KJ Somaiya Institute of Management

Logistics and Supply Chain Management

Project Report on

Presented by Group 8
Jayesh Valecha 17030123442
Palak Anand 17030123419
Shivam Rustagi 17030123431
Subhomoy Banerjee 17030123437
Vanshika Sharma 17030123443
 INDEX
Serial No. Particulars Page No.

1 Logistics Industry Overview 2

2 About the company - DELHIVERY 4

3 Services 7

4 Technology architecture 13

5 Partnerships and Collaborations 16

6 Supply Chain Processes 18

7 Quality Control 23

8 Performance Metrics 25

9 Sustainability Practices 26

10 References 31

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1. Logistics Industry Overview
The Indian logistics industry is growing, due to a flourishing e-commerce market and technological
advancement. The logistics sector in India is predicted to account for 14.4% of the GDP. The industry
has progressed from a transportation and storage-focused activity to a specialized function that now
encompasses end-to-end product planning and management, value-added services for last-mile
delivery, predictive planning, and analytics, among other things. One of the key drivers of this
expansion is projected to be the rise of India's logistics industry, which employs 22 million people and
serves as the backbone for various businesses. The logistics sector in India was valued at US$ 250
billion in 2021, with the market predicted to increase to an astounding US$ 380 billion by 2025, at a
healthy 10%-12% year-on-year growth rate. Moreover, the government plans to reduce India's logistics
and supply chain cost from 13-14% to 10% of the GDP as per industry standards.
As depicted in the below pie chart (left), representing the segment-wise breakup of the logistics sector
in FY21. Roads have the largest percentage share of 73% followed by rail (18%), water (5%), and air
(5%).

The below pie chart (right) represents the fragmented structure of the Indian logistics industry.

1.2. Overview of the Warehousing Industry

A warehouse is an essential component of corporate infrastructure and one of the primary enablers in
the global supply chain. the Indian warehousing market is predicted to reach US$ 34.99 billion (Rs.
2,872.10 billion), expanding at a CAGR of 15.64% from 2022 to 2027. Modern warehouse facilities
and technology-driven solutions have changed the warehousing sector in India in recent years. With
increased demand and supply throughout the years, the Indian warehousing industry is gaining traction.
The key players are third-party logistics (third-party logistics) and e-commerce enterprises, which are
growing into tier 2 and 3 cities and eventually increasing their proportion of secondary marketplaces

Key Industry Drivers in India:

1.Government initiatives
Creating exclusive warehousing zones through public-private partnerships
Investing US$ 91.38 billion in infrastructure, logistics development, and multi-modal connectivity

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Implementing reforms such as GST and e-way bills

2. Global manufacturing shift:

Increasing demand for warehouse alternatives and logistics services
Increasing domestic production through the Production Linked Incentive (PLI) scheme
Rising demand for industrial space and warehousing

3. New-age startups:
Aggressive penetration of the market by new-age tech logistics startups
Entry of new businesses into the B2B market, driven by manufacturing
Introduction of more technology and digital systems to boost productivity

4. Technology advancement:
Opening up new opportunities for solution expansion throughout the entire value chain
Design and integration of warehouses with technologies like IoT, robotics, and AI

5. Flourishing e-commerce:
Expanding operations to meet increased demand
Changing consumer behaviour demanding convenience
Growth of Direct-to-Consumer (D2C) brands demanding end-to-end logistics services
Increasing need for multiple warehouses to serve end users due to omni-channel retailing

Investment trends in India's logistics infrastructure

Foreign corporations are actively investing in India's logistics infrastructure to capitalize on the
country's strategic location, trained labour, and improved business environment.
• The development of industrial and logistics parks, as well as data centers, is a new bright spot
on the Indian real estate heatmap.
• In 2022, these two segments received US$ 1.8 billion in Private Equity (PE)/ Venture Capitalist
(VC) investments, representing a 29% increase year on year. The industry garnered
investments worth US$ 1 billion (Rs. 8,257 crore) at the beginning of 2022.

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 • The logistics and industrial industries' quarterly average investment was around 1.3 times more
in 2021 than it was in 2021 when it was US$ 335.69 million (Rs. 2,755) crore.
• During the period 2019-2022, the western area of the country - led by Mumbai, Pune, and
Becharji, (a tiny town in Gujarat) - witnessed the second-greatest institutional investment in
warehousing, accounting for 35% of total investment in the industry, demonstrating the
increased confidence that investors have in the nation's Tier II cities.

2. About the company - DELHIVERY

Delhivery is the largest and fastest growing fully integrated logistics player in India by revenue as of Fiscal
2021. They provide a full range of logistics services, including express parcel delivery, heavy goods delivery,
part-truckload freight, truckload freight, warehousing, supply chain solutions, cross-border express and freight
services, and supply chain software. This is achieved through their high-quality logistics infrastructure and
network engineering, a vast network of domestic and global partners, and significant investments in automation,
all orchestrated by their self-developed logistics operating system that is guided in real-time by deep sources of
proprietary network and environmental data.

