E commerce logistics in vietnamthe reality and solutions logistic trong thương mại điện tử ở việt namthực trạng và giải pháp

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN VĂN THỊNH E-COMMERCE LOGISTICS IN VIETNAM THE REALITY AND SOLUTIONS LOGISTIC TRONG THƯƠNG MẠI ĐIỆN TỬ Ở VIỆT NAM: THỰC TRẠNG VÀ GIẢI PHÁP LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN VĂN THỊNH E-COMMERCE LOGISTICS IN VIETNAM THE REALITY AND SOLUTIONS LOGISTIC TRONG THƯƠNG MẠI ĐIỆN TỬ Ở VIỆT NAM: THỰC TRẠNG VÀ GIẢI PHÁP Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS BÙI QUANG HƯNG Hà Nội - 2018 DECLARATION The author confirms that the research outcome in of this thesis is the result of author‟s independent work during study and research period, and it is not yet published in other‟s research and article The other‟s research results and documentation (such as extractions, tables, figures, formulas and other document) used in the thesis are cited properly, and the permission (if required) is given Plagiarism in this Thesis will not be tolerated by The author is responsible in front of theLaws and Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date: December 11, 2017 ACKNOWLEDGEMENT I have gained huge knowledge, skills and insights from my MBA course The course raises my capacity of administration and management up to the next level I am now very confident in my position of management I would like to extend my sincerest thanks and appreciation to all those who have helped me makde this Thesis to be possible First of all, I would like to express my deepest and sincerest gratitude to my supervisor, Dr Bui Quang Hung for his useful comments, remarks and engagement during my process of doing this master Master Tthesis I would like to give my sincere thanks tocustomers who have purchased and used the services of logistics businesses, in my survey, who have willingly spent their precious time joining the interviews Sincere thanks are extended to the Hanoi School of Business and Management (HSB) - Vietnam National University for equipping me with huge knowledge and skills through various interesting and practical subjects I also would like to thanks my classmates for their friendship and reciprocal encouragement to make our class time to become unforgettable time Lastly, I would like to give my great thanks to my family who have been always standingby me during for the past two years, and encourages encouraging me to keep moving from the beginning of my study Formatted: Space After: pt This page is intendedly left plank E-COMMERCE LOGISTICS IN VIETNAM THE REALITY AND SOLUTIONS E-Commerce logistics in Vietnam The reality and solutions Summary of the results The result of the thesis is to provide the solutions of logistics for ecommerce in Vietnam Study on the general situation of logistics and logistics in e-commerce in Vietnam Propose Proposing solutions (infrastructure of transport, technology and policies) related to logistics is to support E-commerce development Applicability in practice E-commerce is a growing field in the world, as the trend is irreversible However, in Vietnam there are many obstacles to the development of ecommerce and the biggest barrier now is the logistics (logistics for ecommerce) The thesis studiesy on the ongoing issues at the big e-commerce companies in Vietnam and around the world, opportunities and challenges in the coming time to provide practical solutions to overcome these exist to be able to support Vietnam e-commerce development Comment [THP1]: Khơng có vị ngữ (nghiên cứu tình tình trạng chung Logistics E-commerce Logistics để làm gì? TABLE OF LIST OF TABLES LIST OF FIGURE FOREWORD Problem of statement 2.Literature review 3.Research objectives 3.1 General objective 3.2 Detail objec 4.Research subjects 5.Research scope 6.Research methodology 6.1 Data collection methods 6.2 Data processing methods 7.Research structure CHAPTER 1: THEORETICAL FRAMEWORK ON E-COMMERCE AND LOGISTICS IN E-COMMERCE 1.1 E-commerce 1.1.1 Concept 1.1.2 Components 1.1.3 Ecommerce 1.1.4 The role and benefits of e-Commerce 1.2 Logistics in e-commerce 1.2.1 General 1.2.2 Components 1.3 Factors influencing logistics in e-commerce 1.3.1 Macro Facto 1.3.2 Subjective fa CHAPTER 2: LOGISTICS STATUS IN E-COMMERCE OF THE WORLD AND VIETNAM 23 2.1 Logistics Status in E-Commerce of the World 23 2.1.1 Research at Amazon 23 2.1.2 Research in Wal-Mart 29 2.1.3 Overall evaluation of logistics solutions in e-commerce in the world 34 2.2 The status of logistic in Viet Nam 35 2.2.1 Research at Sendo.vn 35 2.2.2 Research at Tiki.vn 43 2.2.3 Analyzing the influence of factors on logistic behavior in e-commerce49 2.2.4 Customer survey 55 2.2.5 Summary of SWOT Matrix 61 CHAPTER 3: SOLUTIONS TO COMPLETE LOGISTICS IN E-COMMERCE IN VIETNAM .64 3.1 Logistics operations development direction in Vietnam e-commerce sector 64 3.2 The proposed solutions for Logistics activities in the EC in Vietnam 65 3.2.1 proposed solutions to business 66 3.2.2 Recommendations to the State 69 REFERENCES 72 APPENDIX 74 Survey Questions .74 10 11 LIST OF TABLES Table 1.1: E-commerce models 11 Table 2.1: Amazon's refund policy 29 Table 2.2: Service prices in the city on Shipchung.vn 38 Table 2.3: Prices in interprovincial 