E-COMMENCE INDUSTRY [Company: Lazada].
I. Company Background.
Lazada is one of the most prominent online shopping and selling business in the Philippines
alongside with Shopee. Lazada Group is majority owned by Alibaba Group Holding Limited. They
offer a wide range of products and opportunities for people to sell. According to Lazada’s Vision,
they aim to be the leading online shopping and selling destination in Southeast Asia, to serve 300
million shoppers by 2030 and to allow brands and sellers to digitalize their businesses. Not only that,
they are the pioneers of the online marketplace platform, considered as one of their strengths to
compete with the market.
Since Lazada can be associated with the brands and the development of technology, there is a
huge possibility to increase their market shares nationwide and internationally in the future.
However, even though Lazada is the one of the most prominent, other online platforms are
considered to be threats, competitors will increase and if the internal weaknesses are overlooked,
they might be a great factor to affect overall performance.
II. Statement of the Problem.
I. Lazada, despite being successful online market shopping and selling can still experience problems
regarding logistics and seller related issues such as delays and courier problems.
a. How can Lazada minimize their delivery delays?
This problem might occur when the warehouse may not be fulfilling the order quickly enough
that is causing the delay. It is recommended to evaluate the operating process and sort parcels
in according to their delivery dates to improve the flow of pickup and delivery. It is also
recommended to rethink or reanalyze plans and if changes occur, the company/managers
should communicate it with the staffs immediately.
b. How can Lazada improve their parcel handling and delivery and minimize their problems with
logistics?
Since Lazada is also experiencing lost parcels and delays, it is recommended to optimize the
inventory management to track inventory levels accurately to reduce the risk of overloading.
This also involves regularly review logistics processes to identify the areas to improve and if
possible, implement new strategies to enhance efficiency.
III. Alternative Courses of Action
A. Strengthen processes and the use of technology
One important tactic to deal with Lazada's logistics issues is to use technology more. This
includes putting in place modern Warehouse Management Systems (WMS) for tracking in real time,
using automated equipment like Autonomous Ground Vehicle in warehouses, and using software for
route planning that is optimized. As the record emphasizes, order preparation and loading—a crucial
step in the order cycle—can be greatly enhanced by technologies like RFID, or radio frequency voice-
based selection of orders, and pick-to-light systems. Enhancing order processing and delivery—two
essential elements of order management—is in line with this strategy.
B. Establish a Centralized and Concentrated Transportation System
Centralizing its network is another way Lazada may enhance its logistics. To cut down on
delivery times, this would include establishing local warehouses to bring items closer to consumers.
Since order delivery is the last phase of order management, it must be done efficiently. This approach
also calls for improving collaborations with regional logistics companies, pointing out the role that the
logistics division plays in shipping arrangements.
C. Put an emphasis on continuous handling of performance including seller education
Focusing on seller performance and education is a further strategy. This includes instructing
vendors on efficient order processing and inventory management, which has a direct bearing on
preparing orders and delivery. Lazada can improve overall customer service by addressing issues that
lead to delays and courier issues through better seller practices. By emphasizing client needs and
happiness, this strategy also fits with the management of customer relationships (CRM).
V. Recommendation
The most important thing for Lazada to focus on is improving its customer service. It is always
possible in an e-commerce company to encounter various problems when selling and purchasing a
product, as well as when the product is on its way. They must ensure that they can answer all phone
calls and emails, whether they are negative or positive, and that they take appropriate action
In terms of logistics, we can say that there are some issues with delivering packages on time,
and that around Christmas, almost all products are sold out, forcing them to consider that they should
prepare more for the holidays to avoid shortages.
V. Implementation Program
In many ways, Lazada and Amazon are identical in their operations. The difference could be that
Amazon is already a well-known brand, whereas Lazada is frequently criticized. Amazon is able to deliver
items almost instantly because they keep their own warehouse of the products on their website. Lazada,
on the other hand, may be selling items that are not in stock, have not yet been ordered from their
suppliers, or have already sold out. Lazada must also improve its customer service. When customers call,
they must address the issue directly rather than making excuses.
VI. Management Lessons Learned
Management lessons learned from Lazada E-Commerce Market Lazada, a prominent e-
commerce platform, offers several management lessons for businesses: Customer-Centric Approach:
Lazada’s focus on customer satisfaction and experience highlights the importance of putting customers
at the center of business operations. Innovation and Adaptability: Lazada’s ability to innovate and adapt
to changing market trends demonstrates the importance of staying ahead of the curve and being flexible
in response to market dynamics. Supply chain management: efficient supply chain management is
crucial for e-commerce success. Lazada’s emphasis on logistics and delivery can serve as a lesson for
business aiming to streamline their supply chain processes. Digital marketing and branding: Lazada’s
effective use of digital marketing and strong branding strategies underscores the significance of building
a robust online presence and brand identity. Data-driven decision making: leveraging data for insights
and decision-making is a key lesson from Lazada’s success. Business can learn from Lazada’s approach to
utilizing data for strategic planning and operational improvements. Partnership and Collaboration:
Lazada’s partnerships with various brands and sellers highlight the value of collaboration in expanding
product offerings and reaching a wider customer base.
By studying Lazada’s management strategies, businesses can gain valuable insights into
navigating the e-commerce market and achieving sustainable growth.
Reference:
https://www.lazada.com.ph/about#:~:text=Launched%20in%202012%2C%20Lazada%20is%20the
%20number%2Done,Malaysia%2C%20the%20Philippines%2C%20Singapore%2C%20Thailand%20and
%20Vietnam.&text=With%20300%20million%20SKUs%20available%2C%20Lazada%20offers,goods%2C
%20toys%2C%20fashion%2C%20sports%20equipment%20and%20groceries.
https://www.inboundlogistics.com/articles/logistics-management-challenges/#:~:text=Utilizing
%20Logistics%20Strategies,high%20standard%20of%20service%20quality.
Members:
BANDIALA, Niel Jay
BORDONADA, Rose Ann
DELA CRUZ, Ashley Nicole
GAUDIER, Karla
