KUALA LUMPUR — The Selangor Information Technology and E-Commerce Council (Sitec) has identified the state’s logistics providers as a sector that is struggling to cope with volume, due to the double-digit growth in the e-Commerce sector.
Currently, providers are looking into a wider integration of service for international transactions and small merchants, as well as improving customs processes for online transactions and the use of technology for more efficient delivery and tracking tools, said a Sitec white paper entitled “Demand Outstrips Capacity: Logistical Challenges and Best Practices for Malaysian e-Commerce”.
Among the problems identified were product descriptions, branding, customer service, marketplace inventory and marketplace challenges.
The white paper also gave recommendations for solutions and to educate merchants on improvements in each area.
While payment gateways enjoyed the highest level of satisfaction as indicated by the Sitec Consumer Sentiment Survey 2016, participants of the workshop voiced concerns regarding security of transactions made without payment gateways, particularly in consumer-to-consumer transactions.
To address the issues faced by online merchants, the solution for the sector lies within the regulatory framework and education to further strengthen the existing infrastructure.
Pos Malaysia Corporate Development (Commercial) vice president for Commercial Strategy Rofidah Arof described the challenges faced in logistics, especially with the growth of e-Commerce.
She said Pos Malaysia sees up to 240,000 items processed per day, as opposed to 100,000 items per day 2 years ago, reflecting the rapidly increasing demand for logistical services. There constant need to upgrade and turn to automation has resulted in a new parcel processing centre in Shah Alam that can process 12,000 items per hour.
“Reachability is important, and from a service point of view, we have to make sure that we deliver and that the parcel is received by the recipient”.
“Currently, we have a few drop boxes for merchants and parcel lockers as an alternative for those who are not at home for their delivery,” she said.
Speaking about future growth in cross-border e-Commerce, she said Pos Malaysia is also working closely with the Royal Malaysian Customs to ease processes concerning online businesses.
“Moving forward, Pos Malaysia is looking into creating warehousing and order fulfilment for merchants, with public bonded warehouses that could complement the regional transactions of online merchants,” she said.
Pos Malaysia head of sales Azizi Mohamad Dahalan said that despite Pos Malaysia having allocated funds to increase the number of couriers, as well as converting 5,000 of their regular postmen to couriers, it will still take time before the full impact of their operations will be felt.
State Government of Selangor senior executive councilor Datuk Teng Chang Khim said Selangor aspires to be an e-Commerce hub in Malaysia, and intended to expand to cross-border trade with Asean countries.
He said there the need to upgrade and improve standards of e-Commerce for Selangor to fulfill its potential is yet to be addressed.