40 Table 2.4: Return Policy of Sendo.vn 41 Table 2.5: Refund processing at Sendo.vn 42 Table 2.6: Order processing capacity 45 Table 2.7: Delivery fee and order processing at Tiki.vn 46 Table 2.8: Return goods policies of Tiki.vn 47 Table 2.9 : Customer survey results 55 Table 2.10: Customer survey results 57 Table 2.11: Customer survey results on transportation activities 59 Table 2.12 : Customer survey results on Return shipping 60 i LIST OF FIGURE Figure 1.1: Components of e-Commerce Figure 2.1: Process Order at Amazon 23 Figure 2.2: The application process at Amazon 25 Figure 2.3: Amazon Warehouse 26 Figure 2.4: Amazon's warehouse system 27 Figure 2.5: Amazon's shipping process 28 Figure 2.6: Process Order at Wal-Mart 30 Figure 2.7: Walmart's warehouse systems 31 Figure 2.8: the inventory management process at Wal-Mart 31 Figure 2.9: Cross-docking technology process at Wal-Mart 33 Figure 2.10: Processing online at Sendo.vn 36 Figure 2.11: The number of orders per day on sendo.vn 37 Figure 2.12: Processing online at Sendo.vn 43 Figure 2.13: Number of orders 44 Figure 2.14: Infrastructure information technology 51 Figure 2.15: the level of use of electronic equipment in enterprises in our country .52 Figure 2.16: About using email by enterprise size 53 Figure 2.17: Charted the cost of procurement and application of information technology in ecommerce 54 ii FOR EWO RD Problem of statement Enterprises investment, procurement, equipment and application of information technology in e-commerce logistics to manipulate for customers The number Formatted: Space Before: pt, After: pt, Line spacing: Multiple 1.4 li, Don't keep with next, Don't keep lines together of orders processed is large Formatted: Space After: pt, Line spacing: Multiple 1.4 li modernized Convenient transportation transportation policy customers who buy goods is focused on the provisions on the return of goods The legal and political system is quite adequate, the legal policies are adjusted, and revising Technological increasingly improved to ensure the online connection between enterprises and customers Formatted: None, Indent: First line: cm, Space After: pt, Line spacing: Multiple 1.4 li, Don't keep with next Formatted: Space After: pt, Line spacing: Multiple 1.4 li 63 Formatted: Space Before: pt, After: pt, Line spacing: Multiple 1.4 li, Don't keep with next, Don't keep lines together Formatted: None, Indent: First line: cm, Space After: pt, Line spacing: Multiple 1.4 li, Don't keep with next CHAPTER 3: SOLUTIONS TO COMPLETE LOGISTICS IN E-COMMERCE IN VIETNAM 3.1 Logistics operations development direction in Vietnam e-commerce sector In the coming time, logistics activities in electronic commerce in Vietnam will follow the directions: - Offers high speed, high quality and wide range of telecommunications and internet services for enterprises as well as clients to participate in the buying and selling on the electronic trading platform in the country - The future development direction focuses on investment and develop in both hardware and software infrastructure to support the development of logistics service in order to maximize the advantages of the strategic geographical position of each area The development of regional and international logistics centre, is the first important link in the chain of logistics service of the region of South East with large logistics center of Hanoi, Hcmc HCMC, Dong Nai, Ba Ria Vung Tau Provinceprovince - Make e commerce logistics service become high value industry in the commercial and services industry structure, associated with the domestic trade sector with electronic commerce Striving to 2020, most enterprises have the ability to provide the 3PL, 4PL service levels and up to the year 2025 level on 5PL level; Established Logistics service business association to create e-commerce to create coherence, mutual support and enhancing the competitiveness of enterprises: - Raise awareness of the business about the nature, importance of e-business as well as the deployment method of logistics in electronic commerce - Build the appropriate strategy to implement electronic commerce and logistics of e-commerce This business strategy should clearly define the objects and the steps to achieve these objects The select of network service providers for business also have very important meaning - Continue to implement the activities of the training and fostering of business and logistics electronic commerce knowledge, updating the knowledge and 64 skills of modern business and exploit the capabilities of information technology to serves the business‟s operation - Continue to invest in design, encryption products and services in an appropriate way to be able to introduce and execute consistently, clearly transaction On the basis of a database and the capacity to deliver the goods, pertinent business services needed to build a plan to participate in e-business and follow that plan in a appropriate way Comment [A7]: Font chữ to 65 3.2 The proposed solutions for Logistics activities in the EC in Vietnam 3.2.1 Proposed solutions to business 3.2.1.1 Improve the process for ordering and processing of orders of business Currently, the order processing method with each product