Supply Chain Management of Localbanya.com

1. localbanya.com
• Akshay Ikke 21
• Tejas Jadhav 22
• Swapnil Pawar 40
• Aditya Shetti 50

2. Team of
LocalBanya.com
(Launched in 2012)
 Amit Naik (CEO) MBA
from IIM Lucknow
 Rashi Choudhary
(COO) MBA from SP
Jain Singapore
 Karan Mehrotra
(CFO) Engineer from
IIT

3. History of
LocalBanya.com
Personal experience with not
having enough time to go
out and do grocery shopping
after a long day of work.
Too tired to deal with going
to the store to pick up
groceries, waiting in long
lines and dealing with the
journey involved.
The traditional Banya would
most likely be shut or be out
of stock of what we needed.

5. Swot Analysis for LocalBanya
Strength Weakness
•Increasing Customer Base
•Strong Distribution networks and expertise
•User friendly website.
•On time delivery rate 97 %
•Only 2-3% is returned. (No questions asked
returns policy)
• Easy replicable by distributor/ wholesellers
• Less Profit Margin
•Business Expansion in other Tier I cities
•Improve customer and Merchant Relationship
•Tie ups with more retailers for better
distribution.
•They can reduce the minimum delivery charges
as compared to competitors
•New Entrants
•Intense competition from traditional retailers
•Maintaining repeat customers
•May not find investors to fund operations
anymore.
Opportunity Threats

9. Marketing Strategy
Offer discounts to acquire customers
Customer Relationship well managed under dedicated team led by founding member
Mobile advertising on company vehicles
Print Ads on Mumbai based Newspapers like Economic Times
Started off the business in the most busy city of India
Order over website and Facebook

10. Distributor Broker Model
Value Proposition : Providing high quality products without wasting customer’s time or energy .
Revenue Model : Transactional
Pricing Strategy : Variable Discounts
Target Market : End Customers
Sustainability Strategy : On time, efficient and hassle free delivery of high quality products to
customers.

11. Inventory and Supply Chain
Low Inventory Model used existing warehouse for FMCG non perishable items
Tie-ups with wholesalers and cash-and-carry partners for perishable items
Tie-ups with retailers for unreachable and distant places
Tie-ups with niche stores Breadkraft, Bagelwala and Shor Sharaba
Delivery vehicles outsourced
Company employees for packaging, processing and delivery - On time delivery is 97%
Karan has a family business which included distribution for Hindustan Lever and catering
services to BPOs which they leveraged for localbaniya.com also

12. Company Procurement
Wholesaler
Company
Retailer
(Just In Time)
Cash n Carry
Urgent Requirement/Perishable Goods
Stocked/FMCG Non-Perishable Goods
Stocked/FMCG Non-Perishable Goods

13. Customer Order Fulfilment
Customer Order
Retailer
Delivery Time Slots Order
Warehouse
fulfilment
Outsourced Local
Logistics Partners

15. Key Challenges
Margins as low as 2%
Supply Chain hard to replicate
Many Items are perishable
Scaling up is difficult
Competetion from Big Retail
Achieving
Scalability
Key
Challenges
Building
Customer
Base
Supply Chain
Stiff
Thin Margins
Competetion

16. Value Addition by LocalBaniya.com

17. Value Addition by LocalBaniya.com

18. Value Addition by LocalBaniya.com

19. THANK YOU