Re-Engineering of e-Comm Business Processes

Entity

Unicorn player in e-comm space driving mobility solutions across Indian markets

Problem Statement

Growing dis-sat among lakhs of platform partners on account of crunch of working capital needs, Promoting Cash orders as favored means to hold complete revenue by partners without sharing any amount with platform owner, Growing receivables -about ₹ 120 Cr. and swelling by days from the parties who are lowest or negative in CIBIL ratings, Disconnection of partner on account of overdue leading to loss of Gross Market Value (GMV) and supply at market place, Writing off revenue due to non-recovery from the market, Loss of Partner’s trust & belief in the system.

Objective

Build Risk free eco system to manage Partner, Customer & Demand-Supply engine which can add values to business operations.

Solution/Approach

• Identify scenarios that contribute to billing in cash mode
• Deep-dive into partner acquisition & on-boarding processes
• Approach adopted for new partner’s training
• Review & re-engineer partner’s incentives program & introduce Penalty-Reward mechanism
• Introduce ways & means to promote online payments mode with incentivization to partner & end user
• Provide tech-enabled tools to arrest leakages & create pool of deposit to minimize/avoid risk
• Design & roll out Usage-Fraud Monitoring process

Key Findings

• Flaw in Partner onboarding process & Training processes with NIL/Minimal emphasis on cash management & discipline
• Lack of Credit Policy
• Absence of security deposit generation as fundamental requirement to free risk of AR
• Flaw in promoting to enhance customer base dealing in Online mode
• Absence of centrally managed Usage monitoring & credit function
• Non-availability of Collection Management Eco Systems to deal with lakhs of partners scattered across India

Key changes implemented

• Designed & implemented policy changes from on-boarding of a partner till exit
• Enabled tech solution as engine to generate Security deposit thru every completed transaction
• Cascading & educating process re-engineering along with commercial policies to all direct/indirect infra sources
• Creation of Credit & Collection Management ecosystem

Results

• Business Process document from On-boarding to Exit as a framework to manage ops
• Substantial reduction of risk for business operations with partners at lowest CIBIL ratings
• Shift of business pie from Offline (92%) & Online (8%) to Offline (74%) and Online (26%)
• Pull back of old receivables of Rs.45 crs in a span of 18 months
• Seamless Credit Monitoring resulting into reduction in overall receivables
• Improvement in Partner-Sat & C-Sat overall due to Demand-Supply equation maintained healthy