final report supply chain management topic lazada’s supply chain analytics

HO CHI MINH CITY UNIVERSITY OF ECONOMICS & FINANCE

FINAL REPORT
SUPPLY CHAIN MANAGEMENT
Topic
LAZADA’S SUPPLY CHAIN ANALYTICS
Lecture: Dang Quan Tri

Team Cactus:
Tran Phan Thanh Ha – 195120608
Nguyen Phuong Nguyen – 195120601
Vu Cao Tam – 195120639
Nguyen Duy Quang – 195120609
Tran Thuc Uyen – 195120510
Ho Chi Minh City, November 2021


ACKNOWLEDGEMENTS
First of all, our team would like to express our gratitude to Mr. Dang Quan Tri to
enabling us to complete this report on “Supply Chain Management in E-Commerce”.
Furthermore, we genuinely appreciate his enthusiasm, sanguine energy, and great sense
of humor which boost our incentive to retain and accomplish our work.
We’d also want to express our deepest gratitude for all of our friends' contributions to this
course. We would not be able to complete this thesis to its full potential without them. We
thank all of the support we received during the process.
Sincerely,

Team Cactus


SCOREBOARD

Member’s names

Mission

Completion

Vu Cao Tam

Write about chapter 1 and 2.1

level
100%

Nguyen Phuong Nguyen

(chapter 2)
Write about 2.2, 2.3 (chapter

100%

Tran Phan Thanh Ha

2)
Write about 2.4, 2.5 (chapter

100%

Tran Thuc Uyen

2) and Content summary

Write about chapter 3

100%

Nguyen Duy Quang

Write about chapter 4

100%

Point

Comment of lecture:
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................
.................................................................................................................................

TABLE OF CONTENTS
CHAPTER 1: LAZADA COMPANY..........................................................6


1.1.

General information..................................................................................................................6

1.2. History of formation.......................................................................................................................6
1.3. Structure diagram:.........................................................................................................................7
1.4. Highlights........................................................................................................................................8
1.5. Lazada’s financial situation...........................................................................................................9
1.6. Lazada's competitive strategy......................................................................................................10

CHAPTER 2: LAZADA’S SUPPLY CHAIN............................................11
2.1. Structure of Lazada’s supply chain.............................................................................................11
2.1.1. Supplier...................................................................................................................................11
2.1.2. Manufacturer...........................................................................................................................12
2.1.3. Retailer/Distributor.................................................................................................................12
2.1.4. Lazada’s website......................................................................................................................12
2.1.5. Customer..................................................................................................................................12
2.2. Supply chain strategy of Lazada..................................................................................................12
2.2.1. Invested in warehouse infrastructure and logistics services.....................................................12
2.2.2 Using artificial intelligence......................................................................................................13
2.2.3 Implementing the plan of electric bicycles to carry goods........................................................14
2.2.4 Replicate the Drop-off point model or Collection point............................................................14
2.3. Supply chain model of Lazada.....................................................................................................16
2.3.1 Supply chain components appear in Lazada.............................................................................17
a. Transportation.........................................................................................................................17
b. Warehouse................................................................................................................................19
c. Retailers / Distributors............................................................................................................20
d. Inventory..................................................................................................................................20
e. Packaging..................................................................................................................................21
f. Distribution center...................................................................................................................23
g. Customer..................................................................................................................................23
2.3.2 Delivery method in Lazada's supply chain................................................................................24
a. Manufacturer Storage with Direct Shipping.........................................................................24
b. Distribution Storage with Carrier Delivery...........................................................................25

2.4. Supply Chain Flows......................................................................................................................26
2.5. Supply chain operation of Lazada:..............................................................................................27


2.4.1. How to register to sell on Lazada............................................................................................28
2.4.2. Lazada's order processing process...........................................................................................32
a.

Stage 1: Receiving new orders:..............................................................................................32

b.

Stage 2: Packaging orders:....................................................................................................33

c.

Stage 3: Delivery to the shipping unit....................................................................................34

d.

Stage 4: Delivery to customer................................................................................................36

e.

Stage 5: Receive payment......................................................................................................38

f.

