Problem of statement
Globalization and international integration brings tremendous opportunity opportunities for enterprises after Vietnam joins series of international trade organizations (WTO-2007, TTP 2015, EVFTA-2015, ASEAN-AEC ) However, most business executives and enterprises managers spend a lot of time for finding solutions to overcome challenges and competitive pressures than expected business opportunities that these agreements bringing out
The solutions are often mentioned in economic research and business strategy building such as: enhancing product quality, reduce product costs, building and brand management, innovation-creative, enhance qualifications, modernizing equipment and technology, increasinge investment and international cooperation These solutions are absolutely correct in terms of business strategy However, to help make these strategies are effective as expected, the internal problems of the business needs to be a basically rebuilding, which , logistics is one of the aspects that businesses in Vietnam have not yet widely appreciated This is an activity that appeared in the entire process of production and business of enterprises Logistics take an important role in the planning and using of materials in production, transferring of goods to consumers, and even in the management process of funds and human resources This activity contributes to lowering the cost of production and business, shortening the time for circulation of goods, capital optimization, ensure deadline and progress of business contracts and partly enhance reputation and corporate brand
In electronic commerce (E-commerce), logistics plays an active role in the Back-End 1 activities of E-commerce enterprise with the basic objective is the delivery time, a sufficient number quantity, right place, right customers enhances competitive advantage for businesses Although since 2011 to date, the logistics service in Vietnam has been developinged rapidly, it has not yet to meet the needs of e-commerce Also, many e-commerce businesses (considered as the big enterprises in the field of e-commerce) must be close downd last year as: Beyeu.vn, Deca.vn,
Fab.vn, and Lingo, recently
Comment [THP2]: Không hiểu ý câu này là gì nên không chỉnh được ngữ pháp Hiện ngữ pháp và cách dùng từ đang bị sai
Vietnam E-commerce and Information technology Agency (VECITA) reported that, the interests of online consumers in Vietnam have not been adequately protected
While 40% of online customers think that the price of online shopping is not cheaper than tradition, 38% are worriedy (and complain) about the time of delivery (sometime missing or lost) In addition, as the report of VECITA, Vietnam E-commerce is not as developed as its potential 2 This is the biggest barrier to e-commerce businesses in Vietnam, and this is one of the top priorities that businesses in the field of e-commerce in Vietnam have to solve remove/ take off in the near future
With these above briefly outlined of limitations, the author selected the topic
"E-Commerce logistics in Vietnam: The reality and solutions" to complete the
Literature review
Logistics in business is not a fledgling area of research in the world (as in Vietnam) The first study in this area was formed in the lately 60s of the last century by E.W Smykay, Donald J Bowersox, Frank H MossmanEW Smykay, Donald J
Bowersox and Frank H Mossman 3 with a book about "Physical distribution development, current status, and potential" ” In this study, the authors acknowledged the formation of a new business field called Logistics (associated with company of Malcolm P McLean - the father of the oversea shipping industry - the beginning of the global logistics sector) The authors noted that this is a totally different activity is way more different thanfrom the stages and processes of distributation in marketing and purchase management in production Shortly after this publication was published in
1969, the researchers and the business world were quick to learn the terminology of this logistics, contributing to the rapid development of a new study field in business
Research by Heskett, J.L., Glaskowsky, N.A and Ivie Jr 4 titled "Business Logistics", was published in 1973 In this period, the study of logistics issues to focused on distribution operations to reduce business costs Research has proven Logistics accounts a large amount of resources and the cost of production and business
2 With more than 90 million of population, 44%-48% population use internet, just 2.6 million online customers
3 Bowersox, D J (1969) Physical distribution development, current status, and potential The Journal of
4 Heskett, J L., Glaskowsky, N A., & Ivie, R M (1973) Business logistics; physical distribution and materials management (Vol 1) Ronald Press Co
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However, electronic trading was underdeveloped, so this study purely confined Logistics within the visible material
In 1985, Jack W.Farrell made a research breakthrough in the field of logistics
Farrell‟s study titled of "New Clout for logistics" ” This study demonstrated the effectiveness of logistics wouldill increase when we consider Logistics on the integration view At the same time, the study also confirmed integrated Logistics will would bring more profit and competitive advantage for enterprises, improving the image and relationship with customers However, despite the views of FARELL is correct, this study has not implemented quantitative benefits that the authors stated
On the e-commerce field, the concept of logistics was originally considered as the traditional view (transport, cargo transfer ) However, theseis views were quickly rejected and backward with the rapid changes of e-commerce However, until now, research on the logistics of e-commerce is still a new array of topics in the world
In 2000, Deborah L.B 5 made a first study on the logistics of e-commerce, called
"“E-Commerce Logistics & Fulfillment: Delivering the Goods".” This work is fundamental reference for many next-after researches on theoretical perspectives and model However, the major limitation of this study is that the scope of study conducted in the UK, where e-commerce is not large enough (in the world) to widely applied
Recently, in 2013, Zhang Jin Shan conducted research "“Logistics and e- commerce logistics management" ” This is an in-depth study on logistics in E- commerce Beside the comprehensive overview of E-commerce logistics, this study has performed a quantitative analysis of E-commerce cooperation in China - the largest online market of the world However, the author is not proposingdid not propose radical solutions to support the growth of Ecommerce in China Logistics
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In Vietnam, the researches on this field were most deployed on the base of traditional view of logistics On the aspect of the international experiences, study made by the Ministry of Trade of Vietnam (2006) (ministerial-level) with the title of
“International experiences in Logistics and lessons for Vietnam"is was a good reference In this study, the authors assessed the impact of logistics to business and business results of enterprises in Vietnam, in general The success of this study on the lessons of international experience that is was very useful for Vietnam However, the authors have did not mentioned field of E-commerce logistics
Another theoretical study is the lecture book of Van, Doan Thi Hong This is a pretty comprehensive product This book contents 11 chapters all about the Logistics activities that includes: overview of the logistics, the logistics services sector, Logistics solution, Logistics Administrator, Customer service, Information systems, Reserves, Managing supplies, determine the need of supplies and materials demand forecast, transportation, warehouses However, as the same with the study of Ministry of Trade of Vietnam (2006), this study does not include reference to the category of e- commerce logistics
Thus, after the process of the review study, the authors recognize the “research gaps” in Vietnam is the logistics of e-commerce Most references in this field in Vietnam just VECITA annual reports (or some statement is not scientific research)
Therefore, the gap is defined here as e-commerce logistics in Vietnam The author hopes that, if the research objectives are solved in this study, this study results will contribute to fill the research gap as mentioned above.
