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
Introduction
The importance of Maybelline's electronics supply chain on the Shoppe
ELECTRONICS SUPPLY CHAIN ON THE SHOPPE
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.
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.
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.
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.
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.
- 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.
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.
- 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.
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.
Information about maybelline and shopee
1.4.1 Maybelline: Fame In The Cosmetics World (2)
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 cosmetics world but also an inspiration for millions of women around the world.
- 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.
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.
- 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.
Content
SWOT model analysis
- 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.
Image 2: The system automatically confirms the order and generates a shipping code.
Image 3: Maybelline grants Shopee permission to automatically process their orders.
- 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.
- 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.
Image 6: Buying and selling followers is still increasing
- 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.
- 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.
- 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.
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.
Identify and evaluate the competitive advantage of Shoppe's supply chain for the
ADVANTAGE OF SHOPPE'S SUPPLY CHAIN FOR THE
Image 12: Brands competing with maybelline
Maybelline New York's competitors on the e-commerce platform can be mentioned as brands of Paula's Choice, Maybelline New York, Skin, Halio, Estee, New, Dear, Klairs, Tresemmé, Dove, Garnier, Focallure, Merzy Specifically, brands competing with Maybelline New York such as Paula's Choice, Maybelline New York are having average monthly revenue of 15.1 billion and 13.1 billion respectively.
- Strong brand: Maybelline is a well-known and reputable cosmetic brand worldwide This brand awareness can help attract buyers and build trust from customers.
- Product Diversity: Maybelline offers a diverse range of cosmetic products, from makeup to skincare with many different price segments, helping them reach a wide range of customers and increase sales opportunities on Shopee.
Image 14: Statistics of Maybelline's product groups on shopee
Image 15: Price segment of maybelline
- Quality and Creativity: Maybelline is famous for high-quality products - low prices and creativity in creating new makeup trends.
Image 16: Selling prices and sales of Maybelline's outstanding products
- Promotions and offers: Holding promotions and discounts can create a strong incentive to encourage shopping, especially on e- commerce platforms like Shopee
Image 17: Maybelline's promotional programs on shopee
- Online advertising and marketing: Maybelline can use online advertising and marketing strategies to increase brand awareness and generate interest from customers
Image 18: Shopee ads advertising tool
- Excellent Customer Service: Providing good customer service on the Shopee platform can enhance customer loyalty and create a positive experience.
Image 19: Customer care service on Shopee
- Flexible return and warranty: Offering a flexible return and warranty policy can create confidence and peace of mind for customers when shopping for Maybelline products.
Image 20: Return policies on shopee
- Interactive Ability with Artificial Intelligence: Shopee integrates artificial intelligence to provide intelligent product advice, which Maybelline can leverage to increase interaction and respond quickly to consumer requests.
- Efficient Supply Chain Management: Shopee applies artificial intelligence to optimize supply chain processes, Maybelline can benefit from effective inventory management and rapid response to market demand.
- Big Data Analysis: Shopee can provide big data about shopping behavior, and Maybelline can use artificial intelligence to analyze this information and adjust business strategies on Shopee.
- Flexible Pricing Strategy: Shopee supports Maybelline in offering a flexible pricing strategy based on market data, which can be a competitive advantage.
Identify and evaluate supply chain
Shopee can use artificial intelligence to analyze data and predict shopping trends, thereby helping supply partners more effectively manage inventory and products export.
Image 21: Shopee sales statistics table
Use artificial intelligence to optimize supply chain processes, minimizing delivery times and transportation costs This can help boost performance and improve the consumer shopping experience.
Shopee can use artificial intelligence to suggest suitable prices and optimal advertising strategies for partners, based on big data analysis of shopping behavior and Market trend.
2.3.4 Detect fraud and risks in the supply chain
Artificial intelligence can help Shopee and its partners detect fraudulent activities, counterfeit goods, or other security issues in the supply chain, keeping the environment safe Safe and reliable business.
Shopee can integrate artificial intelligence into its customer support system to provide automatic answers to common questions, reduce response time and increase customer interaction.
