Friday 29 Mar 2024
By
main news image

This article first appeared in Digital Edge, The Edge Malaysia Weekly on December 20, 2021 - December 26, 2021

Courier companies are expecting an influx of online orders from Christmas shoppers at the end of the year. This rush, of course, is not new to them. However, given the rise in popularity of online shopping throughout the pandemic, the year-end online shopping spree this year could prove to be different.

In response, some courier companies have been adopting technology to accelerate their processes. After all, none of them want the repeat of the chaos that went viral on social media in the past year, showing postal workers overwhelmed by mountains of parcels.

Ninja Van, for instance, is using technology to monitor real-time delivery data and algorithms to optimise delivery routes to enable next-day deliveries. It also relies on past data to project what type of preparation is needed for peak periods.

“We utilise data analytics ahead of peak periods to gain insights into past market trends to assist us with forecasting and capacity management. We also make sure to conduct forecasting meetings with our partner shippers ahead of time so we’re able to provide them with the support they need during these busy periods,” says Ninja Van Malaysia CEO Adzim Halim in an email interview.

A set of warehouse equipment was installed to ease the flow of parcels in the warehouse. This includes six units of DWS (dynamic, weighing and scanning) machines that are used for scanning incoming parcels and measuring their weight and dimensions.

They are then fed onto rollers and conveyor belts in the warehouse, which can handle up to 40kg per metre, says Adzim. These will transport bulky parcels to the shipment processing area. “It is a combination of manual and motorised conveyor that helps us to lower the cost of manpower and [reduce] damage, and speeds up the parcel movement.”

Meanwhile, Ninja Van, which is based in Singapore, opened its largest automated hub in the country in October, according to its press release. Launched in anticipation of the year-on-year parcel volume growth, it can handle three times more parcels an hour than the previous hub. Two customised automated sorting belts will sort parcels into the final delivery zone with a single scan.

Despite the reliance on technology, this industry is still very manpower-driven. Workers in the warehouse use mobile scanners to sort parcels and ensure they go to the right station. The company hires more sorters and drivers before peak periods.

It recently launched Ninja Chat, which acts like a personal delivery concierge for its customers. The chat function is available on Facebook Messenger, Telegram, Viber and Line. Ninja Van’s team will be online daily during working hours to communicate with customers.

“Our warehouses currently operate in a hybrid manual-automated mode as we believe that a modern warehouse has a good combination of machines and humans working together,” says Adzim.

The courier or delivery space is a competitive one globally, with companies competing to provide the fastest service at the lowest cost. In China, this has led the authorities to crack down on firms to ensure basic labour protection for workers and eliminate algorithms that encourage dangerous driving.

South Korea’s delivery workers went on strike earlier this year to demand better rights and protection. Up to 16 deaths among delivery workers were recorded in the last year due to overwork, according to reports.

The Malaysian Communications and Multimedia Commission froze all new courier service licences for two years in October last year and is currently charting a road map for the industry.

Adzim says its employees, known as Ninjas, are the company’s priority. “We value their feedback and our doors are always open to receive their input. The key is to communicate and ensure transparency. We also do our best to provide them with regular training to empower them to thrive. We pay our staff competitive wages and hire additional manpower to cope with high volume of deliveries so our existing team doesn’t experience burnout.”

The company recently closed its Series E fundraising round. It counts Alibaba Group, Monk’s Hill Ventures and Facebook co-founder Eduardo Savering’s B Capital Group as investors. It became Singapore’s newest unicorn in September.

Adzim says the company will use some of the funds raised to invest in more automated conveyor systems for its sorting centres, increase its headcount and fleet sizes and extend services to non-e-commerce sectors. It also plans to introduce eco-friendly packaging and change its operations to better serve its customers, he adds.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.

      Print
      Text Size
      Share