Research objectives
General objective
This research overall is of an aim of assessing the situation in the electronic commerce logistics of Vietnam in order to propose solutions that support the development of electronic commerce, in general, and e-commerce logistics in Vietnam, in particular.
Detail objectives
- Clarify Theoretical Framework On E-Commerce And Logistics In E-Commerce
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- Study the actual experiences in E-commercial Logistics in the world and lessons for Vietnam
- Assessment the actual status of E-commerce and E-commercial Logistics in Vietnam, identify the achievements and limitations in this field of Vietnam
- Suggest some solutions to support for the development of Vietnam E- commercial Logistics
Research subjects
This research focuses on actual status in Viet Nam E-commerce and E- commercial Logistics
Research scope
Research at e-commerce sites of the world and Vietnam:
+ Some e-commerce businesses in the world: Walmart.com and Amazon.com + Some e-commerce businesses in Vietnam: Sendo.vn and Tiki.vn
Research methodology
Data collection methods
To achieve the objective of the study authors collected primary data and secondary data:
+ To collect secondary data on the logistic activity of e-commerce businesses around the world, the author use two large-scale e-commerce businesses, Walmart and Amazon, as the representatives The author collects data at the websites of these two enterprises on each logistic activity in e-commerce: Order processing, Inventory management, Transportation, Order refund; thereby drawing lessons on logistic for e- commerce businesses in Vietnam
+ To collect secondary data from e-commerce businesses in Vietnam, the author chose two representatives at e-commerce businesses: Sendo.vn and Tiki.vn
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From their data, the author found out the strengths and weaknesses in logistic activities of e-commerce businesses in Vietnam.
+ The author use data from the Vietnam E-commerce Association in 2016 to analyze the current status of environmental factors: Impact of external environmental factors (Legal Frameworks, Infrastructure information technology and Subjective factors of human resources in the enterprise) to clarify the factors affecting logistic in e-commerce of Vietnamese enterprises.
+ Primary data was collected by interviewing customers who have purchased goods via e-commerce channels of enterprises in Vietnam The purpose is to assess the level of satisfaction of customers about logistic policies in e-commerce of Vietnamese enterprises The author designs the questionnaire and asks the businesses to post it on their website to collect the customers' opinion The number of votes received by the author was 203 votes Therefore, the author conducted the study with 203 questionnaires.
Data processing methods
Data will be collected after processing by software Excel and Word software, in the form of graphs and tables
Research structure
Thesis is structured in accordance with the following content:
FOREWORD Chapter 1: Theoretical Framework On E-Commerce And Logistics In E- Commerce
Chapter 2: Logistics Status In E-Commerce Of The World And Vietnam Chapter 3: Solutions To Complete Logistics In E-Commerce In Vietnam
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THEORETICAL FRAMEWORK ON E-COMMERCE AND
E-commerce
E-Commerce is defined by many international organizations, but there is no uniform definition of e-commerce In general, definitions of e-commerce are divided into two groups depending on the point of view (Pu Xiao, Jin Si Shi Gang, Deng Bian Zhu, 1991)
In the narrow meaning, e-commerce is known limitedly to be the purchase and sale of goods and services through electronic means, especially via the Internet and other interconnected networks (Kearney, 2015)
According to the World Trade Organization (2010): "E-commerce consists of the production, advertising, sales and distribution of products which are purchased and paid on the Internet, but are the tangible products, including delivery products as well as digital information via the Internet.”
