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With the developments of technologies the b2c model

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with the developments of technologies the B2C model has developed to a better version called “Last-milelogistics” and Lazada has successfully adapt it to Vietnam. In a simple way the supply chain was built based onthe B2C model aim to provide customers with goods directly through the supply chain of the company.Specifically, Lazada uses two operation models to operate in Vietnam which are marketplace model andinventory/retail model. Firstly, for the inventory/ retail model, all of the products have to go through the largewarehouse of the company and then picked up by the staffs of Lazada and shipped to the customers. Similarly,the second model which is marketplace model also operates through the warehouse. The difference here is that3
instead of using their staffs for the transportation, Lazada collaborates with 3PL (third-party logistics)companies for the transportation which requires more steps than the first model due to the fact that themerchandises have to be prepared and packed by the Lazada’s employees and ready for 3PL to pick up. Bysuccessfully applying the two models, Lazada has become one of the biggest firms in e-commerce industry inVietnam, alongside with its competitor like Tiki, Zalora and Shopee (Calbeto et al., 2017).DiscussionSupplier management issue and the needs of tackling counterfeit productsFor firms in e-commerce industry like Lazada, it is crucial to strategically manage its suppliers. According toChoi and Mai (2018), Vietnamese customers are traditionally not familiar with shopping online. Researchesshow that among countries in South East Asia such as Singapore, Malaysia, Indonesia and Vietnam, Vietnamesecustomers have the lowest reliability in terms of shopping online (Choi and Mai, 2018). There are many reasonsbehind this scenario, one being the fact that Vietnamese customers are extremely aware of counterfeit/fakeproducts. Among countries in the region, end-customers in Vietnam complain about fakes and quality ofproducts the most. They also get so used to go to physical stores to directly chat with suppliers and check thequality of products instead of shopping online. According to Choi and Mai (2018), apart from the highawareness of fake products, Vietnamese customers also have the highest rate of order cancellation. The mainreason is that the quality of the product is not as expected, accounts for more than 30% of product rejection.Therefore, it is crucial for e-commerce firms like Lazada to build trust in the market when it comes to theauthenticity of products on sale. Lazada is shown to be very strict about the credibility of suppliers as well asthe quality of products themselves. Special teams were formed to examine products from foreign suppliers,making sure that the product were genuine and surpassed Lazada’s qualification. To build trust and create amore enjoyable shopping experience to customers, Lazada offered secured payment options, one of them being

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Term
Spring
Professor
N/A
Tags
Supply Chain Management, Essay, Assignment, RFID, Lazada

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