Stage 6: Return process.........................................................................................................39

CHAPTER 1: LAZADA COMPANY
1.1. General information
Lazada Group is a multinational e-commerce group currently operating in countries
such as Indonesia, Philippines, Singapore, Thailand and Malaysia; is run by German
founder and director Maximilian Bittner. Then Alibaba Group of Chinese billionaire Jack
Ma bought and completed the deal in early 2015. With the largest payment and logistics
network in the region, Lazada has become an indispensable part of daily life. Consumer's
Day in Southeast Asia. Since 2016, Lazada has been a strategic e-commerce platform in
the region with the support of technology infrastructure from Alibaba Group. By 2030,
Lazada's goal is to serve 300 million customers across Southeast Asia.
Lazada Vietnam was established in March 2012 as part of this group. Inheriting high
technologies and huge capital from the parent company in Germany plus business
experience, Lazada has set the goal of becoming the No. 1 retail website in Vietnam by
the method of "hit fast, win fast".

1.2. History of formation

Figure 1: Lazada’s History of the formation

In 2012, Lazada.vn officially entered the Vietnamese market as a member of Lazada
Group - the number one online shopping center in Southeast Asia. In 2013, Lazada


Vietnam opened its first warehouse in Vinh Loc Industrial Park, Ho Chi Minh City. Soon
after, a dispatch center was opened in the Southeast in 2014 to serve the increasing
number of customers in this area. In 2015, a milestone marked Lazada's significant
transformation when building Marketplace - a true e-commerce exchange. In October
2015, Lazada launched a forwarding unit - Lazada Express to standardize capital
forwarding services. As of March 2016, Lazada Vietnam has 35 dispatch centers and 1

Lazada Express (LEX) shipping team provided by the company to support direct shipping
(FBL) for sellers. In 2018, Lazada focused on improving the user experience based on the
applications of data technology (Big Data) and artificial technology (A.I).

1.3. Structure diagram:

Figure 2: Lazada's structure diagram (theofficialboard.com, 2020)


Figure 3: Lazada's structure diagram (theofficialboard.com, 2020)

1.4. Highlights
Lazada is one of the largest e-commerce exchanges in Vietnam. All shopping needs
are met on Lazada. It is distinguished by its product diversification from electronics,
furniture, fashion, home, etc. along with the strength of typical goods originating in the
fields of engineering, electronics, and accessories. assembled with a rich source of goods
from China. Lazada is different from other commerce platforms in terms of service
quality and customer care because there is no switchboard but only online chat with
customers. Regarding the price of goods, Lazada has a big fluctuation when conducting
sales campaigns, which are shock deals of 0 VND at the end of the year, 11/11, 12/12 ...
which is quite different from other e-commerce platforms. Dynamic and powerful
marketing activities when debuting with Vietnamese stars MV "Can you see Co Vy" to
promote the community's optimism and active disease prevention


1.5. Lazada’s financial situation
Pioneering to bring effective marketing solutions to sellers and brands:
Lazada Vietnam is the first e-commerce platform to provide an affiliate marketing
solution that helps sellers and brands drive sales with reasonable investment, bringing
high profit margins.

Affiliate marketing helps maximize brand awareness and drive store traffic through a
network of content creators, influencers (KOLs), and high-traffic sites high…Affiliate
marketing has proven effective for the business activities of sellers and brands (data from
October 1 to December 31, 2020):
 Revenue on the day of launching the campaign increased by nearly 6 times
compared to normal days
 Nearly 600,000 orders were created thanks to the affiliate marketing solution
during the two shopping festivals at the end of November 11 and December 12.
 The highest revenue generated from a KOL in the brand's super brand festival is
more than 4 billion VND.
Based on data from Lazada Vietnam in the 12 months from January 1 to December
31, 2020 compared to the same period in 2019]:
Lazada has supported small and medium businesses to convert to digital and do
business effectively on e-commerce:
 The number of sellers participating in business on Lazada increased nearly 2
times.
 During the first wave of the Covid-19 epidemic, Lazada implemented a stimulus
package for 110,000 small and medium enterprises.
 Lazada Academy also continues to expand its support for sellers when it
announced a partnership with Google in November 2020 to organize free training courses
for online sellers, helping them equip their skills and promote business growth on digital
platforms.