According to the Asia-Pacific Economic Cooperation (APEC) Electronic Commerce Committee (2012): "E-commerce is a business that is conducted through data communication and digital information”
According to Economic Informatics Department of National Economics University: "E-commerce is the exchange of commercial information through the means of electronic technology, doesn‟t need to be printed in any stage of the entire transaction process” (Mallik, Susan, 2010).
In broad meaning: E-Commerce is the financial and commercial transaction by means of electronic means such as electronic data exchange, electronic money transfer and sending / withdrawing by credit card (Rosen & Anita, 2000)
The E-Commerce Model Law of the United Nations Commission on International Trade Law (2010) defines: "The term e-commerce should be broadly understood to cover issues arising from all Commercial systems with or without contracts Commercial relationships include the following transactions: any transaction in the provision or interchange of goods and services, distribution agreements, representations or commercial agents, commission, long-term lease, construction works, engineering consultancy, capital investment, banking, insurance, concession, joint venture and other forms of industrial or business cooperation, freight or passenger transportation by sea, railway, air or by road "
The definition shows that definition of e-commerce is broad, covering almost all areas of economic activities, in which the purchase and sale of goods and services is only a very small area of ecommerce
Different perspectives have different definitions of e-commerce (Thomas L
- In terms of telecommunication: E-commerce is the transmission of information about products and services as well as payments through telephone networks, computer networks or any means
- In terms of the Business Perspective: Ecommerce is the application of technology towards automation in business transactions and workflow
- In terms of the Business Perspectives: Ecommerce is a tool to meet the expectations of companies and customers to cut costs while improving the quality of goods and speeding up the delivery of goods to customers
- In terms of the online landscape: Ecommerce provides the ability to buy and sell services and information online on the Internet
Therefore, e-commerce is divided into:
- E-tailing or virtual stores on the web with online catalogs are sometimes grouped into "virtual shopping centers"
- The collection and use of personal data through web contacts
- Electronic data interchange (EDI), data interchange between enterprises and enterprises
- Using email and fax are as a means of accessing and establishing relationships with customers
- Buying and selling between enterprises and enterprises
E-commerce includes the components as shown below:
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It can be seen in the figure that the infrastructure of E-commerce consists of four main elements: people, public policy, technical standards and organizations
- People include buyers, sellers, managers, servants and intermediaries
- Public policies include laws, tax circulars, and guiding documents
- Technical standards include documents on security and interchange protocols
- Organizations include partners, competitors, associations, committees of the state, government
The management of e-Commerce includes five elements: business services, information distribution, multimedia, computer networks and transactional facilities
- Business services include electronic payment systems, electronic authentication, transactional and security transactions
- Information distribution includes electronic data transmission, email and hypertext
- Multimedia: HTML standards, Java, www, etc
E-commerce is a new field, moreover, in terms of the composition of e- commerce, whose theoretical and practical foundation relies heavily on the theoretical foundations of other disciplines To research e-commerce, it is necessary to understand and apply the following works:
- Marketing: Many issues of marketing are directly related to e-commerce
For example, in marketing, it important to know how much it costs to spend on advertising as well as profit and sales
- Computer Science: The developmental base of e-commerce involves computer science such as languages, media, computer networks, network security, network intelligence, and so on
- Behavior and consumer psychology: Consumer behavior is the key to the success of B2C business
- Finance: Finance, banking are the main participants in e-commerce Many financial institutions play an important role in online transactions
- Economics: influenced by economic resources, the macroeconomic theory applied in the construction of e-commerce and e-commerce systems also re-impact the different economic sectors
- Management information system: it is responsible for the development of e-commerce such as system analysis, system development, insurance planning, protection and payment not only in a system but also from system to system
- Accounting, auditing: e-commerce audit is a challenge for the audit industry
- Management Science: The issues of e-commerce need to be managed properly Besides the usual management, e-commerce need a new management approaches
- Business Law and Business Ethics: Ethical and legal issues are very important in e-commerce especially in today's globalized world Many bills are drafted and become standard laws, for example, copyright law, intellectual property law, etc
- Other issues: language, sensory systems, management, public policy, health, communication, etc
E-commerce is divided into a number of models such as B2B, B2C, C2C based on ecommerce component The following figure can be used to illustrate how to divide these models
Table 1.1: E-commerce models Government Business Consumer
+ Business to Customer (B2C) model: Participants in commercial activities include business sellers and consumer buyers This model uses a web browser to search for products on the Internet, a shopping cart to store purchased products and make electronic payments
+ Business to Customer (B2C) model: Participants in commercial activities include business sellers and consumer buyers This model uses a web browser to search for products on the Internet, a shopping cart to store purchased products and make electronic payments
+ Business-to-Business (B2B) model: Participants in trading activities are enterprises, that means buyers and sellers are enterprises It uses the Internet to create relationships between suppliers and stores through quality issues and services Marketing between these two elements is marketing industry This model is carried out faster than the B2C model Customers (enterprises) are eligible to access and use the Internet or computer network and the electronic payment
+ Customer to Customer (C2C) model: In the C2C model, users are buyers or sellers at the same time and transactions are made directly between the consumers together through the intermediary site
+ Business-to-Government (B2G) and Government-to-Business (G2B):
These transactions include customs clearance, tax filing, financial reporting, and regulatory documents Customer to Government (C2G) includes construction permits, real estate registration, etc
These transaction models belong to a form called e-government E-government is the way in which governments use new technologies in their operations to make it easier for people, businesses to access information and services provided by the government; to improve the quality of services and to bring better opportunities for people, enterprises to participate in building institutions and the process of developing the country
Logistics in e-commerce
According to the Commercial Law 2005, "Logistics is a commercial activity whereby a trader organizes a single or multiple stages, including receiving, transporting, storing, storing yards, carrying out customs procedures, customer consultation, packing, marking, delivery or other related services as agreed with the customer for remuneration"
Logistics in e-commerce is the process of planning, designing and implementing all necessary elements of the system, process, organization and logistics to realize and materialize for ecommerce activities (Ruoxi Fan, 2014)
1.2.2 Components of Logistics in e-commerce
The components of logistics in e-commerce include order processing, warehouse management, shipping and returning process All these activities require close coordination and integration of information technology solutions
Ordering is the first step in the complex chain of logistics in e-commerce After finding the information on the website, customers can select some favorite products and then placed in the basket,; the order is made through the online order
The task of the ordering process firstly is to provide enough content and information for customers to make the right choice such as the type, request parameters, options on payment, delivery then the issue of order processing efficiency, involves setting standards to meet customer expectations
Features of e-commerce order processing are order fulfillment, to turn consumer electronic orders into parcels ready for final shipping to direct customers, to.Ccomplete high-end e-commerce orders and add value to your products
The journey of an order is a detailed representation of the order processing The journey of an order must go through many stages and handle a lot of relevant data (sales department, stockpile, manufacturing workshop, accounting department, transportation team) Therefore, the way of information transmission and processing has a great impact on the process of order processing If you are a small-scale manufacturing business, you can use manual methods (telephone, fax) to communicate orders and order management However, as the scale of production - business expansion, the method of crafting is exposed low accuracy and economic efficiency is not high and not meet the level of customer service
In terms of time, an order cycle is defined as the period from when the customer submits an order, the business proceeds with the purchase or provides the required service until products are delivered to the right customer address, accepted by the customer and complete the relevant documents
Total order processing time can be divided into two groups:
- Response time information: in the preparation / transmission / reception / status report With the journey of an order as described above, information technology plays a very important role in ensuring shortening order processing time while ensuring accuracy in the transmission process
- Order response time in terms of material: Gathering, packaging, shipping and delivery If the goods are available in stock, it depends only on the operation in gathering and grading according to the structure and size of the loading and transporting goods to customers This factor is directly influenced by the streamlined capacity of the warehouse operations process
In cases products are not available to satisfy orders, more time is needed to replenish supplies (buy / order suppliers)
Warehouse is an important part and is the most classic operation associated with logistics system, carrying out the function of storing, preserving, transferring raw materials, semi-finished products and finished products It involves consolidating, coordinating goods, preserving and storing goods Warehousing plays an important role in ensuring the continuity of the production and distribution of goods, contributing to lower production and transportation costs while improving the quality of customer service
Basic decisions in warehouse management include ownership decisions, concentration levels, and inventory layouts
Warehouse management in e-commerce is more difficult to predict the consumers‟ demand, because consumer goods are often unstable, short term and affected by impact of tastes To overcome this problem, e-commerce inventory management systems often integrate with supplier repositories and continuously exchange information as well as supply plans to manage inventory
Typically, the CPFR (Collaborative Planning, Forecasting and Replenishment) model improves predictability (30% to 40%), improves customer services and sales (15% to 60%) and shortens the order processing cycle (15% to 20%) (Sanja Lekovic,
2013) E-commerce products are stored at DCs and Fulfillment Center (FC), the task of moving, sorting, and finishing orders is rather than stockpiling
Fulfillment centers are built on the basis of e-commerce development, with higher order processing requirements both in terms of processing speed and value added, which a typical distribution center will not be able to undertake At the fulfillment centers, orders are completed including finding, assembling, or performing custom requirements, packaging, etc to form parcels ready for direct shipment to the consumers Fulfillment centers have very high area requirements, ranging from 500.0000 to 1 million m2, and operate 24/7
