Emirates Supply Chain Services Ltd.

Department: VAS

Presented To: Ammar Yasir

Ali Haider
E-commerce Warehousing
VAS services at Emirates supply chain
services ltd.
Currently we are providing VAS services of following types
• Bundling
• Kitting
• Embellishment

These service are performed for all kinds of products of RB and Unilever.
Process flow of VAS
P.O received through
email

Sub-con P.O is
generated

DDS is retrieved through

P.O and PGI is done

D.A is created

Picking

Vehicle posting though

IMT dummy

Activity

PTN is generated

GRN is done
Standards to follow in these activities

 RB and Unilever products and raw material must remain segregated.

 Area must be cleaned after activity before starting any other activity
 Procedures and DO’s and Don'ts must be displayed and conveyed to labor to
follow
 Barcodes carefully placed
 Quality must be ensured by quality control officer
 E-commerce warehousing
 E-commerce warehousing means fulfilling order more quickly and efficiently
according to each customers customized order.

 Value-added means providing professional services and processes that extend beyond
standard receiving, storing and shipping of the client's products.

 The value added service that we will be providing is based on fulfilling the custom
order of grocery products received through e-commerce.
E-commerce Warehousing
 We are required to setup all products for easy access for hand picking.
 Efficiency and accuracy in picking is very important.
 Pack multiple products of one order in proper manner.
 Segregation is very important as our product range involves food products to home and
personal care.
 Cluster picking strategy is important.
 Minimize time and labor
 Hierarchy

HOD VAS

Assistant
Manager

Supervisor

Inventory
Picking
Replenisment Bundling Staff
officer
officer
Staffing requirements

 1 Supervisor
 1 Replenishment officer
 2-4 bundling/packing staff
 2 picking officers
 2 laborers
 Industry

 E-commerce Warehousing
Electronic retailing is the sale of goods and services through the internet.
Electronic retailing, or e-tailing, can include business-to-business (B2B) and
business-to-consumer (B2C) sales of products and services, through subscriptions
to website content, or through advertising. E-tailing requires businesses to tailor
traditional business models to the rapidly changing face of the internet and its
users.
E-commerce trends
Demographics
Demographics cont.
Demographics cont.
Competitors

 TCS connect (Yayvo.com) is major competition as it have its own

storage facilities and logistics network.
 Other e-retailers such as AaramShop.com uses network of 600 retail stores to
provide the grocery items in Karachi.
 QNE.com.pk uses similar methods using its own team of riders.
 Tazamart.com.pk uses Metro and Hyperstar to provide products to customers with
the help of its riders.
Sales Trend of E-commerce grocers

 Although the grocery segment represents less than 5 percent of the total e-
commerce industry at the moment
 QNE.com.pk ranks highest with 132.48K average visits per month with 47.49
bounce rate
 Mycart.pk ranks second with 44.54K average visits per month with 41.94%
bounce rate.
 Conversion rate is just 1.30% to 3.00% for both new and returning customers.
 QnE is currently making a monthly sale of Rs7.5 million primarily because of
100 orders per day. Started this venture with just 5-6 orders per day
Business Model Online order
Online Order
Emirates
supply chain
services ltd.

Products
E-
Retailer

Copy of
online
order Home Delivery
Partner
Company

Products
Customer
1

Customer
2

Customer
3
Business model cont.

 Customer gives the order through our online retailing website.

 Copy of the order will be sent to both our logistics partner( blue-ex) and to our
company.
 Timing and delivery address will be mentioned and printed.
 Printed copy will be given to picking officers for picking the required items
 Picking officers will pick the products in the trolley and take them to bundling
team.
 Bundling team will pack the products in customized manner not packing food
with toiletries or such products.
 Different packing cartons will be used for such orders.
 A copy of order details will be pasted on the shipment carton
 Shipment carton will be sent to outbound.
SWOT analysis

 Strengths
 Extensive range of products available at hand.
 E-commerce can cover wide range of customers
 Rb, Gsk and other brands also available to get benefit of this operation
 Customer faith in getting the original product
 Experienced labor
 Land available to setup this activity
 In-store movement of goods can be done to cater needs of online purchasing
 Automated e-commerce system of Unilever and wms can track better demand and
manage stocks better
 Experience in logistics function
Weaknesses

 Low turnover of some products

 Not enough experience with customized packaging.
 Not enough manpower
 Just in city operations
 Labor intensive operations no automation
Opportunities

 E-commerce trend on the rise.

 QNE and Tazamart becoming e-grocery giants.
 Smartphones and internet getting in reach of more people.
 Today’s competitive advantage does not lie in jus discounts but in quality and
timely delivery.
 Market have very few such businesses
 New prospective business partners for expansion
 Development of new market segment
Threats

 Tcs operating its own warehouse and transportation as well as online website.
 Spamming on the internet
 Tazamart.com and some others providing same Unilever products with same
discounts.
 People still prefer to buy good after physical inspection
Budgeting

 Gondola racks
Double sided gondola racks with 5 shelves
H 6’ x W 3’ x L 24
RS. 24,000 without transportation and fitting
Carts

• 60 liters @ Rs. 6,200

• 100 liters @ Rs. 7200
Corrugated cartons

 3ply corrugated cartons

 HxWxL
 4’ x 4’ x 4’ @ Rs. 16
 6’ x 6’ x 6’ @ Rs. 20

 Cartons prices vary according to desired material and specifications.

