You are as weak as your weakest supply chain link. That is one lesson that Snapdeal has finally taken to heart and has finally decided to set its act right.
Acquiring GoJavas is its solution. Owning GoJavas instead of a minority stake – the logistics arm of Rocket Internet-based online fashion retailer, Jabong, it took on an autonomous role in 2013 – will help Snapdeal gain back the market share it has lost to Amazon India and Flipkart in the last one year.
As a 3PL, GoJavas currently reaches out to over 3200 pin codes that cover 300 towns and cities. The target for the next one and half years is to reach out to upto 4500 pin codes which translates into 600-800 cities and towns.
GoJavas plans to service both Jabong and Snapdeal.