Demand and transportation challenges in e-commerce require a change in logistics distribution structure in e-commerce versus traditional retail and includes two main modes of transport: Line-haul transport and last-mile delivery, where end-point delivery is the most common feature in e-commerce shipping, which costs a great deal and is cost effective It is Ddirectly affected by changes in e-commerce such as small order fulfillment, dispersal, time and location, high processing requirements, and frequent interruptions payment, after-sales service and refund
Performing the task of delivering the end point, parcels are shipped directly to the consumer In addition, large-scale e-commerce may have delivery centers to handle the problem of reverse logistics The cost of distribution in logistics distribution shows that end-point delivery is the most expensive, and, accountsting for 40% of the total cost of distribution (A.T Kearney, 2015)
In e-commerce logistics activities, shipping is the most costly and important operation Customers may not be able to observe all the logistics activities in e-
Comment [A3]: Không hiểu muốn diễn đạt điều gì Câu không có Chủ ngữ, Vị ngữ commerce but only evaluate the quality of the procurement based on the final results of the deliveries
Factors influencing logistics in e-commerce
* Mechanisms and policies Favorable geographic conditions and infrastructure are the main factors that make it possible to apply and develop logistics operations in e-commerce in the country or region Whether e-commerce logistics is effective or not depends on the adequate legal environment and adequate ventilation TodaysToday, the activities of modern businesses in general and e-commerce businesses in particular require a comprehensive and rigorous legal system to ensure their interests in the fields of business The regulations on trade, shipping, transportation, and customs must be systematized by law If there is no regulations or unclear in the legal system, the activities of the business are hard to achieve the desired effect
As a result, legal policy has a direct impact on logistics in e-commerce If the legal policy is complete, it will make e-commerce logistics development and vice versa
In the field of e-commerce logistics, infrastructure plays an important role, including seaports, airports, railways, motorways, rivers and other facilities and facilities storage systems, loading and unloading facilities, communication systems infrastructure is one of the components constituting activities providing e-commerce logistics services The basic element of e-commerce logistics is freight forwarding, transportation, logistics and development to achieve high efficiency cannot fail to develop technical facilities of the sector
Over the years, especially since the country opened, the technical infrastructure of the transportation sector has always been considered by the Party and the State to be one step ahead in the overall development of the economy In a long time, the infrastructure is built and developed in a synchronous manner, creating a change in quality to meet the demand for transportation of goods and passengers in domestic as well as international
In short, if the infrastructure system develops in a synchronized and modern way, it will facilitate transportation in e-commerce logistics and vice versa
* Level of technology application The level of information technology application is one of the factors promoting the development of e-commerce logistics This has been demonstrated by the fact that e-commerce logistics services have been developed in many countries around the world The information technology revolution has opened up a great opportunity for e- commerce logistics businesses to reduce costs, improve business efficiency and competitiveness in the market
On the other hand, components of e-commerce include computer networks, databases, electronic payment systems, electronic authentication, etc All of these elements are demanding highly information technology Therefore, without the level of information technology application, e-commerce logistics activities will not be implemented effectively
Thus, the high level of information technology application will create the foundation for developing and improving the efficiency of electronic commerce logistics Therefore, it is necessary to build up a modern information system and a strong database so that it really helps to effectively manage e-commerce logistic activities
* Competitiveness, business environment of enterprises The business habits of small businesses have caused the stagnation and fragmented development of e-commerce logistics
The first one is the policy and business environment of the logistics companies together The infrastructure for e-commerce logistics is known that it is very expensive, so most companies are not able to trade all the links in the chain of e-commerce logistics activities The new company meets about a small part of the domestic demand, so the problem of cooperation and mutual benefit between companies is inevitable But those companies haven‟t done it effectively, leading to no cost savings as well as improving service efficiency, creating trust with customers
These enterprises don‟t have the connection with each other but even occur creat unfair competition, dumping while quality is not good It‟s harmful to each other
The above mentioned factors have had a negative impact on the logistics management of these companies
E-commerce logistics is very expensive, so businesses with high competitiveness and abundant financial resources will have better conditions to develop e-commerce logistics
* Level of human resources E-commerce logistics requires the modern application of information technology systems Hence, human resources must meet the standards and quality to operate this system
With the highly qualified human resources, they will have the necessary skills for e-commerce logistics, such as modern multimodal transport logistics and supply chain management skills, updated knowledge with new concepts such as "one stop shopping", Just in time (JIT-Kanban), etc.) Thus, they contribute to effective e-
Thus, the level of human resources has a direct impact on e-commerce logistics
If the human resources are highly qualified and knowledgeable about information technology, logistics activities will be highly effective and vice versa
CHAPTER 2: LOGISTICS STATUS IN E-COMMERCE OF THE WORLD
Logistics Status in E-Commerce of the World
2.1.1.1 Order processing For products made at Amazon's distribution center