Space rent

 According to site/location where we setup this activity

Labor
 Labor had to be hired on hourly wages or salaries for
bundling/packing team as order demand is less and
unpredictable so piece rate won’t be suitable
Layout

 Space required 1550sqft

 24ft length of gondola racks
 3ft width
 4.5 in between 2 racks for cart movement
 Food & Beverages Liton, supreme

Food & Beverages knorr items, rafhan foods

Home and Personal care products Ponds, lux, Dove

Home and Personal care products Dettol, surfexcel, harpic

Ponds Lipton Domex
Lux Supreme Rin
64.5 FT
Lifeboy Brookebond SurfExcel
Fair & lovely Glaxose-D Sunlight
Comfort
VIM

24FT
4.5 ft

3 ft
 Merchandising
 The activity of promoting the sale of goods at retail. Merchandising activities
may include display techniques, free samples, on-the-spot demonstration,
pricing, shelf talkers, special offers, and other point-of-sale methods.
According to American Marketing Association, merchandising encompasses
"planning involved in marketing the right merchandise or service at the right
place, at the right time, in the right quantities, and at the right price."
 Visual merchandising
 Visual merchandising refers to anything that can be seen by the customer inside and
outside a store, including displays, decorations, signs and layout of space. The overall
purpose of visual merchandising is to get customers to come into the store and spend
money.
 Point of purchase displays:
Point-of-Purchase Promotion Defined. Point-of-sale displays (POS) are a specialized
form of sales promotion found near, on, or next to a checkout counter (the "point of
sale"). They are intended to draw the customers' attention to products.
 In-store merchandising:
At a retail in-store level, merchandising refers to the variety of products available for
sale and the display of those products in such a way that it stimulates interest and
entices customers to make a purchase.
Cross merchandising

 Cross merchandising is the retail practice of marketing or displaying products

from different categories together, in order to generate additional revenue
for the store, sometimes also known as add-on sales, incremental purchase or
secondary product placement.
Our operations locations

 IMT
 LMT
 Local Retailers
Things to keep in mind while planning In-
store merchandising:

 Good price
 Good Mood
 Lower Brand Loyalty
 Save money
 Time limited offer
 Appearance/packaging
 Convenience
 Colours
 Eye catching
 Product placement
Cont.

 1. Understand Your Target Customer

What is your target customer demographic
 2. Tell a Story with your Display
Create an Emotional Connection with Buyers
 3. Give your Display a Personality
Wait, can a Display Really Have a Personality?
 4. Focus on Key Points of Product Differentiation
What Makes Your Product Different?
 5. Demonstrate the Product
Create Real-Time In-Person Testimonials
 6. Make Your Display Interactive
Interactivity Drives Shopper Engagement
 7. Use Graphics to Capture Attention
Bold Graphics Stop Traffic
 8. Make Your Display
Stand Out yet Fit In
Success Means Striking the Right Balance
 9. Select the Right Type of Display
Which Type of Display Best Meets Your Objectives?
Point of Purchase displays
 The main purpose of POP can be defined as LOOK, TOUCH, and BUY.
 POP in early days was considered as just for impulse items near cash registers
but the term have evolved and now involves all sort of in-store activity that
leads to product and its purchase. Such as brochures or stickers that lead
customers towards the products
Remember that People Have 5 Senses, Not 1
Competitors

 Pronto promo
 Adinnovation
 Adcell
 MNB
 Gondola racks
 Customized gondola racks:
 Prices of customized gondola racks vary according to materials and the
ambience that you want to create and space that you rent for gondola.
 Example:
 Simple stand of lays or lipton with following measures cost Rs.5500
 H 5.5’ x W 3’ x D 1.5’
 This is the most common size with laminated fascia
 The prices vary and ranges from Rs. 5500 to Rs. 12000 for simple gondolas
made from cardboard and laminated sheet.
Human resource:
 The advertising agencies have their own salary based employees for all
promotional activities. In case of work overload during some seasons they have
to outsource.

Space Rent:
 Each LMT/IMT have its own space rent depending on front facing or back end
location and according to your product category. Depending on your space
acquired rent is charged and gondolas are designed according to space taken
for activity.
Conclusion

 We don’t have a marketing team for planning these activates, we will be outsourcing all
activity resulting in high costs neither we have experience in this field or credibility to
take on this task. Although we have links with LMT/IMT we can get the desired space
with our contacts but the human resource is not enough and we have to get the gondolas
made from advertising companies that would be a hurdle in making a workable low
cost business model that can get us contracts. Unless we start complete branding
business we cannot just jump in one category to penetrate the market.