Since its inception in 2011, Delhivery has successfully fulfilled over 2 billion orders across India. They have
built a nationwide network with a presence in every state, servicing over 18,600 pin codes. 24 automated sort
centers, 94 gateways, 2880 direct delivery centers, and a team of over 57,000 people make it possible for us to
deliver 24 hours a day, 7 days a week, 365 days a year.

2.1. Key differentiators for Delhivery

1. Integrated solutions: Provides a full range of Logistics services, with 70% of revenue contributed
from the fast-growing Express Parcel Services segment and 11%/6%/11%/3% of PTL/TL/supply
chain/cross-border services

2. Proprietary Logistics operating system: It has over 80 applications through which it provides
various services, orchestrated by a platform to govern transaction flows from end-to-end. The
platform is designed as a set of foundational layers, libraries, and APIs that form the building blocks
for Logistics applications.

3. Automation and Data Intelligence: As per Red Seer, Delhivery has the highest investments towards
technology and automation among e-commerce focused Logistics players in India. It operates 20 fully
and semi-automated sorting centers and 86 gateways across India, with a sorting capacity of 3.98m
shipments/day. It uses machine learning extensively to build various capabilities, including intelligent
geolocation, network design, route optimization, load aggregation, ETA prediction, product

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 identification, and fraud detection, which enables it to execute operations in an efficient and precise
manner.

4. Network infrastructure includes 124 gateways, 20 automated sorting centers, 83 fulfillment centers,
35 collection points, 24 return processing centers, 249 service centers, 120 intermediate processing
centers, and 2,235 direct delivery centers. Operates 5.39m sq. ft. of Warehousing infrastructure across
71 warehouses.

Delhivery's network includes:

• 124 gateways
• 20 automated sorting centers
• 83 fulfilment centers
• 35 collection points
• 24 returns processing centers
• 249 service centers
• 120 intermediate processing centers
• 2,235 direct delivery centers

2.2 Seamless Order Fulfilment process

2.3 Technological superiority:

Delhivery’s technology platform has a layered system architecture, comprising infrastructure,
technology, and application layers. Over 80 applications are bundled into solutions on the application
layer, which aids in demand forecasting, network design, tracking and real-time optimization, and
decision support. It has a 474 membered engineering, data science, and a products team that focuses
on enhancing technology and automation.

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2.3. Infrastructure and automation
Delhivery operates a dense dynamic mesh network, making it efficient, fast, and agile in responding
to changes in volumes, shipment profiles, and environmental conditions. The mesh structure allows it
to reduce overall touchpoints in the journey of shipments through the network, reducing handling, and
improving precision.

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3. SERVICES
The integration of their technology platform with their physical network and its operations enables us
to provide comprehensive supply chain solutions to a wide range of customers. The following
schematic depicts their overall service map:

• Express Parcel
As per the RedSeer Report, which has been exclusively commissioned and paid for by us in connection
with the Offer, they were the largest and fastest growing 3PL express parcel (and heavy parcel)
delivery player in India by volume and revenue as of Fiscal 2021 and the three months ended June 30,
2021, with a market share of approximately 20% of the overall e-commerce volumes (including captive
players) in India during the three months ended June 30, 2021. They have delivered more than 1 billion
shipments since incorporation. Their shipment volume grew from 148.49 million orders in Fiscal 2019
to 289.20 million orders in Fiscal 2021 on an annual basis, representing a CAGR of 40%. In the three
months ended June 30, 2021, they delivered 101.69 million shipments. Their customers include e-
commerce marketplaces, vertical e-commerce retailers, D2C brands, omni-channel retailers, SMEs,
banks and financial institutions. In the three months ended June 30, 2021, 18,600 Active Customers
used their express parcel delivery services.
They have also launched Delhivery Direct, their C2C shipping service in June 2021, which enables
individual consumers to ship parcels from their homes.

• PTL Freight
They launched PTL freight services focused on the B2B express segment in 2016 after achieving
significant scale in their express parcel network and establishing a full-fledged surface line-haul
network to service its volume. In Fiscal 2021, they delivered 373,854 tonnes of freight, growing at a
CAGR of 75% between Fiscal 2019 and Fiscal 2021.

• TL Freight
Their truckload freight brokerage platform, “Orion”, connects shippers with fleet-owners and suppliers
of truckload capacity across the country via a centralized bidding and matching engine.

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• Supply Chain Services
They provide integrated supply chain solutions to e-commerce and corporate customers. Their supply
chain solutions combine the strength of their warehousing and transportation operations, infrastructure,
network and technology with deep data-science and business intelligence capabilities. This enables us
to provide comprehensive and integrated multi-channel order fulfilment solutions that improve the
reliability, speed and cost-efficiency of their customers’ supply chains. Their solutions are designed to
be modular and configurable with the flexibility to choose multiple fulfilment and transportation
models and partners.

• Cross-Border Services
They began providing door-to-door and port-to-port express parcel services to and from India in 2018
to meet the rising demand for cross-border e-commerce and expanded this offering to include cross-
border air-cargo services in late 2019.

Their cross-border operations are powered by their global shipping service, “Starfleet”, where they
follow a “string of pearls” strategy, integrating global networks and airlines on the same platform,
providing a single-window visibility into express and freight global shipping to shippers. “Starfleet”
also provides international air cargo services through a mix of charter and block space agreements
through partnerships with major airlines on certain trade corridors of India, such as the US, Europe
and China.

