BM1913

Names: Nabio, Princess Ivory A.

Section BSBA-OM 401________________________Date May 8, 2023 _

ACTIVITY
DHL and Shopee Partnership
DHL and Shopee launch new partnership, enabling China sellers to easily access Thai consumers. DHL
eCommerce, a division of the world’s leading logistics company, Deutsche Post DHL Group (DPDHL),
announced a partnership on October 2018 with Shopee, a leading e-commerce platform in Southeast
Asia and Taiwan. The partnership enables sellers in China to access consumers nationwide in Thailand,
with an expansion of the partnership to other Southeast Asian markets in the pipeline (Bloomberg,
2018). “Direct selling to overseas consumers has never been easier and has become a key growth driver
for many businesses, with e-commerce as an easy platform to enable international expansion. With
logistics as a key enabler for cross-border retailing, we want to empower our customers to tap into this
huge growth opportunity,” says Zhi Zheng, Managing Director, DHL eCommerce Greater China & North
Asia. DHL guaranteed to provide effective and efficient logistics services through their massive volume of
trucks and planes, as Thailand is accessible from China by land. With DHL eCommerce integrated on
Shopee in China, sellers can easily sell and deliver on a single platform and keep track of all shipments
directly through their mobile applications (Bloomberg, 2018).
“In recent years, we have witnessed the rapid development of Southeast Asia’s e-commerce market,
and a growing number of Chinese brands and sellers are staking a claim in this e-commerce goldmine.
However, the geographical complexity of this region has created some logistical challenges. As a leading
e-commerce platform in Southeast Asia, Shopee has built its Shopee Logistics Servcies (SLS), a highly
efficient logistics delivery network that links China with Southeast Asia. We are delighted to work with
DHL, the world’s leading logistics service provider, to grow SLS from strength to strength. Our
collaboration will make Shopee the e-commerce platform of choice for cross-border sellers in China who
aspire to sell into Southeast Asia,” said Jianghong Liu, Head of Shopee Cross Border eCommerce
(Bloomberg, 2018). Currently, Shopee’s SLS is operational in seven (7) markets in Southeast Asia and
Taiwan. With shipping costs 20% to 30% lower than typical market rates and better transit times, SLS
makes cross border logistics a breeze for Chinese sellers. The collaboration between Shopee and DHL
eCommerce will further enhance the capabilities of SLS. DHL will provide Shopee sellers and buyers with
door-to-door logistics services, ensuring products will reach consumers in Thailand safely and quickly
(Bloomberg, 2018).

Answer the following items: (3 items x 10 points)

1. Identify the modes of transport DHL uses.
Based on the handout, DHL uses their massive volume of trucks and planes to provide effective
and efficient logistics services. Wherein, "Motor Carriers" serves as trucks that offer fast and
flexible which offer door-to-door services to deliver in many locations and are responsible for
moving goods and products on the roads. On the other hand, "Air Carriers" for planes consider
the fastest and most expensive mode of transportation, opposite of the other one, the mode that
moves goods through the air.

2. Analyze and describe the clause/s of Incoterms involved in the delivery service of Shopee to
their customers.
Since Shopee is involved in the responsibilities of sellers and buyers in regards to the delivery of
goods. Below are the following clause/s of incoterms in the delivery service of the shoppe to
customers:

•EXW(Ex Works)- in the statement, the shopper made/deliver the goods to the buyer at the
seller's premises. The buyer is responsible for/bears the costs associated with the transport of
 the goods.

• DDP (Delivered Duty Paid)- here the delivery is considered done when the goods are shipped
at the buyer's agreed destination place, meaning the seller will handle all the shipping of the
product to the buyer, which the seller is responsible for the costs that associated with the
delivery of the goods.

• FOB (Free on Board)- Wherein, the seller is responsible for delivering the goods to the port of
shipment and loading them onto the vessel, where the buyer is in charge of costs concerning the
transport of goods.

• CIF (Cost, Insurance and Freight)- here the seller (shopee) has the same obligation as the CFR
clause and covers the insurance costs to bring the goods to the port of destination.

Thus, many logistics companies applied this rule to be able to know the responsibility of the
parties (buyer and seller).
The delivery service involved the clauses that applied to the transport of goods which the seller
and buyer agreed to it.

3. Propose an optimal and cost-efficient transport mode/s for DHL in conveying goods from China
to Thailand.

What I picture it, is if we are talking about the optimal and cost-efficient type of transport mode
for DHL, from China to Thailand. "Water Carriers" is likely to be a better mode of transportation
in conveying goods, even though this mode is slow and not that very flexible, but the idea is that
the large quantities are equivalent to long distances. , it can help to minimize the cost of
shipping and it is ensured that cargo is protected, and gives timely service to customers.
However, it can do too, for "Rail" least flexible also, but typically work for bulky over long
distances and consider a cost-efficient type of transport mode.

Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting
8
details, and factual scenarios
Organization Expressed the points in a clear and logical
2
of ideas arrangement of ideas in the paragraph
TOTAL 10
Lifted and modified from:
Bloomberg (2018). DHL and Shopee launch new partnership, enabling China sellers to easily access Thai consumers. Retrieved on November 6, 2019, from https://www.bloomberg.com/press-releases/2018-10-
19/dhl-and-shopee-launch-new-partnership-enabling-china-sellers-to

08 Activity 1 *Property of STI

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