ACHARYA INSTITUTE OF TECHNOLOGY

Affiliated to Visvesvaraya Technological University, Belagavi, Govt. of Karnataka.

Approved by AICTE, New Delhi and Accredited by NAAC
Acharya Dr. S. Radhakrishnan Road, Acharya P.O, Soladevanahalli, Bangalore – 560107

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

SUBJECT NAME: LOGISTIC AND SUPPLY CHAIN

22MBAMM303

Submitted to

Prof. Ramesh Raina

Assistant Professor
Department of MBA, Acharya Institute of Technology

Submitted by
Senin Ahammed
1AY23BA212

Student Signature with Date Faculty Signature with Date Marks

(AY 2024-25)
1. INTRODUCTION
The global landscape of commerce has experienced significant changes over the last decade.
With the rapid evolution of consumer behaviour and the demand for instant services, Quick
Commerce (Q-Commerce) has emerged as a revolutionary model in the retail and e-
commerce industry. Unlike traditional e-commerce models which focus on wide variety and
delayed delivery, Q-Commerce emphasizes speed, hyperlocal operations, and customer-centric
services, often fulfilling customer orders within 10 to 30 minutes.
Quick Commerce, commonly referred to as Q-Commerce, is the next generation of e-
commerce that focuses on the ultra-fast delivery of goods, typically within 30 minutes or less.
It is designed to meet the rising expectations of urban customers who seek immediate
gratification for their daily or emergency needs. The retail industry is evolving rapidly, with
Quick Commerce (Q-Commerce) emerging as a game-changer in how consumers shop for
everyday essentials. Q-Commerce refers to the ultra-fast delivery model that promises product
delivery within 10 to 30 minutes, primarily focusing on groceries, daily-use items, and
essentials. This model caters to the growing demand for convenience, speed, and reliability,
especially in urban areas with busy lifestyles.
Unlike traditional E-commerce, which may take hours or even days to fulfil orders, Q-
Commerce prioritizes instant gratification and hyper-local delivery. To achieve this, companies
are heavily investing in advanced technologies such as Artificial Intelligence (AI), Big Data
Analytics, Internet of Things (IoT), and automation.
These technologies play a critical role in optimizing supply chains, predicting consumer
behaviour, managing inventory efficiently, and delivering highly personalized services. As a
result, Q-Commerce companies are not only able to meet customer expectations quickly but
also provide a seamless and delightful customer experience.
To ensure consistent performance, scalability, and superior customer satisfaction, Q-Commerce
companies are integrating Artificial Intelligence (AI), Big Data Analytics, Internet of
Things (IoT), Cloud Computing, and other digital innovations into their operations. This
report delves into how these technologies collectively enhance the customer experience and
contribute to customer delight, establishing long-term loyalty and brand trust.

2. WHAT IS QUICK COMMERCE (Q-COMMERCE)?

Quick Commerce, or Q-Commerce, represents the latest evolution in the e-commerce
landscape, specifically designed to cater to the growing demand for ultra-fast delivery. It aims
to fulfil customer orders in 30 minutes or less, typically for essential and high-demand items.
This model blends the speed of food delivery apps with the product variety of e-commerce
platforms, offering customers the best of both worlds speed and convenience.
Q-Commerce primarily operates in urban and semi-urban areas, where dense populations,
traffic congestion, and tight schedules drive the demand for instant delivery. With rising
expectations from consumers who value time and immediacy, Q-Commerce has emerged as
the go-to solution for fulfilling urgent needs like snacks, groceries, household items, and over-
the-counter medicines.
Core Features of Q-Commerce:
➢ Hyperlocal Fulfilments Centres: Small warehouses or "dark stores" situated close to
high-demand neighbourhoods for faster delivery.
➢ Real-Time Inventory Management: Stocks are updated in real-time to ensure
availability of high-demand items.
➢ Limited but High-Turnover Inventory: Focuses on fast-moving consumer goods
(FMCG) such as snacks, groceries, beverages, personal care products, pet food, and
pharmaceuticals.
➢ Data-Driven Logistics: Uses predictive analytics and AI for demand forecasting, route
optimization, and personalized offerings.
Popular Q-Commerce:
In India:
o Blink it (formerly Grofers): One of the pioneers in 10-minute delivery.
o Zepto: A youth-driven startup known for lightning-fast service in metros.
o Swiggy Instamart: Part of Swiggy’s expansion beyond food delivery.
o Dunzo: Known for instant delivery of essentials and tie-ups with local vendors.
Globally:
o Getir (Turkey): Operates across Europe and offers 10-minute grocery delivery.
o Gopuff (USA): Delivers everyday essentials, snacks, and even alcohol.
o Gorillas (Germany): Offers sustainable delivery models across Europe.
o JOKR (LATAM): Expanding rapidly across Latin American countries.