3.1. NETWORK
They have built a nation-wide network with presence in every state, servicing 17,045 PIN codes during
the six months ended June 30, 2021, or 88.3% of the 19,300 PIN codes in India as of June 30, 2021
(per India Post).

•Gateway and Automated sort centre facilities:

Gateways, which are large logistics facilities that form the core of their network, perform pickup,
sortation, consolidation and deconsolidation, dispatch and customs clearance operations. Gateways
can simultaneously handle all product categories - express parcel, cross-border express and freight,
heavy goods and PTL freight.

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 The 124 large Logistics facilities that form the core of its network, perform pickups, sorting,
consolidation and deconsolidation, dispatch, and customs clearance operations. Gateways are
connected to each other in a dynamic mesh network via line-haul transportation. Around 21 gateways
are equipped with 27 automated parcel sorters having a Rated Automated Sort Capacity of 3.98m
shipments per day.

All their gateways are connected to each other in a dynamic mesh network via line-haul transportation,
unlike traditional hub-and-spoke models. They also connect directly to intermediate processing
centres, service centres or delivery centres in real-time, guided by their network algorithms, based on
volume and service time considerations. While this design for speed increases their sortation
complexity relative to traditional logistics models, their large investments in automated shipment
sorting, system-directed operations and routing algorithms along with their large base volume, enable
us to achieve the speed objective while ensuring cost- efficiency, reliability and operational quality.

Aerial View of the Tauru Gateway (Haryana)

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Feeder lines between trucks and sorter

Multi-level sorter

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 Shipment Chutes

• Fulfilment centres (“FC”):

As of June 30, 2021, they operated 83 fulfilment centres with an aggregate floor area of 5.52 million
square feet, including 12 fulfilment centres of Spoton with an aggregate floor area of 0.13 million
square feet. Their fulfilment centres are capable of multi-client, multi-channel operations, and of
servicing B2C and B2B inventory management and order fulfilment requirements. Their fulfilment
centres are located in strategic supply and consumption clusters to enable customers to place inventory
closer to their end consumers and reduce overall order fulfilment timelines. Several FCs are also co-
located and operationally integrated with their gateways, further enhancing delivery speed and
reducing overall fulfilment costs.

Bhora Kalan FC (Haryana)

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 Luhari FC (Haryana)

• Intermediate processing centres:

They operated 120 intermediate processing centers, as of June 30, 2021, to receive consolidated loads
from gateways for a set of delivery centers mapped to them. These facilities increase their ability to
use larger line- haul vehicles, reduce sortation complexity and act as load-stabilizers in their network
by performing simpler sortation operations for delivery centres and distributing these loads multiple
times a day.

• Service centres and delivery centres:

Service centres and delivery centres perform last-mile delivery of consignments and pickup operations
from their catchment areas. Parcels weighing less than 10kg are picked up and delivered by delivery
centres while PTL loads, and heavier parcels are picked up and delivered through their service centres.

As of June 30, 2021, they operated 3,397 delivery centres and 249 service centres, including 145
service centers belonging to Spoton. Spoton’s service centres are augmented by 188 additional
locations operated by business associates. 2,235 of their delivery centres are self-operated while 1,162
are operated by partners through their “Constellation” program. In addition, direct delivery centres are
further augmented by a network of 3,685 partner stores who provide us with flexible delivery capacity
in their catchment areas.

• Returns processing centres:

They operate 24 dedicated facilities to process e-commerce sale returns to customer warehouses as of
June 30, 2021. These centres are either co-located with Gateway facilities or are stand-alone facilities
in locations with a high density of e-commerce sellers and warehouses.

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•Fleet:
A majority of their line-haul and intra-city distribution requirements are met through partner fleet
owners and suppliers of truckload capacity via their middle-mile systems and Orion platform. They
also operate an owned fleet of heavy trucks and tractor-trailers which are employed in their linehaul
network. They have designed and introduced customized trailer containers for use in their line-haul.
These assets enable us to drive up efficiency by increasing the utilisation of the tractors and their crew
and also reduce storage space in gateways by utilising the trailers for storage. This fleet enables us to
introduce new capabilities such as trailer management, establish real-time benchmarks for truck
utilisation and costs across seasons and geographies, and set standards for on-time performance.

4. Technology Architecture

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CoreOS: CoreOS provides reusable, business-agnostic tools and services that define standards and
data governance frameworks for logistics. This layer provides foundational and security components
and standardizes the exchange of data between services. It is designed with a data first architecture and
jurisdiction, enabling user- level restrictions on data access, coupled with requisite security and
infrastructure controls which ensure data privacy and security.

4.1. TECHNOLOGY APPLICATIONS

•Transportation Management System (“TMS”)
TMS orchestrates and tracks shipment and asset movement in real-time across their entire network,
including partner operations. The TMS order management system identifies relevant order information
provided by shippers and leverages their proprietary network design and resource allocation tools to
identify the optimal path for each shipment basis parameters such as size/ weight, mode of transport,
speed and custom workflows. It also facilitates easy integration and data exchange with customers and
their own ancillary systems for billing and cash management. As of June 30, 2021, the TMS supports
over 35 million shipment lifecycle events per day and collects over 140 million GPS trace points per
day and its distributed infrastructure supports over 350 API endpoints.

