery for Grofers India Pvt. Ltd (Grofers) at Krishnarajapuram,
Bengaluru. Therefore, Shippr has to work in line with the Grofers delivery model which has two
delivery slots in a day.

 Slot A delivery is from 6:00 am to 1:00 pm which has sub-slots from 6:00 am to 9:00 am and
from 10:00 am to 1:00 pm.
 Slot B delivery is from 5:00 pm to 11:00 pm with sub-slots from 5:00 pm to 8:00 pm and from
8:00 pm to 11:00 pm.
 The regular requirement is 9 vehicles per slot to serve 300 orders/day. (1 buffer vehicle will be
maintained).
 Average load/Vehicle: 20 orders.
 Expected productivity per vehicle: 95%

Since, the operations started recently in May 2018, there was no much data available for analysis.
However, Grofers arranged a session at their warehouse for Shippr Associates for training their

38
processes. This gave an opportunity to gather information on their processes and make other
observations.

The training covered the following topics:

 Order Assignment

It is the process of creating routes and then assigning Field Executives(FE) to those routes for the
orders shared by Grofers on the Dashboard. Scheduled run, Palletization and En-routing are the main
activities that have to be carried out before order is assigned. There are different cut-off times for the
delivery slots A and B. In case of any discrepancies, Shippr and Grofers Operations team are
informed to take immediate action.

 Cash Reconciliation

Cash reconciliation is a process which is crucial as it involves cash management and the supervisor
has to be careful while making the updates during this process. There is an internal Grofers cash
management portal where opening balance, cash collected from FEs and closing balance are updated.
The order status is tracked from the Dashboard in case of concerns with the cash collected.

 RTO desk process

The RTO (Real Time Object) team performs different activities like outward scanning of crates,
missing items recon, and rescheduling of orders. Also, return items are handed over at RTO desk.

Figure 5.10 Grofers Warehouse at KRPuram Figure 5.11 Grofers Return desk -Amul Tetra pack damaged

39
 Figure 5.12 Crates arranged on the Pallets Figure 5.13 Poor Cold storage maintenance at Grofers

After attending the training, a Standard manual was prepared and then it was presented to the Station
Supervisors who handled Shippr Operations for Grofers at their Warehouse. Furthermore, it was also
shared with Grofers Team for their comments on the process. This was to ensure seamless operations
and to avoid any kind of miscommunication between the teams.

40
Figure 5.14 SOP sent to Grofers for review

41
 CHAPTER 6

DATA ANALYSIS/PROCESS STUDY

42
6.1 Performance analysis of Amazon wholesale operations at Shippr

Amazon Wholesale expects Shippr to maintain certain performance standards on a regular basis. There
are few key metrics like First-day delivery success (FDDS) which are tracked every day.

The performance is measured on the basis of % of shipments attempted to deliver on time and actual
no of shipments delivered on time. 90- 92% performance goal has to be met to avoid penalty. A
performance report is sent to Amazon officials every day who keeps the track of it. This goal is
generally achieved and no penalty has been levied as of now.

Performance % for April 2018

96%

94%

92%
PERFORMANCE %

90%

Goal
88%
Performance Percentage

86%

84%

82%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
APRIL 2018

Figure 6.1: Performance analysis of Amazon wholesale for the month of April 2018

Looking at the above graph, we can see that the performance is not very consistent. Overall
performance is maintained above 90% most of the times. But, due to inadvertent rejects from
customers, the performance takes a hit.

43
6.2 Pareto analysis for deliveries that were rejected in the month of April 2018

There are various reasons for which the shipments get rejected every day. The very few important
ones can be found out by Pareto analysis. Steps can be taken to reduce these rejects and improve the
performance level.