2.3.6 Analyze big data to make strategic decisions
Use artificial intelligence to analyze big data from procurement activities and share this information with partners so they can make strategic decisions based on accurate and detailed information.
Strengths of Shopee's electronic supply chain for Maybelline
- Collaborative filtering is algorithm in the field of Machine Learning and Recommendation Systems used to predict user preferences or behavior based on similarities between users and groups of other users This algorithm is based on the hypothesis that people who had similar preferences in the past will likely have similar preferences in the future.
- There are two main types of collaborative filtering: user-based collaborative filtering and item-based collaborative filtering User- based collaborative filtering uses information about the interests of similar users to predict the interests of the current user, while item- based collaborative filtering uses information about the similarities between items to predict user preferences.
- Collaborative filtering algorithm has been widely applied in building recommendation systems, such as product suggestions on online shopping sites, song suggestions on music applications, or Movie suggestions on online movie viewing sites
- When the same product is offered for sale by many sellers, using AI models, Shopee will "score" each seller's product based on factors including: competitive selling price , delivery speed, cancellation and return history of each seller, distance between seller and buyer.
- The seller's product that scores high will become the default product introduced first to customers.
Image 24: Describes "Winner System" and "Buy Box" technology.
- Shopee's order tracking system uses technologies such as GPS, AI, warehouse management, barcode scanning system, order information system, and shipping tracking system Specifically, Shopee can use ERP (Enterprise Resource Planning) technology to manage and optimize the order process They can also use barcode technology and barcode scanners to track and enter product information into the system Additionally, they can integrate shipping systems with external partners to track and update shipping statuses for customers.
- Investigation Tool:This tool helps collect and process a large amount of data, including customer feedback, product ratings, return rates, product cancellations combined with prediction models to generate Detect fraud and automatically disable products that do not meet standards This technology also helps save 6 times more review time than before with nearly 90% accuracy.
- Finally, to avoid cases of speculation and hoarding of goods during the epidemic season, the system limits the quantity purchased by each account for a certain product.
Image 26: Revenue of product categories on Shopee
- Existing features: multiple shop management, warehouse management, sales management
- Manage multiple warehouses including: linking multiple sales accounts, overview tracking table, multi-shop promotions, decentralizing accounts for employees
- Warehouse management includes: linking inventory quantities for multiple shops, importing goods and adjusting inventory, forecasting when to restock goods, editing inventory on the phone
- Sales management: sales and profit tracking table, management of unsuccessful orders, synchronization and processing of multi-shop orders, delivery records
Image 27: Overview of features in the shop management channel
Use warehouse management software (Warehouse Management System – WMS) or a warehouse management system integrated into an e-commerce system to track inventory, manage shipments, and organize goods location This system often has to integrate with online stores and ordering systems for automatic inventory updates.
Sales management on Shopee refers to the process of effectively managing and optimizing sales activities on the Shopee e-commerce platform It involves various tasks such as monitoring sales performance, customer relationship management, pricing strategies, and advertising campaigns This ensures that businesses can maximize their sales potential and achieve their revenue goals on the Shopee marketplace.
- SkinCam uses Modiface AI technology researched and created by L'Oréal's team of experts and dermatologists The feature can provide detailed indicators and preliminary diagnosis of skin problems through a selfie photo.
- The technology is designed to suit all skin types, ages, and genders based on a database of 16,000 images Dermatologists carefully analyzed the stock skin surface images based on globally recognized scientific studies
Image 29: Illustration of Skincam technology
- Video streaming technology: Shopee leverages video streaming protocols and codecs to broadcast the livestream content to users in real-time This technology ensures smooth video playback and low latency.
- Chat and engagement features: Shopee livestreams often have chatboxes or interactive features that allow viewers to engage with the hosts or ask questions Technologies like instant messaging protocols and push notifications are used to facilitate real-time interactions between hosts and viewers.
