The need for a professional solution
Vietnam currently has more than 4,000 domestic transportation and logistics companies, providing services from warehousing to freight, tax and payment services (according to Vietnam Report). 88% of them are domestic enterprises, while 10% are joint ventures and the remaining 2% are foreign enterprises, mainly located in two big cities: Hanoi and Ho Chi Minh.
Services provided by logistics companies are basic and price-competitive services with little added value. They are usually subcontractors for foreign companies for services such as warehousing, transportation, freight forwarding, sorting, packaging, etc.
Recently, retail stores and E-commerce sellers – logistics users are facing difficulties as a result of the Covid-19 pandemic. They have to deal with problems such as poor facilities, lack of staff, online marketing, inventory management, sales channels management, etc. To guarantee smooth operations across all segments, businesses have to invest in a lot of time, money and resources to build a sufficient in-house logistics team.
Therefore, businesses are in need of a solution that covers a wide range of services from warehousing, inventory management to packing and delivery. And there is one solution that ticks all the boxes – Automated Fulfillment.
In order to quickly and accurately process hundreds and thousands of orders, the requirements are a modern management system, competent staff and a professional product handling process.
Is Automated Fulfillment applicable in Vietnam?
Data from Google and Temasek shows that the total value of Vietnam’s E-commerce market in 2019 has reached 2.8 billion USD, posing an annual growth of more than 30%. According to the World Bank report, Vietnam’s logistics costs account for more than 20% of GDP.
Since the end of 2018, the Vietnamese E-commerce market has really skyrocketed, and competition is getting intense. To focus on growth and expansion, many businesses have turned to third parties that provide Fulfillment services. This solution eliminates countless barriers for individuals or organizations who want to participate in the E-commerce race to sell multi-channel without having to invest too much in the first place.
Automated Fulfilment is a service suitable for growing and expanding sellers. Many businesses are choosing to store their products in a fulfillment center to avoid scattered inventory, overstocking and to actively manage the quantity, service quality as well as shipping and fulfillment process. Moreover, automatic fulfillment services will help businesses reduce costs while providing more flexibility along with after-sales service.
The shipping race
Besides service quality, delivery speed is one of the most powerful weapons among competitors and also a key factor for E-commerce growth in the future.
Delivery is considered the most important stage of Automated Fulfillment. 2019 was the year when the delivery market in Vietnam grew rapidly with the participation of domestic and foreign companies such as Viettel Post, VNPost, FedEx, UPS, DHL.
Besides, familiar shipping couriers like Ninja Van, GHN, GHTK, Grab, Sendo, Tiki Express, Lazada Express also participate in the 2-hour, 3-hour, 12-hour delivery race, …
In early November 2019, Shopee joined hands with Grab and Now to launch an express delivery service in the city. For orders in Hanoi and Ho Chi Minh City, customers can choose Grab/Now as the delivery option to receive their goods in under 2 hours (including holidays and weekends).
To conclude, the growing trend of Automated Fulfillment is the key for e-commerce businesses to save costs, grow revenue and expand the market.
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