Reasons for choosing the topic
The e-commerce market's rapid growth has significantly impacted logistics activities, particularly in online retail, with Vietnam witnessing a 47% increase in parcel delivery volume in 2020 Top delivery businesses have seen a substantial surge in orders, ranging from 30-60% Notably, the e-commerce sector has experienced an average annual growth rate of 30% from 2016 to 2019, expanding from $4 billion in 2015 to $11.5 billion in 2019, with a projected growth momentum of 29% from 2020 onwards.
The rise of e-commerce has led to a significant shift in consumer behavior, with 86% of Vietnamese consumers expected to maintain or increase online shopping post-Covid-19 As a result, business-to-customer (B2C) e-commerce activities have proliferated, leading to an increase in individual shipments, trips, and kilometers B2C e-commerce allows businesses to sell products and services directly to consumers, eliminating middlemen and enabling lower prices and higher profits However, the last mile of delivery remains a complex issue, involving delivery to customers with small daily demands and varying time schedules, making it the most challenging part of the supply chain in online retailing.
2 the faster express This is the reason I selected the topic “Last-mile delivery service at Giao Hang Tiet Kiem” for my graduation thesis
Owing to that “LAST-MILE DELIVERY SERVICE AT GIAO HANG TIET KIEM” is selected as a topic for this graduation thesis.
Objective of the study
This thesis aims to provide a comprehensive overview of last-mile delivery, with a specific focus on assessing and analyzing the current state of last-mile delivery operations at GHTK, ultimately offering actionable solutions to enhance the efficiency of GHTK's last-mile delivery services.
Scope and Limitation of the study
This study primarily focuses on last-mile delivery services at GHTK in Vietnam, with supplementary data from other carriers used only to support the analysis of GHTK The research scope is limited to the period from 2021 onwards, with minimal reference to pre-2021 data, as the study aims to explore current situations and future challenges Specifically, the investigation centers on e-commerce, particularly the business-to-consumer (B2C) segment, while acknowledging the broader applications of last-mile delivery in other industries such as B2B, traditional commerce, and traditional logistics.
Methodology of the study
In this study, a qualitative research method is applied through collecting information through interview, description, analysis of information and data provided.
Structure of the report
In the process of learning this thesis, to make it easier to follow and understand, I would like to briefly present all main content below:
Chapter 1: Introduction of Giao Hang Tiet Kiem Joint Stock Company
Chương 2: Literature review of last mile delivery
Chương 3: The situational reality of last-mile delivery at Giaohangtietkiem
Chương 4: Proposed solutions to solve last-mile delivery challenges at GHTK
INTRODUCTION OF GIAO HANG TIET KIEM JOINT STOCK COMPANY
History and development of the company
Giao Hang Tiet Kiem Joint Stock Company is a leading e-commerce shipping specialist, offering fast and high-quality transportation services Leveraging its extensive nationwide network coverage and cutting-edge technology, the company delivers exceptional speed and flexibility in its logistics solutions, setting it apart in the industry.
- Company name: Giao Hang Tiet Kiem Joint Stock Company (Giaohangtietkiem, JSC)
- Headquarter: 8 Pham Hung Street, Me Tri Ward, Nam Tu Liem District, Hanoi City
- Chief Executive Officer: (Mr) Pham Hong Quan
- Vice general director: (Mrs) Nguyen Nguyet Minh
- Field of activity: Transportation - Logistics in e-commerce
Main service: Fulfillment, Express, Bigsize (BBS)
- Scale: Covering all 63 provinces with 20 operation centers, 500 post offices and warehouse, total warehouse area up to 500000 m2
GHTK has demonstrated self-sufficiency in technology since its inception, opting to develop its own software and apps rather than relying on existing solutions This forward-thinking approach has enabled the company to build a robust digital transformation strategy, one that is tailored to facilitate international economic integration and drive business growth By leveraging its proprietary technology, GHTK is well-positioned to navigate the complexities of the global economy and stay ahead of the curve in the rapidly evolving logistics landscape.
GHTK has successfully digitalized its entire management system, encompassing operational management, asset management, and customer management through its GHTK MS platform To enhance user experience, the company has developed a suite of mobile applications, including GHTK Nhanh & Re and GHTK Pro for customers, as well as GHTK Drivers, GHTK Noibo, and GHTK Buu Cuc for employees, streamlining interactions and operations.
- The development of Giao Hang Tiet Kiem
+ April 2013: GHTK was founded in Hanoi with 1 warehouse, 5 shippers, 10 shops, and 15 orders
+ May 2013: The company officially operated
+ July 2013: Launched order management system and APIs to connect partners
+ June 2014: Launching the 6h service in Hanoi city
+ July 2015: Opening an office in Ho Chi Minh City, officially launched the service Hanoi HCM 24h
+ October 2015: Reaching the milestone of 1,000,000 parcels and a workforce of 200 people
+ March 2016: Launching mobile operating technology platform
+ September 2016: Top 1 the most favorite carrier on mobile e-commerce platform with a workforce of 1000 people
+ March 2017: Opening the first 10,000m2 operation center in Ho Chi Minh City
+ June 2017: Open full map of 63 provincial centers nationwide
+ September 2017: Open full map to deliver to more than 10,000 districts and communes nationwide
+ January 2018: Open full map for delivery nationwide
+ February 2018: Opened 20 operation centers nationwide, over 500 post offices and warehouses with a total warehouse area of up to 100,000m2, rolling 100,000,000 parcels with a workforce of more than 8000 people
As of May 2018, the Northern provinces boast an extensive network of approximately 180 post offices and warehouses, with key operation centers strategically located in Hai Phong city, Thanh Hoa city, and Vinh city in Nghe An province.
Core values
At GHTK, speed is the driving force behind delivering exceptional customer experiences Embodying this core value, the company ensures seamless and uninterrupted movement of goods, while continuously enhancing employee productivity and streamlining the delivery process through technological automation.
At GHTK, we recognize that flexibility is a key differentiator in the operating system landscape, and we're committed to harnessing it as a competitive advantage Our daily efforts are centered around developing a cutting-edge technology platform that empowers shops and enterprises to deliver flexible customer experiences, ultimately revolutionizing the way they serve their clients.
At GHTK, customer satisfaction is the top priority, with every employee striving to deliver exceptional service from the initial interaction to incident resolution By providing outstanding support to buyers, GHTK also helps sellers build their reputation To achieve this, the company has streamlined its workforce, technology system, and operational processes to ensure a seamless and user-friendly experience for all users.
People
At GHTK, we value the young and fresh mindset, believing that inexperienced individuals can rapidly absorb and learn, unencumbered by outdated stereotypes, and instead bring innovative thinking to the table This youthful energy also fosters a culture of commitment, aggression, and fearlessness, empowering our team members to take on new challenges and drive growth.
At GHTK, diversity of identity is deeply valued, fostering an environment where individuals are encouraged to express their unique personalities and perspectives Rather than being judged on traditional work styles, personal capacity is assessed through tangible results and adherence to core values, allowing each person to thrive and grow in their own way.
At GHTK, we emphasize the importance of intelligence and acumen in navigating unexpected situations, fostering a culture that values creative problem-solving and independent thinking Our commitment is to create a workspace where technology complements human ingenuity, allowing individuals to harness the power of machines to learn and improve experiences without being dominated by them.
Work culture
At GHTK, the concept of "Multiple Identity" is deeply ingrained, fostering an environment where individuality is not only valued but encouraged Embracing diversity, the company focuses on actual work results and core values to gauge personal capacity, rather than traditional work methods By doing so, GHTK empowers its team members to express themselves freely, leading to a more inclusive and dynamic work culture.
