Operation Strategy
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Time slots for delivery
We have different time slots depending upon the demand of the customers. They are categorized as:
2 HOUR
This is the best time slot provided by us and it will deliver the products within 2 hour after
the order is placed. In this category we will not provide any discounts as the service level is
highest in this category. This will target mostly the working people who don’t have time and
they just order when they want any product.
6 HOUR
Customers will get a certain minimal amount of discount in this time slot. This will target the
family based customers who plan to make something few hours later and need the products
in a few hours of time. They will be generally middle sized customers.
1 DAY
Quite a god amount of discount would be given to these customers as they are just directly
reducing good amount of transportation cost i.e. from warehouse to warehouse or from
warehouse to consumers. These customers are also the family based customers but their
demand is slightly flexible than the previous time slot. This will target customers who are
middle-sized and above.
2 DAY
This will mainly target the upper segments that are used to keep product stock. They will be
benefited maximum discounts as the transportation costs are least here because time to
deliver products is too large. In this much time several orders can be seen in the places
around the ordered places.
How we managed our inventory
This is a key term in terms of cost effectiveness. It is the direction and control of activities with the
purpose of getting the right inventory in the right place at the right time in the right quantity in the
right form at the right cost.
We optimized our supply chain by keeping the inventory level very low by using certain techniques
such as fluctuation inventory, lot size inventory & cost of placing orders. We are maintaining lower
inventories from the 2 hour & 6 hour time slots because these orders are smaller in quantities and
carry lower inventory costs.
Fluctuation inventory
This is introduced in our inventory management with a purpose of preventing disruptions in
deliveries to customers. We have maintained a buffer stock which will protect against fluctuations in
supply and demand and lead time and it will also remove stock out situation.
Lot size inventory
We are purchasing items in quantities greater than needed to take advantage of quantity discounts,
to reduce shipping and setup costs. This portion of our inventory depletes gradually as customers’
orders come in and is replenished cyclically when new orders are received. Depletion is done
according
