Quality Management about Tiki Delivery

VIETNAM INTERNATIONAL UNIVERSITY
HO CHI MINH CITY INTERNATIONAL UNIVERSITY
DEPARTMENT OF INDUSTRIAL SYSTEM
ENGINEERING

REPORT
QUALITY PRODUCT OF TIKI

COURSE: QUALITY MANAGEMENT
LECTURER: Mr. Duong Vo Nhi Anh

January 2022


Semester 1

Group members
Content
1. Abstract

Bui The Vinh
IELSIU18176

2. Company background
3. Product portfolio

4. Problem identification
5. Deming
Cycle
or Giang
Plan-Do-Check-Act Cycle:

Pham
Mai
6. The IEIEIU19047
Deming Cycle:
7. Conclusion
8. Scope
of future
Nguyen
Ngoc Gia Han

IEIEIU19047
Nguyen Vu Duy
IELSIU18027

Huynh Thi Quynh Nhi
IEIEIU19062
Tran Quynh Chau
IEIEIU18010


1. Abstract
Quality used to signify customer satisfaction or appropriateness for a certain use. "Meet
Requirements," "minimize variability," and "satisfy the client" are now common phrases used to
describe quality. Professional organizational quality refers to the ability of a service or product
to effectively and efficiently satisfy the demands of society. To identify and fix the problem in
this case study, PDCA analysis was used. We discovered that there were four serious issues out
of a total of fifteen. The purpose of the study is to reduce the quantity of faulty, counterfeit, or
damaged merchandise that reaches customers as a result of storage and transit. Cause and
Effect Analysis, root cause identification, and the most comprehensive method for moving items
from the supplier's chain to the customer's hand.

2. Company background
Tiki.vn was founded in March 2010 and is now the top 2 e-commerce site in Vietnam and the
top 6 in Southeast Asia in the Top 1 best place to work in Vietnam in the Internet/E-commerce
business (chosen by Anphabe) (voted by HR Asia).
Tiki is a business ecosystem that includes firms like:
-

TiKi Joint Stock Company (TiKi) is the entity in charge of establishing and organizing the
e-commerce platform www.tiki.vn, which allows merchants to perform part or the entire
process of buying and selling products and services on the platform.

-

Tikinow Smart Logistics Co., Ltd (TNSL) is an end-to-end logistics, transportation, and
postal services provider for the www.tiki.vn E-commerce platform.

-

Ti Ki Trading Company Limited (Tiki Trading) operates an e-commerce platform where it
offers goods and services.


-

Tiki Trading and Exchange, the company's retail division, sells 10 million items over 26
categories to millions of people around the country.

Tiki's slogan is "All for Clients," and the company is constantly striving to enhance the quality of
its services and products in order to provide Vietnamese customers with a comprehensive
shopping experience that includes speedy delivery. Tiki NOW launched in Southeast Asia for the

first time in 2 hours and the following day, with the same dedication to provide authentic items
and a 111% return guarantee if counterfeit goods are discovered.
3. Product portfolio
Established in March 2010, up to now, the Tiki e-commerce website provides products in 16
categories as follows:
-

Books, VPP and gifts

-

Phones – Tablets

-

Electronic refrigeration

-

Digital equipment – Digital accessories

-

Laptop - IT equipment

-

Camera - Filming

-

Electric Appliances

-

House of life

-

Consumer goods - food

-

Toys - Mother and baby

-

Beauty – Health

-

Fashion - Accessories

-

Sports - Picnic

-

Motorcycles, Cars, Bicycles

-

International goods

-

Vouchers, services, scratch cards

4. Problem identification


Despite the fact that Tiki is a leader in the provision of intermediate products through suppliers
and buyers, with such a big volume of goods, it is hard to avoid making mistakes. There are four
typical faults in faulty items, according to our study.
-

Firstly, items cannot be 100% examined, thus there will be instances where defective
products are combined together and sold to buyers.

-

The second is that fragile items or those that require a specific temperature, for
example, will be damaged or broken during the transit process.

-

The next issue is the delivery of the incorrect goods to the consumer; despite the fact
that the staff packs the products with great care, this can still happen owing to
overloaded orders.

-

The fourth point is that the product has an expiration date. Because certain items do not
have a large number of customers, protracted storage might cause the product to expire
before or around its expiration date when it is delivered to the client's hands.

