Ullmart’s three tier ecommerce distribution in Russia

An article in Bloombergbusinessweek (March 10,2014) titled “In Russia, call it You-Commerce”, describes the company Ullmart, that sells 55,000 fast moving items through a three tier distribution system. The company buys from manufacturers to three warehouses that supply 30 urban warehouses and 250 outposts, where customers can pick up for free, or get home delivery at a charge. Items are available seven minutes after the order is placed and can be paid for in cash, a preferred mode by many ecommerce customers in Russia. Will Ullmart strategy succeed against other ecommerce companies with greater variety but with higher supply chain inventories ? Does this strategy succeed because it speeds up delivery compared to the slow Russian postal service ? Will Ullmart benefit as Russian consumers’ ability to order directly from ecommerce sites outside the country are curtailed or is it in a different market niche ?

About aviyer2010

This entry was posted in Ecommerce, Global Contexts, mgmt5612018, Supply Chain Issues and tagged , , , , , , , , , , . Bookmark the permalink.

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