VIETNAM LAST MILE LOGISTICS FORUM 2017

[Thaopham90]

VIETNAM LAST MILE LOGISTICS FORUM 2017

Ho Chi Minh City, August 18 th 2017

12:30 pm - 17:00 pm

THE CONTEXT

Last-mile delivery is that final segment in the logistics network where finished goods are transferred to the consumer or business that ordered and purchased them. It seems like an easy enough concept, but the devil, as usual, is in the details. Last-mile delivery is historically very inefficient and requires a higher percent of cost compared to other areas of the transportation process—up to 40 percent of the total transportation cost can be weighted in the last couple of miles of delivery.

So that’s the downside. The upside is that companies are ever-innovating new ways to minimize the cost and inefficiency of last-mile delivery—innovations like delivery lockers, drones, use of the sharing economy and robots. And there are myriad ways to transport goods over the last mile, which isn’t really a mile at all. It could be 2 miles; it could be 50 miles. E-commerce delivery is part of the last mile that you may most be familiar with as a contemporary consumer. And if you live in an urban setting, you can easily see how last-mile delivery gets even more complicated quickly. The transportation of goods in cities, also known as urban logistics, requires finesse to cut through traffic and efficiently make deliveries in an impossibly dense market. The types of transportation that can be used in suburban or rural areas can’t always cut it in the city, thus forcing urban logistics providers to get even more creative. As a greater percentage of the population moves to urban centers [especially millennials who have a large share of buying power], the cost and complexity of urban logistics provides both opportunities and risks, most notably in last-mile logistics. The density and relative wealth of urban shoppers provides a great opportunity for retailers to penetrate large, affluent markets via e-commerce. However, doing so profitably is not easy. Highly congested cities are adopting regulations around truck access, off-hour delivery times, noise restrictions and pollution, while at the same time, e-commerce customers are more demanding in terms of the speed and time of delivery.

The impact the digital marketplace has on the traditional business model regarding consumer expectations and the new competitive landscape. Consumers now expect their buyer journey to be entirely frictionless and immediate. With a growing number of Vietnamese consumers shopping online, and more and more places to shop, delivery is increasingly becoming the last battleground to winning the consumers’ hearts and minds. Despite the Vietnamese e-commerce market still being in the relatively early stages of development, online user penetration has reached 50.5% in 2017 and is expected to reach 58% by 2020. According to Euromonitor, total e-commerce revenue was roughly $1 billion (€900 million) in 2016, and e-commerce spending is expected to grow with a CAGR of 23% leading up to 2020. The country boasts a huge population of over 90 million, one of the largest in Southeast Asia, and strong economic development with GDP growth rates above 5% per annum over the last 15 years. And similar future growth is expected, especially with a young, smartphone-addicted and incredibly internet-savvy population with a young average age of 30.8. The growing middle class has a large disposable income, which saw total consumer expenditure soar to $153 billion in 2016. But while digital sales are on the rise, digital payments remain low. Just 15% of e-commerce shoppers reported paying digitally in 2016 – which is hardly surprising considering 42% of the country’s consumers don’t even own a credit card.

Vietnam Contemporary Challenges in Last Mile Logistics

1. Delivery Cost – Last mile delivery cost is the large cost on E-Commerce operations in Vietnam. 85% customer request for COD. COD service cost are quite high. How to decrease overall COD processing costs and how to encourage customers to use pre-payments or at the door digital payments.

2. Delivery Visibility – Tracking code is not good enough for today E-Commerce customers. Want to know the parcel on a real-time map like Uber. Enhance customer experience on the last mile delivery. What are the trends in this market and how could the industry work towards real time tracking.

3. Faster Delivery – Customers do not want to wait for few days to get what they purchased on line (Customers’ expectation is growing). How do we increase operations efficiency (sorting, pick up, drop off parcels) and decrease delivery time on the last mile delivery?