Image 30: Illustration of Livestream technology
Shopee Visual Search: Shopee Visual Search is a feature provided by the e-commerce platform Shopee It allows users to search for products using images instead of keywords This feature utilizes advanced image recognition technology to analyze uploaded images and provide relevant search results, making it more convenient and efficient for users to find the products they are looking for
Image 31: Illustration of Shopee Visual Search technology
Conclude
Summary – Review
- Maybelline has demonstrated excellence on the Shopee platform by flexibly leveraging algorithms and modern utilities Despite a highly competitive online cosmetics market with the presence of major competitors, Maybelline maintains a leading position due to its strong brand awareness and diverse product range.
- By integrating technologies such as livestream and Visual Search into its business strategy, Maybelline not only provides an enjoyable shopping experience but also creates opportunities for expanding its product line and enhancing quality However, the brand also faces challenges regarding quality assessments and customer skepticism.
- To sustain growth momentum and confront market fluctuations, Maybelline needs to maintain focus on product quality, invest in research and development, and continually improve its online strategy Close collaboration with Shopee and flexibility in adopting new technologies will help Maybelline maintain and reinforce its leading position in an increasingly competitive online cosmetics market.
Additional information
- Global Opportunities: Expand influence and strategically collaborate with international partners to tap into the global market.
- Competitive Rivals: Research and collaborate with competitors to optimize shared strategies and strengthen competitive advantages.
- Supply Chain: Invest in AI research and collaborate closely with shipping partners to enhance supply chain management.
- Customer Feedback: Analyze customer reviews to understand competitors' strengths and weaknesses.
- Strategic Collaboration with Competitors: Explore opportunities for collaboration with competitors to optimize strategies and leverage mutually beneficial relationships.
Suggested improvements
3.3.1 Enhance Fraud Detection System to Minimize Fake Accounts:
- Upgrade the algorithm and database of the Fraud Detection System to more effectively identify fake accounts.
- Integrate machine learning technology to analyze user behavior patterns, thereby pinpointing suspicious characteristics indicative of fake accounts.
3.3.2 Review and Adjust the Order Tracking Process to Consider Additional Cancellation Time:
- Extend the time required for the automated generation of shipping codes after order confirmation, while also considering additional flexibility for customers to cancel orders conveniently.
- Implement verification steps for specific or new accounts to reduce the risk of fraudulent orders.
3.3.3 Develop Measures to Prevent Buying and Selling of Reviews and Fake Tracking:
- Establish strict policies against buying and selling reviews and fake tracking, with clear penalties for sellers violating these rules.
- Utilize verification technology to ensure the authenticity of reviews and tracking from the buyer's side.
3.3.4 Strengthen Transparency within the Seller Community:
- Provide clear and detailed guidelines on Shopee's rules and policies for sellers.
- Organize training sessions and information sessions to educate sellers about the consequences of engaging in fraudulent practices.
- Create tools and reports to help the Shopee community monitor and report inappropriate behavior.
These measures aim to fortify the overall integrity of the Shopee platform by tackling fraud, ensuring a fair and transparent environment for both buyers and sellers.
Evaluate The Level Of Participation In Group Activities
Student Name Student code Percent
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2 Alo Việt (2020) [Maybelline makeup brand is world famous]
(https://aloviet.vn/maybelline.html )
3 Econsultancy (2018) [Shopee: Localizing Ecommerce in Southeast Asia and Taiwan] (https://econsultancy.com/reports/shopee-localizing-ecommerce-in- southeast-asia-and-taiwan/ )
4 Quang Vũ (2020) [Maybelline New York leads the makeup industry with more than 5,000 orders sold on September 9 Super Shopping Day at Shopee] (https://kenh14.vn/maybelline-new-york-dan-dau-nganh-hang-trang-diem-voi- hon-5000-don-hang-duoc-ban-ra-vao-99-ngay-sieu-mua-sam-tai-shopee- 20200914174538734.chn )
5 Anh Hoa (2020) [Pricing technology helps e-commerce platforms detect and control fraud during the epidemic season] (https://baodautu.vn/cong-nghe- dinh-gia-giup-san-thuong-mai-dien-tu-phat-hien-va-kiem-soat-gian-lan-trong- mua-dich-d119547.html? fbclid=IwAR33I5kdcH5D9trlZrzbPq1WOhYmroB9e0qnkRjK_MwsfBasFJE2Lm7ASao)