Zalora group brochure september2016

P RO J E C T PA RT N E R S

Written by Nye Longman Produced by Charlotte Clarke

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With a footprint in seven Southeast Asian countries, ZALORA is transforming the fashion supply chain with a local presence and operational innovations

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s fashion trends change by the hour, one thing remains constant for ZALORA Group – the ability to adapt. ZALORA has achieved success in this industry, meeting the demands of different markets, through carefully delivering a responsive, locally-relevant supply chain, transforming old operational models.

Not only has the company strengthened an already renowned brand name in the region, it has also been able to pass benefits on to its customers. Business Review Australia & Asia speaks to Regional Operations Director Alessandro Durì about how ZALORA has effected this change and discusses the impact this has had for both the business and its customers.

Operations As the fastest growing online fashion retailer in Asia, ZALORA adds hundreds of new products every week to its 100,000-strong offering. These include top brands in men’s and women’s clothes, shoes,

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Alessandro Duri Regional Operations Director

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YCH Group

Proven Expertise and Commitment t – Driving e-Business Excellence in Pa Fueled by the rapid digitisation of retail markets, YCH Group believes the way forward is to leverage on domain knowledge and technology to optimise the supply chains of retail businesses for e-Commerce. Through continuous technological and process innovation in partnership with leading Supply Chain Technology provider Y3 Technologies, we are committed in shifting paradigms in an increasingly complex operating environment, empowering businesses with game changing capabilities and enhancing operational efficiencies.

As the region’s leading supply chain partner to some of the world’s most reputable and favourite brands bolstered by a comprehensive footprint and strong connectivity across the key hubs and cities of Asia, we strive tirelessly to innovate supply chain solutions for small and large companies – giving them a unique competitive edge. We offer customised e-Commerce centric solutions designed for scalability, ensuring they remain relevant in a multitude of business climates.

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SINGAPORE | MALAYSIA | INDONESIA | THAILAND | PHILIPPINES | VIETNAM |

to Deliver artnership with Zalora

r close to two decades, YCH Group has been overseeing the full spectrum of Commerce activities for our global customers. Our services encompass an end-to d process from call centre management through the last mile fulfilment to the end nsumer. Scalability and efficiency are also enhanced through incorporating cutting ge technology into operations such as Internet-of-Things (IoT) enabled devices and tomation to ensure fulfilment requests are handled in a timely and reliable manner.

veraging on YCH’s proprietary The Last MileŽ (TLM) solution, our customers are able optimise route management and last mile distribution from their fulfilment centres. overall increase in logistical efficiency is gained through effective management of e last mile distribution network, enabling deeper reach and penetration into markets th challenging geographical layouts. Flexibility and scalability in infrastructural sign are also maximised through customised storage solutions which enable optimal vels of productivity.

INDIA | AUSTRALIA | HONG KONG | CHINA | KOREA

www.ych.com

accessories, sporting gear and beauty products. It sells the majority of these via its extensive online shop and mobile app to customers in seven countries across Asia. Not only has the company developed a strong presence in each of these countries, it has managed to achieve this in the face of a rapidly maturing and evolving market, where competitors close to the point of manufacture are all fighting for the same consumers.

Duri charts the journey ZALORA has taken to reach critical mass: “When we arrived the industry was definitely very far away from where an eCommerce industry should be. The learnings from developed e-comm markets like the US or China had not reached the market yet, so there was a lot of ground work that needed to be done.”

Since then the company has set about aligning its operations to suit both the nuanced fashion demands of the markets its serves while developing a supporting supply chain that is not only functional but also brings new competitive layers to the business.

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Supply chain and transformation Transforming ZALORA’s supply chain had to be approached from multiple angles, starting with the consolidation of its distribution centres into a single operation in Malaysia serving the majority of its markets.

“The key here is integration, on top of traditional e-commerce warehouse management systems and technology to manage our fulfilment centres,” notes Duri.

“The consolidation of our operation around a main hub based out of Malaysia was a great success for ZALORA. Despite major infrastructural changes in the order fulfillment, customer experience has remained untouched and our customers didn’t even perceive the change.

“We kept on delivering the next day to all destinations with exactly the same amount of orders we were doing the day before. This was a great team achievement and unique result in the e-commerce sphere made possible not only

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Automated guided vehicles from SSI Schaefer WEASEL® – Winner of the IFOY AWARD 2016 Innovations are developed with passion – and the latest WEASEL automated guided vehicle is no exception. The system has been designed by our SSI Schaefer engineers, who fully understand the requirements of our customers with regard to efficient intralogistics processes. The result is an automated guided vehicle that combines maximum performance with high cost-effectiveness. The WEASEL can be easily integrated into warehouse processes and masters almost all transport tasks for goods weighing up to 35 kg. The vehicle speeds up cycle times, without the need for permanently installed conveying systems or a complex control system. The solution is so impressive that it has been presented with the IFOY AWARD 2016 in the „Intralogistics Solutions“ category.

For more information about the cost-effectiveness and application areas of the WEASEL, please do not hesitate to contact us.

www.ssi-schaefer.com/weasel

Weasel® – innovative, creative, connective The automated guided vehicle (AGV) Weasel® from SSI Schaefer has been designed for internal goods transport. Its high flexibility and scalability allow for easy integration into warehouse transport processes.

From containers and cartons to miscellaneous products of various sizes, the Weasel masters practically every transport task.

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ncreasingly short product life cycles and constantly changing market requirements call for a high level of flexibility. In some cases, tried and tested continuous conveyors are only able to satisfy this requirement to a limited extent. With the Weasel AGV, SSI Schaefer now offers an innovative solution that is highly impressive in terms of flexibility and scalability.

