Stock code

300531

English

VIP.COM

Background

VIPshop, established in August 2008, is the third largest Chinese e-commerce company and the largest online discount retailer. They specialize in providing apparel, footwear, cosmetic products, home products and many more. In March 2012, VIPshop was listed on the New York Stock Exchange (NYSE). They have established an innovative e-commerce model in China by providing genuine and famous products in limited times at deep discounts. Vipshop has been listed as the world’s fastest growing retailer by the 2017 Top 250 Global Powers of Retailing, co-authored by Deloitte and STORES Media.

Challenges

1. Labour intensive and time-consuming manual records of goods and inventory increased labour cost, error rate and reduced efficiency.

2. Locating goods was difficult due to inconvenience of accessing and tracing data from paper records.

3. Discrepancies between recorded inventory and actual inventory resulted in either shortage or accumulated items, thus incurring losses to the enterprise.

4. Delayed replenishment of inventory due to lack of synchronisation between actual inventory data and back-end database resulted in situations where one is unable to meet the customer’s order.

5. Errors occurred during the shipment process and there was a lack of ability to track item location accurately. Inventory was not updated when items were shipped out.


Solution

1. Delivery order number of inbound goods are immediately scanned using our PDA. This generates a barcode label which is attached to the goods. The barcode labels are scanned to register and update the inventory.

2. System provides a shelf position and optimal loading route to place the goods. Its location is confirmed by scanning the barcode of the position and product.

3. To pick up the goods, goods information is inputted into the PDA. This generates an optimal picking path to minimize picking complexity, errors and improve efficiency. Once goods are confirmed for and sent for delivery, inventory is simultaneously updated.


Effects

1. There are immediate records of quantity of inbound goods and its location within the warehouse. This increases convenience for staff and helps enterprises control operating cost.

2. A complete and accurate database established from the instantaneous update of the inventory based on inbound and outbound.

3. During distribution processes, real time tracking of delivery vehicles and personnel helps achieve accurate, efficient and safe logistics distribution.


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