At GHTK, performance is the ultimate measure of success, where individuals are evaluated based on their actual work results rather than personal traits or work styles This approach fosters a supportive environment where employees are empowered to work in a way that maximizes their confidence and creativity, allowing them to shine with their unique strengths and talents.
Organization chart
Giao Hang Tiet Kiem Joint Stock Company employs a functional organizational structure, which effectively utilizes business resources in the transportation sector This structure enables the Board of Directors to assign tasks aligned with each employee's expertise, facilitating prompt problem-solving and efficient operations.
Revenue
Quarter I Quarter II Quarter III Quarter IV Quarter I
Table 1 1: Revenue 2021 and first quarter 2022 revenue (in billion Vietnam Dong)
GHTK's revenue demonstrated continuous growth in 2021 and the first quarter of 2022, with express orders and FF orders showing a nearly 10% increase in the first quarter of 2022 compared to the same period in 2021 The company's BBS sales peaked in the second quarter of 2021 as the epidemic situation stabilized, but subsequently declined due to the worsening COVID-19 situation In response to government policies restricting movement and gatherings, GHTK temporarily suspended its BBS service, and also closed its Xfast service in Hanoi and Ho Chi Minh City.
LITERATURE REVIEW
The concept of third-party logistics (3PL)
According to Yang (2014): “3PL also referred to as third party logistics has many definitions and there is no standard definition that seems to satisfy academic researchers”
We give some definitions of 3PL as follows
Third-party logistics (3PL) providers are firms that offer services they don't own, according to Stank and Maltz (1996) Essentially, 3PL refers to logistics service companies that manage transportation, warehousing, and other logistics functions on behalf of shippers, as defined by Berglund et al (1999) This can include external organizations that take on all or part of a producer's or customer's logistics responsibilities, as stated by Coyle et al (2003) In a long-term partnership, 3PL providers offer a range of logistics activities to support shippers, as noted by Bagchi and Virum (1996).
Third-party logistics (3PL) is defined as an external provider that manages, controls, and delivers logistics services to customers on behalf of a business or supplier, as described by Hertz and Alfredsson (2003).
The concept of last-mile logistics
The term "last mile" originated in telecommunications networks but has since been adopted by the logistics sector to describe the final stage of the supply chain, where goods are delivered directly to consumers at their homes This last leg of the delivery process is often the most inefficient link in the supply chain, accounting for up to 75% of the total delivery cost, as noted by Gevaers et al.
The last mile, a crucial stage in the online retail distribution process, refers to the final leg of delivery, where products are transported from a centralized location to the end customer Defined as the last stage in the distribution process, it poses significant challenges to the supply chain, as highlighted by Esper et al in 2003.
Last-mile logistics (LML) refers to the final stage of the delivery process, encompassing a series of activities and processes that facilitate the transportation of goods from the last transit point to the final drop point of the delivery chain.
“Last mile logistics is the last part of a B2C delivery process It takes place within a
A predefined delivery area, such as an urban area, encompasses the entire logistics process, from the initial transit point to the final destination of the parcel This comprehensive network of activities and processes holds significant value for all stakeholders involved, including customers, industries, and institutions within the designated delivery area.
A typical supply chain process involves sourcing raw materials for the manufacturing industry, followed by shipping finished products to warehouses or distribution centers From there, goods are distributed through two primary channels: traditional distribution to supermarkets and retail stores, or direct delivery to customers The Last Mile Logistics (LML) plays a crucial role in this process, specifically focusing on the final leg of the supply chain that involves direct delivery to consumers.
Figure 2 1: Last-mile logistics in basic supply chain
Source: Author’s work based on Gevaers, et al., 2009
Figure 2 2: Framework of Parcel delivery processes
Source: Author’s work based on Gevaers, et al., 2009
Last mile logistics encompasses the operational capabilities that businesses utilize to facilitate efficient delivery, including physical spaces, software systems, delivery fleets, and human resources The primary objective of this intricate setup is to provide customers with a seamless last mile delivery experience, culminating in the successful handover of ordered goods or services.
Figure 2 3: Supply chain process Source: Rick Bell, Vice President, Strategic Accounts
Main stakeholders in last-mile logistics
The success of an LML organization and modeling is influenced by the diverse behaviors and objectives of multiple stakeholders, including shippers, freight carriers, consumers, and administrators These four key stakeholders have distinct primary objectives that play a crucial role in shaping the organization's operations and modeling approach.
Shippers tend to minimize their delivery costs while optimizing the shipping mix and increasing customer insights
Freight carriers aim to reduce transport costs while increasing shipment accuracy and consolidation deliveries
Consumers play a crucial role in measuring the quality and performance of logistics and mail services (LML) through their satisfaction levels Key demands from consumers include flexibility in delivery destinations, speedy delivery options, and simplified tracking systems, all of which are expected to come at lower shipping prices.
Administrators play a vital role in preserving and enhancing the social life and environment within their area of responsibility In the context of Last Mile Logistics (LML), their primary focus is on mitigating the adverse effects of freight transportation, such as alleviating congestion, minimizing accidents, and promoting the adoption of low-emission vehicles, thereby contributing to a more sustainable and environmentally friendly ecosystem.
The concept of last-mile delivery
Last-mile delivery (LMD) is the final stage of the delivery cycle, encompassing a series of activities and processes that ensure orders are successfully transported from the last transit point to the customer's doorstep This critical step is often achieved through direct door-to-door delivery, a popular mode of LMD, particularly in business-to-consumer (B2C) e-commerce transactions As the largest driver of LMD, e-commerce has made this delivery method increasingly important, with LMD costs accounting for 13% to 37% of the total supply chain cost, varying by regional characteristics.
2009) These numbers indicate that LMD operation can negatively affect logistics service providers if it is not well-managed
As e-commerce continues to grow, effective Last Mile Delivery (LMD) activities play a crucial role in enhancing customer experience satisfaction By streamlining LMD processes, online shoppers can enjoy a seamless and convenient experience, reaping the benefits of simplicity, information, and time efficiency - key factors that contribute to a successful e-commerce service.
Last Mile Delivery (LMD) plays a crucial role in the delivery cycle, significantly impacting both logistics service companies and consumers, particularly in the e-commerce sector where rapid and responsive logistics are in high demand The effects of LMD on supply chain operations are multifaceted, influencing key aspects such as environmental sustainability, cost-effectiveness, safe unattended delivery, and traffic congestion mitigation.
Effective management of Last Mile Delivery (LMD) is crucial for a supply chain, as it can yield numerous benefits when optimized By leveraging LMD, companies, particularly e-commerce businesses, can gain a competitive edge and differentiate themselves in the market.
Figure 2 4: Evolution of the last mile
When a customer places an online order, their web browser or mobile application directly connects with the retailer's server, initiating a seamless transaction The order is then routed to a centralized order management system, which verifies stock availability and facilitates online payment options for the customer Upon confirmation, the system dispatches a request to the warehouse housing the stock, prompting the shipping process to begin This marks the start of the last mile, where a shipper's agent is dispatched to collect the customer's item from the warehouse, setting the stage for efficient and timely delivery.
The last mile delivery process involves a series of complex steps, beginning with the agent loading the parcel into their vehicle and transporting it to a predetermined hub, from where another delivery agent collects and delivers it to the customer's doorstep Despite its seemingly straightforward nature, the last mile ecosystem comprises multiple moving parts, making its successful execution heavily reliant on both internal and external factors To navigate these intricacies and ensure a seamless delivery experience, businesses are increasingly adopting modern last mile logistics solutions that streamline and optimize the entire process.
