aCommerce Builds Out Fulfillment Centre for Indonesian Online Fashion Brand in Cawang
Friday, 3 June 2016: aCommerce Indonesia announces the completion of a new Fulfillment Centre (FC) in Cawang today. The 7,000 sqm warehouse has a conveyor belt that decreases pick-packing time per order, 4-level of storage mezzanine that could be expandable to 17,000 sqm as ground space and will extend aCommerce’s total storage capacity up to 4 million unit products. Cawang FC could be considered the biggest ecommerce warehouse located in the heart of the city.
The development of this latest Fulfillment Centre is part of aCommerce’s expansion plan in 2016 and the news came in just three months after aCommerce opened two hubs in Bandung and Surabaya. As of right now, aCommerce Indonesia has total ground capacity of 30,000 sqm, all achieved within the last two years. This latest development took three months to manage and finished just in time to anticipate the peak season of holy Ramadhan.
The Set Up Process
The goal is to build a highly tech-oriented warehouse, where the specs quality is chosen specifically for fashion and retail industry. aCommerce came up with the simulations on how much space as well as the manpower is needed. The plan has also insured it has flexible layout that making it easily expandable and would be easily replicated in other cities. This includes warehouse operational flow analysis, layout design, volume fluctuation studies, shift analysis, process improvements, space utilization and product sizing. The solution design phase took about 1,5 months.
“Setting up the warehouse from scratch within 3 months was challenging because apart from the overall warehouse construction, we needed to see into required water piping, electrification, electrical cabling, network infrastructure, backup electrification and network provisions, CCTV, security, roof elevation, parking lot renovation, canteen renovation, and office. We also faced a challenging moment in the form of flood during the rainy season some time ago, but in the end we are happy that we managed to solve it and heading towards completion within such a strict timeline. This serves as yet another milestone for aCommerce as the leading end-to-end solutions provider for ecommerce industry players in Southeast Asia.” said Hadi Kuncoro, CEO of aCommerce Indonesia.
VISION: What the FC and the Operations Will Be Like
Based on the historical order profile, aCommerce came up with a solution that allows fast picking system. The 4-level mezzanine will optimize the floor space by air space unitization without having to change the picking method as applied in the previous FC. It could house an approximate 2.1 million units in its 4 level mezzanine. In addition to that, aCommerce also implements a semi-automated conveyor and lifts construction to make order processing more efficiently.
As of now, aCommerce can handle up to 10-12 thousand outbound deliveries every day. With the addition of Cawang FC, the projection is that the numbers could triple up to 35-36 thousand outbound deliveries within 24/7 operational hours. To support the new Cawang FC, aCommerce has hired 400 people who will cover the 24/7 end-to-end operations that spread over 3 shifts. These staffs have been officially trained since the second week of May where they were introduced to the end-to-end process flow, product and system knowledge before having live hands-on activities with the current team in Halim FC. This makes the number of aCommerce team member to over 800 people and is projected to reach 1000 employees by the end of this year.
WHAT’S NEXT?: Another Expansion Plan
Right now, Cawang FC will be dedicated for fashion products while Halim FC will be use for multi-purpose category. At the same time, aCommerce Indonesia ready to expand to another 15 cities after a successful launch in Bandung and Surabaya.
aCommerce is a regional full-service ecommerce solutions provider, delivering customized ecommerce solutions for global brands and retailers such as L’Oreal, Hewlett-Packard, Samsung, Nestle, Lazada, MatahariMall, and LINE among others, and is on a mission to break the logistics bottleneck of Southeast Asia. Founded in June 2013, aCommerce has offices and distribution centers in Indonesia, Thailand, and the Philippines. The company provides end-to-end ecommerce solutions to bring brands and retailers into online retail, including performance marketing, channel management, platform design and development, content production, order fulfillment and warehousing, delivery and logistics, customer service, and call centers.