(Tiểu luận) topic analyze how shopee applies artificial intelligence for itsesupply chain and logistics – an example of maybelline shop

Ho Chi Minh City University of Economics and Finance Faculty of Information Technology FINAL REPORT Subject: Supply Chain Management in E-Commerce Lecturer: Nguyễn Hồng PhướcTopic: Anal

Ho Chi Minh City University of Economics and Finance Faculty of Information Technology

FINAL REPORT

Subject: Supply Chain Management in E-Commerce Lecturer: Nguyễn Hồng Phước

Topic: Analyze how Shopee applies artificial intelligence for its eSupply Chain and Logistics – An example of Maybelline Shop Class Code: 231.EBU1135E.B03E

Date Of Submission Of The Final Report: 12/01/2024

Student Name:

1 Bùi Tiến Anh – 215122102 2 Quách Hải Quỳnh – 215120413 3 Nguyễn Minh Anh Huy – 215121695 4 Phạm Lê Phương Uyên – 215122219 5 Dương Nguyễn Yến Vân – 215121478

TP Hồ Chí Minh – 2024

E-commerce has become an indispensable part of the way we approach and experience everyday shopping In this context, supply chain management plays an important role in ensuring flexibility, efficiency and rapid response to increasingly diverse customer needs This report will focus on analyzing and evaluating Maybelline's supply chain management on the Shopee e-commerce platform, providing insight into how this business manages its product supply process in a dynamic online environment.

Our main goal was to understand how Maybelline, one of the leading brands in the cosmetics industry, integrated and optimized supply chain management on the Shopee e-commerce platform We will identify the specific challenges this business faces and the outstanding strategies they have deployed to meet increasingly demanding customers.

Before we dive into the details, we'll give an overview of the online cosmetics market and the important role Shopee plays in connecting buyers and sellers The online cosmetics industry not only requires innovation in products but also in supply chain management to ensure flexibility and quality.

The report will be divided into main sections, each focusing on an important aspect of Maybelline supply chain management on Shopee We'll cover the different stages in the supply chain, from

manufacturing to shipping and distribution, as well as the challenges and opportunities that Maybelline has faced.

We hope that this report will provide detailed insight and useful information for those interested in the cosmetics and e-commerce industry.

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1.1.3 Managing supply partners 5

1.1.4 Information and data management 5

1.1.5 Optimize costs and performance 5

1.1.6 Continuous feedback and improvement 6

1.2 Objectives of the research report(1) 6

1.3 shopee supply chain's justification of the maybelline brand 7

1.4 Information about maybelline and shopee 8

1.4.1 Maybelline: Fame In The Cosmetics World (2) 8

1.4.2 Shopee: Diverse and Convenient E-Commerce Platform(3) 10

1.4.3 The combination of maybelline and shopee (4) 11

2.2.2 Maybelline's Competitive Advantage: 19

2.2.3 Competivive Advantage Assessment: 24

2.3 Identify and evaluate supply chain 24

2.3.2 Smart supply chain management 25

2.3.3 Price and advertising optimization 25

2.3.4 Detect fraud and risks in the supply chain 26

2.3.5 Smart customer support: 26

2.3.6 Analyze big data to make strategic decisions 26

2.4 Strengths of Shopee's electronic supply chain for Maybelline 26

2.4.1 Collaborative Filtering 26

2.4.2 Winner System & Buy Box(5) 27

2.4.3 Order Tracking System: 28

2.4.4 Inventory Management and Forecasting: 29

3.3.1 Enhance Fraud Detection System to Minimize Fake Accounts 36

3.3.2 Review and Adjust the Order Tracking Process to Consider Additional

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LIST OF FIGURES AND TABLES

Image 1: Describes "Winner System" and "Buy Box" technology 13

Image 2: The system automatically confirms the order and generates a shipping code 13

Image 3: Maybelline grants Shopee permission to automatically process their orders 13

Image 4: Shopee will delete user accounts showing signs of fraud 14

Image 5: Virtual orders is still increasing 14

Image 6: Buying and selling followers is still increasing 15

Image 7: If an electronic device has its account deleted multiple times, Shopee will block that electronic device and the user cannot continue to use Shopee 16

Image 8: Shopee deducts money for violations from sellers who show signs of fraud 17

Image 9: Sellers sued Shopee for deducting their money for no apparent reason 17

Image 10: Shopee deducts money for violations from sellers who show signs of fraud 18

