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Sellers Benefit from Increased Sales as a Result of Intelligent Warehousing

What if we told you that shopping online can be a faster transaction? Lazada is constructing a cross-border digital ecosystem that allows free movement of commodities from China to the international market from Shenzhen, Nanjing, Yiwu, and many other Chinese cities to Southeast Asia. Lazada will lower the hurdles to entry into Southeast Asian markets even further by providing Chinese firms with the technology tools they need to go digital and prosper in international trade!

The technology offers flexible order routing from warehouses nearest to clients based on real-time stock levels for speedy shipment and restocking, allowing supply and demand to be efficiently balanced. As Southeast Asia experiences e-commerce growth across all retail business operations, Lazada is riding the wave of digital trade powered by Alibaba’s enormous technology skills, self-owned logistics network, and business ecosystem. The platform guarantees every business a chance to win with reliable supply chain resources spanning products, logistics and capital, catering to customer needs to the greatest extent.

"Lazada's strong ecosystem helps us reduce costs and improve efficiency. A large number of sellers, including women's clothing merchants, have benefited from the platform's upgraded warehousing network"

As Lazada introduced four important updates for cross-border end-to-end distribution and logistics, many sellers were astounded by how much they profited from the expanding ecosystem developed by Lazada. It has greatly reduced our expenditures and increased our efficiency, allowing us to send products to warehouses with ease!

Zefeng, a woman’s apparel dealer, was impressed by his firsthand experience with the CPRF1.0 (Collaborative Planning Forecasting and Replenishment) intelligent replenishment system. He entered all products that would be transported to international fulfillment centers into the intelligent replenishment system after the latest collection was released in May. Zefeng, the general manager of Hunan Songlv Network Technology Co., Ltd, says that this unique technology provides great benefits to the company that go beyond “lowering expenses and generating revenues.”

Zefeng summarised numerous significant benefits of this new method by recalling issues they had faced in the past: “Rather than relying on manual processes and spreadsheets, the system will monitor from multiple dimensions such as What (which SKUs to replenish), When (when to replenish), and How (how many pieces to replenish) and provide real-time guidance to replenish goods intelligently, reducing labour costs and saving our time. Meanwhile, big-data-powered algorithms can scientifically increase the inventory-to-sales ratio and delivery speed, minimising inventory advances and expediting firm fund collection. Furthermore, keeping a fair inventory turnover can help us minimise stock outs, allowing us to market bestsellers with appropriate inventory on time!”

In this post-pandemic era, Lazada has also spent a significant amount of time and effort on the accurate matching of global consumers and products in order to alleviate sellers’ pain points and improve inventory and logistics management efficiency by providing inventory planning and stocking strategies, improving order fulfilment capability, and optimising logistics for delivery and returns.

Guo Fengming, head of Alibaba’s Worldwide Digital Supply Chain team, explains that in order to assist sellers in resolving these main pain points, they’ve collaborated with the operations team and Cainiao’s global team to develop the following capabilities:

First, a three-tier supply chain warehouse network with foreign fulfilment centres in Southeast Asia, eWTP hubs, and domestic central distribution facilities in China has been established. Sellers can establish flexible inventory stocking plans based on their target consumer market and product features. The network will also automatically display the real-time inventory and estimated delivery time of a specific product through seamless integration with Lazada’s e-commerce transaction system, as well as support the automatic processing and fulfilment of orders, significantly improving order delivery time.

Second, in order to alleviate the pain points associated with reverse logistics, such as cross-border returns, the platform has developed a function that allows abroad customers to return products to a local address. If the returned goods pass quality control, it can be resold and shipped out again, effectively lowering the cost of reverse logistics for cross-border vendors.

“After years of development and fine-tuning, we recently launched the CPRF intelligent replenishment system, which is powered by our digital supply chain’s product warehouse network, forecasting, replenishment, and algorithm capabilities, to assist cross-border sellers targeting the Southeast Asian market with inventory planning. Big-data algorithms can assist sellers in maintaining an acceptable turnaround window, cutting the out-of-stock rate of trending items, minimising stagnant inventory, and enhancing efficiency while raising the inventory-to-sales ratio.” Guo Fengming elaborated.

The growing amount of orders from Southeast Asian clients, according to Zefeng, indicates that this region is a viable place for cross-border e-commerce industry that requires more growth. Furthermore, while many other international markets grow stagnant as a result of the pandemic, the highly anticipated Southeast Asian market has become yet another “battleground” for numerous Chinese vendors seeking to reproduce their domestic operational know-how.

The future is bright for Chinese firms looking to target and grow in the Southeast Asian market, thanks to Lazada’s full ecosystem, geopolitical proximity to China, and the “Belt and Road” plan. Southeast Asia has shown extraordinary promise as a lucrative market as the globe prepares for the post-pandemic new normal. While veteran vendors are taking advantage of Lazada’s technological advantages to grow into this region, we encourage novice sellers to seize the opportunity and join the ride!