Ninja Van Malaysia sees shift in demand as e-commerce grows

The logistics industry will have to continue to develop infrastructure and rejig operating models to meet higher consumer expectations


NINJA Van Malaysia is seeing a shift in demand for different types of logistics solutions as e-commerce continues to grow.

Its CEO Adzim Halim said the logistics industry will have to continue to develop infrastructure and rejig operating models to meet higher consumer expectations in terms of speed and logistics options available. He said these changes are especially important in empowering and supporting local small and medium enterprises.

“This was something we managed to do a few months ago when the Movement Control Order was first implemented through our partnership with Heeladina, a ready-to-wear Muslimah fashion industry player.

“We came in as the logistics expert to help Heeladina’s business growth by connecting their online business to offline customers,” he told The Malaysian Reserve in an email interview.

The service allowed Ninja Van Malaysia to offer a seamless supply chain experience that is integral to e-commerce and customer satisfaction, Adzim said.

He noted that while the pie is big enough to be shared among multiple players within the industry, companies will need to find their niche and provide services that are sustainable to remain relevant and operational.

“The e-commerce market is 4%-5% of the total retail market in Malaysia, and we expect the market to continue growing. With this, we believe the greatest challenge the logistics industry will face is the need to scale up to meet the continuously increasing demand,” he said.

Adzim said Ninja Van Malaysia will adopt the urban logistics operating model as seen in other go-to markets to stay relevant in the new normal environment. He said the strategy will enable the company to improve its route-finding algorithms and optimise costs which will, in turn, lead to competitive prices offered to customers.

“We will utilise data we’ve gathered to gain deeper insights into market trends and assist us with forecasting and capacity management, as the e-commerce market is extremely seasonal.

“We have also developed our network of parcel points, which is becoming an integral part of our network. This is to offer increased optionality to both our shippers for drop-offs and collections,” Adzim said.

Ninja Van Malaysia foresees the logistics industry to continue to grow, leading to a higher demand for the overall logistics and warehousing space.

Commenting on the upcoming Budget 2021, Adzim hopes the government will continue enhancing last-mile connectivity to enable faster movement of goods across supply chains.

“We do foresee that the government will continue to support the overall industry in terms of providing full (infrastructural and financial) support in building, maintaining or improving the overall trade infrastructure, especially in non-Klang Valley areas and regions in East Malaysia.

“Investing in green and sustainable practices, such as eco-friendly vans and bikes, can also help to reduce the industry’s carbon footprint in adherence to sustainability principles,” he said, adding that this will be aligned to the budget’s sustainability agenda.

Ninja Van started operations in Singapore in 2014 and has since grown its network to cover six countries including Malaysia, the Philippines, Indonesia, Thailand and Vietnam.

Ninja Van Malaysia has recorded an 80% growth in fleet size over the past year, with over 3,000 Ninja Points installed and millions of parcels delivered each month. Users can pick up their packages at dedicated automated parcel lockers, known as Ninja Box, at 98% of light rail transit, monorail and bus rapid transit stations throughout the Klang Valley.