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Operations  in  an  ecommerce  company  
How  opera)ons  affect  your  service  quality?  

Huynh  Ngoc  Hung  

Current:  
Managing  Director  of  Nava.vn  (a  child  company  of  NCT  Corp)  
Past:  
Managing  Director  of  Vinabook.com,  2011  
E-­‐commerce  Director  of  PNC  Corp,  2010  
C.I.O  of  Muaban.net,  2008  
CEO  of  EPI  Vietnam,  2005  (sold)  

linkedin.com/in/hunghn  

July  2012  –  Ho  Chi  Minh  City,  Vietnam  

 What  can  you  find  in  this  slide?  

Essen)als  of   Maintain   KPIs  that   Measure  

ecommerce   your  service   you  must   your  happy  
company   level     have   customers  
So  you  think  opening  an  ecommerce  (B2C)  company  is  
all  about  crea)ng  a  website  that  sells  stuffs  ?  

Think  again!  
 Define  of  ecommerce  
Don’t  forget  e-­‐commerce  
consist  of  electronic  and   Electronic   Commerce  
commerce!  
 
80%  of  daily  opera)on  of   Merchandise  
an  ecommerce  company   Website  
is  about  support   Inventory  
customers,  inventory   Marke)ng  
control,  delivery,  order   Logis)cs  
fulfillment…     Online  channel  
Order  fulfillment  
Essentials  of  an  ecommerce  company  
These  are  what  you  are  going  
to  face  on  daily  basis.   Website  
Marke)n Merchan
g   dise  

B2C  
Logis)cs   E-­‐commerce   Catalog  
company  

Customer  
Inventory  
support  
Order  
fulfillmen
t  
 System  that  works  
Your  system  should  be  able  to  
answer  on  simple  customer’s  
ques)on:  
  Logis)cs  
“Where  is  my  order  now  ?”  
 
Your  system  should  be  included:  
Wareho
  use  
1.  Storefront  (Point  of  sales)  
2.  Customer  rela)onship   Website  
management   (POS,  CRM)  
3.  Warehouse  management  
4.  Logis)cs  management  
5.  Others:  Accoun)ng,  marke)ng  
tools,  HRM…  
 Your  order  fulfillment  process  
• Confirm  order   “How  long  does  it  take  from  
Receive   • Collect  payment  
placing  order  to  receiving  the  
order   • Post-­‐process  
order   package  ?”  
• Item  in  stock  
Time  consump)on  

Prepare   • Collect  item  from  

package   suppliers  
• Packaging  

• Delivery  team  
• 3rd  logis)c  
Delivery   supplier  
• Cash  on  delivery  

• Refund  order  
Ager-­‐sales   • Return  item  
support   • Warranty  
 Service  level  in  ecommerce  

Opening  an  ecommerce  

is  easy.  Increase  and  
maintain  your  service   Delivery  
level  is  extremely  hard  
and  always  maintain  in   Customer  
the  long-­‐run.   Merchandise  
support  

Service  
level  
“Maintaining  service  level  should  be  your  strategy  
in  the  long-­‐run  and  that’s  the  way  you  keep  the  
company  opera)ons  staying  in  high  efficiency”  
 Maintain  your  service  level  
•  Does  your  merchandise  have  sufficient  descrip)on  ?  
•  Is  your  merchandise  ready  in  stock  ready  when  
Merchandise   customer  need  it?  
•  Does  your  merchandise  meet  market  demand?  

•  Is  your  package  delivered  on  )me  ?  

Delivery   •  Does  your  package  remain  intact  when  arrive?  
•  How  suppor)ve  is  your  delivery  team  ?  

Customer   •  Does  your  self-­‐help  support  system  useful  ?  

•  How  fast,  accurate  and  friendly  is  your  CS  agent?  
service   •  How  is  your  return  and  refund  policy?  
 KPIs  in  ecommerce  
Some  KPIs  that  an  ecommerce  company  
must  have:  
Sales    
Service   KPIs   Sales  KPIs  
KPIs   1.  Visitors  per  day  
2.  Sales  conversion  rate  
Custom   3.  Average  order  value  
KPIs  
 
Service  KPIs  
1.  Average  response  )me  per  )cket  
2.  Average  delivery  )me  per  order  
3.  Rate  of  return/refund  order  
Control  your  business  via  KPIs    
Custom  KPIs  
KPIs  depending  on  your  business    
 “If  you  know  the  percentage  of  sa)sfied  
customers,  your  opera)on  management  is  good.  
No  majer  what  it  is  low  or  high.  ”  
 
“If  KPIs  are  about  how  your  operate  the  company,  
CHI  is  about  how  happy  customers  are”  
 Customer  Happy  Index  (CHI)  
Introducing  Customer  Happy  Index  
(CHI)  –  represents  for  percentages  
Call  random  
of  customers  who  are  happy  about   customers  
your  service  
Maintain  Service  level  is  keep  the   Ask  in   Send  email  
CHI  as  close  to  100%  as  possible   every  self-­‐ ager  order  
help  page   comple)on  
 
Ask  simple  &  easy  to  answer   CHI  
ques)on.  For  example:   measurement  
  Ask  in  
Survey  ager  
How  do  you  feel  about  our  service  ?   every  
placing  
email  
order  
footer  

Survey  on  
first  page  

Happy   Acceptable   Unhappy  

Thank  you  for  your  ajen)on!    
 
 
Are  you  happy  with  the  presenta)on?  

Very  Happy   Happy   S)ll  Happy