A PART OF TIKI’S SUCCESS: OPTIMIZING LOGISTICS OPERATIONS IN COMPLETING ALL ORDERS AND DELIVERY

Updated: Aug 17


Source: e27: Tiki reportedly raises US$130M in funding led by Northstar Group


For e-commerce businesses, shipment to customers is very important. Today, customers' demand for a time-consuming delivery service is rising. If your enterprise is able to impulse the speed of delivery, customers will be pleased with it. Tiki Corporation, one of the most successful and well-known e-commerces worldwide, has dexterously applied the smart delivery policy.


1) Optimizing warehouse operations:


Tiki warehouse TOP Center located in Tan Binh District, HCMC, VN

Source: Tinhte: Hang hoa duoc xu ly the nao truoc khi den tay nguoi tieu dung


  • Tiki Corporation always tries to optimize the storage capacity. A 5000-square-meters warehouse in Tan Binh is the most up-to-date optimal warehouse of the enterprise with an occupancy rate of 90%. Refrigeration and electronics products are placed near the entrance and separate from other goods. Along the length of the warehouse, there are at least 80 shelves which are over 2 meters in height. They are located parallel to each other and the distance between the shelves is enough for two people to pick the products. At the end of each shelf, there are different coloring stickers on the bottom to categorize the goods. Tiki's Warehouse Manager said that the current capacity of the warehouse is about 1.5 million products, if needed, it can be stored up to 2.2 million products.


Space between two shelves is enough for 2 employees to pick the products

Source: Tinhte: Hang hoa duoc xu ly the nao truoc khi den tay nguoi tieu dung


2) Optimizing the route of taking goods:


Tiki employees handle products when receiving orders

Source: Tiki: Tiki mo rong quy mo kho gap 600 lan sau 10 nam sau 10 năm


  • How the titan retailer of Amazon functions its store was an inspiration to Tiki Corporation to build a warehouse management system without breaking pick-up routing. Along the shelves, approximately 36 meters, the arrangement of products is completely random and cluttered. There are all types of products such as books, household supplies, electric appliances, etc. Had it not been for this ingenious arrangement, Tiki staff members would have not been able to pick up 5 things within 1 minute during peak hours. Tiki manager shared that the software system is extremely crucial. Although staff often put pieces of stuff without any order, the system will rearrange to create the most suitable route to pick up products. For example, if a container of books or swimming glasses is put in random, the software system will automatically reorder it into its place aright.


3) Developing suitable warehouse management models for each of the current services:


TikiNOW, a new 2-hour delivery service started launching in 2020

Source: Dau Tu Online: Chien luoc giao hang moi cua Tiki: Giao nhan thoi chua du


  • Nowadays, Tiki is applying 2 main models in its warehouse management activities for 2 different types of Tiki service: fast delivery within 2 hours.

  • For economical delivery, Tiki uses warehouse operation Tiki On-Demand Fulfillment (ODF).

  • For Tiki Now - Delivery in 2 hours, Tiki uses the form Fulfillment by Tiki (FBT).

These factors are part of Tiki's success. By virtue of this strength, Tiki has a faster delivery service as opposed to other e-commerce in the Vietnamese market as well as the international market. On average, it takes Tiki 1.5 days to deliver worldwide. Moreover, Tiki also provides Tiki.now, rocketing delivery service in 2 hours, to the customers together with a desirable exchange rate - always at 0.8%. Tiki's success is a typical example for e-commerce companies to learn and upgrade the system to meet the diverse needs of customers.

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