Up and coming logistics start-up J&T Express concluded the 2019 10.10-mega sales fiesta with a solid elevenfold increase in delivery volume as compared to 2018. It also successfully recorded a 98.2% completion rate for its deliveries during the period. Having been around for only a year, this marks a huge milestone for J&T Express as it sailed through the storm to improve their shipping services.
Their fervency is timely as a recent survey revealed that Malaysia has the longest e-commerce delivery time in Southeast Asia. What is viewed as a problem, J&T Express sees as an opportunity for growth. This is especially true with the rise and development of the digital economy even as major e-commerce platforms such as Shopee rally with back-to-back sales campaigns this year end period with 9.9, 10.10, 11.11 and 12.12. More retailers are also making the move online to boost sales in this digital era to supplement their brick and mortar stores and channels.
According to the Malaysian Communications and Multimedia Commission (MCMC), e-commerce in Malaysia is expected to rise 8.9% by 2020 as affordable smartphones and internet data are easily accessible. Not to mention, e-marketplaces are quickly becoming a “lifestyle destination” for shoppers as it moves away from pure trading by incorporating interactive shopping experiences through entertainment such as gaming, point collection and live broadcasts streaming and more.
Even though, the Shopee 10.10 Brands Festival is not as largely celebrated as the upcoming 11.11 Big Sale, the double ten promotion still served as yet another exciting shopping experience for consumers. With the mega discounts for branded items, consumers were seen to be clicking away and J&T Express worked round the clock to deliver those parcels nationwide including Sabah and Sarawak.
As a player in the e-commerce support industry, this economic expansion runs parallel with J&T Express’s growth. In a short period, J&T Express has scaled up to 343 drop-points nationwide and now provides job opportunities to over 7000 employees across 15 operating gateways, making J&T Express more accessible to businesses and Malaysians.
J&T Express estimates a 10 times surge in volume for the upcoming 11.11 sales period as compared to last year’s 11.11 sale. In 2018, the challenge for J&T Express was to deliver large amounts of parcel within the promised time frame i.e. 2-4 days within the Peninsular region and 2-5 days for orders in East Malaysia. Back then, J&T Express was only around for three months but managed to deliver 97% of the parcels within the stipulated delivery time frame and in that 97%, 71% of the deliveries were made the next day within Klang Valley and remaining 26% within three days across Klang Valley and East Malaysia. All deliveries were possible via a strategic transportation schedule and efficient sorting system.
J&T Express expects to be handling up to 25% more parcels in a single day this 11.11 as compared to 2018’s 11.11 sale. In order to cope with the surge in orders, J&T Express has developed a master plan derived from key learnings, and through consultation and input from stakeholders like Shopee.
The key component of the master plan includes order forecasts which helps J&T Express grow and allocate higher resource such as manpower, infrastructure, commercials, outsourced air cargo capacity service and more. This would see employees including transit hubs working round the clock on rotation, hundreds of trucks being deployed and on-the-go 24 hours a day, additional drop-point’s dispatchers working even on weekends. This will allow J&T Express to plan ahead and achieve a more efficient and speedy delivery for the upcoming 11.11.2019. J&T Express is confident that it will be able to provide quality and premium service, crossing borders and pushing boundaries in the industry.
The bigger challenge however remains – the ability to process and deliver the increased amounts of parcel to customers living in the rural areas with incomplete addresses or infrastructures.
Mr Roy Zeng, Chief Executive Officer of J&T Express Malaysia said, “We are confident with the growth of J&T Express in Malaysia. With e-commerce growing so rapidly in Malaysia, the pie is big. We will be banking on this sector to propel our growth. J&T Express is ready and confident that we will conquer the 11.11 courier express delivery.”
Commenting on J&T Express’s growth and foresight, Ian Ho, Regional Managing Director of Shopee said, “E-commerce marketplaces cannot exist without strong infrastructure and commitment from the e-commerce support industries. This includes third-party logistics players like J&T Express. We work closely with all our stakeholder, create a feedback loop from both buyers and sellers whilst highlighting specific areas for improvement. These steps will help the entire e-commerce industry move forward even as Shopee and its partners such as J&T Express work to provide great service to our buyers and sellers. Together with J&T Express, we are all geared up for the 11.11 Big Sale. Malaysians can expect only the best from us in terms of deals, promos and of course shipping!”