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MỤC LỤC DANH MỤC HÌNH ẢNH Chapter 1: INTRODUCTION 1.1 Problem stament .4 1.2 Research objective 1.3 Scope of the report 1.4 Structure of the report Chapter 2: LITERATURE REVIEW 2.1 Warehouse and Warehouse management definition 2.1.1 Warehouse 2.1.2 Warehouse management 2.2 The role of Warehousing .6 2.3 The function of Warehousing 2.3.1 What is the function of the warehouse? 2.4 Warehousing activities 2.5 Warehouse operations 11 2.6 The relationship between Technology and Warehousing 12 Chapter 3: WAREHOUSING MANAGEMENT PRACTICES AT LAZADA INC 16 3.1 Lazada Inc introduction 16 3.1.1 What is Lazada .16 3.1.2 Lazada of which country .17 3.1.3 What is Lazada's business model 17 3.2 Introduction about Lazada’s Warehouse 18 3.2.1 Warehouse system in Vietnam – Lazada Express 18 3.2.2 Warehouse’s infrastructure of Lazada 21 3.3 Warehouse system operations in Lazada Inc .27 3.4 Advantages and disadvantages of Lazada’s warehouse system 29 3.4.1 Advantages 30 3.4.2 Disadvantages .30 Chapter 4: Implications for Vietnamese Businesses 31 Conclusions 33 Tieu luan RESOURCES: 34 Tieu luan DANH MỤC HÌNH ẢNH Picture 1: Automated guided vehicle of Sharp (Japan) 13 Picture 2: Sorting and picking systems – Resource: (Tổng quan xe tự hành AGV nhà xưởng, n.d.) .14 Picture 3: Lazada company 16 Picture 4: The simplificated logistics process from seller to customer 17 Picture 5: Lazada's warehouse location 19 Picture 6:Warehouse Management System of Lazada 21 Picture 7: Lazada's automatic sorting system 22 Picture 8: The system of sensors and scanners automatically measures the dimensions, weighs the goods 23 Picture 9: One point of delivery (Drop-off Points) of Lazada cooperates with Coop food system 24 Picture 10: A smart locker (Smart Lock) of Lazada in collaboration with partner Ilogic 25 Picture 11: The lockers all have security cameras monitoring 24/7, ensuring safety when sending and receiving goods 26 Picture 12: Lazada’s warehouse .27 Picture 13: Attaching barcodes to products 28 Picture 14: Barcodes scanner 28 Picture 15: Automated coveyor belt in Lazada .29 Tieu luan Chapter 1: INTRODUCTION 1.1 Problem stament Today, the scientific - technological revolution and its achievements are contributing to rapidly and profoundly changing all aspects of social life, becoming a really indispensable tool in many basic fields In the fields of activities such as: economy, military, education, health, especially, in management, most of Information Technology (IT) has affirmed its strength quite clearly and is definitely increasing fundamentally replace manual management methods, in particular, quite significantly Warehouse management in an enterprise is essentially a major undertaking that requires the management department to conduct for all intents and purposes many truly complex activities in a subtle way Not only businesses inevitably have a centralized classification model, but most organize a distributed warehouse model across many different locations Therefore, the traditional way of warehouse management will basically no longer be effective in general The application of IT has brought a new breakthrough to warehouse management, helping businesses capture information about goods, supplies, raw materials and products in a really timely manner, suitable for all intentions and purpose From there, business managers can generally make the right plans and decisions, really reduce costs, increase competitiveness and most importantly improve production and business results basic is key Lazada is also a good example of applying information technology to management At the same time, we chose this topic in the hope that we can analyze warehouse management to be able to offer suitable solutions for businesses in Vietnam 1.2 Research objective This report focuses on main objectives: Overview of warehouse management Tieu luan Introduction to Lazada warehouse management Management systems, special information technologies are applied by them Analyze the highlights in warehouse management and give lessons for Vietnamese businesses 1.3 Scope of the report Warehousing management practices at Lazada Inc 1.4 Structure of the report The report has chapter Chapter 1: chapter 1: Introduction; Chapter 2: Literature review; Chapter 3: Warehousing management practices at Lazada Inc, and the last, Implications for Vietnamese Businesses Tieu luan Chapter 2: LITERATURE REVIEW 2.1 Warehouse and Warehouse management definition 2.1.1 Warehouse In the logistics system, the warehouse is a very important place because it is where the raw materials, semi-finished products and finished products for business are stored throughout the process from the starting point to the final point in the supply chain However, the warehouse also provides us with information about the status of raw materials as well as goods There is also other information such as storage conditions as well as the location of items stored in the warehouse 2.1.2 Warehouse management Warehouse