•Mid-mile System
This system orchestrates in-facility activities such as sortation, consolidation, de-consolidation,
loading/unloading, trans-shipment, line-haul schedule management, tracking and provides detailed
traceability of shipments moving through these facilities. In addition, it coordinates real-time capacity
planning, activity tracking of in-facility processes and performance monitoring of individual agents.
These systems are also integrated with their automated sortation systems, material handling systems
and a suite of mobile applications that provide detailed instructions to their operations teams for
performance of all in- facility activities.

•Last Mile and Dispatch System

Their last-mile and dispatch systems orchestrate in-facility activities at their own and partner last mile
service centres. Operators can receive goods, sort them into system determined or manually determined
routes, dispatch consignments via their network or third-party agents, track field statuses of dispatched
parcels, collect pickup and return orders and manage cash through these systems. Field staff (first party
and third-party delivery agents) have access to their dispatch application through which they can plan,
create and manage their delivery routes, receive guidance to consignee addresses, communicate with
consignees while on their delivery route and view their performance and earnings. Station managers
can also access automated station-level and agent- level performance scorecards and configurable
reports about future loads and capacity requirements for forward planning.

•Fleet Management System (“FMS”)

For the three months ended June 30, 2021, their FMS enabled over 370 fleet owners and suppliers of
fleet capacity, including their self-owned fleet, to register their assets (over 24,000 vehicles) with us,
enter into fleet contracts, track their service metrics (quality, usage and earnings) against those
contracts and manage claims and disputes.

•Warehouse Management System

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“Godam”, their proprietary WMS, manages order fulfilment operations across multiple online and
offline channels and selects and orchestrates transportation services for these orders (truckload, PTL,
intra-city distribution, express parcel, heavy goods delivery, etc). Their WMS is integrated with major
Indian and international marketplaces through Primaseller, and with Delhivery transportation services
and multiple external logistics providers, enabling us to provide their customers with the highest
quality and lowest cost services at all times. In addition, Godam is designed as a multi-location, multi-
tenant 3PL WMS, enabling global inventory visibility and control and real-time optimization of
inventory placement, order allocation and order aggregation for their customers.

‘Godam’ - Order List

•Orion: Truckload Freight Brokerage

“Orion”, their truckload freight brokerage platform, matches demand from shippers with suppliers of
truckload capacity in real-time. There are 3 components to the Orion system: (1) the freight matching
engine that matches demand and supply based on price and service quality, via a reverse-bidding
process through their “Axle” application, while also functioning as a financial and operational ledger
for their partners; (2) operational modules that track execution of contracted truckloads, including
matching, real- time tracking, delivery and proof of delivery; and (3) the transaction management
system that is deeply integrated with the operational modules and manages financial aspects of all
transactions.

4.2. DATA APPLICATIONS

● Location Intelligence:
Their location stack is based on their address resolution engine, “Addfix” and geocoding engines. They
combine these with vast amounts of GPS data to tackle problems such as enrichment and classification
of addresses, inferring travel times and identification of landmarks and locality attributes.

• Product Intelligence:
Their deep learning tool, “Catfi8”, classifies unstructured product data into categories with detailed
attributes- identifying goods as essential, liquid, fragile, air restricted, etc. This tool was particularly
critical in immediately identifying and mobilizing essential goods during COVID-19 lockdowns.

• Capacity Planning:
Their applied machine learning systems predict expected transit and arrival times for shipments within
the network and adjust these in real-time in response to environmental factors, thereby enabling
operators to identify at-risk facilities and plan adequate capacity in advance.

• Network Design:
They use their “Netplan” product combined with their location stack to rapidly map unstructured
addresses to appropriate delivery centres, identify optimal facility location and minimize distance
travelled by shipments, helping to manage costs in response to changing demand patterns.

•Service Recovery:
Network monitoring applications and services provide end-to-end visibility of service performance
risks to their central Control Tower that can instruct operational teams to intervene timely and maintain
service quality.

• Dynamic Mid-mile Operations:

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They use optimization algorithms and simulation to dynamically route inter-city consignments based
on the current state of the network to ensure service precision and vehicle utilization.

• Performance Management:
They use machine learning to analyse operational data and develop customized KPI targets and
compensation structures for their teams and partners across their operations.

•Parcel Routing:
Based on shipment parameters, geographical and traffic factors their systems automatically generate
optimal dispatch sequences that simplify loading and unloading process and improve productivity of
their last mile operations.

•Inventory Placement:
Their technology systems forecast goods demand and drive stocking and replenishment decisions at
their fulfilment centers, thereby reducing transportation and inventory costs and also reducing overall
fulfilment timelines.

•Security:
They use historical behaviour patterns to predict delivery risks such as non-acceptance of packages or
potential fraud and use machine vision to identify product mismatches at their sortation centers and
automate their PoD processes.

