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Planes, trains and automobiles: Lazada's logistics battle to win SE Asia

Reuters
Reuters9/29/2017 4:7 PM GMT+08  • 3 min read
Planes, trains and automobiles: Lazada's logistics battle to win SE Asia
SINGAPORE (Sept 29): Southeast Asia is on the verge of a logistics "boom" thanks to e-commerce, but will require huge investment in cities and last-mile networks to cope, says Pierre Poignant, the man behind the systems that keep Alibaba-owned Laz
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SINGAPORE (Sept 29): Southeast Asia is on the verge of a logistics "boom" thanks to e-commerce, but will require huge investment in cities and last-mile networks to cope, says Pierre Poignant, the man behind the systems that keep Alibaba-owned Lazada moving.

Poignant, chief operating officer, said the Singapore-based marketplace, for its part, would continue to bet on delivery and other partnerships as demand grows. It already works with more than 100 companies in delivery and cross-border logistics, from Ninjavan in Singapore to ride-hailing start-up Go-Jek in Jakarta.

But it will expand its footprint to cut costs and improve services, with smaller local hubs closer to customers, as well as a major warehouse it can use in Malaysia for goods that move less often. Lazada, with 130,000 merchants on its platform, has 14 warehouses and over 2 million sf of space - and plans to open another five to six warehouses next year. It also has 130 smaller distribution centres.

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