management is a part of Logistics management field Choosing a warehouse location is very important because the warehouse is strategic The location of the warehouse will affect many factors such as: transportation costs, quality of customer service, speed of goods movement in particular and the entire logistics chain in general In order to have an appropriate warehouse location, it must be based on the following factors: close to large commercial centers, have good infrastructure, and simple procedures, especially customs clearance procedures Not only that, there are other additional factors to evaluate the location of the warehouse: transportation costs, housing market prices, Warehouse management and inventory are closely related These two jobs both contribute to the added value of the time and place of the product The design of a warehouse and production facility in a scientific, reasonable and consistent manner with the factors mentioned above will help cut costs at input and output The price of an item is high or low or different because the good depends on the distance If you can manage the warehouse well, it will help improve the quality of services and customers with the lowest cost 2.2 The role of Warehousing Tieu luan Warehousing is an important function of a business involving logistics Efficient warehouses are critical to increasing customer satisfaction and help ensure that products are delivered to customers quickly and accurately.: For Businesses: To match different flow rates or amounts when production and consumption patterns not coincide Storing surplus product (avoid material shortages, take advantage of the seller's affordable offer) Convenient reorganization function For customer: “Get the right item, in the right quantity, at the right place, at the right time, in the right condition, at the right price at the optimum cost to the organization” - 7R in Warehousing The Chartered Institute of Logistics & Transport UK (2019) 2.3 The function of Warehousing As mentioned in the concept of warehouse and warehouse management, it depends on the business model of the business that the warehouse design is appropriate Save shipping costs to the maximum Supply raw materials, semi-finished products, finished products quickly and on time Always maintain the supply to serve the production and business process Meeting the needs of customers in a timely manner 2.3.1 What is the function of the warehouse? Support for production Tieu luan In order to produce finished products, it is necessary to have raw materials, components, spare parts manufactured and supplied from different factories The raw materials, components will be kept in stock and promptly provided for the production process as quickly as possible Thanks to the warehouse always provide for production work as quickly as possible so that the production process is not interrupted Product Summary In case the company has many suppliers of raw materials, each supplier will provide the enterprise with different raw materials, and the output of the company has many different customers with different product needs At the warehouse, the goods will perform the aggregate function Goods and materials will be aggregated and reinforced according to each order Consolidation There will be customers who need items in bulk In case a product supplier is not able to supply the customer) The enterprise's warehouse, goods will be gathered from different suppliers to pack a large shipment for the customer at the request of the customer customer Sorting out There will be cases where customers need products in small quantities Goods will be brought from the factory to the warehouse and at the warehouse will perform the operation of separating large shipments into small batches of quantity and quality suitable to the needs of customers 2.4 Warehousing activities The main purpose of the activities in the warehouse is to create a smooth flow of goods, making it easier for products to come in and out Some basics activities of warehousing: Identification: identifying the products, matching with the order and confirm the number of products in stock Tieu luan Inspection: checking the quality, quantity of products, condition of goods damaged or lack of components, materials, … Receiving and unloading: accepting the products and unloading goods from vehicles Put away: the process of importing products from the container to the storage area in the warehouse Storage: Moving the products to appropriate storage areas for different types of goods Each types of goods will have a separate area for easy control and retrieval of goods Replenishment: Replenish goods if the suppliers deliver lack of products or wrong, damage products and needs to be replaced for the new products Order selection: The products from the stock will be selected based on customer requirements Unitizing and shipping: Unitization is the grouping of small units of goods together into larger units of goods, such as onto a pallet, to facilitate packaging and