Warehouse Decision of Lazada Group

Warehouse decision of Lazada Group

    As we mentioned in the introduction, the Lazada group is the biggest online shopping and selling destination in Malaysia. Lazada Malaysia is part of the Lazada Group which operates Southeast Asia’s number one online shopping and selling destination in Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. They are always expanding customer product selection which gives them the accessibility to enjoy the best quality products in the market. So, the Lazada group should have their warehouse decision to improve and grow their business. We are going to describe what the Lazada warehouse decision which is ownership, the number of the warehouse, the location of the warehouse, and the products their stocking in the warehouse.

Ownership of the Lazada Group

    Firstly, the warehouse ownership is a major warehousing decision impacting both the company’s balance sheet such as facility the Lazada investment and also income statement such as warehousing cost. Many companies have combined the private and public warehousing because of varying regional market conditions and other factors may be like seasonality of demand or supply. The Lazada Group is a larger company and which had chosen to own their own warehouse as a private warehouse（Suzuki. W, 2014）. The reason the Lazada choose to use their own warehouse is because they have many products their need to store themselves. If they use the public warehouse, it will lead to Lazada have to pay a higher storage cost and management cost to the third party. Lazada warehouse is a B2B and B2C business but most of the business is B2C. In the year 2016, Lazada has expected Lazada 200,000 goods to be sent, and ultimately need to deal with goods up to 36 million in the date 12.12. Lazada’s warehouse decision is fulfillment their customer by Lazada warehouse management. Sellers can open a store in Lazada website and deliver their product to Lazada warehouse let them help sellers to sell their products. With this way, sellers can reduce many costs such as inventory keeping cost, 3PL carry cost. Lazada warehouse management also will help the sellers to manage their customer products involve picking, packing, delivering.  Peoples whose want to sell their product in Lazada, they no need to worry about the export of their products. In the year 2016, Alibaba Company had decided spent US$10 billion to take control the Lazada after the Lazada had set up for four years from 2012 until 2016.

Number of warehouse of Lazada Group

    Lazada is a main internet shopping and offering goal of Southeast Asia in Indonesia, Malaysia, Philippines, Singapore, Vietnam, and Thailand. It is a larger company and Lazada had a lot of customer in each area. Lazada consist of 12 warehouses and 92 distribution center in the global and Lazada may use decentralized in their company (Yoolim. L, 2016). The decision making is spread throughout the organization. That means the lower-level managers can also decide the decisions. Lazada staff at a warehouse understand local factors and upcoming business events. If there is a promotion, for instance, Lazada staff are well positioned to play an effective role that is local in nature and ensure the process was succeeded. They can make decisions themselves based on the needs of the customer of Lazada. Furthermore, the processing of the order is simplified because it is local staff who are in direct contact with customers. Lazada warehouse characterized by a high throughput must respond quickly to demand. To accomplish that, Lazada’s inventory must be placed closer to the customers. Local managers must be given the forces to control and oversee stock in light of neighborhood economic situations and dispersion needs that are entirely one of a kind to the stockroom.