Why Q-Commerce?
Several consumer and market trends are driving the growth of Q-Commerce:

o Remote Work Culture: Increased time at home leads to more last-minute purchases.
o On-Demand Lifestyle: Customers expect instant gratification, especially in urban
settings.
o Mobile-First Shopping: People use smartphones for nearly all their shopping needs.

o Convenience Over Price: Urban consumers are often willing to pay more for the
convenience of fast delivery.
 o Limited Time Availability: Working professionals and students prefer quick solutions
to their daily needs.

Q-Commerce thus stands at the intersection of technology, logistics, and consumer

behaviour, redefining what “fast service” means in the modern age.

3. HOW Q-COMMERCE IS DIFFERENT FROM E-COMMERCE AND

CONVENTIONAL RETAIL?

1. Delivery Speed and Timeframe

o Q-Commerce:
Delivery promised within 10 to 30 minutes. Focus is on ultra-fast, real-time delivery
using hyperlocal fulfilment centres. Speed is the biggest differentiator.
o E-Commerce:
Delivery usually takes 1 to 3 days, or even longer. Even with same-day delivery options,
it often requires premium charges or is available only in select areas.
o Conventional Retail:
Involves in-person visits to physical stores. Customers get products instantly but have
to travel, browse, and wait in queues.
2. Inventory and Product Range
o Q-Commerce:
Offers a limited but high-demand selection of fast-moving consumer goods (FMCG)
like groceries, snacks, medicines, and hygiene products. Inventory is carefully curated
for quick picking and dispatch.
o E-Commerce:
Provides a wide and diverse product range—from electronics to fashion, furniture to
groceries. Not limited by storage space or location.
o Conventional Retail:
Product range depends on store size and type. Limited to what's in stock in the physical
outlet. Inventory updates may not be real-time.

3. Fulfilments Model
o Q-Commerce:
Operates using hyperlocal “dark stores” or micro-warehouses that are optimized for
speed and proximity. Delivery executives are often stationed close by to reduce delivery
times.
o E-Commerce:
Uses centralized warehouses located far from cities. Involves longer logistics chains
and delivery schedules.
o Conventional Retail:
Goods are stored and sold directly from brick-and-mortar outlets. No delivery unless
supported by separate logistics.
4. Use of Technology
o Q-Commerce:
Heavy reliance on AI, Big Data, Machine Learning, and IoT for real-time decision-
making, demand forecasting, inventory tracking, and route optimization.
o E-Commerce:
Uses technology mainly for inventory management, personalization, and online
marketing, but not always in real-time or hyperlocal settings.
o Conventional Retail:
Uses minimal technology—mostly Point of Sale (POS) systems, basic inventory tools,
and some customer loyalty programs.
5. Customer Experience
o Q-Commerce:
Offers a highly personalized, fast, and seamless experience. Designed for convenience
and instant need fulfilment.
o E-Commerce:
Focuses on variety, convenience, and price rather than immediacy. Good for planned
purchases but not urgent needs.
o Conventional Retail:
Relies on in-person service and physical touchpoints. Offers personal interaction but
lacks digital convenience.
6. Business Focus and Target Audience
o Q-Commerce:
Targets urban, tech-savvy, time-sensitive consumers—especially working
professionals, students, and families.
o E-Commerce:
Appeals to a broader audience across urban and semi-urban areas, ideal for price-
conscious or variety-seeking shoppers.
o Conventional Retail:
Attracts local and traditional shoppers, including those who prefer physical inspection
before purchase.

E-
Feature Q-Commerce Conventional Retail
Commerce

1–3 days (or

Delivery Time 10–30 minutes Instant (in-store)
more)

Limited
Product Range Wide variety Store-limited
essentials

Fulfilments Hyperlocal Centralized

Physical outlets
Model dark stores warehouses
 E-
Feature Q-Commerce Conventional Retail
Commerce

Moderate
Advanced (AI,
Tech Integration (Web, App, Low (POS, CRM)
IoT, Big Data)
Analytics)

Customer Instant, Convenient,

Personal, traditional
Experience personalized varied

Urban, time- General

Target Audience sensitive online Local, physical buyers
shoppers shoppers

4. TECHNOLOGIES BEING ADOPTED BY Q-COMMERCE COMPANIES

To deliver goods in under 30 minutes and maintain high customer satisfaction, Q-Commerce
companies are adopting cutting-edge technologies. These technologies play a role across the
entire value chain from order placement to last-mile delivery.
Artificial Intelligence (AI):
o Product Recommendations: Suggests items based on past orders and preferences.
o Smart Routing: AI optimizes delivery routes in real time based on traffic, weather, and
order volume.
o Inventory Optimization: Predicts demand for each location to minimize stockouts and
overstocking.
o AI Chatbots: Handle customer queries, complaints, and service requests without
human intervention.

