Accessing the ASEAN Consumer Market: Logistics and Fulfillment

Determining a fulfilment strategy is complicated when the business is scaling across multiple countries in ASEAN. Fashion industry logistics carries additional burden as it constantly need to adapt to new trends and seasonal highs and lows. Meanwhile, the development of e-commerce and m-commerce has transformed the industry. Apart from ensuring the availability of stock in both online and offline channels, the optimisation of costs and deadlines, supplier flexibility and inventory visibility are major concerns for fashion brands in formulating logistics strategies. The cost and capability of logistics providers in Malaysia and Thailand are relatively competitive in the region, but there are last mile issues that need to be addressed. As an archipelago with only about 55% of population living in urban areas, Indonesia often presents logistics challenges for fulfilment and last mile delivery. Cross-border Fulfilment vs. Localised Fulfilment There are two main approaches in handling logistics for selling to the ASEAN market: Cross-border Fulfilment: Under this arrangement, products are shipped from one country across borders to overseas buyers. This is more common for small businesses or small orders as it does not require too much capital expenditure. However, when business grows and order ramps up, so do customer expectations, which often motivates a company to shift to localised fulfilment. Localised Fulfilment: It requires inventory to be stored in warehouses within the target markets, such that the time for delivery is shorter. It is more common for larger scale companies or large volume of orders. It involves investments in warehouses, logistics staff and a delivery fleet to provide fulfilment nationally. Another option is outsourcing the fulfilment tasks to a third-party logistics provider, such as Kerry Logistics and FedEx. When a business is new to a market and unsure of the demand for its products, a phased approach is an efficient way... If you wish to read this full breaking news headline, plus more articles from around Thailand and Asia like, Accessing the ASEAN Consumer Market: Logistics and Fulfillment, simply click on 'Read full story' below, but 1st please give us a 'LIKE' or 'SHARE' before you leave. Thank you Accessing the ASEAN Consumer Market: Logistics and Fulfillment





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Published By: Thailand Business News - Wednesday, 26 September, 2018



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