Republic of the Philippines

ACLC COLLEGE OF TACLOBAN

Tacloban City

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CASE STUDY IN SUPPLY CHAIN, LOGISTICS, PURCHASING,

AND MANAGEMENT ON SHOPEE EXPRESS
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In Partial Fulfilment of the Requirements for the Subject:
Supply Chain, Logistics, Purchasing, And Management.

Presented by:
Ligutan, James Russel
Lopez, Ellyzelle Mae
Magtabog, Nicole
Maquinano, Sarah
Mendoza, Ericson
BSHM 3-A

Presented to:
RENALYN S. DELA PENA, LPT
HM Instructor
EXECUTIVE SUMMARY
Shopee Express is an integrated logistics solution that Shopee manages
directly to expedite the delivery of your products. Shopee Express aims to improve
the world by connecting customers and sellers inside a single community because
they believe in the revolutionary power of technology. People are gravitating toward
this online purchasing platform more and more because of its convenience and
dependability. Shopee Express is an integrated logistics solution that Shopee
manages directly to expedite the delivery of your products.

The corporation of Shopee Express should ensure that the motorcycle

couriers receive decent compensation packages and other perks that will motivate
them to work for the company since it is aware of the challenges they are now
facing. While Shopee believes in the revolutionary potential of technology and
aspires to better the world by providing a platform, it also wanted to keep the riders
motivated by paying them what they were due. The capability of Shopee users to
survive has really been significantly harmed by the global pandemic crisis. Shopee
users are at risk of losing their jobs or going without work as a result of the
pandemic's impact on the economy. Although social networks and technology are
essential to the distribution of the rider's brand and have a big influence on the
market, hedonic incentives for the completion of an online transaction are a better
predictor than practical reasons.

Customer satisfaction with Shopee for online purchases was great, according
to data research. Customer loyalty, on the other hand, is essential and must be
created because it is far easier to keep current consumers than to bring in new ones.
Additionally, there is a component of their Shopee Express services that poses a
threat to them and is caused by Shopee Express. The Shopee online business,
where not only customers but also sellers who followed and used their platform to
generate income and, of course, Shopee get an income as well, is more in focus as
the researcher compares their performances to the previous performance of the
Shopee Philippine Incorporation. It is evidently demonstrated that the market is
giving a higher income than the service that they provide to deliver the parcel.
SUPPLY CHAIN MANAGEMENT
Shopee Express navigates its journey in the dynamic express delivery
landscape, the company is actively shaping a supply chain that not only meets but
exceeds the expectations of its customers. Here’s the supply chain flow is shaping
up:

Order
Technology Last-Mile
Placement and
Integration Delivery
Processing

Order Transportation Customer

Fulfillment Logistics Service

Compliance
Inventory
Warehousing and
Management
Regulations
LOGISTICS MANAGEMENT
The logistics management of Shopee Express Delivery and Tracking involves,
typically, the processes and strategies employed by the company to efficiently
manage the movement and tracking of packages from the point of origin to the final
destination.

Logistics Management for Shopee Express Delivery and Tracking:

- Network Design

Shopee Express strategically establishes a network of distribution

centers and delivery hubs to optimize the delivery process. The locations are
chosen to ensure quick and efficient last-mile delivery.

- Transportation Management

The company manages a diverse fleet of vehicles, including vans,

trucks, and potentially drones for last-mile delivery. Advanced route
optimization systems are employed to minimize delivery times and reduce fuel
consumption.

- Technology Integration

Shopee Express invests in cutting-edge tracking technologies to

provide real-time visibility for customers. This includes a user-friendly mobile
app and website allowing customers to place orders, track shipments, and
receive timely updates.

- Warehousing and Inventory Management

State-of-the-art warehouse management systems are implemented to

optimize inventory levels, reduce errors, and enhance overall efficiency.
Automation technologies, like conveyor systems and robotics, streamline
warehouse operations.

- Customer Service

Shopee Express prioritizes exceptional customer service with a

dedicated team to handle inquiries, resolve issues promptly, and provide a
positive experience. Multiple communication channels, such as phone, email,
and live chat, are offered for customer support. However, Shopee Express
Delivery and Tracking is receiving negative reviews regarding slow delivery
and attributed to inexperienced riders.
- Security Measures

Strong security measures are in place to protect both inventory and

customer shipments. This includes surveillance systems, secure packaging,
and thorough background checks for personnel handling sensitive items.

- Real-Time Tracking

Shopee Express places a strong emphasis on real-time tracking.

Customers can receive precise updates on the location and estimated
delivery time of their packages through the tracking system integrated into the
company's platforms.

- Sustainability Initiatives

In line with corporate responsibility, Shopee Express incorporates

sustainable practices in its logistics operations. This may involve using eco-
friendly packaging materials, energy-efficient vehicles, and minimizing the
overall environmental impact.

- Compliance and Risk Management

The company stays abreast of logistics and transportation regulations

to ensure compliance. Additionally, Shopee Express develops comprehensive
contingency plans to address potential disruptions, mitigating risks associated
with unforeseen events.
 PURCHASING MANAGEMENT

Shopee is a popular e-commerce platform in Southeast Asia and other

regions. However, information about specific internal management processes,
including purchasing management, is not typically disclosed publicly in great detail.
Companies often keep such operational details confidential for competitive reasons.