Rejects for the month of April 2018 from BLUD Station

Reasons for reject Count

Not required 272
Not ordered 199
Undelivered 164
Damaged 90
Tote box delivery not required 50
Shop closed 46
Payment not ready 43
Multiple order 35
Billing issue 18
Late delivery 16
Different items received 15
Missing 14
Excess items received 5
old stock 2
stop and return 1
Total 970
Table 6.1: Rejects for the month of April 2018 from BLUD Station

44
 Figure 6.2: Pareto Analysis for Rejects from BLUD Station for the month of April 2018

Rejects for the month of April 2018 from BLRY Station

Reasons for reject Count

Shop close 97
Payment not ready 75
Not required 48
Not ordered 44
Tote box issue 29
Price issue 14
Multiple item\order 13
Damage 11
Item not required 10
Payment issue 8
Late delivery 7
Billing issue 3
Customer want credit 2
Free item not received 2

45
Item expired 2
Item missing 2
Item mismatch 2
Order mismatch 2
Customer not ready to accept delivery 1
The customer did not receive the SMS 1
Partial delivery 1
Roadblock 1
Wrong address 1
Wrong item place 1
Total 377
Table 6.2: Rejects for the month of April 2018 from BLRY Station

Figure 6.3: Pareto Analysis for Rejects from BLRY Station for the month of April 2018

46
 Rejects for the month of April 2018 from YBLB Station

Reasons for reject Count

Separate invoice not required 111
Not required 59
Payment not ready 41
Shop close 28
Tote box not required 11
Not Ordered 8
Customer not available 6
Multiple Order 3
Damage 2
Item not required 2
Rejected 2
Delivery demand 1
Packing issue 1
Payment issue 1
Total 276
Table 6.3: Rejects for the month of April 2018 from YBLB Station

Figure 6.4: Pareto Analysis for Rejects from YBLB Station for the month of April 2018

47
Major reasons for rejects

 Customers claim that the items are not required.

 The order would have been placed by Amazon Business development officer and the customer
rejects saying that the order was not placed by them
 The shipments sometimes would be in an undeliverable state such as the carton box damage,
invoice or the bill would be missing.
 If the shipments are damaged, they are rejected right away.
 Tote box causes a lot of trouble for delivery. The shopkeepers will be busy in their business so
they deny taking tote box delivery.
 Since Amazon works on Cash on delivery (COD) model, the cash to be paid will not be ready
and hence the shipments are rejected.
 The price mismatch issue i.e. the quoted price while booking and when the items are delivered
creates a problem and therefore customers reject the shipment.
 Some customers who order multiple shipments, demand for a consolidated invoice. Amazon
currently provides invoice separately for all the shipment packages.

6.3 Cause and Effect Analysis:

Cause and Effect analysis or Fishbone diagram or Ishikawa graph encourages us to comprehend what
happened, the explanation behind such issues and how to take care of the issue with the utilization of
apparatuses. Cause and effect give you more measurements to consider when you are attempting to
touch base at the main driver of the issue. This extended understanding will be exceptionally valuable
while giving recommendations or arrangements.

The analyzed causes will be under the categories of:

 Man

 Environment

 Measurement.

 Method.

 Machine

 Material.

48
One of the issues that was noticed in the station was a delay in the dispatch process. To analyze the
reason for this cause, fishbone diagram has been used.

Figure 6.5: Fishbone diagram

The main causes can be elaborately explained as:

 No proper training: There is no formal training as such, people in the warehouse learn things by
seeing how things are done. This will increase the chance of making mistakes and take decisions
by intuition. Zero understanding of the financial aspects. The staff has no understanding about the
impact of the losses caused by the delay in the process. There was not any prioritization for multiple
tasks and responsibilities which will push them to perform better.
 Labor availability: There is a shortage of labor and associates in the warehouse to carry out the
duties assigned in the expected time, as a result, the operations team need to fulfill such criteria in
order to minimize the undesired situation.
 Poor supervision: Monitoring of how and with which speed the shipments are loaded into the
vehicle.