Image 11: Shopee deducts money for violations from sellers who show signs of fraud 18

Image 12: Brands competing with maybelline 19

Image 13: Maybelline brand awareness 20

Image 14: Statistics of Maybelline's product groups on shopee 20

Image 15: Price segment of maybelline 21

Image 16: Selling prices and sales of Maybelline's outstanding products 21

Image 17: Maybelline's promotional programs on shopee 22

Image 18: Shopee ads advertising tool 22

Image 19: Customer care service on shopee 23

Image 20: Return policies on shopee 23

Image 21: Shopee sales statistics table 24

Image 22: Supply chanin management 25

Image 23: Marketing on shop 26

Image 24: Describes "Winner System" and "Buy Box" technology 28

Image 25: Shopee Express 29

Image 26: Revenue of product categories on Shopee 29

Image 27: Overview of features in the shop management channel 30

Image 28: Warehouse management 31

Image 29: Maketing on shop 31

Image 29: Illustration of Skincam technology 32

Image 30: Illustration of Livestream technology 33

Image 31: Illustration of Shopee Visual Search technology 34

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CHAPTER 1 INTRODUCTION

1.1 THE IMPORTANCE OF MAYBELLINE'S ELECTRONICS SUPPLY CHAIN ON THE SHOPPE E-COMMERCE PLATFORM(1)

Maybelline's supply chain management on the Shopee e-commerce platform plays an important role in ensuring the success and reputation of the brand in today's e-commerce world Here are some important points about the importance of Maybelline's supply chain on Shopee.

1.1.1 Ensuring the right products are available

An efficient supply chain ensures that Maybelline has enough goods to meet customer needs on Shopee Maintaining adequate inventory and managing supply and demand is important to avoid shortages or overstocks.

1.1.2 On-time delivery

The supply chain is also closely related to the delivery process For the e-commerce model, on-time delivery is a decisive factor in customer experience An efficient supply chain helps Maybelline make deliveries fast, on time, and keep the shipping process smooth.

1.1.3 Managing supply partners

If Maybelline works with multiple supply partners, managing the relationship with them is important Strong relationships with partners help ensure stable supply, reasonable prices and product quality that meets market requirements.

1.1.4 Information and data management

Understanding supply chain information and data helps Maybelline easily predict market trends, evaluate performance and make

strategic decisions Transparency in the supply chain is also an important factor in building customer trust.

1.1.5 Optimize costs and performance

Managing costs in the supply chain helps Maybelline save on transportation, storage and inventory management costs Optimizing supply chain performance helps increase profits and at the same time reduce the bottom line value for consumers.

1.1.6 Continuous feedback and improvement

- Supply chain management is not just a one-time issue but requires continuous monitoring and improvement Maybelline can use customer feedback and fulfillment data to adjust its supply chain strategy and improve performance.

- In summary, Maybelline's supply chain on Shopee is instrumental in ensuring flexibility, efficiency, and customer satisfaction A well-managed supply chain directly impacts the company's ability to meet market demands and maintain a competitive edge in the e-commerce space.

1.2 OBJECTIVES OF THE RESEARCH REPORT(1) - The primary objective is to evaluate the impact of Shopee's AI

solutions on various aspects of Maybelline's supply chain, including demand forecasting, inventory management, order fulfillment, customer experience, and overall strategic advantages - The primary objective is to evaluate the impact of Shopee's

solutions on various aspects of Maybelline's supply chain, including demand forecasting, inventory management, order fulfillment, customer experience, and overall strategic advantages - The report aims to assess how Shopee's AI integration has

influenced Maybelline's supply chain operations and strategic decision-making.

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- Looking at historical sales data can help predict consumption patterns and trends This includes considering seasonal consumption, previous promotional events, and other factors that influence demand.

- Inventory management is the process of monitoring, coordinating, and controlling the amount of goods stored in the warehouse to meet customer needs The goal of inventory management is to maintain an ideal amount of inventory, avoid shortages or overstocks, and optimize costs associated with storing and managing goods.

- Order fulfillment is the process of taking the necessary steps to process and complete an order to a customer This process often includes many stages and activities to ensure that the product or service is delivered to the customer in the right way, in the right quantity, and of the right quality.

- Customer experience is the overall feeling of consumers when interacting and shopping online through Maybelline's shopping channel It covers every stage of the online shopping journey, from when customers start searching for products to when they receive the product and have the post-sale experience.