transportation Packaging and marking: Cargo packaging helps the goods to reach the customer undamaged, protects the product and avoids financial losses Marking is the use of information symbols, special symbols, etc to provide information about the product’s content Be careful with your hands or avoid direct sunlight depending on product characteristics, minimizing damage goods Staging and consolidation: A staging area is a temporary storage area for goods that have been consolidated by each other and then brought into the warehouses or another locations Loading and shipping: After packing, loading is the arrangement of goods on transport vehicles such as trucks or other vehicles to ship the goods Shipping is the process by which items will arrive safely and on time Tieu luan Documentation: In warehousing, there are many types of documents used to allow products to be transported from one place to another place so before shipping, all kinds of documents must be prepared Housekeeping: It includes keeping the warehouse clean, maintaining an orderly and untidy work area help everything go more smoothly, to get job done Management of material handling equipment: It refers to the equipment used for the transportation, storage and protection of goods in the warehouse Management of material handling equipment helps to create convenience, speedy and efficiency for other activities in warehousing Assist in stocktaking: It is the activity of counting goods currently in stock, helping to control inventory, verifying the actual quantity and condition of goods stored in the warehouse Consolidation activity: o It means collecting raw materials, small shipments from many supplier and bringing them together in the same place o There are many benefits to doing this activity: The first thing is to help achieve higher efficiency, because diverse components and materials are concentrated in same place, all warehouse operations will be gathered in one place to help saving time collecting shipments in multiple places so can help businesses focus on business development It does not take time to transfer between places to finished goods, it can save delivery time and increase customer satisfaction The last thing, consolidation saves more shipping costs, because all goods are gathered in one location to be delivered to a specific location, so the product only ships directly to the customer without intermediaries Break-bulk activity: Tieu luan goods are in good condition The warehouse is accurately identified and easily located when the time of shipment arrives Import and store goods When the goods are imported into the warehouse, the warehouse management software conducts the storage according to the predetermined rules to facilitate the export of goods later Advanced software provides picking-to-voice, or picking-to-light product recognition to support large, complex, and sophisticated warehouses Loading and unloading Managers choose picking and picking (Pick-and-Pack) options such as zone picking, wave picking, and wave picking and batch picking to diversify and more convenient for workers In addition, the planning of goods in batches combined with alternating aisles will help workers reduce the travel distance to a minimum and quickly complete the work Transportation Management (TMS) After the warehouse manager confirms the order, the warehouse management software automatically issues a bill of lading (Bill of Lading) to send to the carrier, printing out a list of goods to be prepared as well as a provisional invoice order for the ordering party to confirm the order Some systems even allow printing out instructions for use, assembly if necessary… Once the items have been packed, the warehouse software can send advance delivery notices (ASNs) to other warehouses within the warehouse the system knows and stops the delivery preparation Picking (Picking) Options also include the ability to view order queues by various order types and records; carrier level, line item versus multiline order, special handling order, to select a specific order Labor tracking Labor accounts for 70% of the total fulfillment costs for each order, when all costs are considered excluding overseas shipping There is no space to list the many functions that 17 Tieu luan will become computer-aided and eliminate manual operations Warehouse management systems keep track of all the work done, who completed the work and how long it took Picture 6:Warehouse Management System of Lazada 3.2.2 Warehouse’s infrastructure of Lazada In 2015, Lazada officially established Lazada Express - a company specializing in Logistics to meet the needs of transportation and distribution of goods on their ecommerce site Lazada said that in Vietnam up to now, Lazada owns an integrated logistics infrastructure system with distribution centers, automated distribution centers and 70 delivery centers shipping across the country Specifically, distribution centers of Lazada Vietnam are located in Ho Chi Minh City Ho Chi Minh City and Hanoi with