Quality Management about Tiki Delivery

VIETNAM INTERNATIONAL UNIVERSITY HO CHI MINH CITY INTERNATIONAL UNIVERSITY DEPARTMENT OF INDUSTRIAL SYSTEM ENGINEERING REPORT QUALITY PRODUCT OF TIKI COURSE QUALITY MANAGEMENT LECTURER Mr Duong Vo Nhi.

VIETNAM INTERNATIONAL UNIVERSITY HO CHI MINH CITY INTERNATIONAL UNIVERSITY DEPARTMENT OF INDUSTRIAL SYSTEM ENGINEERING REPORT QUALITY PRODUCT OF TIKI COURSE: QUALITY MANAGEMENT LECTURER: Mr Duong Vo Nhi Anh January 2022 Semester Group members Content Abstract Bui The Vinh IELSIU18176 Company background Product portfolio Problem identification Deming Cycle or Giang Plan-Do-Check-Act Cycle: Pham Mai The IEIEIU19047 Deming Cycle: Conclusion Scope of future Nguyen Ngoc Gia Han IEIEIU19047 Nguyen Vu Duy IELSIU18027 Huynh Thi Quynh Nhi IEIEIU19062 Tran Quynh Chau IEIEIU18010 Abstract Quality used to signify customer satisfaction or appropriateness for a certain use "Meet Requirements," "minimize variability," and "satisfy the client" are now common phrases used to describe quality Professional organizational quality refers to the ability of a service or product to effectively and efficiently satisfy the demands of society To identify and fix the problem in this case study, PDCA analysis was used We discovered that there were four serious issues out of a total of fifteen The purpose of the study is to reduce the quantity of faulty, counterfeit, or damaged merchandise that reaches customers as a result of storage and transit Cause and Effect Analysis, root cause identification, and the most comprehensive method for moving items from the supplier's chain to the customer's hand Company background Tiki.vn was founded in March 2010 and is now the top e-commerce site in Vietnam and the top in Southeast Asia in the Top best place to work in Vietnam in the Internet/E-commerce business (chosen by Anphabe) (voted by HR Asia) Tiki is a business ecosystem that includes firms like: - TiKi Joint Stock Company (TiKi) is the entity in charge of establishing and organizing the e-commerce platform www.tiki.vn, which allows merchants to perform part or the entire process of buying and selling products and services on the platform - Tikinow Smart Logistics Co., Ltd (TNSL) is an end-to-end logistics, transportation, and postal services provider for the www.tiki.vn E-commerce platform - Ti Ki Trading Company Limited (Tiki Trading) operates an e-commerce platform where it offers goods and services - Tiki Trading and Exchange, the company's retail division, sells 10 million items over 26 categories to millions of people around the country Tiki's slogan is "All for Clients," and the company is constantly striving to enhance the quality of its services and products in order to provide Vietnamese customers with a comprehensive shopping experience that includes speedy delivery Tiki NOW launched in Southeast Asia for the first time in hours and the following day, with the same dedication to provide authentic items and a 111% return guarantee if counterfeit goods are discovered Product portfolio Established in March 2010, up to now, the Tiki e-commerce website provides products in 16 categories as follows: - Books, VPP and gifts - Phones – Tablets - Electronic refrigeration - Digital equipment – Digital accessories - Laptop - IT equipment - Camera - Filming - Electric Appliances - House of life - Consumer goods - food - Toys - Mother and baby - Beauty – Health - Fashion - Accessories - Sports - Picnic - Motorcycles, Cars, Bicycles - International goods - Vouchers, services, scratch cards Problem identification Despite the fact that Tiki is a leader in the provision of intermediate products through suppliers and buyers, with such a big volume of goods, it is hard to avoid making mistakes There are four typical faults in faulty items, according to our study - Firstly, items cannot be 100% examined, thus there will be instances where defective products are combined together and sold to buyers - The second is that fragile items or those that require a specific temperature, for example, will be damaged or broken during the transit process - The next issue is the delivery of the incorrect goods to the consumer; despite the fact that the staff packs the products with great care, this can still happen owing to overloaded orders - The fourth point is that the product has an expiration date Because certain items not have a large number of customers, protracted storage might cause the product to expire before or around its expiration date when it is delivered to the client's hands Because four such mistake behaviors can have a significant impact on Tiki sales, we'll look into the underlying causes of these issues before determining the best course of action Deming Cycle or Plan-Do-Check-Act Cycle: Dr William Edwards Deming is best known for reminding the management that most problems are systemic and management’s responsibility to improve the systems so that the workers can their jobs more effectively Deming advocates closely monitoring all production processes with statistical tools By using statistical tools, people will accurately identify the causes of defects in the production process to proceed with error correction or work improvement On that basis, productivity and quality of products and services are improved In this way, people not