Delivery firms focus on efficient operations

Covid-19 has driven parcel delivery firms to improve internal processes to enhance efficiency and reduce costs


WITH the rising growth in e-commerce sales during the Movement Control Order (MCO) period, parcel delivery companies are finding ways to improve efficiency in its operations.

The pandemic had also driven parcel delivery companies to improve internal processes to enhance efficiency and reduce costs, while introducing extra precautionary and safety guidelines.

Pos Malaysia Bhd spokesperson said the demand for parcel deliveries has shown an increase in volume of approximately 35% throughout the MCO period.

She said the national courier service had been deploying Pos Riders to help with parcel deliveries and increased its back-end sorting resources to ensure deliveries can be carried out as soon as possible.

With the increase in demand and deliveries, she added that Pos Malaysia is aiming to improve its digital presence and efficiency.

It includes mobile-app enhancement, workflow automation, cashless payment, and new core track and trace system.

“We are also looking at enhancing our PosLaju SendParcel shipping platform to offer customers more service options,” she said.

According to her, the daily average of deliveries throughout this period is more than 700,000 packages a day.

“The highest number of parcels received by Pos Malaysia during the MCO was over 800,000 packages in a day,” she told The Malaysian Reserve in an email reply.

Other parcel delivery services such as GD Express Sdn Bhd and City-Link Express also experienced a surge in shipment due to the enforced isolation caused by the pandemic.

Both companies have uploaded a notice on their website to alert customers of the very high parcel volume due to the Conditional MCO, as well as long stretch of public holidays.

Recently, AmInvestment Bank Bhd said in a research note that the parcel delivery segment has been identified as a winner of the current pandemic situation.

It said this is due to the significant growth in e-commerce sales translating to rising volumes of parcels handled by parcel delivery companies.

“However, the sector has low entry barriers. A crowded playing field (with 116 players as at March 2020) has given rise to cut-throat competition resulting in severe squeeze in margins,” it said.

The research firm noted that more delivery companies are also expanding their capacity, in order to achieve better economies of scale.