Because four such mistake behaviors can have a significant impact on Tiki sales, we'll look into
the underlying causes of these issues before determining the best course of action.
5. Deming Cycle or Plan-Do-Check-Act Cycle:
Dr William Edwards Deming is best known for reminding the management that most problems
are systemic and management’s responsibility to improve the systems so that the workers can
do their jobs more effectively. Deming advocates closely monitoring all production processes
with statistical tools. By using statistical tools, people will accurately identify the causes of
defects in the production process to proceed with error correction or work improvement. On
that basis, productivity and quality of products and services are improved. In this way, people
do not have to spend much but still maintain an efficient, high-productivity machine.
Deming's philosophy is summarized in his famous fourteen points, and it serves as a framework
for quality and productivity improvement. Instead of checking the final result to find out what is
wrong, Deming focuses on checking each production process and emphasizes on workers and
management to achieve high-quality products.
Deming’s Fourteen Points:


Deming offered 14 key principles to managers for transforming business effectiveness and help
organization to survive in the long term:
1. Create a constant purpose toward improvement.
2. Adopt a new philosophy.
3. Stop depending on mass inspection.
4. Use a single supplier for any one item.

5. Improve constantly and forever .
6. Use training on the job.
7. Implement Leadership.
8. Eliminate fear.
9. Break down barriers between departments.
10. Get rid of unclear slogans.
11. Eliminate management by objectives.
12. Remove barriers to pride of workmanship.
13. Implement education and self-improvement.
14. Create a structure in top management.
6. The Deming Cycle:
Known as the Deming Plan-Do-Check-Act (PDCA) Cycle, this cycle was invented by Sheward and
popularized by Deming. This method involves a cyclic procedure for designing and testing
improvement actions prior to full-scale implementation and/or formalization. When a new
concept for improvement is developed, it's generally a good idea to try it out on a small scale
first to see if it works. Furthermore, Employees have more time to accept and support a change
if it is introduced on a small scale. The Deming PDCA Cycle facilitates efficient system
administration, Limit and eliminate mistakes, avoid criticizing one another, and ensure that
mistakes are not repeated. The following are the steps in the Deming PDCA or PDSA Cycle, as
indicated:
1. Make a modification or run a test (P).
2. Carry it out (D). Carry out the change or test on a modest basis, if possible.


3. Double-check it (C). Examine the impact of the modification or test. Look into it
(S).
4. Put what you've learnt into practice (A).
5.Repeat Step 1 with new information.
6. Continue with Steps 2–6. Constantly assess and improve
The four steps of PDCA are:

1. Plan:
Establish the goals and methods needed to achieve the intended outcomes.
2. Do:
Carry out the goals set forth in the preceding stage.
3. Check:
Monitor, analyze, and report on the processes and results in relation to the
objectives and specifications. Examine the test, evaluate the findings, and
determine what we have learnt.
4. Act:
Actions should be taken in response to the outcome in order to enhance it.
Review all processes and make any necessary changes to improve the process. If
the change does not work, repeat the process with a different strategy. If
successful, apply what we have learned to larger improvements. Restart the cycle
by using what we have learned to plan new improvements.
- Increased Penalty Costs:
● When there is a mistake, the company may have to compensate the customer through a
discount, free price, or the company must compensate an amount of money according
to the commitment from the company.
- Increased Operational Costs: For every missed delivery, retailers have to pay additional costs
for redelivery, including:
● Additional fuel cost.
● Additional transportation cost,....


- Customer dissatisfaction: When faced with a negative delivery experience, strict customers will
never trust a retailer again and will avoid shopping with that retailer at any time in the future.
So if a delivery is missed, it could be the customer's last purchase. Dissatisfied online customers
will quickly turn to a competitor when their buying experience is adversely affected.
- Damage to the Retailer’s Brand Reputation: Missed deliveries not only have cost implications,

but they can also hurt a retailer’s brand reputation. Poor brand perception results in the loss of
repeat customers and failure to attract new customers.
- Poor Online Reviews & Ratings: Online customers are very quick to vote or rate a
company/retailer with clicks based on their experience. With a negative delivery experience,
many customers end up posting negative reviews on social media and forums that discourage
potential buyers from purchasing from that retailer. So, when you lose an existing customer due
to a missed delivery, you may meet negative online reviews or negative word-of-mouth
publicity, which will make it harder for you to acquire new customers.
- Increased Environmental Damage:
- Lost Revenues:
● An existing customer will buy more from you and will also recommend your business
more than a new customer. But when deliveries get missed or delayed, customers
abandon shopping with that retailer altogether.
● The customer stops not only online but in-store shopping as well. So, loss of existing
customers due to missed deliveries would result in loss of substantial revenues.
- Increased Cost of New Customer Acquisition
Solution:
- Improve Inventory Management, organize the warehouse: Warehouse plays a very important
role in the supply chain. Having a well-organized warehouse will help you control the goods
entering and leaving the warehouse, the quantity and quality of goods in the warehouse,
thereby reducing missed deliveries.