have to spend much but still maintain an efficient, high-productivity machine Deming's philosophy is summarized in his famous fourteen points, and it serves as a framework for quality and productivity improvement Instead of checking the final result to find out what is wrong, Deming focuses on checking each production process and emphasizes on workers and management to achieve high-quality products Deming’s Fourteen Points: Deming offered 14 key principles to managers for transforming business effectiveness and help organization to survive in the long term: Create a constant purpose toward improvement Adopt a new philosophy Stop depending on mass inspection Use a single supplier for any one item Improve constantly and forever Use training on the job Implement Leadership Eliminate fear Break down barriers between departments 10 Get rid of unclear slogans 11 Eliminate management by objectives 12 Remove barriers to pride of workmanship 13 Implement education and self-improvement 14 Create a structure in top management The Deming Cycle: Known as the Deming Plan-Do-Check-Act (PDCA) Cycle, this cycle was invented by Sheward and popularized by Deming This method involves a cyclic procedure for designing and testing improvement actions prior to full-scale implementation and/or formalization When a new concept for improvement is developed, it's generally a good idea to try it out on a small scale first to see if it works Furthermore, Employees have more time to accept and support a change if it is introduced on a small scale The Deming PDCA Cycle facilitates efficient system administration, Limit and eliminate mistakes, avoid criticizing one another, and ensure that mistakes are not repeated The following are the steps in the Deming PDCA or PDSA Cycle, as indicated: Make a modification or run a test (P) Carry it out (D) Carry out the change or test on a modest basis, if possible 3 Double-check it (C) Examine the impact of the modification or test Look into it (S) Put what you've learnt into practice (A) 5.Repeat Step with new information Continue with Steps 2–6 Constantly assess and improve The four steps of PDCA are: Plan: Establish the goals and methods needed to achieve the intended outcomes Do: Carry out the goals set forth in the preceding stage Check: Monitor, analyze, and report on the processes and results in relation to the objectives and specifications Examine the test, evaluate the findings, and determine what we have learnt Act: Actions should be taken in response to the outcome in order to enhance it Review all processes and make any necessary changes to improve the process If the change does not work, repeat the process with a different strategy If successful, apply what we have learned to larger improvements Restart the cycle by using what we have learned to plan new improvements - Increased Penalty Costs: ● When there is a mistake, the company may have to compensate the customer through a discount, free price, or the company must compensate an amount of money according to the commitment from the company - Increased Operational Costs: For every missed delivery, retailers have to pay additional costs for redelivery, including: ● Additional fuel cost ● Additional transportation cost, - Customer dissatisfaction: When faced with a negative delivery experience, strict customers will never trust a retailer again and will avoid shopping with that retailer at any time in the future So if a delivery is missed, it could be the customer's last purchase Dissatisfied online customers will quickly turn to a competitor when their buying experience is adversely affected - Damage to the Retailer’s Brand Reputation: Missed deliveries not only have cost implications, but they can also hurt a retailer’s brand reputation Poor brand perception results in the loss of repeat customers and failure to attract new customers - Poor Online Reviews & Ratings: Online customers are very quick to vote or rate a company/retailer with clicks based on their experience With a negative delivery experience, many customers end up posting negative reviews on social media and forums that discourage potential buyers from purchasing from that retailer So, when you lose an existing customer due to a missed delivery, you may meet negative online reviews or negative word-of-mouth publicity, which will make it harder for you to acquire new customers - Increased Environmental Damage: - Lost Revenues: ● An existing customer will buy more from you and will also recommend your business more than a new customer But when deliveries get missed or delayed, customers abandon shopping with that retailer altogether ● The customer stops not only online but in-store shopping as well So, loss of existing customers due to missed deliveries would result in loss of substantial revenues - Increased Cost of New Customer Acquisition Solution: - Improve Inventory Management, organize the warehouse: Warehouse plays a very important role in the supply chain Having a well-organized warehouse will help you control the goods entering and leaving the warehouse, the quantity and quality of goods in the warehouse, thereby reducing missed deliveries - Implement logistics software: By automating your delivery process, you can reduce the chance of missed or late deliveries The company will have to spend an