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SHOPEE LOGISTIC SUPPLY CHAIN

Cosmetic Industry
GROUP 7

INTRO TO LOGISTICS & SUPPLY CHAIN MANAGEMENT

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Meet Our Team

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Outline 01 Company background

02 Business Development Management

03 Order Fulfilment Management

04 Transportation Management

05 Customer Service Management

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COMPANY BACKGROUND
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Shopee is a leading e-commerce platform in

Southeast Asia and Taiwan
Content Content Content
https://www.linkedin.com/company/shopee

2015: First launched in Singapore

08/2016: First launched in Vietnam

Business model: C2C and B2C

Up to now, Shopee has expanded its reach to

7 countries: Singapore, Malaysia, Thailand,
Indonesia, Philipines, Taiwan and Vietnam.
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In 2018, Shopee ranked at the first

Shopee has had 80 million app downloads place among one of the most popular
with 180 million active products and over 4 e-commerce platforms in Vietnam
million users. (Q&Me).

(Source: cedcommerce)
https://cedcommerce.com/blog/shopee-growth-info-graphic/
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BUSINESS DEVELOPMENT
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OUTLINE
Definition

Shopee business development process

BUSINESS
Managerial responsibilities DEVELOPMENT

Logistic value

Challenge,problem & KPI’s

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1. What is Business Development?

DEFINITION
vBusiness development is the creation of long-
term value for an organization from
customers, markets, and relationships (Scott
2012) https://www.forbes.com/sites/scottpollack/2012/03/21/wha
t-exactly-is-business-development/#261efa5b7fdb

vBasically, it is defined as the practice of

growing a business beyond its current state.
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2. SHOPEE BUSINESS DEVELOPMENT PROCESS
IN COSMETIC SUPPLY CHAIN
ACCEPTANCE
Shopee Business
Development SEARCHING CHECK DOCUMENT The company fulfill all conditions
SALES PROCESS
Officers/Representatives PARTICIPANTS LEGALIZATION and become a Shopee Mall and is
able to sell on Shopee

REFUSAL

Seeking for cosmetic In order to join Shopee The company can not
companies that need to Shopee sells the logistic Mall, participants need fulfill all conditions and is
sell or promote their services for the companies, to provide several legal not able to become a
products which means convincing documents. Shopee Mall
companies to join Shopee Mall => Shopee checks the
trading floor documents legalization

For example, in cosmetic industry, there is some necessary documents

that participants need to provide, such as :
• Business registration certificate
• Trademark registration
• VAT receipt from brands (for
retailers)
• Notification of cosmetic product Source: https://help.shopee.vn/vn/s/article/L%C3%A0m-c%C3%A1ch-
n%C3%A0o-%C4%91%E1%BB%83-tham-gia-Shopee-Mall-1542942528014
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EXAMPLE OF SOME COSMETIC BRANDS THAT SHOPEE HAD SUCCESSFULLY SOLD THE
LOGISTIC SERVICE AND THE BRANDS BECAME SHOPEE MALLS

VICHY

UNILEVER P&G

https://vnexpress.net/kinh-
doanh/thuong-hieu-lon-chi-manh-tay-
cho-thuong-mai-dien-tu-3801575.html

L’Oreal
 MANAGERIAL
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RESPONSIBILITIES
Identify and understand the needs of
customers and their buying pattern to
develop suitable future strategies.
For cosmetic supply chain: seasonal cosmetic, promotions,
events,…

Proactively looking for new trading

opportunities, potential participants and
unexplored market.
For cosmetic supply chain: finding new cosmetic brands

Ensure the products quality and

authenticity, minimize the number of poor-
quality products
Increase the revenue for Shopee
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LOGISTIC VALUE

Convenience value Dependability value

Guarantee 100% Authentic Products with
More brands => More products available
Shopee Mall
=> Provide customers a variety of product
Shopee Mall is a dedicated feature which
categories to meet their needs.
includes Official Brands and Top Sellers.
All the products from Shopee Mall is 100%
Authenticity Guarantee for customers.
=> Gain and strengthen customers’ trust
and loyalty.

Time value
Availability of products => Customers using
Shopee are able to stay at home and shop
online almost every products, which help
them to save time by getting rid of traffic
jam and waiting line.
.

