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The Performance of E-Commerce Logistics in Southeast Asia in 2021
Logistics and e-commerce have always been intertwined closely. Shopping online is just one part of the story – the journey it takes to arrive at your hands safe and sound is another tale altogether.
E-commerce is surging in Southeast Asia, motivated by a growing digital economy, and the Covid-19 has also accelerated that growth. As the sector gets even bigger, the logistics industry is going along for the ride. The logistics market of SEA is expected to be worth over $55 billion by 2025, and it’s transforming in line with the needs of an rapidly rising e-commerce market.
Source images:The evolution of ecommerce logistics in Southeast Asia - tech in asia, by Stefanie Yeo
With such a vibrant e-commerce landscape, several logistics service providers have taken action.
Cainiao, logistics arm of Alibabal, announced plans to expand its warehousing network across South-east Asia, following surging cross-border e-commerce demand, for which the Singles’ Day festival also caters.
Cainiao said it planned to establish a smart warehouse network in Vietnam, Indonesia, Malaysia and Singapore, to be known as cHubs, with a footprint close to 2.5 million sq metres. Eric Xu, general manager of Cainiao Smart Hub, added: “These cHubs enable e-commerce merchants and local businesses in South-east Asia to be at the forefront, providing end-to-end and cost-effective logistics services without traditional middle distribution layers.”
Indeed, Singapore-based J&T Express has also expanded its warehousing network following growing demand for e-commerce shipments. It has opened two new facilities in Singapore, an 82,000 sq ft fulfilment centre in Penjuru and a freight hub at Changi Airport.
The latter also serves as a strategic hub for transhipment within the J&T network, which includes Indonesia, Vietnam, Malaysia, Thailand, the Philippines, Cambodia and China. J&T said it had also launched a network of parcel drop-off points across Singapore to support sellers during the Singles’ Day festival.
Meanwhile, DHL Express has increased its air cargo capacity, via partner airlines, to cater for rising demand.It said a new freighter, operated by K-Mile Asia, was flying six times a week between Hong Kong and Bangkok, adding over 200 tons of weekly capacity. And Air Hong Kong has added a sixth flight rotation to two routes between Beijing, Hong Kong and the Philippines, adding over 1,200 tons of weekly capacity.
Ken Lee, CEO of DHL Express Asia Pacific, said: “As economies recover from the global pandemic and income levels rise, we expect the intra-Asia market to grow substantially, with a corresponding increase in demand for express logistics services propelled by a thriving e-commerce sector.”
The performances in this edition of the e-commerce logistics race have been interesting and we are carefully watching how these companies will fare in 2022. Nevertheless, it is clear that there is a fierce competition waiting for them.
“To have success in ecommerce logistics, you will need to go beyond volume and costs. Having an understanding of seller policies and buyer promise is integral to creating long-term benefits that will delight both sellers and buyers. ”
Andy Huang,
Chief logistics officer, Lazada Group
If you are planning to open online stores on different platforms in Southeast Asian E-commerce Market, and you have requirements for efficient order management, warehouse management that connected to logistics and delivery like J&T, you can try to contact www.upfos.com
UPFOS system is the best solutions that help you manage all of your orders, products, warehouse and logistics. UPFOS provide service for Jet Commerce that offer enable service for international brands, like GoPro, Similac, Miniso, OPPO, Ensure, Swisse, Fitti, Colgate and etc. And it has close cooperation connection with J&T express and J&T international. If you enjoy the service from both UPFOS and J&T, you can have special discount from UPFOS.
Upfos can also provide customized service for your business. Know more about UPFOS, click www.upfos.com Or you can have 3-month free trial of professional ERP system at https://go.upfos.com/ to help you with your eCommerce business.
References:
The evolution of ecommerce logistics in Southeast Asia - Tech in Asia, by Stefanie Yeo
E-commerce boom in South-east Asia drives expansion of express networks - The Load Star, by Sam Whelan