initial cost to apply technology for logistics automation, but the long-term benefits it can bring are immense - Strong communication with customers: Having a well-organized communication system to connect with customers is important Through this system, the company can provide customers with details of products, promotions, delivery times and routes Also, if there are problems during the transportation of goods, the company can send notices to customers quickly - Appropriate compensation policies: No matter how well the supply chain works, missed or late deliveries are still possible At this point, the company needs to apologize and have an appropriate compensation policy to appease customers This will make customers not completely lose faith in the company, and at the same time can increase their sympathy about the way the company works - Tighten product quality control from the input until the product reaches the customer - Apply artificial intelligence (AI) and machine learning systems to continuously scan a large number of data points; check information and alert signals indicating that businesses are selling products of unknown origin, while also preventing the sale of low-quality products using the pre-installed keyword system - Investing in infrastructure and boosting the number of specialized employees - Coordination of many agencies such as information technology, customs, tax Short-Term: The purpose of this project is to appeal to consumers and provide a better experience However, the most important thing is that consumers have to buy the best quality product at the best price Long-term: We expect Tiki to become the no.1 e-commerce company in Viet Nam as we follow this plan to improve customer experience over the next few years Action Plan: + Warehouse: No Action Implementing Date of completion person/department Warehouse Manager December 15th, 2021 Logistics Manager December 15th, 2021 software that best suits the company Improved communication system Customer Service January 31st, 2022 Refine the number of customer service Department staff Conduct customer surveys about the Customer Service company's customer care and Department Reorganize the warehouse, research and build an accurate and optimal inventory and packing system Research the costs, benefits and feasibility of logistics automation software, then choose or create the February 15th, 2022 compensation policies Fix the policies (within the company's ability) if necessary + N Technology Suggested Actions Person responsible Completion date o Specialized employees will undergo customer service training Sales manager September 2021 Proposing procedures such as refunding clients if a purchase is Chief Product Officer November 2021 Chief Technology November 2021 later discovered to be a fake, and getting coins for providing feedback on things purchased on Tiki Design a website for customers to report fake products Officer The more the shop's penalty points, the less help it will receive Chief Technology Starts in from Tiki; the system's greatest penalty is to temporarily shut Officer December 2021 the sales account for year and remains ongoing Use artificial intelligence (AI) and machine learning to detect Technical Director Starts in warning signs that a company is selling products from an December 2021 unknown source and remains ongoing Return Policy: ● Step 1: Register (required) Contact Tiki Care and provide details about product problems including: - Order number: - Product's name: - Product problems (detailed description and attached photos/clips): - Need for support (exchange/return/warranty):  Step 2: Receive confirmation of successful exchange/return/warranty registration and packing instructions After the exchange/return/warranty request is accepted, Tiki will send customer packing instructions with return code via email or app notification ● Step 3: Packing Refer to the packing instructions in the email or here For convenience during delivery at the store, please paste the return code on the outside of the package ● Step 4: Bring the product to the partner store Bring the product to the selected partner store address within days Past the above time, the product return registration code will be automatically canceled Refund method: Tiki will support customer to return the product and not collect any additional costs Pack the product so that Tiki can recall it for free Refund method: For orders that have been paid in cash: Tiki will refund by transfer or Tiki Coin (e-money of equivalent value) after receiving the returned product from the customer For orders that have been paid online: Tiki will refund to the account customers used when making payment Conclusion Scope of future ... HR Asia) Tiki is a business ecosystem that includes firms like: - TiKi Joint Stock Company (TiKi) is the entity in charge of establishing and organizing the e-commerce platform www .tiki. vn, which... - Tikinow Smart Logistics Co., Ltd (TNSL) is an end-to-end logistics, transportation, and postal services provider for the www .tiki. vn E-commerce platform - Ti Ki Trading Company Limited (Tiki. .. striving to enhance the quality of its services and products in order to provide Vietnamese customers with a comprehensive shopping experience that includes speedy delivery Tiki NOW launched in