 Continue to expand strategy: Shoppertainment – shopping combined with
entertainment:
 In 2020, Lazada has stepped up investment with the number of livestream
episodes increasing more than 10 times.
 The number of daily livestream views on Lazada application increased by nearly
25 times. In particular, the music festival before shopping festivals attracted 15 million

views.
 The number of successful orders through LazLive channel increased 45 times.
With this positive result, livestream is becoming the favorite tool of many brands and
sellers.
 The number of regular customers interacting with LazGame every day increased
by more than 2.5 times.
 The number of customers collecting LazCoin coins has increased by more than 2
times, in which the number of coins each customer collects is also 3 times higher.
Lazada Vietnam recorded many memorable milestones in 2020 with its efforts to
accompany consumers, sellers, partner brands and the community to overcome
challenges caused by the Covid-19 epidemic. Lazada also focuses on developing new
categories such as fresh food and diversifying items on the floor to better serve the needs
of consumers. Not only did Lazada bring consumers more incentives over the past year,
but Lazada also expanded its free shipping strategy, while supporting more and more
brands and sellers to do business effectively on the commerce platform. electronic.
Notable achievements can be mentioned as Enfa Super Brand Festival on April 23 with
more than 4,500 products sold in just 1 hour Flash Sale. Innisfree Super Brand Festival
on April 6 also set a new record with the highest number of buyers in Super Brand
Festivals of the cosmetics industry. Notably, on this day alone, Innisfree's revenue
increased more than 100 times compared to normal days.


1.6. Lazada's competitive strategy
Lazada is seen as an intermediary between customers and retailers. They are applying
policies to attract customers and retailers as well. They follow the premium image route,
guiding sellers to highlight their own brands, emphasizing the professional standards of
their images, and being similar to AliExpress in brand strategy style.
Lazada is a company that works very hard on marketing and their marketing tactics
are very impressive and leave in the minds of users for a long time. Lazada has used a
variety of marketing methods to achieve its aim of encouraging customers to buy its

products. So, in the next section, we'll go over the company's marketing methods. Lazada
focuses on obtaining a big number of new customers and increasing revenue from those
who access the internet through various media such as desktop computers and mobile
phones. To accomplish the foregoing, the Lazada group used the 'Google AdWords'
flexible bid technique. These bid strategies provide options for enterprises to automate
their cost-per-click offerings in order to achieve goals such as ROI augmentation, change
amplification, cost per procurement, and permeability. Lazada used a technique known as
target outclassing share, which allowed the online retailer to outperform its competitors
on key catchphrases. The goal outclassing share bid technique allows businesses to raise
or lower their offers up to a preset maximum cost per click in order to assist their adverts
"outclass" those of others. This method was used by the team to place Lazada's
catchphrases in new categories.

CHAPTER 2: LAZADA’S SUPPLY CHAIN
2.1. Structure of Lazada’s supply chain
2.1.1. Supplier
Suppliers of Lazada include Component and Raw-material suppliers. These suppliers
are often located in rural area, convenient for raw materials and components. These
suppliers will make the supply according to the specified order and quantity. They play
the role of supplying raw materials to the manufacturing plants of the supply chain.


Suppliers play important roles in the supply chain, If the supplier has a problem or delay,
it will bring the whole system to stop.
2.1.2. Manufacturer
Manufacturer will receive raw materials from suppliers and proceed to produce .
Product quantity is decided based on orders coming from retailers and their distributors.
Finished products will be delivered to distributors/retailers to fulfill orders.
2.1.3. Retailer/Distributor
Retailer or distributor is who gives orders to the manufacturers themselves based on

the orders they aggregate. Distributors/retailers are the main beneficiaries of a supply
chain. Their mission is to upload their products, attract customers, marketing and
consulting, ... to increase their retail sales.
2.1.4. Lazada’s website
It’s a third-party as an intermediary between customers and retailers/distributors. This
e-commerce platform helps retailers/distributors to post their products with many options
in terms of price, color and quality; It also makes it easy for sellers to provide
information about products and communicate with customers through displaying
messages on their website or application. Customers can easily access and use this
platform through phones, computers,... The interface is easy to use and close to everyone.
2.1.5. Customer
The customer is the final object in the hard supply chain, they are the one who will
consume the goods. In addition, consumers can also buy products at distributors in large
quantities, but this rate is very low. Customers will visit Lazada's website and perform
their shopping behavior. Customers will send their orders to Lazada and wait to receive
goods from retailers/distributors through 3rd party delivery such as GHTK, GHN,...