4. Customer physical address and attitude – In correct address, difficult to find, narrow alley for small truck to access with bulky items, change in mind, no one at home to receive orders --- these contribute to higher cost and time consuming. Are there maps which highlight potential delivery risks and how could we identify potential issues upfront.

5. Customer Proximity – Locations where it is convenient for customer access to pick up, drop of, return items, paying COD or event COD installments. This also will help rural/remote area customers to received their parcels easier. Safe time on the last mile delivery.



SPEAKERS:

FABIAN WANDT, Chief Operating Officer, Lazada Vietnam

Fabian Want has been serving as the Chief Operating Officer of Lazada, the number one e-commerce website in Vietnam since 3/2017. He is responsible for the operation which includes technology application, fulfillment by Lazada, transportation, cross-border service, and talent magnet on the market for supply chain and logistics interested candidates. Prior to joining Lazada, Mr. Fabian worked in the field of international logistics and supply chain at multinational companies such as Tommy Hilfiger, Deutsche Post DHL Consulting Singapore. Fabian Wandt held a various leading positions in the company within five years foundation of Lazada Vietnam from 2012. He contributed a big part to the operation including warehouse, supply chain and logistics. Within 5 years, he has been developing strategy for each division to meet and exceed company’s KPIs, and support the blooming development of Lazada in Vietnam. Not only implementing the day to day operation process, Mr. Fabian also identified a considerable talents within the organization, motivated and trained them to support the logistic network specified for e-commerce. In 2016, he got promoted to Vice President of Logistic, taking accountability for fulfillment centers (FBL), and transportation including domestic and international. Mr. Fabian’s influences extended to marketplace operation as he was Head of Marketplace in 2014-2015, the initial stage of this business model at Lazada. He was accountable for building up the operation that supported thousands of merchants and customers. Mr. Fabian was appointed to be Chief Operating Officer at Lazada Vietnam in March 2017 with his clear understanding of how each division works and supports to the company’s vision. His new role is to address the challenge of supporting Lazada Vietnam’s aggressive growth in term of operational and logistic domestic and international.

Thinh Vu, Country Manager, Lazada Express Vietnam

Thinh Vu is the Country Manager of Lazada Express Vietnam Co., Ltd., responsible for generally managing the venture in Vietnam with ambition to transfer e-commerce delivery basic service to high-class standard. He carved out the delivery function of Lazada Vietnam to become an independent entity mid of 2015 and operates it so far. The company is becoming the biggest delivery company with tens of thousands parcels pick-up and delivery daily with a superior lead time and customer experience. He is also leading the team in innovation and technology development to bring the first mile and last mile delivery to the higher level of economics.

Joined Lazada Vietnam in April 2015, Thinh brings with him significant experience in logistics and operations. Prior to joining Lazada, he had over 14-yearexperience in senior management roles in both local and foreign direct investment enterprises. He has set up two successful enterprises in Vietnam and also spent his career in international air express industry under DHL and TNT.

In academic field, Thinh accumulated his rich knowledge by acquiring a Master of Business Administration, a Bachelor of Law and a Bachelor of Business Administration.



Phuoc Tran, Co-Founder, Operation Manager, Ahamove

Bachelor of Arts in International Studies/International Business at American University, Washington DC. Experience working in Washington DC the capacity of Logistics Specialist for Health Initiatives in Uganda & Zambia for the University of Maryland, and Research Analyst for the Deltek, an ERP provider. Returned to Vietnam in 2014, worked at Easy Taxi Vietnam’s as head of operations, them comScore Sales Manager for Vietnam market. Joined & co-founded Ahamove in January 2015 with Lương Duy Hoài, Phạm Hữu Ngôn & Lưu Tuấn Bình.

If you’re keen on your expertise for one of the above topics at the Forum as Speakers or Panelists, please email to Ms. Quyen Nguyen [email protected]

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IMPORTANT NOTES TO INTERESTED INQUIRIES

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