Tata-owned e-commerce leader BigBasket has introduced a new SaaS-based supply chain platform, BB Matrix, aimed at enhancing its delivery operations and aiding businesses in entering the e-commerce market.
Platform Overview
After approximately 13 years in the digital marketplace, BigBasket’s BB Matrix is designed to optimize supply chain management for businesses across various sectors. The platform will facilitate more efficient delivery operations, potentially lowering costs and boosting productivity.
Rakshit Daga, BigBasket’s Chief Product and Technology Officer (CPTO), will lead the platform’s operations. He explained that BB Matrix integrates various aspects of the supply chain, including warehouse management, transportation, and order management. “Over the past two years, we have meticulously productized every aspect of the supply chain in e-commerce. This includes everything from warehouse management to last-mile delivery,” Daga told Inc42.
Performance and Impact
BigBasket has been piloting BB Matrix for the past 18 months. According to Daga, the new SaaS solution has significantly reduced transportation costs by nearly 50%, shortened lead times by approximately 60%, and provided enhanced visibility throughout the supply chain. The platform has contributed to achieving a nearly 99.1% on-time delivery record.
Daga highlighted that BB Matrix has particularly bolstered BigBasket’s quick commerce vertical, BBNow, which the company launched in 2022. The platform has enabled rapid order picking and distribution, crucial for meeting the stringent delivery commitments of BBNow. “With BB Matrix, we’ve developed capabilities for rapid order picking and distribution, critical for our quick commerce operations,” Daga said.
Platform Features and Target Market
BB Matrix encompasses three core systems:
- Warehouse Management System (WMS)
- Transport Management System (TMS)
- Order Management System (OMS)
The platform is not limited to retail and e-commerce but targets various sectors, including manufacturing, automobiles, aviation, and consumer goods. Pricing for BB Matrix will vary based on factors such as operation size, order volumes, and the number of warehouses.
Financial Context and Industry Landscape
Despite its innovations, BigBasket’s financial performance shows significant losses. Its B2B entity, Supermarket Grocery Supplies Private Limited, reported a net loss of INR 1,785.4 crore for FY23, a 71% increase year-on-year. Similarly, its B2C arm, Innovative Retail Concepts, faced a net loss of INR 1,535.2 crore in FY23, an 89% increase from the previous fiscal year.
BigBasket’s move comes amid a growing trend of companies offering SaaS logistics solutions. Earlier this year, Meesho launched its tech platform, Valmo, to address gaps in the supply chain for micro-entrepreneurs. Similarly, Flipkart’s logistics arm, eKart, provides logistics solutions to businesses across India. Amazon has also expanded its logistics capabilities, investing INR 400 crore in its Indian logistics arm, Amazon Transportation Services, and launching Amazon Shipping for non-Amazon orders.
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