The customer is among the world’s foremost diversified multinational entertainment and media groups. The company runs a global online store that sells entertainment merchandise, toys, collectables, household items, clothes and other products.
The challenge
The customer was looking to expand its share in markets outside its core bases in North America and Europe The customer was looking to expand its share in markets outside its core bases in North America and Europe. Online shopping has been booming in Southeast Asia and offers a tremendous growth opportunity. According to a 2021 report, the E-commerce industry in the region could be valued at US$172 billion by 2025, driven by higher demand in Singapore, the Philippines, Vietnam, Malaysia, Thailand and Indonesia.
Traditionally, the customer had relied on third-party distributors to complete its online deliveries in Asia. Fueled by the need to streamline operations into a cost-effective model, the company was trying to penetrate the market directly through its online platform. It now needed a logistics partner who could fulfil end-to-end deliveries at business-to-business and customer levels.
To support its expansion plans, the customer needed storage capacity in bulk, inventory management and a supply chain team capable of handling short notices for product launches. Besides, it needed a trusted partner who could provide an agile and cost-effective end-to-end solution while ensuring that consistent regulatory and quality processes were met every time.
The solution
The idea was to chart and manage the customer’s cargo journey right from places of origin to consumers’ homes As the lead logistics partner for the customer in Ocean, Maersk was well-versed in the operation’s technical ability. The team recommended a complete Maersk E2E (end-to-end) e-fulfilment solution, including a suite of Maersk’s E-Commerce Logistics services, Customs Services and Warehouse and Distribution (W&D).
The idea was to chart and manage the customer’s cargo journey – right from places of origin to consumers’ homes in Malaysia and Singapore. The entire operation revolved around a Regional Distribution Centre (RDC) in Malaysia. The teams received cargo, sorted goods as per online orders, offered customs services and oversaw last-mile deliveries.
The process included
- Receiving cargo at Port Klang, Malaysia
- Inbound transport
- Import customs services
- Bonded warehouses and fulfilment services (RDC)
- Export customs services
- Cross border transport into Singapore
- Cross Docking for returns & re-fulfilment services
- Last-mile deliveries to online consumers and wholesale businesses
The result
The e-fulfilment solution was able to have an immediate impact on the customer’s regional operations. Some of these included:
- Quick expansion into the fast-growing markets of Singapore, Malaysia and Thailand
- Lower taxes and import-related costs via the bonded warehouse
- Faster order fulfilment and door-step deliveries
- A single point of contact from order to delivery
- Reducing touchpoints by cutting the need for multiple distribution partners