of the EC enterprises in our country is fairly complete and reasonable but business should take the change and shorten the time of processing the order Current customers can order through the form: online or through the phone Enterprises need Internet Enterprises habit of ordering as payment, promotion and To this, enterprises need, first and foremost, to review and shorten the order process through Internet Then they should reduce the order conditions for customers and help customers put many items at once 3.2.1.2 Improve warehouse management Warehouse management in electronic commerce logistics activities include: warehouse network settings, select warehouse location (number, scale), the design and installation of the equipment inventory; organize the import, storage, storage of the goods; perform the work books, statistics related to the warehouse business E-commerce businesses should be oriented to buildt warehouse system in the model of bonded warehouse combined Cross-docking Perform the sort, aggregate, bar code stickers for the goods directly at the warehouse, then distributed to each retail store more convenient Moderate the warehouse by using modern equipment to enhance operational efficiency and service quality The equipment needed includes: - Conveyor system for conveying goods: goods transported in storage areas will not have to use direct labor; the moving goods will be conveyed by the conveyor system Thus, saving labor and saving labor cost and increases the ability to transport goods in large quantities and faster speed, ensuring the safety of goods in the warehouse 66 - Forklifts: As an indispensable means in warehouses, however, forklift systems in enterprises are still weak, with low tonnage; enterprises need to invest in modern forklifts such as automatic forklifts Larger, fast moving and equipped with management software forlifts which directly connected to the warehouse management center, will help operators have accurate information about the cargo, the place of loading and unloading of goods conveniently - Upgrading warehouse-shelving system to support large-scale goods Besides, warehouse should be equipped with bar code technology and bar code reader With this technology, the company can control the goods in the store easily 3.2.1.3 Improve the transportation There are two forms of transportation that e-commerce businesses can use are either outsourced transport or self-transport When the business itself transports, it is necessary to invest in transportation staff and transport vehicles, supporting tools Optimize transportation costs by focusing on passengers on routes and point-to-point transport Enterprises should link at least with a professional shipping partner to meet the orders in the remote and orders in the provinces and cities across the country Link with reputable shipping partners, who has competitive prices to transport goods will create trust with customers 3.2.1.4 Investment to improve, upgrade and apply of modern technology For successful logistics operations in e-commerce businesses, enterprises must pay special attention to the application of information technology systems The application of current technology in e-commerce businesses should be divided into two phases: - Phase 1: Completing the internal information system (Intranet) as well as the information system in each functional unit (Technical, accounting, marketing, ), information system at each stage in the chain provision of supplies (warehouses, yards, transport, ) and the connection of information between organizations, sections and stages To apply computerization in the operation of enterprises, to install software for business activities, standardize databases to create the basis in the logistics information system 67 - Phase 2: Connect external information systems in two ways: Method 1: Using the Internet is a trend that e-commerce companies in the world are aiming as an indispensable tool in business Method 2: Electronic data interchange (EDI) This system allows the exchange of information and data from the computer through the computers in a system EDI require expensive investment but is very convenient and high security EDI is really useful for business in data exchange between stores, distribution agents in the enterprise's Logistics system 3.2.1.5 Improve the human resources To improve human resources, companies should gradually improve professional skills, foreign languages, ability to apply technology of staff This is a very important factor that is vital for businesses in the international economic integration process when the competition becomes very acute The quality of human resources is reflected in two main factors: the managerial level of the senior management and the professional level of the employees Managers must have the vision, leadership and decision-making capabilities to help business thrive Therefore, improving the level of human resources will be the main factor to improve the efficiency of logistics operations in e-commerce Possible solutions include: - Send young talented and enthusiastic staff to further training in professional skills, foreign languages, technological ability - When recruiting employees, the selection criteria