In simpler terms here are 6 key steps involved in the entire last mile process
S1: The sender’s requested orders are digitally recorded into the carrier’s system
S2: The said order arrives at the transportation hub
S3: The order is assigned to the delivery personnel with the relevant information (like a recommended route and recipient’s locations)
S4: Orders are scanned for the purposes of record-keeping and then loaded on the delivery trucks
S5: The item is then delivered to the intended recipient
S6: The personnel then record and updates the delivery status
E- Shoppers preference of Last mile deliveries
In today's fast-paced e-commerce landscape, consumers are increasingly expecting a seamless delivery experience from ordering to doorstep arrival Key considerations for last mile delivery include same-day or next-day delivery options, as well as hassle-free returns at no additional cost Ultimately, cost and time remain the top priorities for customers when it comes to last mile delivery, driving the demand for efficient and affordable logistics solutions.
Research by Datexcorp reveals that last mile delivery costs comprise a substantial 28% of total freight costs, highlighting its significant impact on logistics expenses By addressing this critical aspect, companies can enhance the overall quality of their delivery services, ultimately leading to improved customer satisfaction.
Despite boasting one of the world's fastest-growing GDP rates, Vietnam's average disposable income remains lower compared to neighboring countries, rendering customers highly price-sensitive, according to the Centre of Asia Pacific Excellence (CAPE).
Figure 2 5: The factors affecting customers consideration
In Vietnam, a staggering 88% of e-commerce transactions rely on cash-on-delivery (COD) payment methods, as highlighted by the International Conference on Operations and Supply Chain Management in 2019 This trend is largely attributed to the country's strong cash-based culture, where a significant proportion of the population still prefers traditional payment methods.
In Vietnam, a significant obstacle to the growth of e-commerce is the prevalence of cash transactions, with 17% of transactions being made in cash A major challenge for e-commerce enterprises is convincing end-users to adopt new payment methods, with 75% of firms citing this as a key hurdle The lack of trust between sellers and buyers in online transactions is a primary factor contributing to this issue, with concerns over product quality being a major concern for consumers The absence of an adequate system to monitor the quality of goods offered on e-commerce platforms exacerbates this mistrust, leading to hesitation among consumers to make online purchases.
The typical last mile delivery system
The last mile delivery software market is experiencing rapid growth, with an annual rate of over nine percent, and is projected to double by 2025 in response to increasing demand This growth is driven by the rising need for efficient home delivery services among retailers and logistics companies, which are focusing on optimizing the final leg of shipment.
A comprehensive last mile delivery software suite typically comprises a mobile app for drivers, a fleet management system for dispatchers, and a customer-facing tracking and notification mechanism, often in the form of a free mobile app Effective final mile logistics systems require key features that cater to the needs of drivers, dispatchers, and customers These must-have features enable seamless communication, real-time tracking, and efficient delivery operations, ultimately enhancing the overall customer experience.
Figure 2 6: Main components and features of a typical last mile delivery system
A route optimization algorithm streamlines logistics by identifying the most efficient, multi-stop routes for drivers, taking into account various factors such as traffic, travel distances, and time windows By accommodating real-time changes, advanced solutions can further enhance route optimization Meanwhile, an auto-dispatch engine plays a crucial role in matching delivery tasks with specific drivers based on predefined priorities and business rules, resulting in substantial labor cost savings and reduced service time.
Real-time driver tracking utilizes GPS technology and drivers' smartphones to provide unparalleled fleet visibility, allowing dispatchers and customers to stay informed about vehicle locations without requiring additional hardware.
Estimated time of arrival (ETA) plays a crucial role in predicting when a package will be delivered to a customer's doorstep By leveraging predictive analytics and machine learning technologies, ETAs can be made more accurate by considering various factors, including GPS coordinates, distance to the next stop, average length of breaks, and historical data, ultimately enhancing the overall delivery experience.
To maintain transparency and keep customers informed, regular status updates are sent regarding their order progress Additionally, some solutions offer advanced features such as live chat functionality or direct calling capabilities, enabling customers to quickly contact dispatchers or drivers for real-time updates and support.
An electronic proof of delivery (ePOD) allows customers to sign their names electronically right on drivers’ tablets or smartphones E-signatures are uploaded into the system’s backend to confirm deliveries
A data dashboard displays all key performance indicators (KPIs) and metrics to monitor operations and optimize services.
API system
In technology theory, API, or Application Programming Interface, is a protocol that facilitates seamless communication between software and systems By acting as a bridge that connects disparate ends, an API enables one system to "call" upon another, instantly triggering a response and returning the desired results.
"answers" Especially thanks to the API, the process of dialogue between the two sides, which are distant and clear, can be turned into extremely simple and fast
A comprehensive software experience is achieved through the seamless integration of multiple software systems, where each component plays a vital role in the overall functionality Just as individual bricks come together to form a sturdy wall, APIs serve as the crucial binding element, facilitating efficient communication between disparate systems and enabling the rapid development of a cohesive final product.
According to Amazon, APIs have four main benefits:
APIs play a crucial role in integrating new applications with existing software systems, thereby accelerating development speed and reducing the need to build functionalities from scratch By leveraging existing code through APIs, developers can efficiently tap into pre-built functionalities, streamlining the development process and saving valuable time and resources.
- Innovation: Entire industries can change with the arrival of a new app Businesses need to respond quickly and support the rapid deployment of innovative services
They can do this by making changes at the API level without having to re-write the whole code
APIs offer a significant expansion opportunity for businesses, enabling them to cater to their clients' needs seamlessly across various platforms By leveraging APIs, companies can provide access to their internal databases, much like maps API integrates map information via websites, Android, and iOS applications This integration capability allows businesses to extend their services, enhancing customer experience and engagement.
The API serves as a crucial gateway between two systems, enabling seamless integration while minimizing the impact of internal changes By acting as an intermediary, the API ensures that each system can undergo modifications independently, without affecting the other party This design allows for effortless maintenance, as future code changes by one party do not disrupt the functionality of the other, promoting a more efficient and collaborative development process.
CHAPTER 3: THE SITUATIONAL REALITY OF LAST-MILE DELIVERY AT
Last - mile delivery at GHTK
A complete parcel code includes the following parts: Shop code, Province code, Warehouse code and delivery route of that warehouse, Order number
In provinces with a high concentration of warehouses, the first city warehouse typically has an intersection starting with the letter A, setting a sequential naming pattern for subsequent warehouses The warehouses established later in the province follow a systematic naming convention, with intersections starting with the next letter of the alphabet, such as B, C, D, and so on.
The operation process of GHTK includes many stages and all stages are closely related to each other
Upon successful order placement on the GHTK system via khachhang.Giaohangtietkiem.vn or the mobile app, the system automatically confirms the order, prompting a status update from "Not received yet" to the next stage.
Upon updating the order status to "Accepted", a unique bill of lading code is assigned to each order The shop then prints the corresponding bill for each order and attaches it to the parcel Recipients can track the order's journey by entering the bill of lading code on the i.ghtk.vn website.
Figure 3 5: Checking order via website i.ghtk.vn
Upon receipt of an order, it is automatically added to the pick-up staff's mobile app, prompting them to confirm the pickup address and verify if the goods are packed before collection At the shop, the staff must count the items and sign a confirmation bill However, in cases where goods are unavailable, the staff may delay pickup, citing "Shop is out of stock" as the reason, potentially leading to order cancellation by the shipper if the shop reports the issue within 1-2 days Notably, GHTK has specific regulations regarding pick-up times, with orders placed before 10:00 am typically collected between 8-12 am.
