Tata-owned e-commerce major BigBasket has introduced a new SaaS-based supply chain platform, BB Matrix, aimed at strengthening delivery operations and helping businesses enter the e-commerce market.
Platform Overview
With around 13 years of experience in the digital market, BigBasket's BB Matrix is designed to optimise supply chain management for businesses across sectors. The platform helps drive efficiency in delivery operations, potentially leading to reduced costs and increased productivity.
Rakshit Daga, Chief Product and Technology Officer (CPTO) at BigBasket, will head the operations of the platform. He explained that BB Matrix integrates various aspects of the supply chain including warehousing, transportation, order management, etc. “Over the last two years, we have meticulously productised every aspect of the supply chain in e-commerce, which includes everything from warehousing 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 reduced transportation costs by about 50%, shortened lead times by about 60%, and enhanced visibility across the supply chain. The platform has helped the company achieve an on-time delivery rate of nearly 99.1%.
Daga highlighted that BB Matrix has specifically powered BigBasket's quick commerce division, BBNow, which the company launched in 2022. The platform has enabled rapid order picking and delivery, essential to meeting BBNow's stringent delivery obligations. “With BB Matrix, we have developed the capabilities for rapid order picking and delivery that are essential to our quick commerce operations,” Daga said.
Platform Features and Target Market
The BB Matrix contains three core systems:
- Warehouse Management System (WMS)
- Transportation Management System (TMS)
- Order Management System (OMS)
The platform is not limited to retail and e-commerce but covers various sectors such as manufacturing, automotive, aviation, consumer goods, etc. BB Matrix pricing varies depending on factors such as business size, order volume, and number of warehouses.
Financial and industry conditions
Despite the innovation, BigBasket's financial performance shows heavy losses. The company's B2B entity, Supermarket Grocery Supplies Private Limited, reported a net loss of INR 178.54 billion in FY23, up 71% year-on-year. Similarly, the company's B2C division, Innovative Retail Concepts, faced a net loss of INR 153.52 billion in FY23, up 89% from the previous fiscal.
BigBasket's move comes amid a growing trend of companies offering SaaS logistics solutions. Earlier this year, Meesho launched tech platform Valmo to address supply chain gaps for small entrepreneurs. Similarly, Flipkart's logistics arm eKart provides logistics solutions to businesses across India. Amazon too has expanded its logistics capabilities by investing Rs 400 crore in its Indian logistics arm, Amazon Transportation Services, and launched Amazon Shipping for non-Amazon orders.