Duong Huong Giang –s3798546

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PROBLEM

❖ Uncontrollable number of fake and the poor-quality

products.

❖ In order to promote new brands or shops, Shopee

forces buyers to follow the shop to get promotions,
which can cause annoyance sometimes.

❖ Issues with customers’ trust

 EXAMPLE OF BUSINESS DEVELOPMENT
PROBLEM https://www.facebook.com/quillessay

For example, LAZADA also had the same problems with poor-quality and fake
products, which leads to another problems: reducing customers’ trust level
and lost customers.

https://news.
zing.vn/hang-
gia-nhai-ban-
tran-lan-
lazada-va-
shopee-noi-gi-
post966836.h
tml

(https://openstock
.vn/vi-sao-mua-
hang-tren-lazada-
thuong-xuyen-bi-
loi/ )

https://dantri.com.vn/suc-manh-
so/lazada-mat-long-tin-nguoi-
dung-viet-loi-tai-ai-
20170522141232958.htm
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CHALLENGE

➢Strong competitors: Lazada, Tiki, Sendo, Adayroi,…

➢Promote not well-known brands at the initial stage

➢Fast changing of beauty trends => Challenge to update the

trends, find the brands (buyes) that follow the trends.

➢Take advantage of rural market:

70% of population is located in the rural, remote and mountainous
areas. However, only less than 10% of transactions have been
implemented there. -> due to limit approach to Internet and
technology, lack of knowledge about e-commerce

https://vietnamnews.vn/economy/talking-shop/519133/viet-nam-needs-
sustainable-e-commerce-development.html#YXPiHIZu5ZQi2yu4.97
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Infographic
KPI’s Style

Overallrate
Cancellation review rating(stars)

Content Content Content

Cancellation rate
For example: Amazon policy is that sellers
have to maintain the cacellation rate <2.5% in
order to sell on Amazon or their account will
be deactivation
https://sellercentral.amazon.com/gp/help/external/G200285210

Return rate
For example: Amazon return rate is generally
about 5-15%

https://www.quora.com/What-is-the-average-return-rate-for-Amazon
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Order Fulfilment
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Shopee Order Fulfillment

1st 2st 3st 4st 5st

Receive customer Checking if their Preparing goods for Uphold product on Outsourced distribution
orders. customer is valid delivery the transportation channel
vehicles for
delivery,
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Communication Pre-transaction
Understand the customer
requirements

Transaction Post-transaction
Communicating with Contents Contents
Contacting customer if there is anyone
customers available to collect at home

Dependability
Ø Willing to postpone delivery in order to ensure quality checking
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Problems associated with order fulfilling

Incorrect information
Orders may sometimes be misplaced

Customer canceling
Cancelling order late is the most concerned issue order too late

Buying internationally is highly demanded, thus very potential Package loss

market.
Ignoring customers
queries
Shopee has poor after sale service

Unknown sources
Hence the website credibility is much lower compared to other
providers like (TIKI, Lazada)
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REFRERENCE
• Hao.D, P.blog, ‘All You Need to Know About Order Management And How to Speed Up Your
Procurement Timeline’, viewed December 5 2019,
<https://blog.procurify.com/2018/03/13/need-know-order-management-speed-
procurement-timeline/?fbclid=IwAR3E65BHtU-
3P2gxo0sdGlBC3fd61j7tBOYyccVZiaSQZ5LbuCyIs7zzHpQ>.

Lopienski.K, The ShipBob Blog, ‘What Does It Mean To Outsource Order Fulfillment, And
When Should You Do It?’, viewed December 5 2019,
<https://www.shipbob.com/blog/outsource-
fulfillment/?fbclid=IwAR0dG7OQ_3ACcLGC5sWndTvqxKo1KjhtnAOXIl6q-
vSYXLYddsVW2HDUHmk>.

Reynolds. M, Bizfluent, ‘Order Processing Problems’, viewed December 5 2019,

<https://bizfluent.com/about-6082929-order-processing-problems.html>.

Weiss.D, Skunexus, ‘10 Fulfillment KPIs You Cannot Ignore’, viewed December 5 2019,
<https://www.skunexus.com/blog/fulfillment-
kpis?fbclid=IwAR0wO4QiVaIJ1IOK2LG_OXP26YRl424JnU8YlKy-de7aSC-USN8fmkLfrLk>.

