Tag: e-commerce fulfilment

  • Mid-Market Retailers Risk Logistics Stalls as Growth Outpaces Warehouses

    Mid-Market Retailers Risk Logistics Stalls as Growth Outpaces Warehouses

    Fast-growing retailers risk capping their own expansion when warehouse operations and inventory models fail to adapt to higher order volumes, according to supply chain advisory firm Prological Consulting.

    Operational breakdowns typically surface when mid-market businesses reach national scale, creating sudden spikes in freight bills, warehouse labour hours, and fulfilment errors.

    Peter Jones, managing director and founder of Prological Consulting, said businesses frequently rely on informal employee knowledge and manual workarounds during early growth phases. While nimble setups support early trade, those same methods turn into severe constraints once product catalogues and sales channels multiply across regions.

    Warning signs in warehouse operations

    Operational friction usually appears first in financial metrics monitored by chief financial officers and operations heads. Unbudgeted transport charges, rising import costs, and climbing warehouse labour hours signal that existing facilities can no longer handle inventory flow efficiently.

    Fulfilment disruptions follow quickly. Split shipments, inaccurate stock counts, and delayed customer deliveries indicate that facility layouts and tracking methods have reached capacity limits.

    Jones cited a Sydney-headquartered retailer that expanded from a startup into a national store network and online business generating 45 million Australian dollars in annual turnover. The company operated out of an overcrowded warehouse where pallets blocked internal transit paths and inbound import processing slowed due to heavy reliance on a handful of veteran workers.

    The business resolved the bottleneck by shifting into a larger facility within six months. The transition allowed the retailer to surpass its revenue forecasts and restore reliability across its e-commerce fulfilment operation.

    Balancing automation and inventory compromises

    Competing effectively against automated logistics networks requires retailers to integrate machinery and digital tracking into their supply chain plans. Manual operations face higher unit handling costs and slower turnaround times compared to rivals using automated storage and retrieval systems.

    Across the Asia-Pacific region, mid-tier consumer brands encounter similar friction when transitioning from local store footprints to omni-channel distribution. Operators that delay warehouse redesigns often see fulfilment expenses consume operating margins before corrective capital investments are made.

    Retailers must evaluate trade-offs between inventory holding costs, distribution points, and lead times rather than pursuing unattainable logistics perfection. Merchandising teams, store networks, digital storefronts, and third-party logistics partners need coordinated forecasting to prevent misplaced stock across regional hubs.

    Prological expects automated picking systems and predictive replenishment tools to dictate cost competitiveness as regional freight and warehouse labour expenses remain elevated.

  • TIGERS to expand China and Malaysia as e-commerce booms

    TIGERS to expand China and Malaysia as e-commerce booms

    Global e-commerce fulfilment expert Tigers has opened an office in Suzhou, China, and a new fulfilment centre in Selangor, Malaysia, as part of ongoing expansion plans to serve the region’s booming e-tail market. The new e-Fulfilment Logistics Centre in Selangor is Tigers’ second Malaysian operation, after the automotive fulfilment centre in Kota Kinabalu, East Malaysia.

    The new Suzhou office is located 30 minutes from Shanghai, China, where Tigers has recently opened a new facility to meet growing e-customer demand in both the business-to-business (B2B) and business-to-customer (B2C) sectors.

    “China and South East Asia are two of the fastest growing regions in the world for online retail, and we will continue to support that growth by providing state-of-the-art facilities to meet customer demand,” said Andrew Jillings, Chief Executive Officer and Group Managing Director, Tigers.

    Tigers specialises in e-commerce fulfilment, transportation, and supply chain solutions across a wide range of industries, including automotive, fashion, outdoor and active lifestyle, health, technology, wine, and perishables.

    “Suzhou is the perfect location for Tigers, and our historic city is fast becoming a hub for international logistics organisations,” said Edison Zhang, General Manager – Sales, China, Tigers.

    “We are experiencing strong sales activity in Suzhou, and there are plans for further expansion into the Chinese market, where we already have 15 locations.”

    The 10,000 sq ft Selangor facility will operate as a headquarter for sea freight, e-commerce, and logistics, and is located 20 minutes away from Port Klang, 40 minutes from Kuala Lumpur International Airport, and one hour from Kuala Lumpur city centre.

    The automotive fulfilment centre in Kota Kinabalu is a 12,000 sq ft (1,115 sq m) facility, which supplies the entire East Malaysia region with a spare parts delivery service on a B2B basis.

    The new facilities in Asia follow the opening of a new office at Frankfurt Airport in Germany in July, which will act as a gateway to Europe by creating a trade lane between Germany and South Africa.