Lazada - a pioneer in e-logistics development

The world is now seeing significant changes in e-logistics. Have world and regional trends had any impact on Vietnam?

Nguyen Anh Minh, head of Ground Operations at Lazada Logistics Vietnam

E-commerce has become a way of life in Vietnam over the last few years, underscored by increasing internet penetration, smartphone usage, and greater purchasing power. This change has driven higher demand for efficient and reliable e-logistics solutions to fulfill orders and meet customer expectations.

With the development of the wider e-commerce industry, further enhancements and upgrades in e-logistics will be the direction for the entire industry. Global e-logistics trends are impacting consumer behaviour in Vietnam and driving demand for more sophisticated and cost-efficient e-logistics services. With the popularity of online shopping on e-commerce platforms, Vietnamese consumers increasingly want to receive their orders quickly and conveniently. This has led to an increase in demand for same-day and hourly delivery services.

Free shipping is also a significant factor influencing Vietnamese consumers’ purchasing decisions. A Lazada survey found that 72 per cent of Vietnamese consumers value the role of promotional programmes, and this has a major impact on their purchasing decisions on e-commerce platforms.

How has Lazada Logistics performed so far in terms of reshaping the e-commerce landscape in Vietnam?

For more than a decade, we have been building a wide network, ensuring that sellers and buyers anywhere in Vietnam can transact seamlessly with each other with the best service in the shortest time possible.

For example, Lazada Logistics Park was launched in early 2023 to further optimise operational efficiency, improve service quality, and create many benefits for customers, sellers, and partners. The highlight of Lazada Logistics Park is the use of machinery and advanced technologies to improve most of the processes, with an automation rate of up to 99 per cent.

Notably, the auto-inbound, auto-outbound function helps to automatically record the status of goods into the system, ensuring that all packages are closely monitored.

Lazada has built many sorting centres, thousands of drop-off points, and hundreds of pick-up points and a smart locker system in Ho Chi Minh City and Hanoi, along with a network of hundreds of post offices across the provinces and cities, ensuring that goods are handled to the highest standards with the fastest transit time.

What are Lazada Logistics’ priorities for Vietnam to foster sustainable green logistics?

Lazada Logistics’ strategy hinges on three key pillars. Firstly, we elevate delivery experiences anytime, anywhere. Lazada Logistics boasts a robust infrastructure with three large automated sorting centres, over 120 satellite sorting centres, and three fulfilment centres spanning 156,000 square metres. This extensive network ensures seamless handling of the market’s escalating shopping and delivery demands.

Secondly, we embrace cutting-edge technology in operations. Lazada Logistics is a frontrunner in adopting advanced technologies, and AI and machine learning-integrated automation are strategically implemented to optimise warehouse and supply chain management processes. This focus on technology enhances accuracy, improves operational efficiency, and minimises labour costs.

Thirdly, we are committed to managing our impact on the environment. A notable example is the integration of electric motorcycles and bicycles into delivery operations. These e-vehicles offer a wider cargo capacity, exceeding 50 per cent of conventional motorcycles, while saving 25-35 per cent on fuel costs and 50 per cent on maintenance expenses.

Furthermore, Lazada Logistics plans to expand its clean fuel vehicle adoption in the future, contributing to CO2 emission reduction and environmental protection.

In the annual Environment, Social, and Governance Impact report for financial year 2024, Lazada continues to detail the group’s ongoing efforts and achievements under the four core pillars of its framework in this area: empowering communities, future-ready workforce, environmental stewardship, and effective governance.

One key highlight in this year’s report is the introduction of an internal carbon data collection platform developed to track and monitor the group’s carbon emissions. This improvement enhances the data quality and accuracy for Scope 1 and Scope 2 emissions, making it more robust than in previous years.

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