2.2. Supply chain strategy of Lazada
2.2.1. Invested in warehouse infrastructure and logistics services
Ms. Trang Bui - Senior Director of Vietnam Market at JLL - said that Vietnam is
currently one of the fastest growing e-commerce markets in Southeast Asia. In recent
years, the supply chain has become increasingly focused on serving the consumer, and
speed of delivery has always been one of the key factors in purchasing decisions.
“Compared to traditional logistics operations, e-commerce is more labor intensive and
requires three times more warehouse space”- Ms. Trang analyzed.
Taking advantage of this opportunity, Lazada has boldly invested in warehouse
infrastructure and logistics services.
Lazada has invested in 3 large warehouses with a total area of 22,000m2 in Ho Chi
Minh City, Da Nang and Hanoi with a network of 34 distribution centers nationwide. In

which, LEL Express - a forwarding company under Lazada Group has invested in the
second automatic goods sorting system in Hanoi with a capacity of up to 10,000
products/hour.
Two Sortation Centers are also located in Ho Chi Minh City and Hanoi with a total
area of 7,000m2, respectively. and 10,000m2. According to Lazada, all goods collected
and classified by these two centers are concentrated and classified to delivery centers in
districts and districts through automatic selection technology. Lazada's automated sorting
system is operated almost entirely by robots, the job of the employees is mainly to
monitor and line up in trays, containers
The first is the automatic split line, using 2-generation wave-sorter technology, the
conveyor belt automatically redirects gears to help move goods quickly to lazada's
delivery facilities.
Next is the conveyor belt that automatically returns the tray. Trays are used for orders
of small size, non-square shape, not canned. After the goods are redirected to the
forwarding point, the tray is automatically brought back to the receiving area by the
conveyor belt to optimize operational performance.


In addition, Lazada is equipped with a sensor system, automatic scanner to measure
size, weigh the cargo, identify delivery areas for distribution of suitable conveyor belts,
minimize the phenomenon of human error.
2.2.2 Using artificial intelligence
Lazada has also promoted the application of AI (artificial intelligence) to operate the
system, helping to reduce operating costs and increase efficiency, bringing delivery costs
down to the lowest group in the market, thereby benefiting customers. both sellers on
Lazada and consumers. Currently, thanks to systematic investment in logistics
infrastructure, Lazada is the leading e-commerce platform with low delivery costs in the
market.
Currently, thanks to systematic investment in logistics infrastructure, Lazada is the ecommerce platform with the cheapest delivery costs in the market.
2.2.3 Implementing the plan of electric bicycles to carry goods

With a growth rate of up to 22% per year (according to VECOM), Vietnamese ecommerce is considered to be one of the leading attractive markets in the region.
However, with this strong development, delivery of goods in e-commerce also faces
many challenges, the means of transport are not diversified, mainly motorbikes, while
with the strong growth in the number of Orders need to be delivered, the number of
shippers will increase, leading to the number of motorbikes, putting pressure on the
transport system and the environment.
Therefore, LEL Express developed and tested the delivery model by electric vehicle
from 2017. Large boxes help to hold more goods, especially bulky goods that take up a
lot of space; save time going back to the warehouse to prepare and pick up goods; thereby
speeding up delivery to customers. After testing, the total time savings averaged 3 hours.
On the basis of successful testing, LEL Express officially put into operation this electric
bicycle vehicle, and continued to research and upgrade the solar charging system for
electric bicycles placed right on the box, so that, when moving, the electricity will be
charged. In addition, Lazada continues to develop other vehicles such as four-wheel
electric vehicles to help improve delivery productivity without affecting traffic and the


environment. These pedals assist electric scooters are supplied by a domestic
manufacturer.
2.2.4 Replicate the Drop-off point model or Collection point
The contactless delivery initiative pioneered by Lazada in April 2020. In addition to
maintaining a safe distance between the buyer and the delivery staff, this initiative is also
really successful thanks to its efforts to replicate the Drop-off point or Collection point
model. with more than 2,000 points at convenience stores and iLogic Smartlocker smart
locker system to help users feel secure to shop online.
Specifically, Lazada has deployed 500 drop-off points in cooperation with major retail
partners such as CircleK, Pharmarcity, Coop food... and more than 1,500 points of
logistics partners. Here, retailers and online shops can send goods directly without going
to Lazada's post office, which is more convenient in the shipping process.