Distribution centers helped Amazon cutting back on inventory thanks to high stock turnover at high delivery centers High automation and mechanization rates increase the productivity, reduce labor costs and reduce processing costs With a large number of the order processing in one center, this model has created great value with low cost The process is as follows:
Figure 2.1: Process Order at Amazon
When customers place orders on the system and specify the delivery place, the system will know where to ship in order to determine the way of shipping Normally, the orders are shipped from Amazon's distribution centers or from the seller's
Scale goods and transfer to truck
The staff picked up the goods according to instructions
The items of the same order will be in the same bin
Package the goods, stick the bar code and move to the loading state
Goods are packed in parcel, sealed locations During the process of shipping at the distribution center, the seller must ship the orders to Amazon's warehouse so that the company can carry out the order fulfillment process
All orders are received at a division of the distribution centers and automatically distributed to each specific employee through the wireless network
The staff picked up the goods according to instructions
Typically, goods are stored in separate chambers When the goods need to be removed, the lamp will light up Employees will walk along the compartment and pick up items until the lights are off again
The items of the same order will be in the same bin
Goods continued to be transported to the appropriate trough, and slid into boxes for delivery The system will arrange for the items of the same order to be in a shipping box
Packaging, bar code and transfer
For each specific item, the picker will be placed in the same bar coded bin to indicate the order, then the bin will be transferred to the conveyor belt running around the warehouse and automatically transferred to specific points by bar code reading points
After the goods have been selected employees will be packaged into parcels, sealed and then sent For items that require special wrapping (such as gift boxes) will be wrapped in handmade bags
Scale goods and transfer to truck
Parcels are weighed, labeled and transported to the truck body in storage
Lorries will ship to post offices and delivery units for shipment to customers,
In addition to the distribution through the distribution center, Amazon also performs the intermediate task of connecting customers with sellers This mode of operation is called Drop Ship orders The application process is as follows:
Figure 2.2: The application process at Amazon
Firstly, after signing the contract with the third party suppliers, the company companies willlabels and ships to Amazon in large quantities
Secondly: after receiving goods, Amazon will put them in inventory and storage of goodsstore them until getting the order
Thirdly: When ordering, Amazon will pick up, pack and deliver to individual customers, which may include other items in the order
Fourthly: Amazon will be responsible for post-sale activities and refund processing if requested by the customer
With tThe form of order processing has been deployed to help Amazon diversify the goods in the warehouse, to meet all the needs of customers However, for drop ship orders, long-term storage can affect the quality of third-party goods that affect the business performance of the company
At present, each of Amazon's warehouses is hundreds of thousands of square meters with large staff and large number of goods With a large warehouse system, Amazon has adopted the most advanced inventory management technology in the world
The company labels and ships to Amazon
Amazon will be responsible for post- sale activities
Amazon pack and deliver to individual customer
Amazon inventory and storage of goods until getting the order
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With current inventory management technology, employees in Amazon's warehouses can store their goods anywhere Whenever an item is placed on the shelf, the system automatically scans a bar code on the goods, which will be redirected to Amazon's server, which will then be used to create a map system for the collector
This makes Amazon inventory time faster without having to find the exact location of each item
With modern inventory management technology, Amazon's warehouse system is packed quickly, saving space and storing more, the process of shipping to the warehouse also occurs quickly by loading the goods The staff of the warehouse (dolls can be lined up with the novels;, the dryer is folded with a towel )
However, the random queuing method above does not affect the inventory management time at Amazon This is due to the application of 100% technology in warehouse management When an order is placed, each order will be loaded into the handset of the warehouse staff The system automatically determines the employee's nearest distance between random items inside the warehouse to complete the customer's order within the shortest possible time This means increased customer satisfaction when not waiting for long service
It can be seen that Amazon's warehouse management technology is the most perfect technology today, the application of this management technology helps Amazon save space storage, determine the exact position of the item, save time and minimize the burden on stock management so that employees can be more engaged with the organization
Like all e-commerce companies, Amazon also faces a number of featured issues in shipping such as small scatteredd an dispersed orders large delivery points
To overcome this situation, Amazon has established transit centers and placed them in crowded locations to save on shipping costs and minimize the impact of dispersal
Accordingly, Amazon's shipping process is as follows:
Amazon's shipping process begins by integrating orders from distribution centers and contracting with small and medium-sized carriers to deliver goods from distribution centers to Transshipment Centers At the transshipment center, the goods are unloaded, packed, classified destination and loaded onto the appropriate cart of courier partners Then, the orders will be collected and long distance transport 1 time only to turn the destination of the consumer
The status of logistic in Viet Nam
2.2.1 Research at Sendo.vn 2.2.1.1 Order processing
When customers make place an order on the website of Sendo.vn; features which are already installed on the system will support order processing for customers
The process of order processing online at Sendo.vn is carried out in the following steps::
Comment [A4]: Tại sao chỉ có 2 từ này trong câu?
