Case Study: LAZADA

Answer the following Questions:

1. Recognize and defined the functions of logistics and supple chain present in the case
study.
2. Identify and describe the strategy groups present in Lazada’s logistics and supply
chain.
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.
(GALO, JESSA A.)
1. Lazada is known as the biggest online shopping and selling platforms throughout
Southeast Asian countries and continue to lead the E-commerce business. According to
the company’s CEO for logistics Juan Pavez that the “DNA” of Lazada is its logistics
and fulfillment center. The functions of logistics present in the case study are:
 Procurement – Lazada offers the widest range of products in categories from
beauty, fashion, and consumer electronics to household goods, toys, and etc.
The company have various types of products to offer to the consumers and
procurement is responsible for acquiring the goods and services.

 Demand Forecast – Lazada has 54,000-sqm warehouse in Cabuyao Laguna and

has the capacity of five (5) million items, with over 30,000 sellers in the
Philippines, Lazada has to increase its workforce in peak demands to cater order
in its platform. The company consider estimating the quantity of the product that
consumers will purchase and since they have a enormous buyers and
consumers they would have to increase the workforce in their company to avoid
problems and boost productivity.

 Order Management – Conveyor belts in the warehouse streamline the process

for faster picking, transfer and delivery of goods. Sorting of items, to some extent,
is also automated. The company fulfills well the order of goods placed by the
customer.

 Transportation – Lazada is focused on delivering an excellent customer

experience by offering comprehensive customer care and hassle-free returns
through its own first and last-mile. The company delivers the goods through
shipping and it is very convenient to the customer because they will deliver it
door-to-door and of course they deliver the product in good condition and care.

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  Customer Service – The company truly ensure the comfort of convenience of the
consumers and their company have a feedback message where you could leave
a comment or suggestion in their service to improve and serve them better.

 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 (5) million items.
Supply chain:
 Plan – Lazada had foreseen the enormous amount of demand that is why they have
plans to provide and serve the customers well. They increased its workforce in
peak demands to cater the consumer’s order.

 Make - In year 2018, the company opened LazMall which promises the highest-
quality shopping experience, with 100% authentic products, 15-day hassle-free
return policy, and next-day delivery for shoppers, they also have biggest brand
distributors. The company made value-adding activities which attract the
consumers to purchase and willing to pay more.

 Deliver- The company offers convenience of comfort for the consumers as they
provide service where they deliver the goods and by offering comprehensive
customer care and hassle-free returns. It helps to improve the customer
relationship from receiving order to final delivery.
(GALO, JESSA A.)
2. Lazada has its big warehouse that could store for almost five (5) million
items and has 100 logistics partners. To improve and develop the skills of its 30,000
sellers the company collaborated with Alibaba Business School and TaoBao
University. Due to the high demands of its consumers they increased the workforce
to cater the demands. The company is focused on delivering of goods to its
consumers leaves good impression since it is convenient. As the company is
growing, they opened a LazMall in partnership of the biggest brand distributors such
as Estee Lauder, P&G, Apple, etc. Lazada ensures the that they provide the
demands of its consumer with consideration of good value in customer relationship
and its products.

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