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Malaysia: Logistics startup expands into B2B
HAVING established a significant network in local logistics, tech-enabled logistics startup Ninja Van is now eyeing opportunities in the business-to-business (B2B) space.
Regional head of B2B Alexandra Sham notes that there is room for the company to build on its consumer logistics network and technology platform to expand into this underserved market.
“B2B is the bedrock of the Asean economy. A lot of traditional logistics players started off by serving the B2B market. But in the past five years, there’s been a focus on e-commerce, which is business-to-consumer (B2C). That’s the sexy thing now.
“With so many new logistics entrants to serve B2C, traditional guys are also innovating and moving from legacy systems to serve that market. But what happened to B2B? They don’t get as much attention. So it’s an interesting opportunity for us,” he says.
Alexandra joined the startup a few months ago to spearhead its efforts in this new segment. He was previously with DHL for 18 years.
Malaysia was earmarked as the first country for its expansion plans with the launch of its new business here last October.
He adds that the time is ripe for the company to pivot given the new developments taking place in the industrial area such as just-in-time production and a stronger focus on digital and e-commerce, which require a more efficient delivery service.
“There is growing e-commerce for B2B as well and that’s an underserved market. There’s a lot of development happening in that space. So it’s the right time to start pivoting a little more into that space,” he says.
According to Alexandra, Ninja Van is able to differentiate itself from other players by tailoring solutions for its customers.
“There is no one-size-fits-all solution. It’s about understanding their business processes, the gaps and inefficiencies, and how we can solve those problems and support logistics delivery. The need for security and efficiency in the delivery of goods and documents to their customers resonate with our values.”
Ninja Van is targeting the financial, healthcare as well as the SME sectors in rolling out its B2B services.
“Another advantage we have is technology. We use data to feed our decision-making. Our tech is agile and constantly evolving.
“While traditional logistics players are only now looking at moving to digital and they are focusing on one transition, Ninja Van has had a few transitions over the last five years. We are constantly looking at what’s new. It’s a strong differentiating factor for us,” Alexandra says.
Ninja Van Malaysia country head Adzim Halim adds that technology continues to play a very big part in the company’s operations.
“Technology is what really enables our operational excellence. We’ve built what I believe is the fastest next-day delivery network in Malaysia and a very wide collection points for customers. But we are excited for what’s next, especially in our foray into B2B,” says Adzim.
It hopes to establish a B2B network in other markets after Malaysia.
Ninja Van, founded in Singapore in late 2013, is also present in Indonesia, Vietnam, the Philippines and Thailand. Regionally, it has a staff count of more than 20,000.
Alexandra says it will continue to monitor developing technology in the logistics space to enable it to deliver efficiently.
“There’s a lot of promising new technology out there, like the use of drones for delivery. It’s for us to keep tabs. But this needs the authorities to open the market. Players are testing some of these technologies out. We are watching this and we will embrace it when the time is right,” he says.
Source: https://www.thestar.com.my/business/smebiz/2019/12/02/logistics-startup-expands-into-b2b#0qMtw7sRxir6EjjM.99