LOGISTICS
From online to on the road
Digital transformation has left a positive impact on e-commerce today and it is also
increasingly playing a bigger role in delivering the purchases. Muneerah Bee checks
in with Joseph Ng, CEO of Skyfy Technology, to get more insights into what retailers
should be aware of when it comes to logistics for e-commerce.
L
ogistics is often considered
the biggest bottleneck to
e-commerce growth in South-
east Asia and no retailer would
want to lose a customer because of
a shipping delay that was out of the
company’s control.
Logistical complexity is one of the
challenges of e-commerce logistics that
Joseph Ng, CEO of logistics enabler
Skyfy Technology, has identified as
increased service requirements have
led to more offered delivery options
and models. “Whereas one delivery
option used to be the norm, usually
delivered from one fulfilment location
(typically a dedicated e-commerce
distribution centre), nowadays we see
at least three delivery options (standard
delivery, express delivery and pick-
up), with multiple fulfilment locations
(e-commerce distribution centres,
directly from suppliers and from stores),”
he observed.
To overcome this, Ng suggested
focusing on competencies, and a good
strategy requires a study of the needs
of customers, an in-depth marketing
research and the ability to generate
fresh ideas. He said: “Finding the right
competencies for your company can take
a lot of time and effort. Then putting all
the pieces together to form a successful
e-commerce team is often difficult.
But if you develop an effective strategy
combined with the right IT, HR,
marketing and logistic competencies,
your chances of success in e-commerce
increase significantly.”
In some cases, there is no real-time
coordination between the warehouse
and customer service when technology
is not implemented to manage the entire
fulfilment process. Ineffective technology
application and the reliance on
administrative work makes collaboration
between multiple parties challenging
and ultimately has a negative impact
on service delivery to the customer, Ng
opined. “For example, the visibility of
deliveries from the warehouse to the
customer can be better managed with
a fleet management system that keeps
track of the field workforce delivering
the goods. Customer service can easily
track the location of the goods and
update customers on the expected time
of arrival of the delivery without the
need to make a call to the driver, who
could be unable to pick up the phone as
he is driving,” he said.
Delivering results
third-party performance management,
it’s therefore instrumental to have
enabling technology in place and the
right set of key performance indicators
(KPIs) and SLAs with the logistics
partners.”
Optimising last-mile deliveries starts
with a fit-for-purpose fulfilment network
or technology solution, he added. This
solution should be based on relevant
service requirements that have an impact
on the online conversion. “As such, it is
essential that the design of the solution
will be an integrated effort of both
category management and supply chain
management to balance the needs and
the possibilities.”
Leveraging technology also helps
to streamline the fulfilment process.
For example, when an order is placed,
the solution can automatically notify
the person or company responsible for
shipping the item(s). Users are able
to create multiple fulfilment reports
— one for each fulfilment provider
and the group of products they are
responsible for shipping. The fulfilment
report displays the customer’s contact
information, shipping information, and
the quantity and name of product(s)
ordered. ra
When it comes to choosing an
e-commerce fulfilment and logistics
service in Asia, technology and
integration service level agreements
(SLAs), logistics network of third-party
logistics companies (3PLs), automation
of order fulfilment and fulfilment reports
are some of the important factors to
consider, Ng advised.
For example, when choosing a third-
party logistics company, it is important
to consider its geographical presence.
“Companies with operations in multiple
countries within a region may want to
work with a provider that is similarly
located. Third-party logistics companies
and carriers alike are investing more and
more in expanding their own logistics
network, technology and services.
Logistical complexity is one of the challenges
As a result, they too have
of e-commerce logistics that Joseph Ng, CEO of
surfaced as key players
logistics enabler Skyfy Technology, has identified
in perfecting the last
as increased service requirements have led to
mile,” he commented.
more offered delivery options and models.
It is also important
for companies to
re-think their
operating
model for
logistics
and take on
more of an
orchestrator
role for their
fulfilment
function,
• Joseph Ng predicts the future of e-commerce
according to Ng:
logistics in Asia. See next page.
“For effective
Retail Asia June/July 2018
27