DSV Taiwan Operating at Peak Performance with New Amway Contract
The Danish transport and logistics company DSV recently announced they are in peak form pertaining to e-commerce for their DSV Taiwan division due to their recent agreement with the American company Amway.
The Taiwanese division of DSV is now handling in excess of 200,000 monthly shipments.
Amway is a multilevel marketing company that offers over 400 nutrition and health, cosmetics, skincare, home care products, personal care and household appliances.
Managing Director for DSV Solutions Taiwan, Jun Tak Ong said, “Amway is our largest single customer in Taiwan and also the largest e-commerce customer in the APAC region.”
With Amway now working with DSV, the company can avoid costly, inefficient solutions as DSV can offer a single transport provider handling all deliveries from north to south on the country.
Mr. Ong said, “It was easier for Amway to cope with, but one transport provider cannot be equally strong all over the island, and the outcome did not justify the costs,” further adding “Organising the transport with the most skilled suppliers in the respective areas both reduces costs and improves distribution efficiency.”
Further benefits to Amway include comprehensive savings in warehousing as DSV have taken over warehouse operations which were previously staffed by Amway with temporary agency workers. This resulted in the workforce being unstable and led to several issues regarding quality of service.
Mr. Ong explained, “Today, Amway Taiwan has only one business partner to deal with, which has freed up lots of resources while reducing overall costs below previous levels, so they are very happy and satisfied.”
DSV Solutions APAC Director, Guillaume Burette on their popularity in Asia, “We’re experiencing a growing wave of interest in e-commerce at the global level, so it’s of great value for us to be able to attract a customer such as Amway Taiwan.”
He went on to explain, “Not least in Asia, and particularly in Taiwan and China, e-commerce is more integral to trading because the economy and purchasing power has increased immensely along with the spread of the internet and the shopping culture. Take for instance Singles Day (11 November), where spending on online shopping in China is ten times higher than the figures generated by Black Friday in the USA.”
He finally added, “The large number of daily consignments helps us stress-test our systems and distribution capacity. While we have other e-commerce customers in the APAC countries, Amway is our first large-scale operator. We are now learning valuable lessons for the benefit of Amway, but also for the good of the other APAC countries.”