Move signals push to monetise supply chain infrastructure beyond in-house ecommerce operations
Flipkart’s supply chain subsidiary, Ekart, has opened its logistics network to other firms beyond Flipkart’s own e-commerce needs. By doing so, Ekart is looking to leverage its supply chain capabilities across multiple areas to improve its position in the competitive third-party logistics sector in India.
What’s on Offer
According to the company, different industries can now leverage its logistics network on a national level to improve delivery, manage inventory, and reduce costs. The company has taken this step to monetize its logistics assets by fulfilling customer demands outside the Flipkart ecosystem.
Scale of the Network
Ekart’s logistics footprint already spans more than 15,000 pin codes across India, built on an extensive network of fulfilment centres, sortation hubs, warehouses and delivery stations. In recent years, the company has broadened its service offerings to include warehousing, full truckload and part truckload transport, air freight, and multimodal logistics solutions catering to businesses of varying sizes.
Services for External Clients
The platform will provide partner brands with inventory management, distribution, aggregation, returns processing and technology-enabled supply chain solutions, which allow them to outsource logistics functions and focus on product design and customer acquisition.
Industry Context
The expansion comes at a time when direct-to-consumer brands, manufacturers, and organized retailers have been looking to integrated logistics partners. Some other e-commerce players have also opened their own logistics networks to other players as an alternative to third-party logistics providers and to generate revenue from their existing resources. Moreover, Ekart has expanded its presence on ONDC and in different organized retail and enterprise segments apart from Flipkart.
