E-commerce revolutionized the Asian logistics industry. How then to master your operations in the region? In today's article, ASI Logistics breaks down everything you need to know and guides you through optimizing your logistics operations in Asia.
The rise of E-commerce has transformed how both B2C and B2B companies operate and disrupted traditional business models.
For businesses involved in E-commerce, logistics, and supply chain are the most strategic aspects of their operations. In today's article, we explore the impact of e-commerce on your logistics operations in Asia and lay out the best practices for managing your logistics operations in the region.
Asia: The Region Where E-Commerce Spreads Its Wings the Widest
Following the Covid-19 pandemic, consumers' and businesses' habit of relying on e-commerce to acquire goods has become more engrained in daily practices.
Given the role played by Asia in global manufacturing, it is no wonder that this rise would significantly impact this region's logistics sector.
According to "Asia: The highway of value for global logistics," published by McKinsey, Asia is set to account for 57% of the global e-commerce logistics market growth between 2020 and 2025. They note that "this may make Asia the single-most-important region for global trade and logistics activities going forward."
Furthermore, if e-commerce rises worldwide, it does so even more in Asia. While China already ranks as the most penetrated e-commerce market globally, with the digital economy accounting for more than 38% of its GDP in 2020, other Asian countries are not far behind. In particular, South-East Asia is experiencing a surge in e-commerce, boosted by massive growth in the digital payments sector, the rise of social commerce (the usage of social media and other online media to sell or buy products or services), and the maturing of e-commerce live streaming.
What To Pay Attention To If Your E-Commerce Business Operates in Asia
The rise of E-commerce has led to an increase in demand for transportation services and adapted warehousing facilities in Asia.
To answer this demand, resorting to multiple transportation modes has become vital to optimize operations and reduce costs. For example, a company might resort to a combination of air, sea, and land transportation to move goods from one location to another instead of relying on only one mode of transportation.
In addition, E-commerce has led to an increase in demand for adapted warehousing space. Indeed, the latter needs to answer the prerequisites specific to customers' e-commerce activity and region of operation. Depending on your operations, you might want to ensure you can rely on strategically located facilities or that they offer warehouse management and added value services.
It is important to note that the Asian logistics infrastructure is not uniformly developed across the region. On the one hand, East Asian countries such as China can rely on robust infrastructure and networks and established providers to support the rise of e-commerce. On the other hand, several ASEAN countries' infrastructure and logistics services are yet to mature, despite rapidly developing and attracting investors
You might thus want to adopt agile supply chain practices to respond quickly to customer demand and market conditions.
Hence, we can measure the importance for businesses whose manufacturing operations or retail market happen in the region to rely on trusted logistics partners with solid expertise in freight forwarding from, to, and within Asia, a reliable network, and adapted facilities.
No matter the context, ASI Logistics, strong with 15 years of expertise, provides you with the most adapted logistic solution to fit your needs and ensure you enjoy the benefits of smooth operations.
Thanks to our seven offices, including six conveniently located on China's east coast logistic hubs (Shanghai, Qingdao, Xiamen, Ningbo, and Hong Kong), its two branches in Ho Chi Minh City, Vietnam, and Phnom Penh, Cambodia, and its worldwide network of logistic experts, ASI Logistics accompanies you at every step of your product's journey from, to and within Asia.
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