5. Partnerships and Collaborations

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4.1. Volvo Trucks India & Delhivery continue to drive progress in
sustainable transport solutions.
April 28, 2023 motorindia
Volvo Trucks India, a division of VE Commercial Vehicles Ltd., in a landmark moment, delivered the
325th tractor-trailer solution to Delhivery Ltd., India’s largest fully integrated logistics services
provider, for Express and B2B logistics operations. Roger Alm, EVP of Volvo Group & President
Volvo Trucks handed over the key of 325th Volvo FM 4×2 tractor to Mr. Sahil Barua, Managing
Director and Chief Executive Officer and Mr. Ajith Pai, Chief Operating Officer, Delhivery in
Bangalore on 26th April 2023.

4.2. Indag Forge Strategic Partnership with Delhivery

Indag Rubber Limited have forged another collaboration recently, this time with India’s premier
supply chain services provider Delhivery Limited. The collaboration extends to the retreading of the
Delhivery fleet’s tyres. This strategic partnership brings together the expertise and capabilities of both
companies to deliver innovative, sustainable, and cost-effective tyre solutions tailored specifically for
Delhivery’s extensive fleet operations.

4.3. JustLikeNew.in has announced its collaboration with omni-channel

e-commerce enabler Delhivery.

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The move is aimed at making high-quality repairs swifter, more convenient and accessible for
smartphone and tablet users by ensuring the availability of repair services across 6400 PIN codes in
various states and Union Territories of the country.

The partnership between JustLikeNew and Delhivery will allow for free pickup of the device to be
repaired from the user’s home or office. After the device is shipped to the nearest JustLikeNew.in
workshop, it will be repaired and delivered back to the desired location, eliminating any effort on the
part of customers. This is a particularly paradigm-shifting initiative for consumers in tier-2 and tier-3
cities, who are often unable to find quality components and professional repair services in their
localities.

5. Supply Chain Processes

Delivery’s express services were designed to operate in three layers:
1. Order-capture layer or the discovery layer
2. Inventory layer
3. Transportation layer.

The discovery layer helped Delhivery receive consumer location, product information as well as
the source location (where the items were available at the time of order) from their customers, say,
an e-commerce retailer. Delhivery did not play a significant role in defining and optimizing this
layer, especially for the larger customers. In the instance of a small and medium business,
Delhivery might advise on the same, but it would ultimately be the customer’s choice of how to
operate and optimize this layer.

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Delhivery’s significant value addition was in the inventory layer. This is the activity that follows
the discovery layer where the coordinates of the end consumer and the product have been
identified. A typical e-commerce order may contain multiple items, and these could be in different
warehouses across the country. The inventory layer is a combination of two sub-layers when there
is a need for consolidation. Delhivery clearly separates its warehousing activities from the
transportation activities – the transportation layer does not touch the package before it is ready to
ship but focuses only on pick and pack. Any consolidation or kitting would be done at a warehouse
(fulfillment center) and not in transit or in the last mile.

The transportation layer was the third layer of services. There were two legs to the transportation
layer – an inbound transportation of goods to the fulfillment center (FC) and an outbound
transportation from the fulfillment center to the dispatch center (DC). There were two possible
scenarios here – when the products were stored at the Delhivery-operated FC from the start, that
is, even before the orders, the outbound transportation would be fulfilled from the FC stock. But
when the product would be picked up from the customer warehouse only after receipt of the order,
the inbound transportation happens after the order receipt, there would be just-in-time (JIT)
fulfillment, where the products would be cross-docked directly from the inbound to outbound
transportation. Dispatch stations would deliver last mile to the end consumer.

Figure depicts a typical transportation layer. After receiving orders, items were picked up from the
customer warehouse to the fulfillment center (in-bound). At the fulfillment center, they were
picked, packed, and transported to the processing centers. These processing centers sorted and
bagged the items for specific locations (serviceable areas). These bags were then transported to

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hubs where they were either shipped to the dispatch centers (if they are to be delivered within the
same city) or transferred to delivery partners (line haul) for shipping to out-station dispatch centers.
It was possible that Delhivery’s customers used delivery partners other than Delhivery and used
Delhivery’s fulfillment centers only. Once the bags were received at the dispatch centers, they
were opened and sorted into specific runs (routes taken by local delivery persons) for delivery.

Fulfillment services
Delhivery intended to provide third party warehousing/fulfillment services to businesses backed
by their formidable warehouse management and supply chain technology while saving their
customers the capital expenditure of setting up warehouses on their own. The basic premise was
to convert fixed warehousing costs which are very high during lean periods and convert them to
variable costs depending on volume of business done by the customer, while maintaining
exceptionally high service standards and precision.

Delhivery followed two models of fulfillment. One was to support marketplace models where
sellers would stock in the Delhivery FCs and use Delhivery’s channel management services to sell
across multiple demand channels. Marketplace model has the ability to provide cross-docking
services. In cross-docking, the FC only receives the items, labels/relabels the items, and ships them
outward. Marketplaces could procure fast moving items in bulk from manufacturers and hold the
inventory for subsequent sale, when the orders arrived.

The other was the inventory model where sellers/retailers/manufacturers would stock in
Delhivery’s FCs for their own channel/demand. Delhivery maintained the inventory on behalf of
the seller in the FCs. When an order was placed for the item through either the seller’s website or
one of the e-commerce marketplaces, then Delhivery would pick, pack, and provide express
services/transfer to another delivery partner. Delhivery allowed sellers to provide visibility of their
entire inventory to all the marketplaces that the seller was listed on. The inventory model
fulfillment service allowed vendors to optimize their inventory while maximizing their visibility
and chances of sale across different marketplaces.