- Customer experience is the overall feeling of consumers when interacting and shopping online through Maybelline's shopping channel It covers every stage of the online shopping journey, from when customers start searching for products to when they receive the product and have the post-sale experience.

1.3 SHOPEE SUPPLY CHAIN'S JUSTIFICATION OF THE MAYBELLINE BRAND

- Maybelline's supply chain management on the Shopee e-commerce platform is not only an important part of business operations but also brings many strategic benefits to this cosmetics brand.

- Appearing on Shopee opens the door to a rapidly growing market, helping Maybelline reach and conquer new customers Synchronized and flexible supply chain management helps ensure that products are always available to meet the increasingly fluctuating demands of the cosmetics market.

- The benefits are not limited to maintaining product readiness Effective supply chain management also helps Maybelline optimize shipping costs, reduce excess inventory, and increase internal efficiency Thanks to this, the brand can offer products at competitive prices and optimize profits at the same time - Strong relationships with partners and suppliers help Maybelline

ensure a stable supply and be flexible in the face of challenges This is the key for brands to not only survive but also thrive in the competitive e-commerce environment.

- In addition, Maybelline has the opportunity to enhance its online advertising and marketing strategy on Shopee, taking advantage of promotional tools to enhance sales performance and create a positive impression with customers At the same time, evaluating performance and listening to customer feedback helps Maybelline continuously improve and adapt to market fluctuations - In short, supply chain management on Shopee not only brings

short-term benefits in terms of increasing product availability and reducing costs, but also builds the foundation for Maybelline's sustainable development and success in today's e-commerce world.

1.4 INFORMATION ABOUT MAYBELLINE AND SHOPEE

1.4.1 Maybelline: Fame In The Cosmetics World (2)

Basic information:

Maybelline, a leading cosmetics brand, is known for its creativity and high quality of products This brand is owned by L'Oréal group, one of the giants in the beauty industry Maybelline is not only an icon in the

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cosmetics world but also an inspiration for millions of women around the world.

Development History:

- Early Years: Maybelline's origins trace back to the early 20th century when Thomas Lyle Williams created a mascara for his sister, inspired by her use of a mixture of Vaseline and coal dust to enhance her eyelashes This led to the creation of the first modern mascara - Acquisition by L'Oréal: In 1996, Maybelline was acquired by L'Oréal, providing the brand with global reach and access to extensive resources for further development and innovation.

- Global Expansion: Over the years, Maybelline has expanded its presence globally, establishing itself as a prominent player in the beauty and cosmetics industry The brand is known for its affordability, trend-focused products, and inclusive approach to beauty.

Maybelline is famous for the variety and quality of its cosmetic products Below are some outstanding product lines:

- Mascara: Maybelline has launched many popular mascara lines such as "Great Lash" and "Lash Sensational," which are known for their ability to create thick, curled eyelashes.

- Lipstick: Maybelline's lipstick line is diverse in many colors and qualities, including "SuperStay Matte Ink" with long-lasting color retention.

- Eyeshadow and Blush: Maybelline offers a variety of eye and cheek makeup products such as "The Nudes Eyeshadow Palette" and "Fit Me Blush," which help create a shiny face.

- Foundation: Maybelline's "Fit Me Foundation" foundation line is famous for its diverse skin tones and ability to create a natural foundation.

- Skincare and Skin Care: In addition to makeup, Maybelline also offers skin care products such as sunscreen and moisturizer.

- Maybelline is not only a cosmetics brand, but also a symbol of confidence and natural beauty With a commitment to not testing on animals and constant innovation, Maybelline continues to conquer the hearts of consumers around the world.

1.4.2 Shopee: Diverse and Convenient E-Commerce Platform (3)

Basic information:

Shopee is one of the major e-commerce platforms in Southeast Asia and Taiwan, providing a diverse and convenient online shopping environment Launched in 2015, - Shopee quickly became the leading address for consumers to search and shop online for many products from many different industries.

Development History:

Shopee is part of Sea Group, a multi-industry technology corporation in Southeast Asia This platform was developed with the goal of creating an easy and safe online shopping experience for users As of the time my knowledge was last updated in January 2022, Shopee has expanded its operations to many countries in the region.

Shopee is home to a wide range of products and services, from fashion, electronics, to home appliances and cosmetics Below are some highlights of Shopee's products and services:

- Multi-Industry Commerce: Shopee offers consumers diversity with millions of products from many different fields, ensuring abundance and choice for everyone.