Figure 2.10: Processing online at Sendo.vn
Order: Customers find information on the website, select the goods to buy, declare the order information such as personal information, payment method, billing address and order confirmation Customers who have an account and who ever declare personal information will be kept informed for future purchases
Order Confirmation: After the customer orders, the order is received and sent to the order processing department to create the CRM order, update the customer profile and send the message to the seller, then the system will send the confirmation message to the customer The Customer Services officer may call back the customer to confirm some important information such as delivery address, quantity, form of payment
Checking inventory: After receiving the order, the supplier will check the quantity of required goods in warehouse Sendo.vn's warehouse is just a virtual warehouse, the actual goods are stocked in the warehouse of the supplier
Shipping: Employees get information about the order have been classified according to the form of payment available on the database of the system and handle billing for orders qualify Payment methods include:Bank bank transfer, postage, pay at delivery The carrier will directly contact the supplier to receive the goods delivered to the customer Shipping costs will be calculated based on distance, weight and destination
Shipping Checking inventory Order Confirmation
Formatted: Indent: First line: 0 cm, Space
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As we can see, there is a simple order processing step and easy to manipulate
However, order confirmation time and inventory time is quite long due to the long waiting time as well as shipping party The average numbers of orders processed per day on Ssendo website are as follows:
Figure 2.11 : The number of orders per day on sendo.vn
Sendo.vn does not have warehouse, because website sendo.vn is just an intermediary between buyers and sellers This e-commerce system is under the management of Sen Do Technology Joint Stock Company with the mission of providing the technology platform for sellers and buyers; Helping online sellers more convenient as order management, shipping management and money ; Helping shoppers find products more easily from reputable shops, buying convenience stores save time
Since there is no warehouse, sendo.vn does not have warehouse management activities in the process of supplying products to customers However, the system still builds the warehouse management function for sellers on the e-commerce portal
Accordingly, using the inventory management feature provided by sendo.vn, suppliers can easily update and manage the quantity of products; The number of products on the website will automatically update when new orders arise or canceled / transferred; The product will switch status "Out of stock" when inventory management = 0 This helps
2014 2015 2016 customers actively purchase with the appropriate number of products in stock, minimizing the risk of cancellation due to out of stock
Therefore, inventory management has been built by sendo.vn for suppliers who contribute actively to help the seller maintain the amount of goods needed to serve customers This helps increase the number of sellers on the system, thereby increasing revenue
Sendo.vn is linking shipping via Shipchung.vn After the order is processed, suppliers conducted packed and waiting for transport to take units shipped Shipping costs are defined as follows Shipchung.vn:
Prices in Hanoi, and Ho Chi Minh City:
Table 2.2: Service prices in the city on Shipchung.vn
Ha Noi, Ho chi minh Saving delivery Fast delivery
The value of goods is over 180,000 VND Free shipping, discount up to 50,000 VND / order
Weight is over 2kg Each subsequent 0.5kg plus 3.000 3.000
Shipping within 2 to 3 days, excluding holidays and Sundays
Submission before 10h, delivered in the day Submission after 10h delivery before 12am the following day (Except holidays and Sundays)
District / commune area: Plus from 72h - 96h
District / commune area: Plus from 48h – 72h
Prices plus for next 500 gram
Orders at the district and commune levels in the country plus 20% of remote area charges and 48h-72h time indicators
As the shipping party delivers the goods from the seller to the buyer, the shipping cost when the customer buys on the sendo.vn system depends on the address of the customer, as well as the address of the seller
Delivery time is from 1-2 days if the address of the customer and seller in the same province Especially in the area of Hanoi and Ho Chi Minh City,.Iif the seller and the buyer are far away, in different province the time of communication lasts from 3 to 7 working days
In addition, to attract customers to buy the system, sendo.vn appliesy free shipping policy with orders from 180 thousand in Hanoi, Ho Chi Minh For orders shipped inter-free policy will be applied to orders over 280 thousand However, the discount is not less than 50,000 VND per order
It can be seen that the transportation at sendo.vn is quite convenient for both the seller and the buyer The buyer can easily access the product due to the low transportation cost and free shipping policy However, the delivery time in sendo.vn is quite long and often delayed with the plan
In order to ensure the interests of buyers, customers can contact Sendo within
24 hours after receiving goods if customers are not satisfied and want to change products Returns will be made according to the process of handling complaints by Sendo.vn and specific policies as follows:
Table 2.4: Return Policy of Sendo.vn Time 7 days from date of receipt
Reason for accepting the return
Products are sealed, wrong delivery in quantity and design compared to orders
The product is damaged due to manufacturer's fault Product does not serial number / IMEI
Product has expired before or on the date when delivered to the customer
Conditions for returning goodsĐiều kiện để đổi trả hàng
Product return must include registration note
The product has no signs of use, the product is accompanied with full accessories
With the product is delivered wrong, missing, return goods must be new, intact, original, accompanied with full accessories
SOLUTIONS TO COMPLETE LOGISTICS IN E-COMMERCE
Logistics operations development direction in Vietnam e-commerce sector 64
In the coming time, logistics activities in electronic commerce in Vietnam will follow the directions:
- Offers high speed, high quality and wide range of telecommunications and internet services for enterprises as well as clients to participate in the buying and selling on the electronic trading platform in the country
- The future development direction focuses on investment and develop in both hardware and software infrastructure to support the development of logistics service in order to maximize the advantages of the strategic geographical position of each area The development of regional and international logistics centre, is the first important link in the chain of logistics service of the region of South East with large logistics center of Hanoi, Hcmc HCMC, Dong Nai,
Ba Ria Vung Tau Provinceprovince
- Make e commerce logistics service become high value industry in the commercial and services industry structure, associated with the domestic trade sector with electronic commerce Striving to 2020, most enterprises have the ability to provide the 3PL, 4PL service levels and up to the year 2025 level on 5PL level;
Established Logistics service business association to create e-commerce to create coherence, mutual support and enhancing the competitiveness of enterprises:
- Raise awareness of the business about the nature, importance of e-business as well as the deployment method of logistics in electronic commerce