A drop-off point of Lazada cooperates with the Coop food system.
At the same time, with the collection points (Collection Point), Lazada claims to have
deployed 190 points and more than 70 delivery centers (Hubs) of Lazada and hundreds of
logistics partner centers so that customers can choose the right pick-up point for their
needs. When the customer chooses this delivery method, the delivery partner or the


shipper will bring the order to the smart locker selected by the customer. At the same
time, customers will receive a notification and OTP code to pick up the goods via the
phone number and email address registered with Lazada.Shoppers can actively pick up
goods at all times and fully automatically after placing an order on Lazada with a very
simple operation of scanning the QR code (received by email) or entering the phone
number and OTP code (user password). These lockers are deployed by Lazada with
partner ilogic. The cabinet is equipped with a security camera system, a safety lock, and
is placed in a crowded place to ensure safety during delivery or receipt.

Thêm tiêu đề.
At present, only Lazada is eligible to deploy this service in the Vietnam market,
because the supplier side (iLogic) requires e-commerce platforms to have an
infrastructure platform. and long-term investment strategy.

2.3. Supply chain model of Lazada
Unlike the usual supply chain, which starts with the selection of raw materials for
production, Lazada is an intermediary in charge of transporting finished products to
consumers.
In addition to providing products and services, most of the products on Lazada.vn are
owned by individuals, businesses, and companies listed for sale, Lazada is like a store
and leases items to those partners. stalls for sale and will collect a percentage of the

commission from them. Therefore, the products on Lazada are very diverse and rich.
Lazada's task is to sort product statistics by category.
Goods on Lazada can be sold by Lazada itself or from a partner affiliated with
Lazada. Thus, there will be 2 sources of goods: Goods imported by Lazada for sale and
goods sold by partners associated with Lazada.
Goods imported by Lazada for sale: These are the sources of goods imported from
big, reputable brands in the market and are 100% genuine products guaranteed by
Lazada. When buying products sold by Lazada, customers can be completely assured of
the quality and brand of the product, without worrying about buying fake goods. Not to
mention, if you get more Lazada discount codes, customers can also buy items at super
cheap prices.
Goods sold by partners affiliated with Lazada: The fact that affiliated suppliers and
sellers register booths to sell on Lazada creates high competition when selling. This
explains why you wonder why the same product when searching on Lazada gives
different prices. The main problem here is simply that the products are sold from different
units. Currently, on Lazada, there are more than 1000 partner units registered to open
booths. Therefore, when buying, you should choose products provided by reputable
brands.
2.3.1 Supply chain components appear in Lazada
a. Transportation
Transportation involves the movement of goods in the supply chain. This is an
important part in promptly responding to customer needs as well as ensuring timely
production. The transportation of goods must have cooperation between the parties: the
supplier with the role of transporting raw materials to the manufacturer, the manufacturer
creating the semi-finished or finished product, and delivering it to the distribution centers.
or delivered directly to retailers, goods from there continue to be delivered to consumers.
 LEX
Since October 1, 2015, lazada has launched its own delivery unit, Lazada Express
(LEX). This is a line built on the express shipping model, aiming to serve a huge number

of orders from the e-commerce market. The purpose of the creation of the LEX company
is to meet Lazada deliveries nationwide.
The advantage of LEX shipping units is fast delivery time, cheap freight and free
service in the inner city of Hanoi and Ho Chi Minh. At the same time, LEX works every
day of the week.
However, LEX is not an exclusive shipping service in the operating model of Lazada,
Lazada commits not to exclusively use one shipping agent, but instead will provide many
choices for customers, the following are the shipping units at Lazada
 VNPost
VNPost is present all over the country, so it's easy to order a shipping service.
Moreover, the freight is cheaper than other units with the same shipping service. EMS
COD charge is calculated at 1% of the amount collected. The service attitude of the staff
is professional and responsible, and there is very little loss of goods.
Besides, the delivery-receiving staff have a good service attitude, professionalism, and
work with high responsibility. There is little loss of customers' goods.
 VNC Post
VNCPost is a delivery brand of Vinacapital Vietnam Co., Ltd., is one of the domestic
delivery units that successfully apply advanced technologies and solutions to the delivery
process, bringing benefits to customers. The highest benefit for customers comes with the
best cost.
For e-commerce units, VNCPost is a comprehensive delivery solution with
advantages such as: door-to-door delivery, hand-delivered goods, automatic shipping
calculation, flexible control and goods guarantee. safe.
 DHL
DHL is the world's leading logistics company. A team of 380,000 employees in more
than 220 countries and territories work every day to support cross-border shipments,
access new markets and grow businesses. The advantage of this method is reliable and
safe transportation. Besides, the transportation cost is also quite reasonable and the goods
will be preserved in a modern machinery system.