4 pm will be taken from 14-18 pm, in major city centers such as Ho Chi Minh City (HCMC), Hanoi (HN) will have an additional night pick-up shift before 9pm
- Goods receipt: Orders are picked up to warehouses, they staff will change to
Once an order is marked as "picked up", it is assigned to goods handling staff who sort and distribute the items by area The staff then carefully places each order into individual baskets, such as the MB25-06-F6 single basket, before preparing them for shipment to their respective destinations, including the North To ensure efficient tracking, the barcode on the bill of lading is scanned and the order is placed in a designated sack, where it awaits collection by a truck for transportation to the inter-regional warehouse.
- When the order is delivered to the final post office or warehouse near the delivery address for the buyer The system automatically sends the order to the delivery staff
25 according to their responsible delivery route, the delivery staff will sign to receive the order and proceed to deliver the order, the order will change the status
"Delivering" Before delivery, they will call the customer to confirm the address in cases the address is not specified and confirm if they have a home to receive the order
+ Customers who receive the goods will sign for receipt, (if it is a non- collection form), the delivery staff will update the real-time status on the app
When a customer fails to receive their goods, the staff promptly updates the order status and notes the reason for non-receipt within the mobile app, subsequently notifying the shop to initiate the return process and complete the order cancellation.
If a customer reschedules delivery to a different time frame, GHTK's delivery staff will update the reason for the non-delivery and store the order in stock for delivery at the newly scheduled time GHTK supports delivery in three shifts - morning, afternoon, and evening - and if delivery is unsuccessful in these shifts, the order status will be updated accordingly In such cases, the order may be moved to either 'storage waiting for shop check' status, allowing shops to re-check the order, contact the customer, and take necessary actions.
GHTK offers a convenient "Redeliver" feature on its system, which supports re-delivery at a fee of 10,000 VND per order For parcels that fail to deliver after three attempts, the system automatically updates the status to "Waiting for delivery for returned goods," allowing for immediate return without the need for storage and checking.
Upon successful delivery, the delivery staff updates the system, triggering a status change to "Shipped" for the order Subsequently, the accountant performs a COD reconciliation through the shop's bank account, during which the service fee is deducted, ensuring a seamless and efficient transaction process.
- Unsuccessful delivery: Returned goods are collected and returned to the shop once a day (corresponding to the number of deliveries) After returning the goods, the
26 order status on the system is "Returned" The shop need to comfirm returned goods on system
GHTK's streamlined delivery process allows for seamless order tracking, from initial upload to final delivery, ensuring a convenient and transparent experience for both shops and customers The process is notably strengthened by GHTK's emphasis on speed, made possible by the implementation of strict time standards for goods delivery, as outlined in their detailed table of regulations.
Pick-up time Delivery time
After 16h From 8h30 to 12h of the following day
Table 3 1: Table of time regulations for delivery of GHTK
Finding and understanding the "good" in GHTK's services is also understanding the company's strengths The "beautiful" of GHTK is not simply competition in the market, but
At the core of GHTK lies a defining point that not only fosters the company's spirit but also shapes its brand identity, reflecting the unique value of each individual and forming the sole operating principle that guides GHTK's operations.
GHTK prioritizes swift shipping to cater to the market's needs, guaranteeing delivery within 6 hours for inner-city orders, 24 hours for intra-provincial orders, and 3-5 days for inter-regional orders By consistently meeting these fast delivery times, GHTK has earned a reputation for speed among online stores, fostering a positive impression of its services.
Besides, GHTK has continuously improved the system and operating process to launch many smaller service packages GHTK is constantly developing FAST service packages with different types:
+ 6h delivery is the most standard and core service package of GHTK, focusing all resources to build the best possible quality
GHTK's 6-hour delivery service guarantees swift transportation of goods within major cities such as Hanoi, Ho Chi Minh City, and Da Nang, as well as select provinces This innovative service allows for morning pickups with afternoon deliveries or afternoon pickups with next-morning deliveries As a pioneering carrier, GHTK has successfully developed and implemented this expedited service package.
- Evening delivery: goods received before 16pm, evening delivery (18-22h)
+ GHTK builds the evening delivery service to give customers the best experience:
+ Do not miss afternoon break - "prime time" in online shopping
Evening delivery helps to maximize the benefits of the shops:
+ Release the worry of canceling the order, the goods are sold "instantly"
+ Increase capital turnover speed due to COD collection rate
GHTK is revolutionizing the delivery landscape with its evening, same-day, and 6-hour delivery services, setting a new standard for the industry By prioritizing service quality control, management, and operation system improvements, GHTK ensures seamless operations even outside traditional business hours, further enhancing the customer experience and solidifying its position as a leader in the logistics sector.
GHTK has further solidified its competitive edge by introducing Sunday Delivery to over 90% of communes nationwide, embodying the company's core spirit of relentless development to create value for both its employees and the broader community.
Warehouse
GHTK boasts an extensive network of over 500 post offices and warehouses across 63 provinces and cities in Vietnam, with a high concentration in major cities like Ho Chi Minh City, Hanoi, and Da Nang However, the coverage density in smaller provinces remains relatively sparse, often with only one post office or warehouse per commune, which can impact service quality and lead to slower delivery times As a result, businesses located far from GHTK's post offices may opt for alternative shipping providers like VNP or VTP, which offer more comprehensive coverage.
A well-organized warehouse arrangement is crucial for efficient goods classification and retrieval, particularly in large facilities or those with numerous shelves In urban areas, logistics companies like GHTK often operate with limited space, utilizing large plastic baskets to categorize goods into delivery and pick-up zones However, this system's lack of standardization and strict management can lead to cluttered and disorganized warehouses, with issues such as mixed-order storage, damaged goods, and misplaced items, including dry food orders vulnerable to pest damage Furthermore, manual sorting at post offices and the use of baskets can encourage careless handling by staff, highlighting the need for a more streamlined and standardized warehouse management system.
Figure 3 8: Warehouse in Di An, Binh Duong
GHTK has developed and implemented a semi-automatic goods handling system known as Lego sorting, significantly enhancing operational efficiency The company has invested in and installed numerous Lego sorting systems across its warehouses in key locations, including Ho Chi Minh City and Hanoi, to streamline logistics processes.
GHTK is currently piloting the Cross Belt system, an innovative automatic cargo handling solution designed to optimize warehouse productivity This cutting-edge technology has significantly enhanced the company's day-to-day handling capacity, with automated parcel picking achieving a threefold increase in efficiency compared to traditional manual handling methods.
Thanks to the warehouse system, the modern production line has supported the distribution of goods quickly and accurately, saving a lot of time and human resources However, the
Although significant advancements have been made in logistics, the system of transporting, distributing, and handling goods still relies on manual intervention in certain stages This partial mechanization can lead to inefficiencies, particularly when it comes to order routing, resulting in a higher likelihood of orders being split and sent to incorrect routes.
Figure 3 10: Cross belt system - Automated goods handling system at Quang Minh warehouse
In response to the COVID-19 pandemic, GHTK has taken stringent measures to ensure the health and safety of its employees nationwide, while also adhering to state regulations These epidemic prevention measures have been rigorously implemented across all warehouses and post offices, prioritizing the well-being of staff and compliance with government laws.
Customer
GHTK primarily caters to businesses and online shops lacking in-house shipping departments, relying on third-party logistics (3PLs) and carriers' infrastructure to enhance service quality without significant investments These businesses often operate on social media platforms such as Facebook, Tiktok, Zalo, and Instagram, utilizing product ads, livestreams, and online management software like Pancake, Sapo, Kiot Viet, and Tpos Their product offerings typically include fashion items, cosmetics, seedlings, and dry food, which are efficiently managed and delivered through GHTK's services.
