Activity 1

1. Recognize and define the functions of logistics and supply chain present in the case
study.
 In the case of the study, logistics and supply chain functions are represented,
such as:

• Procurement – As Lazada is the largest online shopping and selling platform throughout
Southeast Asia countries, it offers broadest range of products in categories of cosmetics,
apparel and consumer electronics to household goods, toys, sporting equipment, and
groceries. The company has various types of products to offer to the consumers and
procurement is responsible for acquiring the goods and services.

• Demand Forecast - Lazada considers estimating the quantity of the product that
consumers will purchase and since they have an enormous buyers and consumers they
would have to increase the workforce in their company to avoid problems and boost
productivity.

 Customer service – To maintain the good relationship with clients, Lazada genuinely
ensures that people are satisfied and their company has a feedback message where you
can leave a comment or suggestion to enhance and better support them in their service.

 Order Management – Lazada fulfills well the order of goods placed by the customer
through the conveyor belts in their warehouse that organizes the process for faster
picking transfer and delivery of goods. Sorting of items is also automated.

 Transportation - By providing quality customer service and hassle-free returns from its
own first and last miles, Lazada focuses on delivering an exceptional customer
experience. By shipping, speaking from experience, the company provides the products
and it is very convenient for their clients because items can be delivered through door-
to-door in good condition and care.

 Warehousing – The Company has its main warehouse in the country and it is located in
the Cabuyao, Laguna. It has 54,000-sqm and has a capacity to store five million items.

2. Identify and describe the strategy groups present in Lazada’s logistics and supply chain.
  Cost strategy, time strategy, quality strategy, and flexibility strategy are the
strategy classes presented in the logistics and supply chain. Lazada supplies the
goods to the consumer without compromising quality at the lowest/inexpensive
price. They deliver the products on time when it comes to time strategy. Due to
the high demands of its consumers, they increased the workforce to cater the
demands. As the company continues to grow, they launched LazMall in
partnership of the biggest brand distributors such as Estee Lauder, P&G, Apple,
etc., with 100 percent authentic items, 15-day hassle-free return policy, and next-
day delivery for shoppers, offering the highest-quality shopping experience.
Lazada ensures that they provide the demands of its consumer with
consideration of good value in customer relationship and its products.

3. Propose ways on how Lazada will be able to maintain its leader position in logistics
and supply chain using the concept of Supply Chain 2.0 and Industry 4.0.

The Industry 4.0 is about new industrial model that allows introduction of advanced operations.
Its vision is to emphasize the global networks of machines in a smart factory setting capable of
autonomously exchanging information. The Industry 4.0 has 4 main features. First, the vertical
networking of smart production systems, wherein it is about smart factories that responds to
changes in supply, demand, and faults, and allows customer-specific in terms of production
operations. Horizontal integration of global value chain networks is also a feature that requires
strategies, networks, and business models that responds faster for the efficiency of the
management. The third feature is the life engineering support across the entire value chain,
which is responsible for creating new products and production system. Last feature is the
acceleration through exponential technologies which is responsible for reducing costs,
maximizing flexibility, and customizing products. In conclusion, the vision and main features of
Industry 4.0 aims at providing well flow of operation, from the internal to external movement,
through engaging in the advancements of today’s industry.