 Ninja Van
Ninja Van is an innovative technology-driven express delivery company that provides
outstanding delivery services to businesses of all sizes across Southeast Asia. Launched
in 2014, Ninja Van started operations in Singapore and has become Southeast Asia's
largest and fastest growing freight forwarder with an extensive network in six countries:
Singapore, Malaysia, Philippines, Indonesia, Thailand and Vietnam. The advantage of
this method is that shipping is flexible and sellers can create orders easily.
 Netco Post
Noi Bai Courier and Trading Joint Stock Company was established on March 10,
2003 with the main activity of providing express delivery services.
Ensuring targets, stabilizing customer service quality, NETCO has been applying the
ISO 9001: 2015 Quality Management System and applying the "Billing System" parcel
positioning technology to help customers with best quality in looking up recipient
information on parcels.
 Giaohangnhanh (GHN)
GHN - The first forwarding company in Vietnam was established in 2012, with the
mission to serve the professional shipping needs of E-commerce partners nationwide.
GHN is always committed to providing customers with fast, safe and effective
delivery and delivery service experiences to help sellers sell more, and shoppers to be
more satisfied. In case the goods have problems, GHN will consider compensation.
- 10,000,000 orders successfully delivered every month
- More than 100,000 online shops and trusted businesses
- Strategic partners of Tiki, Shopee, Lazada, Sendo
- Delivery network covering 100% of 63 provinces
- Reaching processing speed of 500,000 orders/day
 Ship60
Ship60 is a shipping unit with reasonable fees, updating order status quickly. Delivery
success rate up to 95%. Being a trusted partner from top brands like Lazada.

b. Warehouse
Lazada has 2 main warehouses in Ho Chi Minh City and Ha Noi City and 35
distribution centers. Lazada Warehouse is operated by a modern technology system, using
a strict process with the help of a powerful staff, which directly handles a huge number of
orders for the Lazada e-commerce platform. Currently, there are 3 types of warehouses
being shipped at Lazada:
Secure Warehouse: High value products are stored in a secure area only for
authorized staff to handle. For example: electronics, phones, ....
Cool storage: Cosmetic products or items that need to be stored in a cool place, etc.
are stored in a cool store of 25 degrees C.
Bulky warehouse: Bulky products deal with different methods.
c. Retailers / Distributors
Lazada has affirmed its development potential, with the appearance and assurance of a
series of famous brands in many different fields such as:
- Mobile devices: Apple, HTC, Nokia, Samsung, Sony… - Computer: Sony, Asus,
Acer, Logitech…
- TV and audio: Panasonic, LG, Sony…
- Household appliances: Toshiba, Sharp…
- Beauty products: Eucerin, Bioderma, Cosrx, ….
- Fashion: Fila, Adidas, Vans, ...
- Vietnamese brands like: Gỗ Lập Thành, Happy Cook...
- Also, a partner of leading distributors in Vietnam such as: Smart Com, Petrosetco
PSD, Khương Việt, Hai Sáu Sáu, Kimberly-Clark Vietnam...
Partners of Lazada, quite reputable, always ensure to provide high quality and genuine
products, along with Lazada's strict input inspection, the origin of goods as well as the
quality is very good.

d. Inventory
Previously, their conveyor system only operated at a speed of 10 m/min, processing
orders was very time-consuming and easily tiring for employees. After deploying the
automatic sorting system by robot, the conveyor speed increased to 100 m/min, the goods
sorting process was streamlined and more accurate. Lazada can now process more and
more orders continuously thanks to modern equipment. With this new system, personnel
are also arranged more methodically compared to the previous manual line because the
most difficult stage of goods classification has been thoroughly solved by robots. Each
shift only needs about 100 employees.
Goods, after being transferred to the sorting warehouse, will be affixed with a barcode
and then the goods will be put on the conveyor belt.
There will be a device that scans the previously pasted barcode. The content of the
barcode is information about the product such as: Check in, Check out, Company and
business information, Shipment information, quality standards, Product size information,
Product type information, etc.
After being automatically sorted, the goods will be placed in trays and bags by the
staff to wait for packaging. Employees work more leisurely, almost just arranging goods
into boxes, minimizing confusion or broken or chipped goods during sorting and
transportation.
e. Packaging
 General advice:
For the packaging box, the best seller is to put in a sturdy carton box of the suitable
size to minimize bumps during shipment. Furthermore, the vendor should package the
item in bubble wrap or shrink wrap.
For packaging tape, it is permissible to use clear packaging tape with the seller's logo
or trademark.
For fillers and wraps to protect the contents from shocks that might cause harm, as
well as to keep the product inside the packing box from shifting. Sellers must use the

appropriate amount of bubble wrap, preferably at least two layers of wrapping on the
product.
A drop-off point of Lazada cooperates with the Coop food system.
A drop-off point of Lazada cooperates with the Coop food system.

thêm tiu đề
 Packing instructions for some specific items
 The product is tiny and non-fragile.
Clothing, fabric products, electrical wires,
tiny cables, and other similar things will be
wrapped in bubble wrap before being put into
bags or boxes. The correct size should be used by
the seller.
 The item in the product packaging is not
fragile.
The vendor covers an item in at least two
layers of bubble wrap or shrink wrap when
delivering it with the original product packaging.


Alternatively, the merchant might package the goods in its own box (also known as the
box-in-box method).
 Liquid item
For selling liquid items, sellers make sure that the product lid is tightly closed and
secured with tape or cling film. Then, wrap the entire item in at least 2 layers before
packing it in a box or bag. Sellers should label liquid or flammable substances on the
surface of the box. If the item shows any signs of leakage, then the parcel will be rejected
by 3PL and delivery canceled.
 Fragile items
Put fragile products inside the box, seller should add filler or bubble wrap to fix the

product. The outside of the packing box should be labeled "Fragile". For items weighing
more than 20kg, they can only be placed in boxes.
 Metal items, sharp
The seller must put the product in the box and add lots of fillers to ensure safety
during delivery. If this product is not boxed and could cause injury, the parcel will be
automatically rejected at the point of pick up or return.
 High value item
For products of great value, the seller should place them in a carton box and secure
with an appropriate seal or tape, bubble wrap or shrink film. In addition, sellers should
use their own branded labels or packing tape.
f. Distribution center
The distribution center itself is first and foremost a warehouse, but besides the
function of storing goods, this center also performs a very important function that is to
coordinate deliveries to customers. The distribution center is the bridge between the
supplier and the customer. While the role of warehouses is to store products, the role of
distribution centers is to efficiently respond to customer requests.


g. Customer
Customers are the final and largest component in the supply chain that determines the
amount of “demand”. Consumer is any individual or organization that buys and uses a
product.
2.3.2 Delivery method in Lazada's supply chain
a. Manufacturer Storage with Direct Shipping

When an order is received, order information will be sent to the seller through Seller
Center. The seller will confirm with the customer to make sure before packing. The seller
is responsible for checking order information including: Product information, Quantity,
color, Customer information, Payment method, Delivery address, Estimated Delivery
date and time, Shipping unit Shipping, Order Number

Next, the Seller will conduct production and assembly according to the customer's
request (if any). The final product will be thoroughly checked by the seller to ensure it is
up to quality standards.
Next, the seller needs to change the status to "ready to ship" within 24 hours:
➔ If the order is completed before 15:00, you will have to change the status to "ready
to ship" by 23:59 of the same day.


➔ If the order is completed after 15:00, the seller needs to confirm "ready to ship"
the next day by 23:59.
Moreover, sellers need to know the payment method, discount code and customer
information to contact when the order is completed. For prepaid forms of payment, the
shipping stamp will show the payment amount as 0 VND.
If contacting the customer to confirm the order is unsuccessful or the customer wants
to cancel the order, the seller can instruct the customer to cancel the order on Lazada. If
the order has not been updated, the seller chooses the form to request PSC to confirm the
order and cancel the order.
After confirming with the customer, the seller begins to proceed with the packaged
goods and print all documents related to the order
After the package is completed, the seller clicks the "Ready to deliver" switch to
switch status to order. The order will go to "Waiting for handover" status. From there, the
shipping unit will receive the information and begin the handover process. This is the last
step in the order processing process before moving to the distribution warehouse