Below mentioned figure depicts the inventory model

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And below mentioned figure depicts the inventory model.

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Critical competencies required for running an efficient fulfillment service were good quality
control (QC) as the items were received at the FC, and efficient inventory management (coding,
binning, and tracking) of individual items in the FC and in transit.

6. Quality Control
6.1. Order Accuracy and Verification
Delhivery's quality control process begins with ensuring order accuracy and verification. This involves
several key steps:

1. Order Validation: Upon receiving an order, Delhivery's system automatically validates the order
details, including sender, recipient, item descriptions, shipping instructions, and payment information.
This helps to identify and rectify any discrepancies or errors early in the process.

2. Inventory Checks: Delhivery's warehouse management system maintains real-time inventory

levels and automatically verifies the availability of ordered items before confirming the shipment. This
helps to prevent stockouts and ensures that orders can be fulfilled promptly.

3. Address Verification: Delhivery cross-checks recipient addresses against postal databases and
utilizes address standardization techniques to ensure accurate delivery addresses. This helps to
minimize the risk of undeliverable shipments.

6.2. Packaging and Labeling

Proper packaging and labeling are crucial for protecting goods during transit and ensuring accurate
delivery. Delhivery implements stringent measures in this regard:

1. Protective Packaging: Delhivery uses appropriate packaging materials and techniques based on the
nature of the goods being shipped. This includes using sturdy boxes, bubble wrap, protective
cushioning, and specialized packaging for fragile items.

2. Accurate Labeling: Delhivery adheres to strict labeling guidelines, ensuring that each shipment is
clearly labelled with sender and recipient information, tracking barcodes, handling instructions, and
any special requirements.

3. Barcode Scanning: Delhivery utilizes barcode scanning technology throughout the fulfillment
process to ensure accurate tracking and identification of shipments.

6.3. Route Optimization and Tracking

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Efficient route planning and real-time tracking are essential for timely delivery and customer visibility.
Delhivery employs advanced systems to optimize this process:

1. Route Optimization Algorithms: Delhivery's route optimization algorithms consider factors such
as traffic conditions, delivery locations, vehicle capacity, and time constraints to determine the most
efficient delivery routes. This helps to minimize delivery times and fuel consumption.

2. Real-time Tracking: Delhivery provides customers with real-time tracking information through its
website and mobile app. Customers can track the status of their shipments, view estimated delivery
times, and receive notifications about shipment updates.

6.4. In-transit Visibility and Monitoring

Delhivery maintains continuous visibility and monitoring of shipments throughout the transit process:

1. End-to-End Tracking: Delhivery's tracking system provides end-to-end visibility of shipments,

enabling proactive monitoring and intervention if necessary. This includes tracking shipments from
pickup to delivery, through various checkpoints and transit modes.

2. Exception Management: Delhivery's system identifies and alerts relevant personnel to potential
issues, such as delays, discrepancies, or exceptions, allowing for timely corrective actions. This helps
to prevent delays, minimize disruptions, and maintain overall delivery efficiency.

6.5. Delhivery ensures proper delivery verification and documentation:

1. Proof of Delivery: Upon delivery, Delhivery obtains proof of delivery, typically through electronic
signature capture or photo documentation of the delivered shipment. This serves as evidence of
successful delivery and protects against disputes.

2. Delivery Confirmation: Delhivery promptly updates the delivery status in its system and notifies the
sender and recipient of successful delivery. This provides transparency and keeps all parties informed.

6.6. Quality Audits and Performance Reviews

Delhivery continuously evaluates and improves its quality control processes through audits and
performance reviews:

1. Regular Audits: Delhivery conducts regular audits of its quality control processes at various levels,
including order fulfillment, warehouse operations, transportation, and customer service. These audits
identify areas for improvement and ensure adherence to established standards.

2. Performance Metrics: Delhivery tracks key performance metrics, such as on-time delivery rates,
damage claims, customer satisfaction, and resolution times for customer issues. These metrics provide
insights into the effectiveness of quality control measures.

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3. Continuous Improvement: Delhivery implements continuous improvement initiatives based on
audit findings, performance data, and customer feedback. This iterative approach ensures that quality
control processes are constantly evolving to meet changing customer needs and industry standards.

By implementing these comprehensive quality control measures, Delhivery strives to maintain high
standards of service and deliver goods safely, timely, and efficiently to its customers.

8. Performance Metrics:
Delhivery, a leading logistics and supply chain company in India, utilizes a comprehensive set of key
performance indicators (KPIs) to measure the effectiveness and efficiency of its operations. These
KPIs encompass various aspects of the supply chain, from order management to transportation and
delivery. By tracking and analysing these metrics, Delhivery gains valuable insights into its
performance, enabling it to identify areas for improvement and optimize its operations.