- Build the appropriate strategy to implement electronic commerce and logistics of e-commerce This business strategy should clearly define the objects and the steps to achieve these objects The select of network service providers for business also have very important meaning
- Continue to implement the activities of the training and fostering of business and logistics electronic commerce knowledge, updating the knowledge and skills of modern business and exploit the capabilities of information technology to serves the business‟s operation
- Continue to invest in design, encryption products and services in an appropriate way to be able to introduce and execute consistently, clearly transaction On the basis of a database and the capacity to deliver the goods, pertinent business services needed to build a plan to participate in e-business and follow that plan in a appropriate way
Comment [A7]: Font chữ hình như to hơn
The proposed solutions for Logistics activities in the EC in Vietnam
3.2.1 Proposed solutions to business 3.2.1.1 Improve the process for ordering and processing of orders of business
Currently, the order processing method with each product of the
EC enterprises in our country is fairly complete and reasonable but business should take the change and shorten the time of processing the order
Current customers can order through the form: online or through the phone Enterprises need to navigate their clients to choose ordering via Internet Enterprises should navigate the customers towards thewebsite, create the habit of ordering through Internet as well as the use of other services such as payment, promotion and
To do this, enterprises need, first and foremost, to review and shorten the order process through Internet Then they should reduce the order conditions for customers and help customers put many items at once
Warehouse management in electronic commerce logistics activities include: warehouse network settings, select warehouse location (number, scale), the design and installation of the equipment inventory; organize the import, storage, storage of the goods; perform the work books, statistics related to the warehouse business
E-commerce businesses should be oriented to buildt warehouse system in the model of bonded warehouse combined Cross-docking Perform the sort, aggregate, bar code stickers for the goods directly at the warehouse, then distributed to each retail store more convenient
Moderate the warehouse by using modern equipment to enhance operational efficiency and service quality The equipment needed includes:
- Conveyor system for conveying goods: goods transported in storage areas will not have to use direct labor; the moving goods will be conveyed by the conveyor system Thus, saving labor and saving labor cost and increases the ability to transport goods in large quantities and faster speed, ensuring the safety of goods in the warehouse
- Forklifts: As an indispensable means in warehouses, however, forklift systems in enterprises are still weak, with low tonnage; enterprises need to invest in modern forklifts such as automatic forklifts Larger, fast moving and equipped with management software forlifts which directly connected to the warehouse management center, will help operators have accurate information about the cargo, the place of loading and unloading of goods conveniently
- Upgrading warehouse-shelving system to support large-scale goods
Besides, warehouse should be equipped with bar code technology and bar code reader With this technology, the company can control the goods in the store easily
There are two forms of transportation that e-commerce businesses can use are either outsourced transport or self-transport When the business itself transports, it is necessary to invest in transportation staff and transport vehicles, supporting tools
Optimize transportation costs by focusing on passengers on routes and point-to-point transport
Enterprises should link at least with a professional shipping partner to meet the orders in the remote and orders in the provinces and cities across the country Link with reputable shipping partners, who has competitive prices to transport goods will create trust with customers
3.2.1.4 Investment to improve, upgrade and apply of modern technology
For successful logistics operations in e-commerce businesses, enterprises must pay special attention to the application of information technology systems The application of current technology in e-commerce businesses should be divided into two phases:
- Phase 1: Completing the internal information system (Intranet) as well as the information system in each functional unit (Technical, accounting, marketing, ), information system at each stage in the chain provision of supplies (warehouses, yards, transport, ) and the connection of information between organizations, sections and stages To apply computerization in the operation of enterprises, to install software for business activities, standardize databases to create the basis in the logistics information system
- Phase 2: Connect external information systems in two ways:
Method 1: Using the Internet is a trend that e-commerce companies in the world are aiming as an indispensable tool in business
Method 2: Electronic data interchange (EDI) This system allows the exchange of information and data from the computer through the computers in a system EDI require expensive investment but is very convenient and high security EDI is really useful for business in data exchange between stores, distribution agents in the enterprise's Logistics system
To improve human resources, companies should gradually improve professional skills, foreign languages, ability to apply technology of staff This is a very important factor that is vital for businesses in the international economic integration process when the competition becomes very acute The quality of human resources is reflected in two main factors: the managerial level of the senior management and the professional level of the employees Managers must have the vision, leadership and decision-making capabilities to help business thrive Therefore, improving the level of human resources will be the main factor to improve the efficiency of logistics operations in e-commerce Possible solutions include:
- Send young talented and enthusiastic staff to further training in professional skills, foreign languages, technological ability
- When recruiting employees, the selection criteria must be selected right from the beginning of the recruitment process, only the employees who meet the criteria of the enterprise to meet the work assigned by the company
- To adopt commendation and reward policies for officials and employees, if they have recorded outstanding achievements or disciplines if they fail to carry out the work on schedule, thus affecting the prestige of the enterprise
- Regularly updating new knowledge for employees in the fields of logistics and law in the country related to commercial operations
As professional staff, more professional will help businesses reduce the cost outside the flow, build a reputable brand
3.2.2 Recommendations to the State 3.2.2.1 Improve legal environment
Government should develop policies on information safety and protection, consumer protection law, intellectual property law, etc., to ensure the practicality of e- commerce activities, thereby creating consumer confidence
In particular, government should develop and reform laws, institutions and regulate the interests of focal entities or brokers between technology and users It is essential that new directions are introduced to revise regulatory and remove barriers to e-commerce development Standards must be flexible to be innovative and meet future requirements