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OZON Holdings
The largest e-commerce
    group in Russia
Meet Ivan and his family




                                  wife




                                                    son
                                 Ivan
           mother




                           cat


                                         daughter
They've bought a few things from us in the last year…

   OZON.ru




  SAPATO.ru




 OZON.travel
Simple, isn’t it?
                     Order placed
                        online



                        Order paid
                          online



                     Order picked
                     and packed


                    Order given to
                       delivery
                      company


                    Order delivered
                       to home


                    4
Simple, isn’t it?                                                Ivan's wife wants to be
                                                               called to confirm the order
          Ivan’s mother prefers to                                   has been placed
                  call us                     Order placed
                                                 online        … and usually she wants to
                                                               be called again to confirm a
                                                                       delivery time


              But Ivan prefers to pay
                cash on delivery…
                                                 Order paid       … and his daughter
                                                   online       through Yandex.Money
                                                                       or Qiwi


  The suppliers make regular mistakes in
   the Excel spreadsheets most of them
      use to manage their inventory.          Order picked            … or never…
  Delivery time varies from a few days to
               a few weeks…                   and packed

                                                                   No one delivery
                                             Order given to      company covers the
                                                                whole of Russia so we
                                                delivery        had to create our own
                                               company
                                                                     Snow on the road
                                                                   though can delay the
       Ivan doesn't like people delivering
      to his home so he prefers to collect                          delivery truck by 48
                                                                           hours
      his order from one of OZON's pick-
                   up points
                                             Order delivered
                                                to home            Therefore the courier needs to call in
       His wife though doesn't mind, but                          advance to make sure that Ivan's wife
        she expects the courier to wait                                          is home
      while she inspects the order before
      deciding whether to pay or return it   5
So to deliver 250K orders/month, we need to:

•  List 2.2 million products
•  Employ 1500 professionals in e-commerce
•  Operate 3 call centers and 1 email center, working 24/7
    •  140K inbound and outbound calls
    •  45K emails
    •  7% of orders made by phone
•  Offer 21 methods of payment
    •  though COD is still 80% orders
•  Deal with at least 10% of goods received from suppliers
   later than agreed



                               6
Oh and also….
… a full logistics infrastructure
•     28.000 m2 central warehouse
•     5 hubs
•     2200 pick-up points across Russia and Kazakhstan
•     16 different methods of delivery
•     250 delivery men alone in Moscow and St.Peterburg
Despite (or thanks to?…) all of that, we have been able to achieve
the following results
Spasibo!
- w . a-o f ec. m
 w wn hc n r e o
      o    en c
- wt ro n ac n r c
 ti . m/o ho f e e
   tc
    e         en
- w .cb o. m/O H o f ec
 w wf e o k o N A C n r e
     a     c         en
- w . a-o f ec. m
 w wn hc n r e o
      o    en c
- wt ro n ac n r c
 ti . m/o ho f e e
   tc
    e         en
- w .cb o. m/O H o f ec
 w wf e o k o N A C n r e
     a     c         en

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Ozon - NOAH12 London

  • 1. OZON Holdings The largest e-commerce group in Russia
  • 2. Meet Ivan and his family wife son Ivan mother cat daughter
  • 3. They've bought a few things from us in the last year… OZON.ru SAPATO.ru OZON.travel
  • 4. Simple, isn’t it? Order placed online Order paid online Order picked and packed Order given to delivery company Order delivered to home 4
  • 5. Simple, isn’t it? Ivan's wife wants to be called to confirm the order Ivan’s mother prefers to has been placed call us Order placed online … and usually she wants to be called again to confirm a delivery time But Ivan prefers to pay cash on delivery… Order paid … and his daughter online through Yandex.Money or Qiwi The suppliers make regular mistakes in the Excel spreadsheets most of them use to manage their inventory. Order picked … or never… Delivery time varies from a few days to a few weeks… and packed No one delivery Order given to company covers the whole of Russia so we delivery had to create our own company Snow on the road though can delay the Ivan doesn't like people delivering to his home so he prefers to collect delivery truck by 48 hours his order from one of OZON's pick- up points Order delivered to home Therefore the courier needs to call in His wife though doesn't mind, but advance to make sure that Ivan's wife she expects the courier to wait is home while she inspects the order before deciding whether to pay or return it 5
  • 6. So to deliver 250K orders/month, we need to: •  List 2.2 million products •  Employ 1500 professionals in e-commerce •  Operate 3 call centers and 1 email center, working 24/7 •  140K inbound and outbound calls •  45K emails •  7% of orders made by phone •  Offer 21 methods of payment •  though COD is still 80% orders •  Deal with at least 10% of goods received from suppliers later than agreed 6
  • 8. … a full logistics infrastructure •  28.000 m2 central warehouse •  5 hubs •  2200 pick-up points across Russia and Kazakhstan •  16 different methods of delivery •  250 delivery men alone in Moscow and St.Peterburg
  • 9. Despite (or thanks to?…) all of that, we have been able to achieve the following results
  • 11. - w . a-o f ec. m w wn hc n r e o o en c - wt ro n ac n r c ti . m/o ho f e e tc e en - w .cb o. m/O H o f ec w wf e o k o N A C n r e a c en
  • 12. - w . a-o f ec. m w wn hc n r e o o en c - wt ro n ac n r c ti . m/o ho f e e tc e en - w .cb o. m/O H o f ec w wf e o k o N A C n r e a c en