Order Management KPIs:

1. Order Accuracy: This metric measures the percentage of orders processed correctly, ensuring
that customers receive the right products and quantities.
2. First Attempt Delivery Rate: This metric tracks the percentage of orders delivered
successfully on the first attempt, indicating the reliability and punctuality of Delhivery's
delivery services.
3. Order Fulfillment Lead Time: This metric measures the average time taken to fulfill an order
from the moment it is placed to the time it is delivered, indicating the overall efficiency of the
order processing and fulfillment process.

Transportation and Delivery KPIs:

1 On-Time Delivery Rate: This metric tracks the percentage of orders delivered on or before
the promised delivery date, indicating the consistency and reliability of Delhivery's delivery
services.
2 In-Transit Visibility: This metric measures the percentage of orders that can be tracked in
real-time throughout the transportation and delivery process, providing customers with
transparency and peace of mind.
3 Delivery Damage Rate: This metric tracks the percentage of orders that arrive damaged or
incomplete, indicating the effectiveness of Delhivery's handling and packaging practices.

Warehouse and Inventory Management KPIs:

1 Inventory Accuracy: This metric measures the percentage of inventory records that accurately
reflect the actual stock on hand, ensuring efficient inventory management and reducing the risk
of stockouts or overstocking.

2 Warehouse Productivity: This metric measures the efficiency of warehouse operations, such
as the number of orders processed per hour, or the number of units picked per hour.

3 Inventory Turnover Rate: This metric measures the number of times inventory is sold and
replaced within a given period, indicating the efficiency of inventory management and the level
of cash tied up in inventory.

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Customer Satisfaction KPIs:
1 Customer Satisfaction Score: This metric measures the overall satisfaction level of customers
with Delhivery's services, providing feedback on the overall customer experience.
2 Net Promoter Score (NPS): This metric measures the likelihood of customers recommending
Delhivery's services to others, indicating the company's reputation and loyalty among its
customers.
3 Customer Complaint Resolution Rate: This metric tracks the percentage of customer
complaints resolved within a specified timeframe, indicating the responsiveness and
effectiveness of Delhivery's customer service.

By continuously monitoring and analysing these KPIs, Delhivery can identify areas for improvement,
optimize its supply chain operations, and enhance customer satisfaction. These metrics serve as
valuable tools for driving efficiency, reducing costs, and strengthening Delhivery's position as a
leading logistics and supply chain provider in India.

9. Sustainability Practices
Delhivery, a leading logistics and supply chain company in India, has integrated several
environmentally friendly initiatives and sustainable practices into its operations. These initiatives are
aimed at reducing the company's environmental impact and promoting sustainability across its value
chain.

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Sustainable Packaging:
Delhivery has adopted sustainable packaging solutions to minimize packaging waste and promote
resource efficiency. These solutions include:
• Replacing non-biodegradable packaging materials with biodegradable alternatives:
Delhivery has switched to using biodegradable packaging materials, such as corrugated
cardboard boxes and eco-friendly tapes, whenever possible.
• Optimizing packaging size and weight: Delhivery has implemented packaging optimization
techniques to reduce the size and weight of packaging materials, thereby reducing
transportation fuel consumption and emissions.
• Promoting reusable packaging: Delhivery is encouraging the use of reusable packaging
solutions, such as reusable crates and containers, for certain types of shipments.

Eco-friendly Transportation:
Delhivery is committed to reducing its carbon footprint by transitioning to eco-friendly transportation
options. These options include:
• Electric Vehicles (EVs): Delhivery is gradually replacing its fleet of diesel-powered vehicles
with electric vehicles (EVs) to reduce tailpipe emissions. The company has deployed over 200
EVs in its fleet and aims to increase the proportion of EVs to 30% by 2025.
• Alternative Fuels: Delhivery is exploring the use of alternative fuels, such as compressed
natural gas (CNG), to further reduce its reliance on fossil fuels.
• Route Optimization: Delhivery is optimizing its delivery routes to minimize fuel consumption
and emissions. The company uses route optimization software to plan efficient delivery routes
that reduce mileage and unnecessary stops.

Sustainable Infrastructure:
Delhivery is implementing sustainable practices in its infrastructure development and management.
These practices include:
• Energy-efficient buildings: Delhivery is constructing and operating energy-efficient buildings
that incorporate green building principles, such as natural lighting, efficient HVAC systems,
and water conservation measures.
• Renewable energy sources: Delhivery is exploring the installation of renewable energy
sources, such as solar panels, to reduce its reliance on grid electricity and generate clean energy.
• Waste management: Delhivery has implemented waste management practices to reduce waste
generation and promote recycling. The company has set up waste segregation systems and
partnered with recycling organizations to divert waste from landfills.

Sustainable Sourcing Policy:

Delhivery has adopted a Sustainable Sourcing Policy that requires its suppliers to adhere to
environmental and social responsibility standards. These standards include:
• Environmental protection: Suppliers must comply with environmental regulations and
implement measures to reduce their environmental impact.
• Social responsibility: Suppliers must uphold fair labour practices, respect human rights, and
ensure workplace safety.

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Employee Engagement:
Delhivery is engaging its employees in sustainability initiatives through various programs and
initiatives. These programs include:
• Sustainability training: Delhivery provides sustainability training to its employees to raise
awareness about environmental issues and encourage sustainable practices.
• Employee engagement campaigns: Delhivery organizes employee engagement campaigns to
promote sustainable behaviours, such as reducing paper consumption and conserving energy.