Big Data Analytics:

o Customer Insights: Tracks purchasing patterns, preferences, and peak buying times.
o Behavioural Analysis: Helps segment customers for targeted marketing.
o Dynamic Pricing: Uses data to adjust prices based on demand, time of day, and
competition.
Internet of Things (IoT):
o Smart Warehouses: Use sensors to track inventory levels and automate restocking.
o Cold Chain Monitoring: Ensures perishable items like milk or ice cream are delivered
at the right temperature.
o Fleet Tracking: Monitors delivery partner location and performance in real time.
Machine Learning (ML):
o Fraud Detection: Identifies unusual behaviour and flags potential fraudulent
transactions.
o Customer Sentiment Analysis: Analyses reviews and feedback to understand
satisfaction levels.
o Delivery Time Prediction: Continuously learns from delays and improves ETA accuracy.
Cloud Computing:
o Data Storage & Access: Allows real-time access to customer and operational data.
o Scalability: Supports app performance even during high-demand times like festivals or
sales.
o Security: Provides encryption and secure payment gateways.

5. UNDERSTANDING CUSTOMER EXPERIENCE AND CUSTOMER DELIGHT

Customer Experience (CX):
Customer Experience refers to the cumulative impression a customer forms based on all
interactions with a brand from app usage and order fulfilment to post-sale support.
Key Elements of a Great Customer Experience in Q-Commerce:
• Simple, fast, and user-friendly ordering process
• Accurate and real-time order tracking
• Prompt and polite customer support
• Consistency in delivery time and product quality
Customer Delight:
Customer Delight happens when a brand goes above and beyond the customer’s expectations.
It involves emotional connection, surprise elements, or exceptional service.
Examples of Customer Delight in Q-Commerce:
• Personalized thank-you notes
• Surprise discounts on special occasions
• Timely resolution of complaints with apologies and compensation
• Exclusive previews of new products

6. HOW AI AND OTHER TECHNOLOGIES ENHANCE CUSTOMER EXPERIENCE

AND DELIGHT
Let’s understand the impact of technology on each stage of the customer journey:
Before Ordering:
o Personalized Browsing: AI recommends frequently ordered or high-interest items.
 o Localized Product Listings: Big data ensures the catalogue reflects the most relevant
items for each locality.
o Promotions & Notifications: Smart notifications alert users to discounts they care
about.
During Ordering:
o Instant Confirmation & ETA: AI predicts and displays exact delivery time.
o Order Accuracy: Real-time inventory systems reduce out-of-stock scenarios.
o Smart Payments: Secure and quick checkouts via integrated digital wallets and UPI.
Delivery Phase:
o Live Tracking: GPS and IoT allow customers to monitor their order’s location in real
time.
o Rider Optimization: AI assigns deliveries to the most efficient riders for time savings.
o Route Optimization: ML continuously improves route selection to avoid delays.
Post-Delivery:
o Feedback Systems: Customer sentiment is analysed for future improvements.
o Loyalty Programs: Customers get rewards based on AI-segmented loyalty brackets.
o Complaint Resolution: AI chatbots handle issues 24/7 with instant refunds or reorders.
Emotional Engagement:
o Surprise Elements: AI can trigger surprise freebies for high-value or long-term
customers.
o Customer Anniversary Rewards: Big data tracks account creation anniversaries or
birthdays for gifting offers.
CONCLUSION
Quick Commerce (Q-Commerce) represents a transformative shift in the way consumers access
and receive essential goods. It goes beyond simply providing rapid delivery—it’s about
redefining the customer journey by offering convenience, precision, and personalized service
in real time. In an era where customer expectations are higher than ever, Q-Commerce
companies are leveraging the latest technologies to stay ahead of the curve.
At the heart of this revolution lies the integration of advanced technologies such as:
• Artificial Intelligence (AI): Powers smart recommendations, dynamic pricing,
chatbots, and predictive analytics to personalize each customer’s experience.
• Big Data Analytics: Helps in understanding buying behaviour, forecasting demand,
optimizing inventory, and refining marketing strategies.
• Internet of Things (IoT): Enables real-time tracking of inventory, delivery vehicles,
and ensures a seamless supply chain.
• Cloud Computing: Offers scalability, flexibility, and real-time data access across
platforms and devices.
These technologies collectively enable Q-Commerce platforms to deliver faster, smarter, and
more accurate services—creating a frictionless experience that delights the customer at every
touchpoint.
Moreover, innovations like real-time order tracking, hyperlocal warehouses, and automated
delivery systems enhance transparency and reduce waiting times, while customer support
powered by AI ensures instant query resolution and satisfaction. As a result, Q-Commerce
brands are building stronger relationships, increasing retention rates, and driving long-term
customer loyalty.
Looking ahead, the role of technology will only grow stronger. With evolving customer habits,
expectations for instant gratification, and the rising competition in the digital space, companies
must continually innovate to stay relevant. Future advancements in machine learning, drone
delivery, and augmented reality could further elevate the Q-Commerce experience.
In conclusion, Q-Commerce is not just a trend—it's the future of retail. By aligning speed with
personalization, automation, and intelligence, Q-Commerce businesses are setting a new gold
standard in customer experience and delight, one delivery at a time.