- Promotions and Discounts: The platform regularly organizes promotions and discounts to stimulate shopping, from major events like 11.11 to daily deals.

- Shipping and Delivery Services: Shopee provides convenient shipping and door-to-door delivery services, helping consumers save time and effort.

- Shopee Pay: Shopee's online payment system, Shopee Pay, provides convenience and security when paying online.

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- Customer Support Service: Shopee focuses on user experience by providing customer support services, from answering questions to handling complaints.

Shopee is not only an online shopping place but also a dynamic and growing online shopping community, creating opportunities for both sellers and buyers to interact and experience shopping comfortably and effectively.

1.4.3 The combination of maybelline and shopee (4)

- Maybelline has been present in Vietnam since 2017 and quickly joined the e-commerce market.

- The collaboration between Maybelline and Shopee creates a smooth and diverse shopping experience for customers - Shopee's payment convenience, incentives, and flexible supply chain combined with Maybelline's variety of quality products create a strong alliance in the cosmetics and e-commerce industry.

CHAPTER 2 CONTENT

2.1 SWOT MODEL ANALYSIS 2.1.1 Strengths

- Maybelline maintains the top position in some products such as lipstick and eyeliner combined with the "Winner System" and "Buy Box" technology that Shopee has used to support sellers, this technology has helped Maybelline products be suggested first to customers when searching for cosmetic products.

Image 1: Describes "Winner System" and "Buy Box" technology.

- Maybelline has improved order processing speed by allowing Shopee to handle orders automatically Most famous brands on Shopee have authorized Shopee automatic order confirmation and shipping code generation After 30 minutes of waiting for confirmation of a successful order placement, Shopee will generate a shipping code The Smart Warehouse will then prepare the items, and the order will be shipped through Shopee's logistics partner is a Shopee Express, resulting in faster preparation and delivery speed.

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- The benefit of Maybelline when selling on e-commerce platforms is leveraging Shopee's technology for sellers to promote their products to customers with relevant needs The "Collaborative Filtering" algorithm analyzes customer search data to suggest products and targeted mobile advertisements that match each customer's preferences.

2.1.2 Weakenesses

- Although Shopee utilizes artificial intelligence through the Fraud Detection System (FDS) to detect fake accounts, it is still unable to completely eliminate 100% of fake accounts, leading to a high number of fake orders and increased abuse of discount codes.

Image 4: Shopee will delete user accounts showing signs of fraud.

Image 5: Virtual orders is still increasing.

- While granting Shopee permission to handle orders brings advantages such as fast processing and delivery, Maybelline also faces a disadvantage After 30 minutes of order confirmation, Shopee's system automatically generates a shipping code, and customers cannot cancel the order anymore This means that even if customers no longer want to purchase or have placed the wrong product, they cannot cancel the order leading to a higher number of unsuccessful orders delivery - Shopee has not implemented measures to address sellers who buy and sell seller followers and product reviews, which leads to buyers being unable to differentiate between trustworthy sellers and scam sellers.

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Image 6: Buying and selling followers is still increasing

2.1.3 Opportunities

- Shopee can continue to invest in improving its Fraud Detection System (FDS) to further reduce the number of fake accounts and fraudulent activities on the platform By implementing more advanced AI algorithms and leveraging data analytics, Shopee can better identify and prevent fake orders and abuse of discount codes.

Image 7: If an electronic device has its account deleted multiple times, Shopee will block that electronic device and the user cannot continue to

use Shopee.

- Shopee can consider implementing a more flexible order cancellation policy that allows customers to cancel their orders within a reasonable timeframe This can help reduce the number of unsuccessful deliveries and improve customer satisfaction.

2.1.4 Threats

- Virtual accounts are on the rise and ways to cheat and exploit discount codes are increasing This will make it impossible for real accounts to use the discount code because the code only has a certain quantity - Weather conditions affect the delivery process making customers unhappy.

2.1.5 Exception

- Besides the benefits of applying FDS technology to handle fake accounts, this technology also has some algorithm-related errors that lead to Shopee mistakenly locking the accounts of real sellers and fake sellers These sellers sued Shopee for deducting their money and failing to prove fraud when purchasing on Shopee.

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Image 8: Shopee deducts money for violations from sellers who show signs of fraud.

Image 9: Sellers sued Shopee for deducting their money for no apparent reason

Image 10: Shopee deducts money for violations from sellers who show signs of fraud.

Image 11: Shopee deducts money for violations from sellers who show signs of fraud.

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