49
 No SOP: The process is also not standardized, as a result, there will be panic when one of the key
staff is absent on a particular day.
 Sorting: Material sorting if not done properly causes a lot of confusion when the loading happens
eventually resulting in a delay in dispatch.
 Poor Technology adoption: for vehicle route optimization, this causes in manual routing and
requires a lot of time.
 Vehicles sometimes arrive late to the station hence the loading gets delayed which results in
waiting.

6.4 Why - Why Analysis for Operational errors at Grofers Warehouse

Shippr Operations at Grofers started recently in May 2018. As the people handling the operations are
new to the process, there were frequent operational misses that happened.

Slot adherence is one of the performance criteria for Shippr as Grofers follows two delivery slots.
Based on the convenience of the customer, the orders are delivered. But, the slot adherence was not
achieved for continuous 2-3 days. To find out the root cause of the problem encountered, the Why-
Why analysis was performed.

50
 Figure 6.6: Why-Why Analysis

Interpretation
 Slot adherence was missed because of the delayed scheduling of orders. The Grofers AC
team arranges the pallets only after the scheduled run Is completed as routes and pallets will
be assigned during scheduling.
 There was a delay in scheduling the orders because the processes were not closely monitored.
 There were no control measures set up because cross communication between Shippr and
Grofers team was missing.
 There were assumptions on both the sides that the other party will do the activity.
 It was found out that, as the operations started recently and hence were no standard operating
procedures that were agreed upon by both the parties.

51
 CHAPTER 7

FINDINGS & RECOMMENDATIONS

52
7.1 Findings

 There is no perspective of a sequence of activities to be followed in the warehouse. Most

importantly, there is no cut off time for the processes.
Example: The shipment arrives two times a day, but there is no standard time or cut off time
by which the shipment should arrive. If shipments sometimes get delayed in the afternoon, the
sorting will be done by night shift resources which loads them with more work. Because they
have to sort the shipments received at night as well as afternoon.
 The processes followed are not standard. It is highly dependent on the availability of loaders
and the shipment receipt from Amazon FC.
 It is noted that there are various reasons for the rejects and the Daily performance comes down
because of this. Certain reasons like customer doesn’t want the delivery and rejects due to Tote
box are common.
 Sometimes due to the delay in scanning and assigning the DA to the vehicle, it results in an
idle time of the vehicle.
 Route planning is done manually which is dependent on the knowledge of loaders which is
likely to create confusion.
 Scanning mismatch delays the process which results in delay in the dispatch process.
 They follow informal means of communication which lead to negligence of operations.
Example: Grofers updates are shared in Whatsapp group.
 There was no formal knowledge transfer from Grofers to Shippr.
 The ground level workers are not sensitized about the impact of their work on operational
efficiency. Ex: Amul milk cartons were damaged.
 Data maintained is not standardised across stations.

53
7.2 Recommendations

 Navigatr software, which is under development has to be implemented to optimize route plan.
 Regular vehicle maintenance to avoid breakdown of vehicles.
 To have contingency plan in place to tackle eventualities.
 Ticketing tool to be implemented to track control tower issues.
 The 5S methodology should be implemented in the stations.
Sort -The shipments are received and sorted based on the routes they have to be delivered.
However, floor planning was not there which caused haphazard movements of the forklift
and the pallets.
Straighten- Crates to be stacked in an order that optimizes the process flow and helps in ease
of operations.
Shine- Following which the station should be maintained neat and clean in order to avoid
inadvertent problems.
Standardize- Route details and other work instructions to be stuck on the walls to make it a
standard practice.
Sustain-This organizational behavior to be maintained over the long term for sustainable
operations. Floor workers have to be closely monitored as training and discipline were seen
missing.

 There should be standard times for all the processes involved.

Example: Load from Amazon FC should be received on time. There should be an agreed
timeline that both the parties should adhere to. This can be achieved if Shippr Associates are
in constant touch with Amazon associates.
 Training should be given to Delivery associates/Field executives who are customer facing.
A very short training program can be organized for new associates to ensure they understand
the impact of their work on business performance.
 Instead of updating the vehicle attendance on Whatsapp group, there should be a formal
attendance tracking system in place. Current process leads to confusion and lot of manual effort
is required to track the vehicles when the Finance department needs consolidated data at the
end of month.
 The processes can be improved by collaborating with its clients. For instance, scanning
mismatch issues should be notified to Amazon so that they take necessary action from their
end.

54
  Amazon Business development officers have to be informed not to place orders if the customer
is not willing to accept the delivery.
 Amazon should also try to communicate the use of Tote box and rejects due to Tote box
shouldn’t be taken for performance evaluation.
 The processes that are newly started should be closely monitored to streamline and to have
hassle free operations.
 The confusion in the operations should be cleared by conducting proper training for the station
manager and field executives.
 The crates should be handled carefully so as to prevent damage to the goods.
 Proper maintenance of data will give insights of the performance of company. Internal
performance reports should be generated.

7.3 Conclusion

On the whole, this internship was enriching experience where I learnt the significance of logistics
processes and how essential are standard operating procedures for smooth functioning of the routine
activities. It helped me realise how two different industries are interlinked. Business cannot exist in
isolation; it was evident in the study as the operations of Shippr were dependent on the business of its
clients. It also facilitated me to appreciate the fact that Technology can serve as a great cost saving
engine and also improves efficiency of operations. Data is one of the vital elements which can drive
the business decisions.

55
 CHAPTER 8

LEARNINGS

56
8.1 Learning outcomes:

1. Understood how it is to work in a dynamic industry, where problems are never the same and
decisions have to be taken on the go.
2. Came to know that no process is totally independent and that discrepancy in any of the
process can affect business as a whole.
3. Internalized the importance of documentation and data gathering and maintenance.
4. Got to know the ground realities of E-commerce industry which relies heavily on logistics.
5. Understood the importance of code of conduct of the field workers like delivery
associates/field executives and drivers as they are the customer facing people in this business
model.
6. Using communication as a medium to control and monitor the operations even without being
on the field.
7. Realised the importance of activities like informing the higher-ups in situations that have a
large impact on the business.
8. The significance of lower-level employees in the success of any business operations.
9. Learned that real-time issues are so different that no theoretical concept can be applied as-is
to arrive at the solution.
10. Evinced the significance of technology in carrying out the logistics operations as it helps to
make the processes easy.

57
REFERENCES

58
(n.d.). Retrieved from https://economictimes.indiatimes.com/industry/transportation/shipping-/-
transport/indias-logistics-sector-to-reach-usd-215-bn-by-2020-
survey/articleshow/62693817.cms
(n.d.). Retrieved from https://offshoringtbos.com/top-4-growth-drivers-in-logistics/
(n.d.). Retrieved from https://www.fundoodata.com/learning-center/list-top-10-logistic-companies-
india/
(n.d.). Retrieved from https://inc42.com/resources/take-logistics-startup-successful/
(n.d.). Retrieved from http://info.plslogistics.com/blog/are-sops-important-for-logistics-operations
(n.d.). Retrieved from http://content.timesjobs.com/how-e-commerce-and-logistics-are-driving-
indias-growth/articleshow/62504294.cms
Bakos, Y. (2001). The Emerging Landscape of Retail E-commerce. Journal of Economic
Perspectives, 69-80.
Ballou, R. H. (1997). Business Logistics-importance and some research opportunities. SciELO
Analytics.
Berman, J. (2015, October 29). Retrieved from Logistics Management:
https://www.logisticsmgmt.com/article/fedex_ground_ceo_maier_e_commerce_continues_to
_be_biggest_driver_in_supply
Bhatti, R. S., Kumar, P., & Kumar, D. (2010). Analytical modeling of third party service provider
selection in lead logistics provider environments. Journal of Modelling in Management.
Ghezzi, A., Mangiaracina, R., & Perego, A. (2012). Shaping the E-Commerce Logistics Strategy: A
Decision Framework. International Journal of Engineering Business Management.
Jhawar, A., S.K., G., & Khera, S. N. (2014). Analysis of the skilled work force effect on the
logistics. Springerlink.
Martina Džubáková, M. K. (2017). Work Standardisation in Logistics Processes. QUALITY
INNOVATION PROSPERITY.
Sohn, J.-I., Woo, S.-H., & Kim, T.-W. (2016). Assessment of logistics service quality using the Kano
model. Emerald Insight.
Tokar, T. (2010). Behavioural research in logistics and supply chain management. The International
Journal of Logistics management.
Yua, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2016). E-commerce Logistics in Supply Chain
Management: Practice Perspective . Procedia CIRP, 179-185.

