Logistics in e-commerce sector made easier by arrival of new warehousing outfit.
Vietnam has great potential in e-commerce, according to IT experts, as one-third of the population regularly accesses the internet. After ten years of development the country’s e-commerce sector has the foundations and market for expansion. To develop fully, however, its logistics infrastructure requires attention.
According to Mr. Nguyen Hoa Binh, Chairman of the Board of Management at PeaceSoft, warehousing and logistics in Vietnam continue to be a “nightmare” for the country’s e-commerce sector. Storage, packaging, and delivery account for half of the work in e-commerce, and the shortage of warehouses and unprofessional cargo management sees many goods go missing.
Vietnam’s logistics costs are equal to 25 per cent of GDP; 1.7 times higher than the global average and more than double the figure in developed countries. Though high, the cost is yet to be optimized because enterprises must keep large amounts of stock and delivery times increase depending on the geographical distance between warehouses and buyers nationwide.
To assist enterprises, the logistics company BoxMe has cooperated with PeaceSoft and others partners to launch the first e-commerce warehousing infrastructure in Vietnam. Individuals or enterprises operating in e-commerce can consign goods in the logistics center of BoxMe in Vietnam, which is operated by ViettelPost and Kerry Express.
Sellers can manage and coordinate goods by mobile apps anytime, anywhere. The warehouse management system of the seller’s website is automatically synchronized with BoxMe through API programming.
When an item is sold, the nearest BoxMe warehouse to the buyer will take the order and package and deliver the product in the shortest possible time, in some cases less than half the time taken previously. In case of failed delivery or where the customer wishes to return the products, the package is sent back to the nearest BoxMe warehouse. Individuals and enterprises using this logistics infrastructure do not have to pay registration fees but pay storage fees and incur a cost when an order is processed.
“We joined BoxMe to resolve logistics problems for e-commerce companies in Vietnam,” said Mr. Cao Dinh Ngan, Deputy General of Director ViettelPost. “ViettelPost has four centers, in Hanoi and Ho Chi Minh City, and we are aiming to open centers in all 63 cities and provinces throughout the country. This will be an open platform to help individuals and enterprises conduct e-commerce more easily, with good delivery services and costs.”
“BoxMe commits to helping sellers cut logistics costs by 30 to 50 per cent compared to maintaining separate warehouses, so they can focus fully on their marketing and sales,” said Mr. Han Van Loi, CEO of BoxMe. Goods are packaged according to industry standards and the delivery time has been shortened by half, which helps sellers increase service quality and therefore sales. According to Mr. Loi, BoxMe is implementing the program with free storage fees for the first six months for the first 500 registered sellers.