Changing customer requirements and fluctuations in demand can be managed at any time, both cost-effectively and at short notice.

Numerous advantages all add to the appeal of the Weasel. There are no access restrictions in the warehouse, creating room for personnel and material flow. The vehicles navigate along an optical track that can be installed quickly, easily and in a flexible manner.

Thanks to its compact design, this AGV can even be used in inaccessible areas.

From containers and cartons to trays or miscellaneous products of various sizes (up to 35 kg) the Weasel handles practically every transport task.

The goods are transported gently and securely to the intended destination.

Another advantage is the easy integration into existing systems. The Weasel is flexible in terms of system customisations and extensions. It can be integrated on a fixed or needs-related basis for handling peaks in output. Both manual and automated connections can be quickly established to internal goods flows.

Standardised control software permits a use independent from the customer

and its sector – there is no need for any complex installation and customisation work. As a result, short-term scaling of the system is no longer a problem. A fleet controller manages the orders generated by the in-house ERP system and assigns them to the relevant vehicles after release. The Weasel follows its route via predetermined waypoints. Power is supplied by maintenance-free rechargeable battery packs, which can be exchanged effortlessly via a quick-change frame and recharged. Low purchase and operating costs as well as low maintenance costs complete the profile of this AGV. With the new Weasel AGV, SSI Schaefer once again demonstrates a sustainable innovation and market-driven development while expanding its broad product portfolio.

www.ssi-schaefer.com/weasel

Your Go-to Global Specialist for

RETAIL SOLuTIONS In 2014, Zalora partnered APL Logistics as part of the company’s growth strategy to expand its presence rapidly across South East Asia. Throughout the partnership, APL Logistics has provided Zalora with the right solutions within the logistics spend.

APL Logistics prides itself to be innovative and adaptable. The dynamics of an ecommerce company deviates from the traditional brick and mortar set ups, and APL Logistics has stood up to the challenges to meet the requirement of fast growing Zalora.

In automating the processes through introduction of technology to reduce tedious manual work at the origins, APL Logistics has enabled Zalora to achieve cost savings as well as speed to market by having inventory readily available when cargoes arrive at the respective National Distribution Centre. This was not possible in the past with manual reworks required on the products at the destinations.

For more information, please visit www.apllogistics.com

Thanks to the partnership with

APL Logistics, ZALORA managed to achieve important productivity improvements inside its national distribution centers and smoothed out it’s upstream supply chain solutions leveraging the expertise and proficiency of APL Logistics in the industry. APL Logistics has been proved to be a trustworthy and visionnaire partner for a fast growing e-commerce player like ZALORA

ALESSANDRO DURI Regional Operations Director Zalora

2000

Number of employees at Zalora

by the strong dedication of many Zalorians but also by our partners who supported us day and night.”

The company’s integration drive has benefited knowledge sharing with more developed economies and eCommerce markets: “ZALORA is part of a wider eCommerce fashion group; we share knowledge with our sister companies in Russia, Brazil, Middle East and Australia.”

Technology also plays a pivotal but sometimes difficult to manage role, Duri explains: “We have the

delivery data in our system, so that at any point in time we can provide visibility to our customers related to where their order sits.

“The industry generates a tremendous amount of data and it can be very challenging to put it all together. Integrating the various forms of system and data feeds into our databases and making them available to our customers is definitely a differentiation point with respect to competitors in this part of the world.”

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Thinking local “We have a very local footprint,” says Duri. “That is one of the key competitive advantages that we have in the market.” And this is no mean task. Given that not all of the countries covered by ZALORA can be reached by global logistics companies – not to mention patchy infrastructure connections – delivering world class order fulfilment becomes challenging.

But this has been surmounted.

“We’ve managed to partner with local logistics providers on our own in order to reach every corner of the country and provided a nationwide location delivery option to all customers,” Duri explains. “We cover first and second tier cities with our own fleet and then we partner with the local delivery providers that are key in order to have the best level of service and integration for our customers.”

And ZALORA’s plan isn’t to simply use local suppliers to fulfil a need – the company is actively engaging with them in order to enhance their capabilities. Duri says: “Across Southeast Asia, for example, on top

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“We have a very local footprint. That is one of the key competitive advantages that we have in the market�

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“As the fastest growing online fashion retailer in Asia, ZALORA adds hundreds of new products every week to its 100,000strong offering”

of building our own delivery fleet, we partnered and integrated into our data system more than 20 local providers assuring comparable service level and an enhanced offering to all our customers, no matter where they are located.

“Cash on delivery was another example. Back in 2012 only very few last mile delivery providers wanted to offer cash on delivery to customers. We patiently started with one of them, discussed and jointly developed the processes together and showed them that it was actually possible to perform this service at scale.

“In a short time this allowed us to be different to everyone else in the market and it became a virtuous cycle in the logistics industry. They see that together you can achieve certain results, and this allows you to raise them up to the next level.”

Alongside massively improved next day delivery services (more than half of the orders are delivered on the next working day across all Southeast Asia), ZALORA’s local strategy has enabled a

number of other key business benefits. By partnering with local convenience stores, the company has been able to offer customers free collections and returns, affording them an unprecedented level of service and choice.

“There is an educational component that we need to bring to markets with very low eCommerce penetration; we tried to build this confidence in the industry also through these added services. Convenience stores are a big request, especially in capital cities where the working hours are longer and customer wants to have something more convenient for when they are not at home,” Duri adds.

Having transformed its supply chain without compromising its dedication to the constantly evolving expectations of the modern fashion customer, ZALORA has found the sweet spot for supply chain management. Not afraid to invest in its partners in order to consistently meet customer expectations, the company’s future in Asia is assured.

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worldwide.z alor a .com 182 Clemenceau Avenue #06-00 Singapore 239923