59
APPENDIX

60
 Standard Operating Procedure for Receiving the shipment –Amazon Wholesale Operations

● The shipment load is received twice a day (around 1:30PM and 10:30PM)from Amazon
Fulf60ilment centre. Based on the expected load which is received, the resources, operation
timings and other requirements are planned.
● To unload the shipments from the feeder vehicle, 4 to 5 loaders are required. The shipments are
unloaded on the pallets and using the forklift they are moved to the bays after in-scanning.
● Average number of shipments received in a day at the three stations is different.
BLUD BLRY YBLB

992 551 380

● Approximately 250 shipments are unloaded per hour and in-scan is done to confirm the receipt of
shipment. The COMP data is updated (Amazon database management system to track the
shipment)

1400 1319

1200
977 1014 965
909 939 939
1000 876
800 712
568 576 576 588
600 463 498 474 452
388 370 375 375 365 365
400 303
200
0
07-Apr-18 09-Apr-18 10-Apr-18 11-Apr-18 12-Apr-18 13-Apr-18 14-Apr-18 16-Apr-18
Saturday Monday Tuesday Wednesday Thursday Friday Saturday Monday

BLUD BLRY YBLB

● From the above graph, we can see that the load is always more in BLUD station followed by
BLRY and YBLB. It can be seen that Tuesday sees the spike in the delivery because of the
orders getting accumulated on Sunday and Monday.

61
● Once the shipments are unloaded the in scan is done and the shipments are segregated based on
the routes. The route number is written on the carton.

● The routes are classified based on the pin codes. Below are the 10 different routes covered by
BLRY Station. In the same way, there will be different pin codes classified as different routes in
BLUD and YBLB Stations also.
Route mapping for BLRY

Route 1 Route 2 Route 3 Route 4 Route 5 Route 6 Route 7 Route 8 Route 9 Route 10

560002 560030 560029 560062 560041 560061 560026 560068 560081 560035

560025 560034 560076 560078 560004 560070 560039 560099 560105 560102

560027 560047 560083 560109 560011 560085 560098 560100 562106 562125

560053 560095 560082 560018 560050 562107

560019

560028

62
 Route mapping for YBLB
Route 1 Route 2 Route 3 Route 4 Route 5 Route 6

560037 560067 560036 560008 560016 560093

560066 562114 560048 560075 560038 560049

Route mapping for BLUD

Route Route Route Route Route Route Route Route Route Route Route Route
1 2 3 4 5 6 7 8 9 10 11 12

560003 560022 560010 560086 560091 560058 562123 560057 560088 560013 560063 560064

560012 560021 560096 560073 560089 560014 560065

560020 560044 560090 560015

560054

560055

Route Route Route Route Route Route Route Route Route Route Route Route
13 14 15 16 17 18 19 20 21 22 23 24

562110 560032 560092 560033 560024 560023 560040 560043 560001 560005 560056 560045

562157 560094 560077 560084 560079 560072 560002 560042 560060

560097 560006

560051

63
 Standard Operating Procedure for Loading process- Grofers Operations

OPERATIONS

Activity Slot A Slot B

Supervisor should report to Supervisor reporting time: Supervisor reporting time:

the station before the 4:00 am 2:00 pm
operations begin.

