ZALORA opens regional e-Fulfillment hub in Malaysia

Malaysia's Minister of International Trade & Industry, Y.B Dato' Sri Mustapa Mohamed officiated the launch of ZALORA's Regional e-Fulfillment Hub.

Asia’s online fashion retailer ZALORA recently inaugurated its new Regional e-Fulfillment Hub in Selangor, Malaysia.

The 470,000 square feet facility, which can process up to 100,000 items per day and has the storage capacity to hold more than four million items at any time, is expected to facilitate the movement of fashion goods, fulfilling thousands of orders per day, across eight markets: Singapore, Malaysia, Brunei, Hong Kong, Macau, Taiwan, Indonesia and Philippines.

Complementing the move is ZALORA’s investment in building its e-commerce infrastructure from warehousing facilities to last mile delivery fleets. 

It has a custom solution, for example, for transmitting picking information of customer orders through mobile devices. Since its introduction, Mobile Picking, productivity increased significantly and accuracy is now at 100 percent due to the real-time item verification.

To process all orders in real-time, an in-house Order Management System (OMS) was also developed for the ZALORA Operations team to track movements of inventory into and out of its warehouses, process orders, manage customer returns and refunds and manage ZALORA’s own delivery fleets.

ZALORA claims that its average lead-time from item ordered to delivered is now as low as two days for customers in the region.

Moreover, the  Regional e-Fulfillment Hub holds a single pool of stock for all markets, allowing it to offer a wider selection of goods with higher quantities available for the customers to order. The fulfillment center can process up to 100,000 items per day and has the storage capacity to hold more than four million items at any time.

The e-commerce retailer is one of the few companies in Malaysia to hold the Authorized Economic Operator (AEO) status, which gives it an “express lane” at customs.

For the Regional e-Fulfillment Hub project, it is collaborating with supply chain specialist YCH Group. The partners said they will be working closely together from infrastructure design, storage, order fulfillment solutions, and procurement. They are also looking to expand the warehouse, eyeing to double its operations area in six months.

“ZALORA has experienced solid growth since it was established in 2012 and as Asia’s online fashion retailer, we’re committed to continuously drive e-commerce progress in the region,” Parker Gundersen, ZALORA Group CEO. “We’re thankful for the support of the YCH Group and other logistics partners in the region, without them we wouldn’t have been able to build the infrastructure we, and our customers, need.”