must be selected right from the beginning of the recruitment process, only the employees who meet the criteria of the enterprise to meet the work assigned by the company - To adopt commendation and reward policies for officials and employees, if they have recorded outstanding achievements or disciplines if they fail to carry out the work on schedule, thus affecting the prestige of the enterprise - Regularly updating new knowledge for employees in the fields of logistics and law in the country related to commercial operations As professional staff, more professional will help businesses reduce the cost outside the flow, build a reputable brand 68 3.2.2 Recommendations to the State 3.2.2.1 Improve legal environment Government should develop policies on information safety and protection, consumer protection law, intellectual property law, etc., to ensure the practicality of ecommerce activities, thereby creating consumer confidence In particular, government should develop and reform laws, institutions and regulate the interests of focal entities or brokers between technology and users It is essential that new directions are introduced to revise regulatory and remove barriers to e-commerce development Standards must be flexible to be innovative and meet future requirements It is important to set up confidentiality regulations that protect the interests of all parties as well as control the fulfillment of their obligations under undocumented transactions and persons with whom they are not facing each other Transaction tax issues need to be addressed comprehensively Therefore, government agencies should have the appropriate taxation mechanism to encourage the operation of enterprises on the Internet and increase the budget for the state -Government should build a reasonable corridor and legal framework; change and standardize regulations related to e-commerce logistics 2005 Commercial Law refers to logistics business for the first time, however, this law is not clear where the law does not clarify that logistics is a continuous chain In addition, the latest Decree 140/2007 / ND-CP detailing the Commercial Law on logistics business Although legal changes have been made to regulate this activity, the State still needs to provide a standard legal framework in the Commercial Law and relevant laws such as the Law on Transportation, civil law, investment law etc as well as in some kinds of legal documents, to facilitate and support the development of logistics In addition, the State needs to change and standardize regulations (licensing, standard business conditions ), creating a free environment for logistics services Legal recognition of electronic documents and unification, standardization of goods names and codes is also very important 69 3.2.2.2 Improve the information technology environment The government needs to assess the national information infrastructure in terms of both hardware and software to look at all aspects contributing to the increased use of e-commerce including policy, Internet connectivity and information technology knowledge From then on, to expand and modernize the telecommunication network, Government should build and develop services application on Internet basis, provide easy Internet access with good quality and reasonable price At the same time, the State need maximize the use of the capacity and services of institutions involved in the collection and dissemination of information, data and programs to enhance the use of information and communication technologies For example, the State should conduct research to evaluates the involvement of national and local firms in investment and trade development programs In addition, the construction of technological infrastructure should be along with the establishment of a standardized system of technology and e-commerce on the basis of recognized legal principles leading to the formation of a standard set of national codes in accordance with the transaction , ee-commerce in international scope There must be technical solutions to ensure security and safety on the network transmission to prevent unauthorized access Units which are allowed to put information on the Internet should coordinate and these units can help businesses marketing and advertising products Participating businesses will be trained in information gathering, exchange and trade This phase can be free to attract more businesses and create habits for businesses in e-commerce 3.2.2.3 Infrastructure improvement In order to gradually complete the transport infrastructure, creating favorable conditions for the transportation of e-commerce logistics activities, the State needs to pay attention to deploying a number of major solutions: Firstly, in the short term, it is necessary to build more overpasses at intersections to improve the traffic system, reduce unoccupied in big cities Secondly, in the long term, the planning of urban development should be associated with the planning of transport infrastructure, ensure the rationality 70 Thirdly, stepping up the socialization of investment in development of transport infrastructure and expanding investment modes,: State capital concentrates on investment in planning and support for major projects