1. Supplier Relationship Management (SRM)- Developing and maintaining

relationships with suppliers to ensure a stable and efficient supply chain.
2. Inventory Management- Keeping track of stock levels, managing reordering
processes, and minimizing the risk of stockouts or overstock situations.
3. Order Processing- Efficiently handling customer orders, coordinating with
sellers, and ensuring timely and accurate order fulfillment.
4. Quality Control- Implementing measures to ensure the quality of products
offered on the platform, possibly through partnerships, inspections, or quality
assurance processes.
5. Cost Negotiations- Negotiating favorable terms with suppliers to optimize
costs and maintain competitiveness.
6. Technology Integration-Leveraging technology and data analytics to
streamline purchasing processes, track inventory, and make informed
decisions.
7. Compliance and Risk Management- Ensuring that all purchasing activities
comply with legal and ethical standards, and implementing risk mitigation
strategies.
8. Market Analysis-Monitoring market trends, analyzing demand, and adjusting
purchasing strategies accordingly.
TECHNOLOGY INTEGRATION
The specific details about Shopee Express' technology integration may not be
publicly disclosed. However, the researcher provides some general insights into how
logistics and delivery services, like those provided by Shopee Express, often
leverage technology for efficiency and effectiveness:
1. Order Tracking System- Shopee Express likely uses a robust order tracking
system that allows both sellers and buyers to monitor the status and location
of their packages in real-time. This might involve the use of tracking codes,
mobile apps, or web platforms.
2. Route Optimization- Technology helps optimize delivery routes, ensuring
that packages are delivered in the most efficient and timely manner. Route
optimization algorithms take into account factors such as traffic conditions,
delivery priorities, and package destinations.
3. Warehouse Management System (WMS)- Shopee Express may utilize a
WMS to efficiently manage inventory in its warehouses. This includes tracking
the location of items, managing stock levels, and streamlining the order
fulfillment process.
4. Automated Sorting Systems- In large logistics operations, automated
sorting systems can speed up the processing of packages. These systems
use technology like barcode scanning and conveyor belts to organize and
direct packages to their respective destinations.
5. Predictive Analytics- By analyzing historical data, Shopee Express can use
predictive analytics to forecast demand, optimize inventory levels, and plan for
peak delivery times, such as during promotions or holidays.
6. Mobile Apps- Both Shopee Express delivery personnel and customers may
use mobile apps for various purposes. Delivery personnel can receive real-
time updates on their routes, while customers can receive notifications and
updates on their orders.
7. Digital Communication Platforms- Shopee Express likely uses digital
communication platforms to keep customers informed about the status of their
deliveries through SMS, email, or in-app notifications.
8. Customer Support Systems- Technology is also likely integrated into
customer support systems, allowing for quick responses to inquiries, tracking
issues, and providing assistance to both sellers and buyers throughout the
delivery process.
RISK MANAGEMENT
Risk management for Shopee Express involves addressing various aspects to
ensure the smooth and secure operation of its logistics and delivery services. The
key areas of concern include operational aspects such as minimizing delivery delays
and ensuring accurate order fulfillment.
1. Operational Risks- Identify and mitigate factors that may cause delays in the
delivery process, such as traffic, weather conditions, or logistical issues.
2. Technology Risks- Ensure the reliability and security of the technological
infrastructure supporting the logistics operations to prevent disruptions and data
breaches.
3. Regulatory Compliance- Stay informed about and comply with local laws and
regulations related to e-commerce and logistics operations in each region where
Shopee Express operates.
4. Financial Risks- Monitor and manage operating costs, including fuel, labor, and
maintenance, to ensure profitability.
5. Supply Chain Risks- Evaluate and maintain strong relationships with suppliers to
secure the necessary resources and services for efficient logistics operations.
5. Customer Service and Satisfaction- Shopee Express maintain the transparent
and effective communication channels with customers to address concerns and
provide updates on delivery status.

RECOMMENDATION

 Shopee Express must consider to hire more Employees for the reason that a
larger courier team can potentially lead to faster delivery times, meeting or
exceeding customer expectations.
 The company needs to ensure that its infrastructure, including vehicles,
equipment, and technology, can support an increased number of couriers.
 Implement advanced tracking and route optimization systems to improve
delivery accuracy and efficiency.
 Hiring more employees requires an efficient training and onboarding process
to ensure that new couriers are well-acquainted with company policies,
delivery procedures, and customer service standards.
 Employees of Shopee express have to undergo efficient training and
onboarding process to ensure that new couriers are well-acquainted with
company policies, delivery procedures, and customer service standards.
CONCLUSION

In conclusion, courier services are now an essential part of the online

marketplace. E-commerce companies can therefore maintain and expand an
effective delivery infrastructure. The most well-known e-commerce company,
Shopee, has created Shopee Xpress, its own delivery service, to increase product
distribution. This new supply chain strategy had to act swiftly to meet the increasing
demand from customers for speedy delivery during the pandemic.

Therefore, the researchers concluded that Shopee Express emerges as a

dynamic player in the e-commerce logistics landscape, driven by a commitment to
revolutionize the world of online shopping. As an integrated logistics solution
managed directly by Shopee, the company seeks to connect customers and sellers
within a thriving community, harnessing the transformative power of technology.

Acknowledging the challenges faced by its motorcycle couriers, Shopee

Express is cognizant of the importance of fair compensation and motivators. In
response to the global pandemic's impact on Shopee users, the company recognizes
the potential economic challenges and endeavors to support its user base through
this difficult period.