Former McKinsey executive Saikiran Krishnamurthy, who joined Flipkart last year, may soon head the logistics unit of the company Ekart in order to improve coordination between commerce and logistics business, reported Livemint citing four people familiar with the matter.
At present, Krishnamurthy and his team are responsible for order fulfilment, after sales services which are also closely related to the logistics arm. In the past, he had also headed the service product group in the commerce division of the company.
According to the cited sources, after the division of the company into three units last year- commerce platform, ad business, and logistics- there was a decline in coordination and communication between the commerce and logistics platform.
This was because of the clash of priorities as Ekart focussed on building an independent business whereas commerce platform wanted to increase sales on its own platform.
Moreover, since Ekart has begun delivering for other third party companies also from this year, the situation may further get worse which would ultimately affect the logistics- a crucial component of Flipkart’s business.
Krishnamurthy will be responsible for improving the situation and ensuring that both entities work together in an efficient manner. This will also be the second major change in the leadership of Ekart this year.
Last month, the company had hired a new Chief Financial Officer, Harish Abhichandani for Ekart after Senior director of finance Mosam Gadia vacated the position.
Logistics has become an important focus for Flipkart in the past one year as the company aims at expanding its reach to every nook and cranny of the country. This becomes even more important keeping in mind the intense competition from other e-commerce players such as Amazon, Snapdeal, PayTm, etc.
The importance of the segment as perceived by the company can be gauged from the fact that it has pledged an investment of $2-$3 billion in building an effective logistics infrastructure. Last month, it invested close to $100 million into the logistics division Ekart towards the same goal.