GHTK divides into 2 main types of customers: B2C customers and C2C customers B2C customers are stores that have a large volume of orders, averaging over 500 orders/month
At GHTK, large customers typically ship between 10,000 to 30,000 parcels per month, qualifying them for exclusive incentives such as refund policies, complimentary materials, and dedicated customer care staff, including a personal account manager and a private pickup staff In contrast, C2C (customer-to-customer) clients usually send lower volumes of less than 250 orders per month, often without regular shipping needs.
As the e-commerce landscape becomes increasingly saturated, the key differentiator for online stores lies in the quality of their service To stand out, businesses must provide a seamless shopping experience that meets the evolving needs of their customers, fostering loyalty and driving long-term growth By offering reliable and high-quality delivery solutions, GHTK empowers online stores to deliver exceptional customer experiences, setting them apart in a crowded market and building a loyal customer base.
Based on surveys and observations, the factors that customers consider when selecting GHTK are speed, flexibility and its service and management system Delivery speed is
GHTK is a preferred logistics choice for many shops, as it offers expedited delivery services, allowing orders to reach customers in Hanoi from Ho Chi Minh City in just 2-3 days, significantly faster than other shipping units which can take 4-5 days or even a week This speedy delivery not only enhances the customer experience but also reduces refund rates and boosts revenue for businesses Additionally, GHTK's flexibility and user-friendly website and app system have earned the trust of online businesses, enabling easy order management and quick modifications to order information Furthermore, GHTK's diverse range of services cater to the unique needs of e-commerce businesses, solidifying its position as a reliable logistics partner.
While speed is a top priority for GHTK as it strives to become the fastest shipping unit, cost is another crucial factor that businesses consider when choosing a logistics partner As a result, the average order cost at GHTK tends to be higher compared to other shipping units, with a delivery fee of 22,000 VND for parcels under 3kg within Ho Chi Minh City, reflecting the company's focus on strengthening its service quality.
30000 VND to the suburb, while the remaining couriers have an average of 15,000 - 16,5000 VND
GHTK has made COD collection free of charge in Vietnam, where this payment method is highly popular However, this convenience comes with risks, as some delivery staff have been known to misappropriate collection money or manipulate the COD amount on the system If left unchecked, shops may also intercept this portion of the collection Furthermore, unlike e-commerce platforms like Shopee and Lazada, GHTK's system lacks a delivery confirmation feature, such as photo verification, which can lead to disputes between customers and shops.
Fleet
Notably, last-mile delivery at GHTK, as well as in Vietnam as a whole, diverges significantly from its counterparts in countries like Singapore, Thailand, and Indonesia, primarily in terms of the mode of delivery utilized Unlike these countries, Vietnam's last-mile delivery landscape is predominantly characterized by the use of motorbikes, setting it apart from the more varied and often car-centric delivery methods employed elsewhere in the region.
In Vietnam's last-mile delivery landscape, motorbikes are the primary mode of transportation, but their limited capacity and lack of design for delivery purposes necessitate makeshift modifications In contrast, trucks and pickup trucks boast higher delivery capacities, but their use is hindered by high investment and operating costs, as well as logistical challenges such as traffic congestion and restricted access in major cities like HCMC and Hanoi.
In Ho Chi Minh City, residents and logistics companies alike grapple with perennial issues such as traffic congestion and flooding Furthermore, Vietnam's lack of a standardized postal code system poses significant challenges, particularly for delivery personnel who often encounter unclear addresses that include vague references to hamlets, villages, communes, and house numbers.
Transporting bulky goods by motorbike in Vietnam, particularly during peak hours, poses significant challenges to order quality, often resulting in dented or damaged goods Furthermore, inclement weather conditions, such as heavy rainfall, can lead to water damage, compromising the integrity of the orders While motorbike delivery offers advantages in terms of speed and adaptability to Vietnam's road and bridge infrastructure, there is a pressing need to address these limitations and implement improvements to minimize the negative impact on orders.
At GHTK, orders weighing 30kg or less are delivered by motorbike, while larger shipments are distributed via delivery trucks To ensure efficient and secure delivery, each motorbike delivery worker is equipped with three durable plastic fabric baskets, designed to minimize tears and water damage In contrast, orders exceeding 30kg are transported by truck, although limited truck availability in provincial post offices and warehouses often necessitates inter-regional truck rentals, potentially slowing down delivery and collection times.
Vietnam's e-commerce market faces similar challenges, particularly in transporting goods between its two major cities, Ho Chi Minh and Hanoi, which are two hours apart by flight The country's current aviation capacity relies heavily on passenger aircraft, lacking specialized vehicles for cargo transport between these cities Notably, GHTK, a prominent logistics provider, had offered air freight services between HCMC and Hanoi, but this was temporarily suspended due to the severe impact of the Covid-19 pandemic.
Technology
In today's fast-paced e-commerce landscape, flexible delivery has emerged as an indispensable trend, driven by the need for seamless adaptability in order fulfillment With online shops and customers able to modify order requirements with just a single click, carriers are faced with a critical choice: adhere rigidly to shipping rules and risk falling behind, or evolve to operate with flexibility and agility Recognizing this imperative, GHTK has dedicated its resources to developing GHTK Smart, a cutting-edge operating system designed to cater to the diverse and dynamic needs of both online retailers and shoppers.
At GHTK, the operating motto from the outset has been to drive development through technology, striving for flexible operations This approach is rooted in the recognition that a robust technology platform is the key to unlocking flexibility in e-commerce By leveraging smart algorithms, mobility technology, and smartphones, GHTK has been able to create an effective solution that addresses the complexities of the e-commerce landscape.
37 tools With this motto, GHTK has created App GHTK (for iOS and Android operating systems):
+ Disclosure and transparency of delivery information such as product name, price, quantity and delivery status for shops and customers
+ Help shops and customers communicate directly with the forwarder via the Gchat feature
+ Allows the shop and customers to respond to complaints via the Send Inquiry / SOS feature and be resolved by the customer service department
+ Allow shop and customer to evaluate service quality for GHTK to fix
Besides, GHTK also built GHTK Pro exclusively for Giaohangtietkiem.vn B2C stores/enterprises selling online
GHTK Pro helps shops manage orders in bulk easily, check order status, interact with their own customer service to process orders, evaluate delivery quality
B2C shops can optimize their delivery strategy by controlling fees at the provincial and city level, ensuring a cost-effective approach To streamline logistics, shops receive daily reports on bills of lading, enabling them to manage large volumes efficiently Additionally, any issues that arise during delivery are promptly notified to the shop via the application, facilitating swift resolution.
In particular, GHTK constantly creates a series of universal custom "buttons" so that no matter how the shop and customer change, the carrier can still meet
While having a website and app system provides shops with a convenient order management experience, GHTK's self-developed platform still requires significant improvements and upgrades, particularly in addressing frequent operational failures that hinder its overall performance.
To enhance the overall shopping experience, GHTK has developed a comprehensive ecosystem, including a website system, mobile app, and GHTK Driver specifically designed for shippers This integrated platform streamlines order management, allowing for seamless settlements and efficient processing, such as automatically updating order status when a shipment is posted.
38 system will automatically jump into the Shipper App Driver with a pre-set time frame This significantly saves labor cost and service time
Real-time driver tracking utilizes GPS technology and drivers' smartphones to provide unparalleled fleet visibility, enabling dispatchers and customers to pinpoint vehicle locations without the need for additional hardware, thereby streamlining operations and enhancing overall efficiency.
Not only that, GHTK also built iGHTK app for customers to track orders easily With the
The "Status updates" feature provides customers with real-time tracking of their order status through live chat updates However, despite this feature, issues with successful delivery persist, leaving customers uncertain about re-delivery timelines Currently, GHTK supports up to three delivery attempts per order, but customers are not informed of subsequent delivery shifts or timeframes Furthermore, when customers report failed deliveries to shippers, the existing system lacks a feature to display re-delivery schedules, and warehouse staff may not access relevant notes, hindering efficient issue resolution.