a total area of 20,000 m2 and 14,000 m2 respectively automated sorting centers are also located in Ho Chi Minh City Ho Chi Minh City and Hanoi with a total area of 7,000 square meters, respectively and 10,000 square meters According to Lazada, all goods at these two centers are concentrated and sorted into delivery and delivery centers in districts through automatic sorting technology 18 Tieu luan Picture 7: Lazada's automatic sorting system The first is an automatic sorting line, using the 2nd generation wave-sorter technology, the conveyor belt automatically redirects gears to help quickly transfer goods to the destination, which is Lazada's delivery facilities Next is the conveyor belt that automatically returns the tray The tray is used for orders of small size, non-square shape, not boxed, After the goods are redirected to the delivery point, the tray is automatically brought back to the receiving area by the conveyor belt products to optimize operating performance 19 Tieu luan Picture 8: The system of sensors and scanners automatically measures the dimensions, weighs the goods Lazada also deployed 500 drop-off points in cooperation with major retail partners such as CircleK, Pharmarcity, Coop food… and more than 1,500 points of logistics partners Here, retailers and online shops can send goods directly without going to Lazada's post office, which is more convenient in the shipping process 20 Tieu luan Picture 9: One point of delivery (Drop-off Points) of Lazada cooperates with Coop food system A notable service of Lazada but not many customers know about is the smart locker (Smart Locker) Accordingly, when the customer chooses this delivery method, the delivery partner or the shipper will bring the order to the smart locker selected by the customer At the same time, customers will receive a notification and OTP code to pick up the goods via the phone number and email address registered with Lazada These lockers are deployed by Lazada with partner ilogic The cabinet is equipped with a security camera system, a safety lock, and is placed in a crowded place to ensure safety during delivery/receipt 21 Tieu luan Picture 10: A smart locker (Smart Lock) of Lazada in collaboration with partner Ilogic Smart Locker (Smart Locker) is suitable for office workers, students, it is not convenient to pick up goods during office hours Lazada claims they are the only e-commerce platform in Vietnam that applies this smart locker technology Currently, Lazada has 36 smart lockers across the country (HCMC and Hanoi) Smart cabinets are often located in convenient apartments, commercial centers and near customers' homes/offices Smart Locker service has been deployed by Lazada since 2018 22 Tieu luan Picture 11: The lockers all have security cameras monitoring 24/7, ensuring safety when sending and receiving goods In addition, Lazada said that it has applied an information technology system (Logistic Operation Platform) to apply to all stages from receiving goods, picking, shipping and delivering, helping to optimize management The order's journey through the application of big data technology ensures efficiency and real-time calculation At the same time, the network information technology system (Logistics Network Platform) also helps to connect and manage the entire logistics network In addition, Lazada Vietnam said that it is implementing the "Apollo project" - this is a technology and big data application platform to centralize and integrate the entire network administration and management data; allocating and optimizing routes; while managing costs effectively Through Apollo, the connection between the e-commerce platform and the logistics infrastructure will be enhanced to create added value and enhance the experience for Lazada customers, brands and sellers Lazada shared that it is building a healthy and sustainable e-commerce ecosystem in the long term through investment in technology and logistics infrastructure, with the support of Alibaba 23 Tieu luan 3.3 Warehouse system operations in Lazada Inc Lazada’s warehouse has the function of storing goods across the country, arranging, preserving, and taking care of nationwide delivery, operated by a modern technology system, a strict process from input – storage - output to exchange, with the help of a team of more than 100 employees It is the "machine" that directly handles a large number of orders for the leading e-commerce exchange in Vietnam Lazada's warehouse consists of three floors with two elevators to transport goods up and down When goods are brought into the warehouse, they will have to wait for processing information Picture 12: Lazada’s warehouse Before being put into the warehouse, each product will be checked for quality, stamped with barcodes to control the expiry date, the date of storage, the date of release, by whom is responsible Each product will have a stamp with a unique barcode, no products have duplicated stamps with each other 24 Tieu luan Picture 13: Attaching barcodes to products After the