By Melissa Cantú & Ana León

Hello! We found this very interesting article about ecommerce and Logistics. RedMart is an online grocery shop in Singapore, launched in 2011, and it is now very popular because of how well they organized their logistics. What’s interesting is how their delivery system has changed: at the beginning they had delivery drivers who chose the routes, then they used a software that could recommend routes but it was not exact, so they came up with an APP called Delivery Buddy. Its a kind of UBER but for logistics, drivers can see routes and updates in realtime and also allows for customers to rate the service, this is an easy way to get feedback. The app also allows customers to see if a truck is going by their house a certain day and the business offers incentives like discounts if they buy that same day, this saves them many trips.

RedMart has to pay a lot of attention to warehouse optimization because of all the different products they offer; the fact that it involves eCommerce makes it harder to manage inventories. They need to offer most or all of the products because if customers don’t find all they want they would have to go to the store as well, so they wouldn’t buy online. The CEO explains they have a secret algorithm for the pickers in warehouses to pick and pack the products so it takes less time. The aim of this company is to be the “biggest and best Ecommerce company in Southeast Asia” and we believe if they continue this way, they will.

Are eCommerce businesses turning into logistics companies?
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