It is necessary to promote the attraction of non-state capital sources through the issuance of government bonds for important and large-scale traffic works BOT investment applies to a number of projects capable of recovering capital, mainly high-speed road projects; investment by project bond capital for projects with high repayment potential; investment in the form of transfer of fees; Land conversion for infrastructure applied to urban transit routes; Establishment of "road maintenance" fund; Expanding the application of the "Urban Development Investment Fund" model In order to create diversified and sustainable funds, planning must always be one step ahead Fourth, improving the quality of using investment capital for development of transport infrastructure,:Iit is necessary to consider the order of priority in investment, overcome the local interests There must be a proper method to assess the specific and objective economic efficiency and social efficiency of the transport infrastructure project From that method, government creates the basis of determining the order of priority of the project capacity Fifth, there should be a balance between spending on investment in transportation infrastructure and regular expenditures for maintenance and repair of traffic infrastructure 71 REFERENCES Deborah L Bayles (2000), E-Commerce Logistics & Fulfillment: Delivering the Goods Heskett, J.L., Glaskowsky, N.A Jr and Ivie (1973), Business Logistics, 2nd ed., The Ronald Press Kearney (2015) Logistics and retail management, Kogan Page, London Luật thương mại, 2005 Mallik, Susan (2010), The Handbook of Technology Management: Supply Chain Management, Marketing and Advertising, and Global Management, vol (1 ed.) Hoboken, New Jersey: John Wiley & Sons p 104 Rosen & Anita (2000), The E-commerce Question and Answer Book: A Survival Guide for Business Managers Ruoxi Fan (2014) The coordination of E-commerce and Logistics A case study of Amazon.com, Bachelor‟s Thesis in Industrial Management & Logistics Sanja Lekovic (2013), The importance and characteristics of logistics in electronic commerce, 1st Logistics International Conference, Belgrade, Serbia, 28 - 30 November 2013 E W Smykay, Donald J Bowersox, Frank H Mossman (1961), Physical Distribution Management Logistics problems of the firm 10 Shipchung.vn, 2016 11 Pu Xiao, Jin Si Shi Gang, Deng Bian Zhu (1991), Logistics, Ecommerce Engineering Textbook Series 12 Thomas L Mesenbourg (2004) E-logistics & E-Fulfillment: Beyond the “Buy” Button, UNCTAD Workshop, Curacao, 2004 13 Trần Ngọc Thái Sơn, Tiki.vn, Thương mại điện tử: Áp lực từ hệ thống hậu cần 14 Jack W Farrell (1985), “New Clout for Logistics,” Traffic Management, September 1985, p 37-43 15 Jack W Farrell (1987), “Logistics: The Evolution Continues,” Traffic Management (September 1987): 88-101 16 Zhang Jin Shan (2013), Logistics and e-commerce logistics management 17 Đoàn Thị Hồng Vân, 2010, Logistics vấn đề bản, NXB Lao Động 72 18 Viện Nghiên cứu Thương mại, Bộ Thương mại (2012), Nghiên cứu kinh nghiệm quốc tế dịch vụ hậu cần (logistics) học kinh nghiệm rút cho Việt Nam 73 APPENDIX Survey Questions Dear Sir/Madam! I am doing research with the topic of "Ecommerce logistics in Vietnam, the reality and solution" The purpose of my survey is to review the level of customer evaluation of logistics activities in e-commerce in our business Therefore, I look forward to your cooperation and support so that my research results will have real meaning and contribute to the development of logistics in our e-commerce Information of the respondents Name: Gender: Male Female Address: Formatted: Space After: pt Age: Under 22 22-30 30- 40 Other 40 Educational background: College graduates University graduates Formatted: Space After: pt Masters Doctors Formatted: Space After: pt Opinion survey Please choose the following possible answers corresponding to the comments Formatted: Space After: pt of Mr / Ms on the level agreed with the statements given is increasing from to In particular: Totally disagree Disagree Normal Agree Totally agree Factor Order processing of the The o websit The in friend The co good a not pa links You k you pu You k ordere You produc Inventory code, management when You notific of stoc You k you pu Shippi The reason Transportation You a activities cost orderi You a free sh 76 The return process is simple Payment method is very clear Business people feel comfortable and happy when you intend to return the goods The enthusiastic staff advise you Return shipping on products some alternative that you exchange, return can Formatted: Indent: First line: cm, Space After: pt ... service in Vietnam has been developinged rapidly, it has not yet to meet the needs of e- commerce Also, many e- commerce businesses (considered as the big enterprises in the field of e- commerce) must... e- commerce is getting better and more and more enterprises are organizing online businesses, customers can compare and buy more easily + A new intermediate force Through e- commerce, businesses can inform... the activities of modern businesses in general and e- commerce businesses in particular require a comprehensive and rigorous legal system to ensure their interests in the fields of business The