It is not easy to imagine that a start-up could become a logistics juggernaut in just seven years. But this is what J&T Express, which was founded in Indonesia in 2015, has achieved.
“As a young start-up, we had to build up our credibility and gain customers’ trust,” recalled J&T Express Singapore’s CEO, Mr Peter Cai. “We were the first to introduce a free pick-up service with no minimum weight, quantity or distance. By addressing a key customer pain point, we quickly built a strong reputation in Indonesia.”
As of last year, J&T Express counts over 22,000 courier depots with more than 290 sorting centres in a global logistics network spanning 13 countries, including Singapore, China, Saudi Arabia and Mexico, and serves over 2.5 billion people.
PULLING OFF A HERCULEAN TASK
J&T Express has long aimed to provide customer-oriented and efficiency-based logistics services that leverage its unique selling propositions – agility, adaptability and people. These value propositions came to the fore just as the company launched its Singapore business in January 2020 when COVID-19 began to spread.
As Singaporeans stayed home and shopped online, demand for logistics services boomed. But taking advantage of the situation was challenging, even for seasoned players. “Many logistics companies were caught by surprise by the unprecedented spike in demand,” said Mr Cai, explaining how J&T Express used the pandemic as an opportunity to beef up its operations in Singapore.
He described how entire departmental teams rolled up their sleeves to support the operations staff with fulfilment, sorting and delivery, working round the clock to ensure that parcels reached customers as quickly as possible. “Ramping up our operations so rapidly was a herculean task, but we pulled through, thanks to the team’s strong camaraderie and synergy.”
As a result, the company achieved rapid growth starting from 2020. Its network in Singapore expanded to include two sorting hubs and a warehouse at Changi Airfreight Centre. It also launched more than 400 J&T Points in the country, allowing sellers to drop off parcels conveniently within their vicinity.
In 2021, J&T Express Singapore upgraded the automated sorting machines at its Penjuru sorting hub – sorting up to 200,000 parcels a day and increasing efficiency by over six times.
SHARPENING ITS EDGE
To sharpen its competitive edge in Singapore, J&T Express focuses heavily on research and development (R&D), innovation and technology. Its technology team in Singapore has grown by 450 per cent since its formation, with the support of several R&D centres in China.
The company has also invested in a web-based smart transport management system, a mobile app offering convenient access to local and international delivery services, and software integrations with major online marketplaces to provide customers with a seamless e-commerce experience.
In addition, J&T Express has developed a strong localisation strategy for individual markets. For example, it provides support for farmers in Vietnam, teaching them to pack and sell their produce.
“Also, even amid the accelerating adoption of digital payments in Southeast Asia, cash is still king in Vietnam and Cambodia,” said Mr Cai. “So, we provide a broad coverage of cash-on-delivery services in these markets. In Singapore, we offer a PayNow QR code option for cash-on-delivery services.”
Staying on top of digital trends is key. J&T Express partners with social commerce platforms like TikTok to meet rising consumer demand and streamline the customer experience.
“Consumers seek personalised experiences and are more likely to buy again from brands that treat them as individuals,” said Mr Cai. “J&T Express’ role is to support our customers in every way possible. This means anticipating these evolutions and adapting quickly to introduce new services that meet customer needs.”
Find out more about J&T Express Singapore.
