ShopClues.com: Turning Logistics into a Competitive Advantage
(7 pages of text)
In March 2016, the senior director of logistics and fulfillment at ShopClues.com, a leading online marketplace headquartered in Gurgaon, India, reflected on the positive turnaround in the company’s logistics strategy. Until 2014, the company had depended on air transport for shipment delivery, which limited it to Tier 1, Tier 2, and a few Tier 3 cities. It had relied entirely on the few national courier services available. These services had high logistics costs and could not reach customers in some tier 3 and tier 4 cities, preventing these customers from placing orders and leading to dissatisfaction. ShopClues.com switched to surface transport and a network of third-party logistics service providers to meet its requirements in a cost-effective manner. With evolving customer expectations for online retail sales and fierce competition in the e-commerce market, could ShopClues.com become the first profitable e-commerce company with third-party logistics partnerships as the key enabler?
This case is suited for graduate courses in strategy and logistics management, particularly in the e-commerce industry. After working through the case and assignment questions, students should be able to do the following:
- Analyze the operating models in the e-commerce industry.
- Identify the logistics requirements of e-commerce companies.
- Describe the concept of third-party logistics.
- List the benefits of outsourcing the logistics function.
- Discuss e-commerce logistics structure and operations.
- Discuss the concept of reverse logistics.
- Explain the role of technology in e-commerce logistics.
India, Large, 2016
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