Delhivery's sustainability initiatives are aligned with its overall commitment to environmental
stewardship and social responsibility. The company is continuously evaluating and implementing new
initiatives to further reduce its environmental impact and promote sustainability across its operations.

Promising eco-friendly delivery

Delhivery continues to seek ways to minimise the environmental impact of their logistics operations.
They have significantly reduced their logistics intensity from 301.3 gCO2e/t-km in FY22 to 229.1
gCO2e/t-km in FY23. Deploying larger, fuel-efficient trucks is core to this (by the end of FY23, more
than 49% of their total load, measured in tonne-km, was moved through large form-factor trucks
compared to only 16% at the end of FY22).

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They have extended their carbon emissions baseline to cover Scope 3 emissions as well. Logistics
intensity, measured in gCO₂e/t-km of materials transported, stands as a widely recognised KPI and a
globally accepted carbon intensity measure within the logistics industry It facilitates benchmarking of
carbon emissions both internally over time and externally across various companies. In reporting our
logistics intensity, we diligently account for the entire Well-to-Wheel (WTW) emissions associated
with our logistics activities. This encompasses the emissions from Well-to-Tank (WTT) during fuel
extraction, processing and transportation, as well as Tank-to- Wheel (TTW) emissions emitted while
running our vehicles

Adoption of solar power

They continue to integrate renewable forms of energy into our daily operations to reduce our carbon
footprint. In FY23, we generated an impressive 730,740 kWh of electricity through solar power
installations at various Delhivery facilities, resulting in a substantial reduction of 517.4 (CO, e
emissions).

Fleet upgradation
During FY23, they exceeded our initial target by introducing 387 additional 43-46 ft tractors,
surpassing the expected number of 205. Our total count of 43-46 ft tractors now stands at 562, In
addition, they continue to increase the size of our CNG-powered fleet, with over 1,800 vehicles
deployed in FY23, and are actively collaborating with OEMs to increase adoption of EVs in our mid-
mile and last-mile operations.

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Policies for sustainability practised by Delhivery
Sustainable Sourcing Policy
Delhivery and its subsidiaries are committed to perform their business activities in a responsible,
ethical, safe, and environmentally conscious manner. They expect the highest standard of conduct from
all their stakeholders (employees, suppliers, and their workers). Their sustainable sourcing policy
complements their “Supplier Code of Conduct” which sets a baseline for ESG guidelines and applies
to all their suppliers and vendors. They expect their suppliers to comply fully with the policy
requirements and the supplier code of conduct.

Delhivery aims to incorporate the following factors into its procurement decisions:
● Suppliers must obey all relevant international and national laws regarding ethical business practices,
such as anti-trust, anti-bribery, anti-competition laws, and conflict of interest.
● Suppliers should show the highest ethical standards concerning gifts and hospitality, money
laundering practices, financial frauds and share values such as integrity, responsibility, transparency,
and vigilance.
● Suppliers must comply with all applicable laws per the principles of the UN Global Compact, the
International Labor Organization, and the UN Declaration of Human Rights.
● Suppliers should form and implement policies and procedures to protect and promote human rights
by managing forced and child labour, fair wages, freedom of association and collective bargaining,
inclusive workplaces free from discrimination and abuse, and take responsibility for compliance
throughout their supply chain.
● Suppliers should comply and adhere to all the applicable local, state, and national environmental
laws, regulations, and obligations.
● Suppliers should optimize the use of natural resources, reduce the release of harmful emissions in
the environment and produce environmentally compatible products and services which have extended
product life, recyclability, reusability, and use of recycled content.
● Suppliers should ensure all legal requirements are addressed, including but not limited to
occupational safety, emergency preparedness, occupational injury and illness, industrial hygiene,
physically demanding work, machine safeguarding, sanitation, food, and housing.
● Suppliers must safeguard and respect all confidential information, personal information, intellectual
property, the know-how of the business, or any information that is not available in the public domain.

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10. References
o https://www.delhivery.com/
o https://twitter.com/delhivery?lang=en
o https://en.wikipedia.org/wiki/Delhivery
o HBR Case Study of Delhivery (provided by Prof. Dr. Ravidra Baliga, Somaiya Vidyavihar
University)
o https://www.ship24.com/couriers/delhivery-tracking
o https://www.go-yubi.com/blog/delhivery-business-model-success-story/
https://www.dsij.in/productAttachment/premarketreports/Market_Report_DELHIVERY_MO
SL%2018.1.2022..pdf
o https://www.businesstoday.in/magazine/cover-story/story/coolest-start-up-in-india-2014-
delhivery-47706-2014-04-02
o https://www.42gears.com/case-studies/delhivery-accelerates-e-commerce-logistics-
workflow-with-42gears-uem/
o https://www.tothenew.com/sites/default/files/2018-09/Delhivery.pdf
o https://www.istaunch.com/free-bartleby-answers/
o https://scholar.google.co.in/scholar?q=delhivery+supply+chain+management&hl=en&as_sdt
=0&as_vis=1&oi=scholart
o https://in.linkedin.com/in/vishnu-prasad-70723870

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