3.5.2 The flexibility of GHTK Smart
Thanks to the investment in the technology center, GHTK is always flexible
GHTK Smart empowers businesses to maintain a healthy cash flow by offering flexible control over their finances Depending on their business model, shops can opt for a suitable money transfer schedule, thereby enhancing capital turnover and optimizing their financial operations.
Transaction once a week on Friday
Transaction twice a week on Friday and Wednesday
Transaction thrice a week on Monday, Wednesday and Friday
Transaction once a month on the 30 th
Transaction twice a month on the 15th and 30 th
Transaction only when the full amount is accumulated (optional)
GHTK Smart offers a flexible solution for handling missing goods by allowing the addition of products to the original order, eliminating the need for new orders or back-and-forth transportation With the same bill of lading code, the updated order can be delivered to customers as usual, streamlining the process and reducing confusion for the shop.
GHTK Smart offers flexible delivery address changes, allowing shops to easily accommodate last-minute modifications and ensure timely delivery to the new location, resulting in enhanced customer satisfaction and a better shopping experience.
To boost sales success rates, businesses require a flexible shipping partner that can cater to diverse customer delivery needs, such as nighttime or early office hour deliveries GHTK Smart fulfills these unique requirements with its adaptable feature of choosing a delivery schedule, ensuring seamless and customer-centric logistics solutions.
GHTK Smart offers a flexible COD (Cash On Delivery) solution, allowing shops to adjust the COD value in real-time, even after the shipper has begun delivering goods to customers Furthermore, with GHTK Smart, shops have the convenience of exchanging collected funds at any time, providing a seamless and efficient delivery experience, even after the shipper has delivered to the customer's doorstep.
GHTK Smart offers a flexible solution for changing delivery phone numbers, catering to the modern reality of customers having multiple phone numbers This innovative feature helps mitigate the issue of customers reporting changes to their phone numbers, which can often hinder the delivery process By utilizing GHTK Smart, businesses can efficiently adapt to these changes, ensuring seamless delivery experiences for their customers.
GHTK Smart offers flexible consignee changes to accommodate customer requests, allowing for seamless order transfers to friends, relatives, or authorized individuals when the original recipient is unavailable.
GHTK's flexible delivery solution prioritizes customer care, efficiently addressing individual privacy needs while providing a seamless experience By leveraging GHTK Smart, the company accelerates delivery processes and crafts a superior experience for online shoppers, setting a new standard in e-commerce logistics.
3.5.3 Placing order feature via APIs
Workforce
At GHTK, employee training is a top priority, as staff members serve as the company's frontline representatives, interacting directly with customers and shaping their perceptions A professional and friendly attitude is essential, as it can make or break a customer's loyalty and long-term engagement with the company's services By maintaining a well-organized and courteous demeanor, GHTK staff strive to provide a positive experience, ensuring that customers feel valued and supported throughout their interactions.
At GHTK, delivery staff, also known as shippers or COD, undergo rigorous training to ensure exceptional attitude and working manner Prior to delivering or picking up goods, shippers proactively contact customers to confirm a convenient time, demonstrating a customer-centric approach Furthermore, GHTK's shipper salary mechanism is tied to customer ratings, incentivizing shippers to consistently deliver high-quality service and satisfaction This customer-focused strategy has significantly contributed to GHTK's reputation as a reliable freight courier.
Despite incorporating customer satisfaction assessments into the shipper team's salary and bonus mechanism, negative feedback from customers and shops regarding poor attitudes remains a persistent issue Shippers have been known to engage in deceitful practices, such as faking delivery confirmations without actually delivering orders, and manipulating phone calls to create false proof of non-delivery, often hanging up within 15 seconds to claim the customer didn't answer, significantly impacting customer satisfaction.
Experiencing 42 instances of issues, online sellers face significant losses when goods are returned, as they are required to pay an additional return fee for each refunded order Furthermore, in more severe cases, shippers have been known to exchange orders, deliver incorrect orders, or even misappropriate the shop's cash on delivery (COD) funds, exacerbating the financial burden on the sellers.
GHTK faces significant recruitment challenges for shippers, post office workers, and goods handling staff, particularly in provinces with numerous manufacturing facilities Many potential employees opt for factory jobs offering stable salaries of around 10,000,000 VND per month, whereas GHTK's salaries are lower, ranging from 6,000,000 to 7,000,000 VND per month Consequently, some provinces and districts experience a persistent shortage of delivery personnel, impacting the quality of services, including freight forwarding, and leading to potential delays.
The customer care staff plays a pivotal role in last mile delivery, significantly impacting the customer experience alongside the shipping team As the direct point of contact, the customer service team is the department that works closely with customers, addressing their queries, resolving issues, and providing timely support to ensure seamless order delivery and a positive experience.
At e-commerce platforms, customer care teams play a vital role in addressing customer complaints, providing product information, processing orders, and handling returns In the case of GHTK, the customer care department is divided into three segments: Shop Pro, regular C2C shops, and B2B orders, offering support through the website, mobile app, and Zalo group for high-volume shops However, with an overwhelming number of shops, the customer service team often struggles to keep up, resulting in delayed responses and a high volume of negative feedback, often citing long, mechanical, and unhelpful replies.
Evaluation of last-mile delivery at GHTK
At GHTK, a dynamic young staff is highly valued, as it is believed that inexperienced individuals can quickly absorb and learn, unencumbered by traditional thinking patterns This approach fosters creative thinking, allowing each team member to develop their unique capabilities and evolve into a well-rounded individual, driving personal and professional growth within the organization.
Our company prioritizes a professional working style, cultivating a culture of friendliness where employees are trained to embody a polite and approachable attitude, ensuring a customer-centric experience that sets us apart.
A well-structured benefits system can significantly boost motivation among dedicated employees, leading to enhanced job satisfaction and performance For instance, at GHTK, the salary structure for shipper staff is partly based on customer evaluations, which incentivizes them to provide friendly service and ensure timely delivery In contrast, government enterprises like VTP and VNP often offer lower salaries, which can impact employee motivation and ultimately affect the Last Mile Delivery (LMD) process of companies like GHTK.
GHTK stands out from competitors like J&T Express and VNP with its robust technology department, which has developed a comprehensive website system and mobile apps These platforms offer a range of features that enable customers to efficiently manage their businesses, including cash flow charts, delivery staff interaction, and service rating tools Unlike other carriers' basic management apps, GHTK's system empowers shops to take an active role in order management, eliminating the need to wait for assistance with minor issues Looking ahead, GHTK is committed to further enhancing customer experience with innovative features, such as live streaming and electronic wallets, set to be integrated in the near future.
GHTK stands out from the competition with its exceptionally fast delivery times, making it the top choice for shops seeking reliable courier services The key to its success lies in its ability to deliver parcels swiftly, resulting in high customer satisfaction and encouraging repeat business A well-managed operation department is the backbone of GHTK's fast delivery system, allowing the company to maintain its position as the fastest delivery company for years Moreover, GHTK's streamlined process enables shops to start shipping parcels within hours, unlike competitors such as VNP and VTP, which require time-consuming contract signings.
GHTK's extensive network spans 63 provinces and cities nationwide, boasting a vast array of post offices that ensure seamless delivery of orders to every corner of the country Strategically located large distribution centers in major cities such as HCMC, Hanoi, Da Nang, and Hai Phong, along with conveniently situated post offices and warehouses in densely populated areas, further facilitate efficient logistics operations.
45 apartment buildings, the centers have created favorable conditions for customers the delivery of goods, shorten the delivery time, reduce fuel costs
GHTK has significantly enhanced its operational efficiency by investing in advanced warehouse systems, incorporating the innovative Lego sorting and crossing belts technology This strategic move has enabled the company to process goods at a faster pace, while also increasing overall efficiency and reducing the need for human resources, thereby streamlining its logistics operations.
GHTK, like other shipping companies, prioritizes customer satisfaction and strives to deliver exceptional service experiences for both customers and stores To achieve this, the company has cultivated a professional and friendly staff, reflected in its "friendly" culture, which extends to its employee compensation system However, despite incentivizing employees to maintain a pleasant demeanor, GHTK faces challenges in ensuring 100% consistency, particularly among its shipper workforce, who sometimes exhibit poor behavior and attitude towards end-users and shops, resulting in negative feedback and uncomfortable experiences for service users.
- The quality of goods delivery in small districts compared to big cities should be improved due to the constant change of personnel, warehouse staffs and shippers
In rural areas, a single post office or warehouse often serves an entire commune, making it challenging for the operational team to manage a sudden surge in parcel volumes, particularly when understaffed Furthermore, when delivering or picking up goods at distant addresses, shippers may resort to creating fake proof of unsuccessful delivery to avoid incurring additional fuel costs, resulting in delayed or undelivered orders As a consequence, many customers opt for alternative courier services, such as VNP or VTP, which offer more efficient and reliable delivery options.
46 coverage of post offices, and are also famous for trustworthy as they are government -owned enterprises
Recruitment for delivery services like GHTK can be challenging, particularly in areas with numerous industrial zones, as people often opt for factory jobs offering stable and higher salaries In provinces like Binh Duong or Binh Phuoc, the average worker's salary ranges from 10-15 million VND, resulting in a higher standard of living and increased daily expenses In contrast, the basic salary for a GHTK shipper is approximately 6-9 million VND, which is often insufficient to cover living costs, leading to financial instability due to the variable nature of parcel delivery work.
Using hard plastic baskets to store goods on the floor can lead to several inadequacies, including attracting pests and compromising order quality For instance, dry food orders are often vulnerable to mouse infestations, with up to 10 out of 10 packages showing signs of mouse bites in some cases Furthermore, the use of baskets can foster a habit among warehouse workers and shippers to carelessly throw goods into the baskets, despite efforts to promote gentle handling through initiatives like "Orders arrive gently."
Despite its strengths, the GHTK management system still has areas for improvement, particularly in pinpointing exact customer locations Many orders lack specific street addresses or house numbers, only providing commune, district, and province details, which hinders the delivery process Although GHTK's system has advantages over others, such as requiring level 4 addresses, it still faces issues with displaying and updating street names and addresses, especially in smaller provinces and districts This can lead to difficulties when shippers attempt to confirm delivery details with customers, as the use of specific addresses is not always common in these areas.
47 delivery address before delivery will not direct to the correct address, this will increase the cost of petrol, call costs, lead time also increase c Opportunity
Demand for online shopping has increased due to the impact of the pandemic
The rapid growth of Vietnam's e-commerce market has sparked a significant and sustained demand for logistics services, unlocking the potential of e-logistics, particularly last-mile logistics (LML) As a crucial component of e-commerce, LML plays a vital role in directly interacting with end customers, making it an essential aspect of online businesses.
The COVID-19 pandemic has significantly accelerated the shift towards online shopping over the past two years, transforming it into a mainstream trend As a result, consumers are increasingly embracing the convenience, affordability, and time-saving benefits of e-commerce, opting to shop online rather than physically visiting stores.
- Customer demand for faster delivery has presented a great opportunity for GHTK to leverage its strengths of providing technology solutions for service improvement and operating system optimization
The future of e-logistics holds promising innovations, with companies already adopting 2-wheel electric vehicles and self-service systems at convenience stores for convenient pickup As Vietnam's traffic infrastructure improves, the potential for incorporating delivery drones, similar to those used in the US and Singapore, becomes increasingly viable By leveraging data technology, GHTK can further enhance customer experience and boost logistics efficiency in Vietnam, driving the industry forward.
PROPOSED SOLUTIONS TO SOLVE THE LAST MILE DELIVERY CHALLENGES
Solution 1 for improving customer – warehouse proximity in small provinces
Solution 1 addresses the pressing issues of inadequate warehouse and post office infrastructure, intense competition, and delivery speed To tackle these challenges, this approach proposes a scenario to enhance customer-warehouse proximity in southern provinces, excluding Ho Chi Minh City, thereby streamlining logistics and improving overall efficiency.
- Online business market in Southern provinces with shops mainly using live stream
The business landscape in this market is characterized by a diverse array of items, with a strong focus on cosmetic products, particularly homemade creams, as well as fashion-related goods Notably, business owners in this space often rely on targeted advertising and live streaming strategies, leveraging software solutions like Tpos to reach their audience, although it's worth noting that GHTK and Tpos software are separate entities with no affiliation.
- Shops have a segmented output from 250 orders/month to 30,000 orders/month, most shops will have an output of 1000-3000 orders per month
In addition, a characteristic feature of shops in the southern region is that they do not know much about technology
To devise an effective strategy, GHTK must identify and prioritize specific customer segments based on various market criteria Following a thorough analysis, GHTK has chosen to target customers who utilize J&T services, a deliberate decision driven by key factors.
- According to a survey from the post office, most of this market in the south belongs to J&T, the number of post offices in J&T is high
- J&T, based on the needs of customers lacking technology knowledge, has come up with a strategy to support the application process and care for the shop
- J&T has a slower delivery time than GHTK
- Select all the post offices and warehouses of the J&T with good revenue that GHTK does not have warehouses in that area
- With that list, making a market research plan of J&T’s warehouses to understand the reasons why they place their warehouse at those areas, also their strategy to get shops
- Besides analyzing J&T, GHTK needs to analyze the market to be able to choose a reasonable warehouse and post office location
To attract and retain customers, GHTK will establish a dedicated customer care team focused on providing support to shops in placing orders efficiently Additionally, GHTK offers a valuable feature designed to enhance shops' livestream activities, and to maximize adoption, the company plans to offer this feature to shops for free, thereby incentivizing them to utilize it.
4.1.2 Result and analysis of the effectiveness
Ideally, the final distribution center or warehouse should be situated as close to customers as possible to optimize logistics By increasing the number of post offices and warehouses near rival locations, J&T can share the market with GHTK, ultimately reducing delivery times, costs, and fuel usage Strategically locating warehouses near regions with high order volumes can mitigate the last mile problem and also serve as pick-up or drop-off points for customers This expanded network enables GHTK to boost its market competitiveness, offering comprehensive solutions to customers and increasing its market coverage.
Businesses and shops will eventually adapt to GHTK, utilizing its livestream feature at no additional cost, a stark contrast to the paid services of competitors like Tpos However, replicating this success with other shipping companies, such as J&T, poses a significant challenge that requires time to yield a substantial impact on regional businesses Prior to GHTK's strong entrance into the HCM market, local businesses were initially hesitant, but the company's persistence has ultimately led to its dominance in the region.
Solution 2 of invest in technology for delivery optimization
Leveraging real-time data analysis, cutting-edge technologies drive process enhancements by integrating machine learning and AI-based solutions to optimize route navigation, driver allocation, and other key functions By harnessing these innovations, businesses can significantly reduce total operational costs, streamline supply cycle times, and plan highly efficient routes for multiple addresses in a single operation, ultimately leading to improved decision-making and increased productivity.