Vehicles are required to be Vehicle reporting time: Vehicle reporting time:

available in the station by
4:00 am 2:30 pm
expected time so that there is
no delay in the process.

 The regular requirement is 9 vehicles per slot to serve 300 orders/day. (1 buffer
vehicle will be maintained).
 Average load/Vehicle: 20 orders.
 Expected productivity per vehicle: 95%
 If vehicles do not report within the cut-off time, escalate the same on Internal
WhatsApp group.
Field executives (FE) should FE reporting time: 4:00 am FE reporting time: 2:00 pm
also be present in the station
on time.

Based on the routes, Field Assignment to start by 4:30 Assignment to start by 2:30
executives are assigned to am and to be completed by pm and to be completed by
each route for delivery. 5:00 am. 3:30 pm.

Enrouting to be done by Field To be completed by 5:30 am To be completed by 4:00 pm

executives.

Note: FE to inform misroutes

and missing crates to AC
team

64
Once the vehicles are Loading to start by 5:00 am Loading to start by 4:00 pm
available and field executives and should be completed by and should be completed by
are assigned, the vehicle 5:30 am. 4:30 pm.
loading starts.
Last vehicle dispatch cut-off Last vehicle dispatch cut-off
time: 5:45 am/6 :00 am time: 4:30 pm.

 The vehicles are loaded and the total orders assigned/ dispatched is confirmed on 3PL
group.
 If there are any missing crates, Station manager has to send a mail to AC team,
warehouse team and loop CRM team also. Keep 3PL group informed.
 The AC team checks the scan data to see whether the crate is present in the warehouse
or not.
 If the crate is present, FE has to search if the crate is present on any other pallet.
Post the vehicle dispatch, the Station supervisor has to follow up with the Field Executives.

 Delivery updates to be sent on the group by the supervisor after every sub-slot
delivery.
 Supervisor should ensure that field executives attempt to deliver all the shipments.
(100% attempt rate). Extend beyond slot timing if necessary in order to achieve 100%
attempt
 Follow up on slot adherence.

65
 EVALUATION BY CORPORATE MENTOR FOR SUMMER INTERNSHIP PROJECT (SIP)
Name of the Student Varsha Doddamani
Name of the
Organization Shippr Technologies Pvt Ltd
Name of Corporate
(Organization) Mentor Siva Venkataraman
Date (dd/mm/yy) 8-Jun-18
Parameter 4 3 2 1 Marks
(4 to
1)
Timeliness Always Punctual most Sometimes Not punctual
4
punctual of the time punctual
Report details Very Details provided Details provided Minimal details
detailed on most aspects, on some and relevant
and with relevant aspects, with information 4
relevant information relevant
information
Clarity of Internship Excellent Good Moderate Needs
3
Objectives Improvement
Understanding about Excellent Good Moderate Needs
the organization's Improvement 4
processes / products
Conceptual Excellent Good Moderate Needs
4
understanding Improvement
Ability to relate Excellent Good Moderate Needs
concepts to internship Improvement 4
and extent of analysis
Quality of suggestions / Excellent Good Moderate Needs
recommendations Improvement 3
offered to problems
Initiative and Excellent Good Moderate Needs
enthusiasm shown by Improvement 4
the student
Communication and Excellent Good Moderate Needs
4
Presentation skills Improvement
Practical relevance / Excellent Good Moderate Needs
implementation of Improvement
4
suggestions provided by
the student
TOTAL MARKS (out of 40) 38

66
Overall comments by Corporate mentor (in the organization):
Varsha showed exceptional enthusiasm in learning about the organisation as well as in delivering
an exceptional report that is very helpful to Shippr.

67