Explore & discover how we provided a solution to a global entertainment group in expanding their online business in Southeast Asia, resulting in faster shipping and leaner operations.
our customer is among the world’s leading 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.
Our 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 ecommerce 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.
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. Our 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
Import customs services
Bonded warehouses and fulfilment services (RDC)
Export customs services
Cross border transport into Singapore
The supply chain team also proposed a plan in two stages to enhance the customer’s expansion efforts. The first stage targeted Malaysia and Singapore. Through a bonded warehouse in Malaysia and last-mile delivery partners, the Maersk team fulfilled orders for the Malaysian and Singapore markets at a local level. The second stage proposed a similar market penetration for Thailand later in the year, targeting an increase in sales of apparel, toys and signature merchandise.
The strategy enabled the customer to be flexible and quick and fulfil orders promptly. As part of the plan, the team added more visibility via a digital platform for last-mile deliveries. Maersk also operated assets to further reduce touchpoints along the journey.
Our 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
Take your next step with Maersk
Our drive to offer our customer an end-to-end solution was powered by a focus on developing our integrated logistics capabilities. Integrated logistics has some of the most untapped potentials in business today. To know how our logistics solutions can effortlessly fit your requirements, please contact your Maersk sales representative today or click here.
To learn more about our e-commerce solutions, visit our website here.