The solution 2 focuses on upgrading and improving the technology system, namely, upgrade the location feature, call the shippers feature and upgrade the order status
To optimize last mile delivery operations, the GHTK Technology Department must analyze and summarize historical delivery route data, as insights from past deliveries, routes, and customer locations can reveal valuable improvement opportunities, enabling logistics businesses to map out efficient routes, pinpoint customer locations, and allocate drivers effectively.
- Update all routes, specific addresses, especially in small provinces
- Open one more blank cell in the address section instead of having 4 cells to the 4th level address, adding 1 box to add a note to the address
Apply a policy to force delivery staff to make calls for more than 1 minute
- App Gdriver system should be upgraded not to make calls for less than 1 minute
Upgrade the order status feature
- Upgrade the status update feature, specifically when the delivery order fails These updates can be sent via SMS, in-app notifications to inform customers of any delay
To ensure customers stay informed about their order status, notifications are sent in case of delivery or cancellation, providing two key details: the scheduled time frame and address of the post office where goods can be received Additionally, customers are notified of the estimated delivery time frame, allowing them to make necessary arrangements to receive their goods If they are unavailable during the next delivery shift, they have the option to collect their goods at the post office within a specified time period.
4.2.2 Result and analysis of the effectiveness
Upgrading the location feature offers a highly effective solution to streamline the delivery process, enabling staff to pinpoint specific addresses with ease By leveraging this enhanced feature, delivery personnel can significantly reduce the time spent searching for customers' locations, resulting in substantial fuel cost savings In fact, this solution boasts a 100% effectiveness rate in supporting shippers during the delivery process by accurately locating customers' exact addresses.
Upgrading the calling feature and implementing a policy of making calls over 1 minute in three attempts has significantly increased the percentage of customers who pick up calls, resulting in a reduction in returned orders This, in turn, eliminates the need for repeated deliveries, thereby saving substantial costs on fuel and enhancing the overall customer experience Effective communication with customers is crucial for steady business growth and increased customer satisfaction, as it fosters trust and loyalty, ultimately driving long-term success.
By upgrading the status update feature, businesses can keep customers informed about their order status in a timely manner, reducing the likelihood of forgotten orders and enhancing overall customer experience This, in turn, leads to a decrease in returned goods, resulting in increased revenue for shops and ultimately bolstering GHTK's competitiveness in the market through improved delivery quality.
Solution 3 of using iron shelves to contain goods
The solution 3 focuses on avoiding the damaging of the goods at warehouses by using iron shelves to contain goods
- Statistics of all goods that customers send GHTK
To optimize storage and minimize damage, it's essential to categorize items accordingly Delicate items, such as skin care products and household goods, should be stored on shelves in their original paper boxes to prevent dents and distortion On the other hand, items like fashion products that are typically carried in bags can be safely stored in plastic baskets without compromising their shape or integrity.
- Garment products: clothes, accessories, hat, shoes
The idea of replacing plastic baskets with shelves has the following parameters:
+ 2m high, each story is 1m high
+ Leg shelf is 15 cm high
4.3.2 Result and analysis of the effectiveness
Utilizing a 15cm high leg shelf can effectively mitigate the issue of goods being damaged by rodents, as it prevents them from accessing the stored items Additionally, storing goods on shelves helps maintain organization by preventing clutter and reducing the likelihood of breakage and distortion caused by stacking Furthermore, a 1m high shelf can efficiently accommodate large orders, with each floor capable of holding orders from a specific area, and multiple shelves can be allocated for areas with higher order volumes.
The rise of e-commerce has intensified market competition, driving consumer demand for fast and free shipping, thereby increasing pressure on last-mile delivery services like GHTK In addition to competitive pricing and swift delivery times, customers now consider multiple factors when selecting a last-mile delivery service provider.
- Professional level of staff: staff are trained regularly and always have a friendly attitude towards customers This professionalism is also reflected in being flexible and agile in supporting customers
- The ability to access and continuously track the delivery status of your order
- Flexibility and ability to provide bundled services
- Customer care service after delivery, this also contributes to perfecting the recall logistics process of businesses
To ensure customer satisfaction, GHTK must leverage its resources, including customer care centers, social networking sites, and technology centers Standardizing the delivery process is key to achieving accurate and timely end-to-end delivery, while careful handling during packaging and transportation is crucial for ensuring the safety of goods Offering flexible payment methods also enhances the customer experience, making them feel more comfortable when ordering Furthermore, implementing multiple-day delivery options before returning to the warehouse can reduce missed shipments and customer complaints, while redefining delivery locations can help minimize shipping costs for the company.
GHTK is navigating a complex landscape of challenges and innovations, with notable advancements in E-Logistics The industry is witnessing a shift from traditional motorbikes to more sustainable 2-wheel electric vehicles, offering a greener alternative for delivery services Additionally, the integration of convenient pick-up points, such as those found at local convenience stores, is poised to revolutionize the customer experience As technology continues to evolve, GHTK is well-positioned to adopt and apply emerging innovations, further transforming the delivery landscape.
56 such as drones like the US and Singapore did Applying technology is more to help increase customer experience and improve efficiency for last mile delivery
Theo báo cáo năm 2020 của Bạch mộc, các công ty giao hàng như Giao hàng tiết kiệm, Viettel Post đang kiếm bộn tiền từ thị trường thương mại điện tử, trong khi các sàn thương mại điện tử lớn như Shopee, Lazada vẫn lỗ vài nghìn tỷ mỗi năm Điều này cho thấy tiềm năng lớn của thị trường giao hàng trong bối cảnh thương mại điện tử đang phát triển mạnh mẽ tại Việt Nam.
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Bộ Thông tin và Truyền thông đã tiến hành thanh tra đột xuất Công ty cổ phần Giao Hàng Tiết Kiệm vào năm 2021, qua đó đã đưa ra kết luận về hoạt động của công ty này Theo đó, Giao Hàng Tiết Kiệm cung cấp dịch vụ giao hàng tiết kiệm với nhiều tính năng và lợi ích cho người dùng, bao gồm cả việc hỗ trợ giao hàng nhanh chóng và tiện lợi Tuy nhiên, kết quả thanh tra cũng chỉ ra một số tồn tại và hạn chế trong hoạt động của công ty, cần được khắc phục để đảm bảo chất lượng dịch vụ tốt hơn.
The vehicle routing problem with simultaneous pickup and delivery is a complex issue in logistics A case study by Tuong, Tran Duy (2019) explores this problem, while Đỉnh Thu Phương (2018) provides solutions for last-mile logistics These studies aim to optimize logistics operations, particularly in the context of last-mile delivery Effective solutions for this problem can significantly improve the efficiency of logistics services, such as those offered by Giao hang tiet kiem By addressing the challenges of last-mile logistics, businesses can enhance their delivery services and better meet customer needs.
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The rise of e-commerce has led to significant changes in logistics, with a notable shift towards collection-and-delivery points, as observed in the Netherlands According to Weltevreden's 2008 study, B2C e-commerce logistics have seen a substantial increase in the adoption of these points Meanwhile, a comprehensive review of third-party logistics by Yang in 2014 highlights the growing importance of efficient logistics management in the e-commerce landscape.
Oliveira, C.M.D., Albergaria De Mello Bandeira, D M A., Vasconcelos, G., Gonỗalves, S., and D’Agosto, M.D.A., (2017), Sustainable Vehicles-Based Alternatives in Last Mile Distribution of Urban Freight Transport: A Systematic Literature Review Sustainability
Luigi Ranieri,Salvatore Digiesi, Bartolomeo Silvestri and Michele Roccotelli, (2018), A Review of Last Mile Logistics Innovations in an Externalities Cost Reduction Vision, https://www.mdpi.com/2071-1050/10/3/782