Toll on e-commerce strategy: Asia

From the June 2020 issue.

Australian transport and logistics company, Toll Group, overhauled its inventory management in January 2020 to meet heightened e-commerce demand.

Toll has extended its end-to-end track, pick and pack capabilities, albeit at rapid rates, to its e-commerce service offering.

"The process can start from the collection of raw materials from the manufacturer, cross-border into the destination region, storage, break bulk, repacking and/or relabelling, all the way to distribution to stores and homes," Toll said in a statement.

"Additionally, the team also synchronised backend elements to allow orders to flow through directly from the end customer via common online marketplaces like Alibaba, Flipkart and Lazada."

Toll customers can reportedly manage a consolidated inventory under one roof for better visibility of goods with this B2C and B2B system. This reduces the need to facilitate additional warehouse space for B2C volume, reducing overall distribution cost.

“The campaign was launched in China around the same time that the Covid-19 virus started spreading in the region," said Toll Group Executive Vice President – Asia, Global Logistics, Victor Tan.

This arrangement, according to Toll, has enabled the company to pass savings onto its customers by cutting distribution costs and transition lead times.

"The success of this project paves the way for e-commerce opportunities in the region as we expand our reach in Asia," said Toll.

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