Kieu Khanh Lam –s3773764

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Transportation management
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OUTLINE
Overview of Transportation management

Objectives

TRANSPORTATION
Transportation management process MANAGEMENT

Logistic value

Challenge,problem & KPI’s

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1. Overview of Transportation management

v Transportation is the movement of goods between

geographically separated partners and facibilities in
the supply chain.

v Transportation facilitates the creation of time and

place utility in the supply chain.

v Transportation also has a major economic impact on

the financial performance of businesses.
( RMIT University 2014)
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Content Content Content Content

Maximize value of their services to match customers’ needs.

Negotiating prices to cover delivery costs.

Ensure the optimal effectiveness and efficiency in their

services.
2. Objectives
( Introduction to Logistics & Supply Chain
Management – week 6 )
3. Shopee transportation management
process:
Choose 3PL
(Vietnam Post, GHN,
Viettel post, GHTK
Chose transportation mode Customers
( car, train, airplane,…)
Price
Picking up products
from sellers

Sellers

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EXAMPLE:
Innisfree Vietnam

Retailers
Official Stores (Cosmetics shop)
(Ba Trieu, Vincom TDH,..)

Picking up transportation mode

(truck, motorbike, car,…)

Choosing 3 party transportation

(GHN, GHTK, Viettel Post, Vietnam Post)

Customers
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4. LOGISTIC VALUE

Dependability value =>The better we solve those problems, the

Restrict the risk of stock-out more appreciative they are, and the better
their experiences in dealing with your
business.

Time value
Improve degree of control over the order
cycle
.
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5. PROBLEM/ CHALLENGES

❖ The delivery delays => increase warehousing expenses.

❖ High intensity of transportation and low-quality transport

infrastructure ( for example : traffic jams).

❖ Lack of transportation

v Lack of control with 3PL => Some problems with shipping

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EXAMPLE OF TRANSPORTATION MANAGEMENT PROBLEM

For example, SHOPEE and LAZADA had the same problems with lack of control with 3PL
( giaohangnhanh, giaohangtietkiem) when working with them.

https://news.zing.vn/mua-hang-qua-lazada-shopee-khach-
than-phien-vi-du-kieu-rac-roi-post850028.html

https://news.zing.vn/n
hung-lan-giao-hang-
nhanh-bi-to-trao-hang-
co-gia-tri-
post867405.html
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Infographic
KPI’s Style
On time pick-up and delivery( Amazon delivery on
time 89% (Robert, 2019))

Ensure safety for labors

Content Content Content

Protect products quality

Minimize transportation cost

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Customer Service
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Over view of customer

service

Customer service is a process

that makes the clients feel
trusting, secure, relaxed, and
well-disposed toward a company,
staff, and the products and
services that the company
provides for customers.

https://journals.lww.com/thehearingjournal/fulltext/2002/07000/Excellent_customer_service__Don_t_try_to_practice.5.aspx#O2-5
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Objectives

Gain a competitive advantage

Satisfy clients

Build loyalty

Raise expectations of clients

Gain profitable opportunities

http://www.ijhssnet.com/journals/Vol._1_No._7_[Special_Issue_June_2011]/33.pdf
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Customer
values
Time factor Convenience factor
- Saving delivery time - Buying any product from
- Reducing time buying anywhere
goods in different places T C - Restricting physical
constraints

Communication factor
Dependability factor
- Accurate order information
- Transfer clearly C D - Rapid purchase
information procedures
- Safe transaction
policy
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Service Support
Support

Webchat
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Service Support

Service Form
(Email)
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Service Support
Support

Hotline
Hotline
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Challenges

01 02 03 04

Lack of control in Order condition Unfair Lack of control

seller’s account standard return fees in product’s
policy quality

https://www.trustpilot.com/review/shopee.com.my
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KPIs

vUnderstanding customer satisfaction

- Consistent and accurate manner in delivery
- Customer retention rate
- Number of issues/ complaints
- Accurate information

v Efficiency
- Timely
- Quickly answering customer’s request
(based on average response time)

https://www.salesforce.com/blog/2013/08/customer-service-stats.html
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THANK YOU!