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Case Study On Zepto

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Shirsha Sharma
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455 views13 pages

Case Study On Zepto

Uploaded by

Shirsha Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Case Study on Zepto

Introduction

Zepto is an Indian Q-commerce company


headquartered in Mumbai, India. It was founded
in July 2021 by Aadit Palicha and Kaivalya Vohra.
As of August 2024, the company is valued at over
$5 billion[3] and operates over 250 dark-stores
across ten metropolitan areas in India
Stores Organisation
Stores management is a challenging problem area in supply chain
management. Companies need to have inventories in warehouses in
order to fulfil customer demand, meanwhile these inventories have
holding costs . Therefore, the task of inventory management is to avoid
overstocks.
Q- Commerce
So how did Zepto became a hyper-competitive grocery delivery space ?
So lets first understand what is Q – Commerce .

Q-commerce, or quick commerce, is a type of e-commerce that focuses


on delivering products and services in a very short amount of time. Q-
commerce companies aim to deliver orders within an hour or less. It
started with food delivery, but has expanded to include other categories
like groceries, gifts, medicines, and apparel.
Dark Stores
So how do Zepto achieve a fast track delivery ?
The answer is in their store management techniques .Zepto uses a
technique called dak stores .

Dark stores are stores which are typically located in densely populated
areas to enable faster delivery. They are not open to the public, which
allows for more space for inventory and faster order fulfilment.
Dark Store Model
Dark Store Model ( Cont.)
Zepto has over 100 dark stores around India .
Dark Store Model ( Cont.)
So how does Zepto deliver the product in less than an hour ?

• Zepto operates with their app of the same name .


• The customers need to place their order online .
• There are different shelves( SKU Management ) in the warehouse and
different products with barcodes to scan them .
• The store assistant collects the product from the shelves and scans
them through a mobile scanner.
• The stickers are then removed and the items packed in the bag .
• The bag is then handed over to the delivery assistant .
• Since their warehouses are local warehouses , they deliver the
product within less than half hour
Advantages of this
Model
• Fast and Contact Free Shopping
• Uses SKU Management .(SKUs are unique alphanumeric codes
that help businesses organize their products and improve
operational efficiency)
• Since the dark stores are customer free, they can be
optimized for rapid picking and also improves storage
capacity.
Disadvantages of this
Model
• Manual Material Handling (MMH) is the process of moving , lifting ,
retrieving and storing products by an employee . In short dark stores
lacks digitalisation and automation
• In Zepto apart from mobile scanning the entire process is a manual
process , leading to many human errors.
• There are more than 100 orders placed everyday , which makes it very
difficult for the employees to repeat the process multiple times .
Shortage of Employees
• With more than 100 order being placed every day there is a
significant shortage of employees, which is placing an
immense amount of pressure on the current team.
• As a result, employees are working excessively long
hours, often without sufficient time for breaks
• This situation is leading to increased stress and
burnout, which may have long-term effects on both
employee’s well-being and productivity.
SOLUTIONS

Invest in inventory Management


• It’s crucial to apply advanced inventory solutions to
ensure real-time monitoring and accurate stock
tracking.
• They should invest heavily in training staff
specialized for each stage to promote accuracy and
productivity.
THANK YOU

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