quality has been checked and the information saved into Lazada's system, the product will be stored High-value items and electronics will be stored in a secure warehouse with iron nets and guarded Particular products, which require a cool temperature, will be stored in cold storage Other products will be stored in warehouses at the usual temperature Lazada has a lot of empty shelves because the goods move quickly, so the company only stores in a certain quantity to ensure the quality of storage and will import more goods the next day Each employee will be provided with a special device to manage customer orders and find the right item in stock Picture 14: Barcodes scanner 25 Tieu luan After finding the right item for the customer, the staff will put it on the automatic conveyor belt to take it to the packing area Picture 15: Automated coveyor belt in Lazada The conveyor belt will bring the goods to the packing area This area consists of staff members: one staff handles information, prints a consignment note, or even issues an attached invoice if needed, and another one is responsible for packaging There will be a warranty stamp in the consignment note attached when packing If the product brought to the customer has a problem, the customer can stick this stamp on the defective product and return it to Lazada for handling There are many packing counters, and each counter will handle the different sizes of goods Depending on the size of each package, the system will automatically decide to choose the appropriate delivery service The computer system also automatically prints a standard delivery note and selects the consistent delivery service That can save time for shipping For example: When you buy a small-sized item, the system will automatically print out the delivery note of courier service A If it is larger, it will use the delivery service of company B This decision is permanent system-wide, and packaging staff cannot intervene 3.4 Advantages and disadvantages of Lazada’s warehouse system 26 Tieu luan 3.4.1 Advantages The way which transfers goods in Lazada's warehouse is a complex system, including logical algorithms and flexible human operation Lazada has carefully prepared the infrastructure such as barcode marking shelves, code reading system, sorting software, and instructions for goods transfer, etc Therefore, it can help Lazada from sorting goods in stock to ordering and delivering goods that are not duplicated or mistakenly delivered Lazada's warehouses are located in major cities that Lazada has four warehouses in Ho Chi Minh city, two warehouses in Ha Noi, and expanded the area of Lazada's warehouse in Da Nang because Lazada wants to move all items to its warehouses for easier management and operation Not only does it help Lazada with saving delivery time, especially during the Covid - 19 but it also increases the ability to handle large orders every day Moreover, the construction of Lazada's warehouse networks are distributed throughout Viet Nam helps supply chains and logistics activities become more and more flexible and optimized In addition, thanks to Lazada's warehouse system, businesses can speed up the circulation of goods, ensure close communication between manufacturers in the distribution channel Moreover, it can help Lazada with limiting some conflicts between parties in the process of operation, reducing the cost of product circulation, thereby making product prices cheaper, creating better competitiveness for the manufacturer – Nguồn: [ CITATION Laz \l 1033 ] 3.4.2 Disadvantages Not only does Lazada almost not store anything but the warehouse is also almost nonexistent, Lazada makes the most of the ability of the shipping service, so the most significant logistics operation for Lazada is the delivery of goods to its customers Therefore, if the delivery of goods to customers is interrupted, it will cause certain disadvantages for Lazada Besides a great number of goods every day, Lazada tries to deliver goods quickly to reduce inventory costs with an advanced management system makes many cases of customers' complaints about delaying orders many times with items on discount 27 Tieu luan Chapter 4: Implications for Vietnamese Businesses The Covid-19 pandemic has put heavy pressure on global production capacity and supply chains, and it is the pandemic that has opened up new avenues for the logistics industry to develop, in which warehousing is an important source of connectivity in the supply chain During the lockdown period, people could not go out to shop like before, so everyone switched from going to stores to shopping online It has created the explosive development of e-commerce platforms such as Tiki, Lazada, and the competition in the operation of e-logistics businesses is being concerned Because of that rapid development, many companies have not been able to keep up with customer needs, through the analysis of Lazada’s warehouse management system, I can draw some lessons experience for Vietnamese companies Firstly, the