Zalora enhances Malaysian hub for greater market reach

Strategic upgrades and focused operations boost Zalora’s delivery efficiency and customer service across Southeast Asia.

Zalora, a leading fashion and lifestyle e-commerce platform, has made significant strides in optimising its fulfilment operations, particularly at its central hub in Malaysia. The strategic upgrades, primarily software enhancements over hardware, aim to bolster functionality and efficiency across its Southeast Asian markets.

Vykintas Mineikis, Regional Senior Operations Director, detailed the motivations and benefits of centralising the company’s fulfilment services in Malaysia. 

"The decision to enhance our Malaysian centre was driven by the need for scale and improved customer experience. Malaysia’s strategic location enables us to efficiently serve a broader market and offer a diverse array of fashion products," Mineikis explained.

This centralization has allowed Zalora to manage up to 200,000 items daily, particularly during peak sale events such as 11/11 and 12/12. The company relies heavily on technological solutions to streamline operations, from simplified task management to guidance systems that assist packers during the fulfilment process. 

“During high-volume days, we can engage up to 1,000 part-time workers to ensure that we meet our delivery targets,” Mineikis added.

Moreover, Zalora has implemented a dedicated fleet in Malaysia, Singapore, and Indonesia to enhance delivery performance. This approach has not only shortened delivery times but also introduced value-added services like same-day delivery, next-day delivery, and efficient return pickups.

Employee feedback has also been pivotal in refining Zalora’s operational processes. The company runs a Process Suggestion Improvement System that encourages staff within the fulfilment operations to propose enhancements.

“Last year alone, we received over 2,000 suggestions, leading to substantial process improvements and cost savings,” said Mineikis. This program not only fosters a proactive workplace culture but also drives continuous improvement, contributing to operational excellence.

Zalora's tech infrastructure plays a crucial role in coordinating with over 70 logistics partners to guarantee smooth delivery. The bespoke logistics system facilitates seamless information flow between Zalora and its partners, enabling real-time tracking and updates.