- Implement logistics software: By automating your delivery process, you can reduce the chance
of missed or late deliveries. The company will have to spend an initial cost to apply technology
for logistics automation, but the long-term benefits it can bring are immense
- Strong communication with customers: Having a well-organized communication system to
connect with customers is important. Through this system, the company can provide customers
with details of products, promotions, delivery times and routes. Also, if there are problems
during the transportation of goods, the company can send notices to customers quickly.

- Appropriate compensation policies: No matter how well the supply chain works, missed or late
deliveries are still possible. At this point, the company needs to apologize and have an
appropriate compensation policy to appease customers. This will make customers not
completely lose faith in the company, and at the same time can increase their sympathy about
the way the company works.
- Tighten product quality control from the input until the product reaches the customer.

- Apply artificial intelligence (AI) and machine learning systems to continuously scan a large
number of data points; check information and alert signals indicating that businesses are selling
products of unknown origin, while also preventing the sale of low-quality products using the
pre-installed keyword system.
- Investing in infrastructure and boosting the number of specialized employees.

- Coordination of many agencies such as information technology, customs, tax.
Short-Term: The purpose of this project is to appeal to consumers and provide a better
experience. However, the most important thing is that consumers have to buy the best quality
product at the best price.
Long-term: We expect Tiki to become the no.1 e-commerce company in Viet Nam as we follow
this plan to improve customer experience over the next few years.

Action Plan:


+

Warehouse:

No

Action

1

Implementing

Date of completion

person/department
Warehouse Manager

December 15th, 2021

Logistics Manager

December 15th, 2021

software that best suits the company.
Improved communication system.

Customer Service

January 31st, 2022

Refine the number of customer service

Department

staff.
Conduct customer surveys about the

Customer Service

company's customer care and

Department

Reorganize the warehouse, research
and build an accurate and optimal
inventory and packing system.
Research the costs, benefits and

2

feasibility of logistics automation
software, then choose or create the
3

4

February 15th, 2022

compensation policies. Fix the policies
(within the company's ability) if
necessary.

+

N

Technology

Suggested Actions

Person responsible

Completion date

o
1

Specialized employees will undergo customer service training

Sales manager

September 2021

2

Proposing procedures such as refunding clients if a purchase is

Chief Product Officer

November 2021

Chief Technology

November 2021

later discovered to be a fake, and getting coins for providing
3

feedback on things purchased on Tiki.
Design a website for customers to report fake products

Officer


4

The more the shop's penalty points, the less help it will receive

Chief Technology

Starts in

from Tiki; the system's greatest penalty is to temporarily shut

Officer

December 2021

the sales account for 1 year.

and remains
ongoing

5

Use artificial intelligence (AI) and machine learning to detect

Technical Director

Starts in

warning signs that a company is selling products from an

December 2021

unknown source.

and remains
ongoing

Return Policy:
● Step 1: Register (required)
Contact Tiki Care and provide details about product problems including:
- Order number:
- Product's name:
- Product problems (detailed description and attached photos/clips):
- Need for support (exchange/return/warranty):


Step 2: Receive confirmation of successful exchange/return/warranty registration and
packing instructions.

After the exchange/return/warranty request is accepted, Tiki will send customer packing
instructions with return code via email or app notification.
● Step 3: Packing
Refer to the packing instructions in the email or here. For convenience during delivery at the
store, please paste the return code on the outside of the package..

● Step 4: Bring the product to the partner store.


Bring the product to the selected partner store address within 3 days. Past the above time, the
product return registration code will be automatically canceled.
Refund method:
1. Tiki will support customer to return the product and not collect any additional costs
2. Pack the product so that Tiki can recall it for free.
3. Refund method:
For orders that have been paid in cash: Tiki will refund by transfer or Tiki Coin (e-money of
equivalent value) after receiving the returned product from the customer.
For orders that have been paid online: Tiki will refund to the account customers used when
making payment.

7. Conclusion
8. Scope of future