warehouse infrastructure system of Vietnamese companies needs to be improved and upgraded, most of businesses depend a lot on labours During the outbreak of the epidemic, online orders increased sharply, but the strength and limited number of employees affected the ability of companies to complete orders Besides, the policy of Government of enterprises is not to operate more than 50% of the workforce, so it leads to congestion of orders Therefore, Vietnamese businesses should be more aware of the construction of a smart warehousing system, from building automatic goods sorting lines to automatic picking robots that will have help businesses save time and labour costs, increase productivity to be able to meet customer satisfaction in time Vietnam’s e-commerce platforms should actively control warehouse management instead of hiring a third party to perform outsourced order fulfillment It helps businesses save on warehousing and transportation costs, but is only suitable for small and medium-sized start-up, but when they have been operating for a long time and want to compete for market share compared to foreign businesses but this is not longterm strategy The situation is difficult to control orders, the delivery to customers depends on third parties, if they deliver late or damaged, it will affect the reputation of 28 Tieu luan the business If the seller chooses to store their entire product (fulfillment), the whole process depends on the 3rd party and the product storage time is limited Businesses such as Lazada and Tiki choose to carry out the warehousing process themselves to save rental costs and control the whole process, without being dependent on any unit, helping to increase satisfaction more of the customers Finally, warehouse locations located close to headquarters or in large urban centers should be of interest to companies This will help businesses save time to deliver, especially during a pandemic or peak season, as well as increase the ability to handle large orders every day From the very beginning, Lazada has invested in logistics systems in major cities of Vietnam and built distribution centers across the country The construction of large and small warehouse networks distributed throughout the country helps supply chains and logistics activities become more and more flexible and optimized 29 Tieu luan Conclusions Logistics plays an important role in the trade chain between sellers and buyers Demand for online goods transactions has increased logistics demand, especially warehouse infrastructure plays an essential role In the past, warehouse existed only in a separate form with traditional small scale, but nowadays with the economic strong development, investment in warehouse management, invest in modern automation technology, etc help businesses meet the general trend Warehousing is a significant part of Lazada as well as the area, the quality of storage in the warehouse, and how goods transfer in its warehouse will determine the development of Lazada Lazada's warehouse operation is supported by applying high technology such as industrial conveyor belts in packaging and transporting products, helping Lazada save time and labor, bringing invaluable benefits for Lazada It makes Lazada become one of the top online retailers that can compete with Shopee and Tiki in the Vietnamese market Lazada believes that investing in warehousing is a sustainable investment in the future of e-commerce and that is a long-term strategy, and because of its foresight, Lazada has become one of the successful e-commerce platforms in the recent outbreaks 30 Tieu luan RESOURCES: https://vnreview.vn/thread-old/lazada-khoe-he-sinh-thai-logistics-tuyen-bo-can-tot-luong-hangtang-cao-gap-30-lan-vao-ngay-11-11.3313594 https://intech-group.vn/he-thong-tu-dong-phan-loai-hang-hoa-sp128.htm https://vcc-group.vn/xe-tu-hanh-agv-tai-ha-noi-automated-guided-vehicle.html Doan Thi Hong Van (2006), Logistics management, Statistical Publishing House 01 Paul R Murphy.Jr, A.Michael Knemeyer (2017), Contemporary Logistics 12th edition, Pearson Education https://www.hiephoilogistics.com/wms-la-gi-he-thong-quan-ly-kho-hang-wms/ Lazada WareHouse rộng mẫu TPHCM có lạ? | Dịng chảy | Thế Giới Số (tgs.vn) Lazada mắt giải pháp kho vận tương tự Amazon Việt Nam & chương trình giảm giá mừng sinh nhật | Tinh tế (tinhte.vn) 31 Tieu luan ... everywhere is safe and to be sure, you have to find out exactly where you go to buy So this article we will find out about what Lazada is and all that is related to Lazada 3.1.1 What is Lazada Lazada... system-wide, and packaging staff cannot intervene 3.4 Advantages and disadvantages of Lazada? ??s warehouse system 26 Tieu luan 3.4.1 Advantages The way which transfers goods in Lazada'' s warehouse is a complex... Lazada or rather lazada. vn is a leading e-commerce platform in Vietnam as well as Southeast Asia To imagine more easily, you can imagine that Lazada created a virtual platform, on which to create booths
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