Retail in Asia

In Trends

Lazada rebrands its logistics arm

Lazada Thailand's newest and largest warehouse with state-of-the-art facilities (1)

Lazada, Southeast Asia’s e-commerce platform, announced the rebranding of its logistics arm to Lazada Logistics, which was previously known as Lazada eLogistics (LEL) and Lazada Express (LEX) separately.

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LEL managed the fulfilment and logistics with third-party logistics (3PL) providers, whereas LEX handled the parcel delivery to customers. The new blue of Lazada Logistics reflects efficiency and reliability as Lazada offers Southeast Asian brands and sellers a trusted, one-stop logistics solution for all their business needs.

Chun Li, Chief Executive Officer of Lazada Group said, “Over the past decade, Lazada’s proprietary logistic network has reshaped the eCommerce landscape in one of the world’s most populous and geographically diverse regions. The logistics capabilities have enabled us to provide best-in-class delivery service to our consumers across the region, as well as hassle-free and end-to-end services to our sellers and partners. This re-branding reflects the significant progress we have made over the years, powered by our people and technology.”

Along with the rebranding, Lazada Logistics is also introducing multi-channel logistics (MCL) services, which provide a single stock fulfilment solution to help eCommerce enablers and brands fulfil across all eCommerce channels seamlessly. Whether the consumer orders on Lazada or other eCommerce channels, Lazada Logistics will fulfill and deliver all of the orders.

Under this arrangement, Lazada stores merchants’ and partners’ eCommerce products, enabling the efficient handling and dispatch of orders via Lazada’s own fleet, 3PL partners or channel-nominated fleet.

Indonesian rider delivering parcel to customer
Source: Lazada

Andy Huang, Chief Logistics Officer of Lazada Group said, “In the current climate, consumers have grown accustomed to the convenience of a new shopping norm, and of having their purchases delivered to their doorstep – intact and on time. It is more important than ever that we continue to innovate and introduce new solutions that will help our merchants and eCommerce partners meet the growing demands and expectations of their customers. MCL ensures that a consistent brand experience is delivered, and solves many logistics pain points for brands and sellers, allowing them to focus on sales and marketing and scaling their businesses.”

MCL also allows brands and sellers to have greater agility and flexibility on inventory control, and relieves them of logistics concerns that include high capital and operational expense associated with order fulfilment (that is, the need to maintain warehouse infrastructure and delivery fleets). They are also spared the challenges of having to build extensive network of operations without economies of scale.

The availability of MCL is a showcase of Lazada’s advanced supply chain infrastructure and logistics capabilities, which offers smart inventory and routing solutions powered by data and technology. All brands and sellers can leverage on Lazada Logistics’ network of over 400 facilities comprising warehouses, sortation centres and hubs. They can also benefit from access to the region’s largest fleet owned by an eCommerce marketplace, and Lazada’s competitive advantage of having control over its end-to-end logistics operations. More than 85% of total first-mile parcels are handled at Lazada’s own facilities. Cainiao, Alibaba’s logistics arm, helps to handle Lazada’s cross-border logistics and distribution centre services in China.

As Lazada Logistics continues to improve its end-to-end services, it will look to roll out more new features that can include incentives for sellers to fulfil orders faster and enhanced same-day order pickup from sellers.

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“The rebranding and roll-out of this new offering is a testament to what we have built and a commitment to provide better customer experience,” Huang said.

“It also reinforces our mission of powering a healthy and sustainable eCommerce ecosystem for the long term by pairing our logistics excellence with state-of-the-art technologies to achieve cost efficiencies,” continued Huang.