Elaborate the major challenges in implementing multi-channel logistics  service (MCL) towards the operations in Lazada malaysia.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
icon
Related questions
icon
Concept explainers
Topic Video
Question

Read the case study below and answer the following questions:
Lazada eyes more sellers through new service
Lazada Malaysia aims to encourage more local businesses to choose Lazada as 
their preferred e-commerce platform, using its logistical solutions, network, and 
infrastructure to future-proof and expand their brand online.
Lazada Malaysia chief logistics officer P Sunil Singh said Lazada Logistics had 
launched a multi-channel logistics service (MCL) with a comprehensive storage 
solution to help e-commerce service providers and brands meet the needs of ecommerce sales smoothly. In addition, MCL services provide brands and sellers 
with greater flexibility and flexibility in inventory control. The service will help 
reduce the worry of warehouse management's costly logistics and operating costs.
"Sellers no longer need to split their stock and liaise with multiple parties for 
fulfilment and last-mile delivery. With MCL, Lazada Logistics can fulfil the orders 
from their online channels with the consolidated stock in our warehouse. With this 
new service, Lazada is going to improve our physical infrastructure, expand the 
platform's coverage, as well as get more of the sellers to onboard Lazada," he told 
the New Straits Times in an interview.
3
Sunil said that with the digitisation of Lazada Logistic systems, time and cost are 
better managed because of automation and technology that cares for their 
infrastructure. Lazada Logistic is powered by a data-driven, smart routing 
algorithm, enabling its services to meet the surging demand of Malaysia's 
flourishing eCommerce industry, he said.
"Data facilities technologies play a very big role for Lazada Logistic. We spend a 
lot of time looking at data and information and keep changing and optimising what 
a route pattern looks like, how can we make our drivers more efficient, and how do 
we shorten the journey of a package from a seller to a buyer and not necessarily 
always have to go to the longest path. We also use a lot of machine learning with 
the backend to support and understand what is the best way to operate more 
effectively," he said.
Meanwhile, Sunil said Lazada would also focus on making its service more 
accessible to the general masses by improving Malaysia's logistics and distribution 
centres. He said Lazada is ramping up to build more logistic warehouses in 
Malaysia starting from next year to make the service more efficient and closer to 
the buyers.
"As the economy marked a significant shift towards digitalisation in 2020, Lazada 
saw an increase in the number of buyers from outside Klang Valley. Therefore, we 
are planning to have more logistic warehouses to reduce that average delivery 
time spent on one order essentially, so then the buyers will get their package 
delivered faster and enhance same-day order delivery. But that does not mean 
that we are going to have physical setups everywhere. So we are looking at it from 
a rationalisation," he added.

(a) Elaborate the major challenges in implementing multi-channel logistics 
service (MCL) towards the operations in Lazada malaysia.

please provide detailed answer.

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles Of Marketing
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
Marketing
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing: An Introduction (13th Edition)
Marketing
ISBN:
9780134149530
Author:
Gary Armstrong, Philip Kotler
Publisher:
PEARSON
MKTG 12:STUDENT ED.-TEXT
MKTG 12:STUDENT ED.-TEXT
Marketing
ISBN:
9781337407595
Author:
Lamb
Publisher:
Cengage
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning