Top 3PL fulfilment companies in Malaysia

Malaysia’s e-commerce landscape is experiencing explosive growth. With a staggering 94% internet penetration rate as of 2022 and a young, tech-savvy population, online shopping is rapidly becoming the preferred method for Malaysian consumers. The country’s thriving halal industry further fuels this trend, creating a unique and lucrative market for e-commerce businesses.

However, managing the logistics behind a successful online store can be a complex challenge. From warehousing and inventory management to order fulfilment and last-mile delivery, make sure that you have the right inventory on hand, a smooth pick and pack process, and timely last mile carrier partner to carry out on-time order fulfilment. Most e-commerce businesses look to partner with an expert who can manage all things logistics while they can focus on running core operations. This is where Third-Party Logistics or 3PLs in Malaysia come in.

3PL companies act as an extension of your e-commerce business, handling all the logistical aspects so you can focus on what matters most—growing your sales. Whether you’re a seasoned seller or just starting out, partnering with a reliable 3PL can unlock your full potential in the Malaysian e-commerce market.

We’ll explore the specific services 3PLs in Malaysia have to offer, the factors to consider when choosing a partner, and ultimately, the top players for you to choose from.

What does a 3PL do for an e-commerce business in Malaysia?

Imagine having a dedicated team behind the scenes, handling the nitty-gritty of order fulfilment while you focus on product development, marketing, and customer acquisition. That’s the magic of partnering with a 3PL provider. Here’s a closer look at how a 3PL can transform your Malaysian e-commerce business:

• Order Management: Say goodbye to manual order processing headaches. 3PLs integrate seamlessly with your online store, automatically capturing and managing customer orders. They ensure real-time order updates, accurate inventory tracking, and clear communication with you throughout the fulfilment process.
• Storage:  Forget the hassle of finding and managing your own warehouse space for your inventory. 3PLs offer secure and strategically located storage facilities throughout Malaysia. By opting for a flexible storage infrastructure, you reduce costly overheads like labor cost, warehouse management and security requirements. This allows you to hold a wider variety of products closer to your customers, enabling faster deliveries and reduced shipping costs.
• Pick and Pack:  Once an order is placed, the 3PL takes over. Their trained staff efficiently pick, pack, and prepare your products for shipment, ensuring accuracy and proper handling to minimize damage during transit.
• Last-Mile Shipping:   The final leg of the journey – getting your product into your customer’s hands – is crucial. 3PLs leverage their established relationships with reliable courier companies to provide you with a network of last-mile delivery options. This translates to faster delivery times, competitive shipping rates, and, ultimately, happier customers.

In essence, a 3PL acts as your fulfilment partner, freeing you from the burden of logistics and allowing you to focus on growing your core business.

Top 9 3PLs in Malaysia

We know you’re curious about the 3PLs you can choose to ensure a thriving business. Here is a list of the 9 best 3PLs in Malaysia, so you can ensure all your fulfillment needs are met.

1. Locad

It is often tough to come by a well-rounded, comprehensive 3PL solution that connects the entirety of the APAC regions. Locad serves as precisely that. It is ranked high among the top 3PL companies in Malaysia due to its wide range of services, including cross-border opportunities, low cost and scalable infrastructure, multichannel marketplace integration, and top last-mile partners along with mid-mile fulfillment options.

Sales Overview on the Locad Dashboard

Inventory Overview on the Locad Dashboard

Add to that a tech integration that is constantly evolving, and the Locad team has a winning formula up their sleeves that has helped numerous businesses find their footing in the diverse economic geographies of the Southeast Asian and Australian markets. Here are a few of the most lucrative advantages that you stand to gain from Locad as a top 3PL in Malaysia:

• Faster delivery times: A network of warehouses offering nationwide coverage, situatedcloser to customers means quicker deliveries.
• Reduced errors: Streamlined processes ensure higher order fulfillment accuracy.
• Branded packaging options: Customize packaging to enhance your brand image.
• Multi-channel fulfillment: Fulfill orders across various platforms (website, marketplaces) centrally.

Account Health Overview on the Locad dashboard

• Last-mile delivery solutions: Choose from the top last-mile carriers in Malaysia and assign the cheapest last mile for your orders automatically.
• Real-time inventory visibility: Track inventory levels across sales channels and receive alerts to replenish inventory on time to avoid stock outs.
• Global reach: Integrate international shipping to reach customers globallyfor broader market access.
• Scalable storage costs: Only pay for the warehouse space your inventory occupies and scale up when demand surges.
• Super-fast fulfillment:  Get same-day order fulfillment and packing services.

2. EasyParcel

EasyParcel stands out for its unique features and dedication to helping online businesses save money and streamline operations.  Here are some of the key benefits they offer to Malaysian e-commerce sellers:

• Integration with e-commerce stores for automatic order import and social selling platforms.
• Customize branding on airway bills & SMS.
• Insurance options to protect valuable parcels.
• Reward points with every top-up are redeemable for gifts or shipping credits.
• Courier rate comparison, booking deliveries, and managing domestic/international shipping on one platform.

However, some users highlight limitations of the platform:

• Limited Service Range: EasyParcel primarily focuses on the shipping process itself. Users who require warehousing, multi-channel fulfillment, or on-demand fulfillment across APAC countries may need to look elsewhere.
• Customization Limitations: While branding customization exists, some users find it lacking compared to other platforms.

3. DAQ

DAQ stands out from the crowd by offering specialized logistics solutions tailored to the unique requirements of Malaysian businesses.  Here are some of the key benefits they provide:

• In certain cases, they provide tailored solutions based on your specific needs.
• The platform offers expertise in handling perishable and temperature-sensitive goods.
• Facilities meeting religious requirements for the Malaysian market and offer complete Halal-compliance.

Despite having certain advantages, DAQ lacks greatly in certain areas:

• DAQ primarily caters to businesses with specific requirements like temperature control or halal compliance. 
• E-commerce businesses selling general merchandise may find other 3PL providers with broader service offerings to be a better fit as the platform does not offer storage that isn’t specialized.

4. Maersk

Leveraging its extensive global network, Maersk offers a compelling solution for Malaysian e-commerce businesses with international aspirations. Here are some of the key benefits they provide:

• Customizable Supply Chains: Maersk tailors solutions to fit your specific needs in Malaysia.
• Global Reach: Access new markets worldwide with Maersk’s presence in over 120 countries.
• Seamless Logistics: Maersk offers ocean transport, trucking, and warehousing for a smooth journey.

However, online reviews also highlight some weaknesses:

• Communication Issues: Customers have reported difficulties reaching customer service, with ignored emails and phone calls being a recurring complaint.
• Delays and Inaccuracy: Missed deadlines, shipments arriving significantly later than estimated, and containers stuck in ports for extended periods are common concerns. Additionally, some users mentioned receiving incorrect invoices.
• Demurrage Concerns: A few reviewers raised concerns about unfair application of demurrage charges (fees for exceeding container storage time at ports).

5. DB Schenker

DB Schenker is a global logistics giant offering a comprehensive suite of services for Malaysian businesses with complex supply chain needs. Here’s what sets them apart:

• Offers a full range of land, air, and ocean freight services.
• Contract logistics and 4PL solutions for supply chain integration.
• Tailored solutions for various industries to optimize efficiency.

DB Schenker offers a wide range of fulfillment services in Malaysia, but certain user reviews highlight some potential drawbacks in opting for this platform. Some of them have been listed below:

• Limited Service Range: Despite its offerings, some users felt DB Schenker’s services weren’t as comprehensive as other 3PL providers.
• Lack of Transparency: Contract logistics can make it challenging for clients to maintain close visibility on their products throughout the supply chain.
• Delivery & Customer Service Issues: Negative experiences like missed deliveries, incorrect addresses, lost or delayed packages, and mishandled shipments are concerning aspects highlighted by customers.
• Communication Challenges: Difficulties reaching customer service via phone or email, and a lack of responsiveness to inquiries, are recurring user complaints.
• Unexpected Fees and Delays: Customers have mentioned encountering unexpected charges and experiencing delays, particularly during customs clearance.

6. Nippon Express

Nippon Express (NX Group) is a well-established logistics giant offering a compelling solution for Malaysian e-commerce businesses with international aspirations. Here’s a closer look at the advantages they provide:

• Extensive reach across 50+ countries for worldwide expansion.
• 80+ years of experience, ranked 7th largest global freight forwarder.
• Air, ocean, ground freight & value-added services like 3PL fulfillment.
• Tailored solutions for specific needs of various industries.

Here’s why NX Group might not be the best fit for e-commerce fulfillment:

• Limited E-commerce Focus: NX Group caters to a wider range of customers and industries. E-commerce fulfillment may not be their strongest area of expertise.
• Customization Limitations: While customization exists, it might not be as fine-tuned as a dedicated e-commerce fulfillment service.

7. CEVA Logistics Malaysia

CEVA Logistics positions itself as a strong contender for Malaysian businesses seeking a reliable and versatile logistics partner. Here’s why they stand out:

• They handle air, land, and sea transportation across the globe.
• Offers customized solutions tailored to specific needs of various industries.
• CEVA prioritizes real-time tracking, tracing, and booking with advanced tools.
• They have dedicated transport teams specialized handling for air, ocean, and road freight.

However, here’s why CEVA might not be ideal for e-commerce fulfillment in Malaysia:

• Global Focus: CEVA’s extensive global network might translate to higher costs and fulfillment times for Malaysian e-commerce businesses.
• Customization Challenges: Despite technology, some customers found it difficult to obtain customized e-commerce fulfillment solutions.
• Delivery Delays and Lost Packages: Customers reported frequent late or lost deliveries exceeding estimated timelines by weeks.
• Damaged Goods: Several reviews mentioned damaged items during shipping.
• Poor Customer Service: A few reviews described unprofessional behavior from drivers and difficulty reaching helpful customer support.

Considerations for choosing a 3PL in Malaysia?

Finding the ideal 3PL partner is crucial for your online store’s success in Malaysia. Here are some key factors to consider when making your decision.

• Multichannel selling: If you sell across multiple marketplaces like Shopee, Lazada and TikTok, ensure your 3PL seamlessly integrates with your existing sales channels to streamline order management and inventory control.
• Batch management: If you offer subscription boxes or wholesale options, efficient batch management is essential. Look for a 3PL with expertise in handling bulk orders and kitting products for specific customer needs.
• OMS (Order Management System) Integration: A robust Order Management System (OMS) is the backbone of efficient fulfillment. Choose a 3PL whose technology integrates seamlessly with your existing sales channels  and warehouse management system, enabling real-time order visibility, accurate inventory tracking, and automated communication throughout the process.
• Cross-border expansion: Malaysia’s close proximity with Southeast Asian countires and common e-commerce platforms offer e-commerce business owners the scope of expanding their businesses internationally.   A 3PL for your business muts support your business goals through experience and expertise in handling international shipping, including import, export and  customs clearance and documentation.
• Customized Picking and Packing: Several products require special care and handling. A 3PL must support your branding, picking and packing requirements through  customized picking and packing solutions to ensure the proper care is taken during knittinghandling fragile, or oversized products. 
• Understanding of local laws and regulations: Navigating Malaysia’s import/export/customs regulations can be complex for e-commerce players who wish to launch and sell to Malaysian shoppers. Choose a 3PL with a deep understanding of local laws and compliance procedures to ensure smooth cross-border transactions and avoid any customs delays.
• Offer Last-mile Options: To cater to your diverse customer base, partner with a 3PL that offers a variety of last-mile delivery options. These could include same-day delivery for urgent needs or cash-on-delivery options to cater to unbanked customers.

Customer Expectations Around 3PL Fulfilment in Malaysia

In today’s competitive online marketplace, Malaysian customers have high expectations when it comes to e-commerce fulfilment. Here’s a breakdown of the key factors that influence their buying decisions:

• Fast Delivery: Consumers expect their orders to arrive quickly.  A 3PL partner with efficient fulfilment processes and strategically located warehouses can ensure fast fulfillment turnaround times, shipping orders on time and keeping your customers satisfied.
• Competitive Prices:  Price sensitivity is a major factor for Malaysian shoppers. A 3PL can help you optimize your shipping costs by offering a variety of delivery options to cater to different budget preferences.
• Convenience: Customers look for a seamless experience, from easy order tracking to flexible delivery options, including same-day or next-day delivery for urgent needs.  A 3PL can provide you with the technology and network to offer these conveniences, exceeding customer expectations.
• Robust Customer Service: Even with the best planning, issues can arise. A reliable 3PL will have a dedicated customer service team equipped to handle inquiries and resolve any delivery-related problems promptly and efficiently. This ensures a positive customer experience and fosters trust and loyalty for your brand.

Conclusion

Malaysia’s booming e-commerce market presents a wealth of opportunities. But to thrive, you need a robust fulfillment strategy.  This article highlighted the critical role 3PL providers play in streamlining your operations  – from managing orders and warehousing to picking, packing, and ensuring timely deliveries.

By partnering with a 3PL like Locad, you gain access to expertise, infrastructure, and technology that would be cost-prohibitive to build on your own. This allows you to scale your business efficiently, reduce fulfillment costs, and, most importantly,  deliver exceptional customer service – the cornerstone of success in the competitive Malaysian e-commerce landscape.

Ready to unlock the full potential of your online store? Find a 3PL company in Malaysia from the list above and ensure timely fulfillment for your e-commerce brand!

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