Mercado Livre announced that in the first half of 2019, it will expand its logistics and distribution capacities up to four times. The biggest challenges for e-commerce are to improve logistics and lead time. That's why the company is striving to invest more and more in technology for delivering products on the same day.
The free market is announcing large investments for delivery on the same day
Therefore, the company will build a new distribution center and four cross docking centers that prepare supplies for delivery. The expansion is within the framework of an estimated 2 billion investment in the country.
Mercado Livre launches a modality for delivering products within one day.
"Logistics is the next big step in e-commerce," says Leandro Bassoi, director of the "Shipments Market". According to him, many people prefer to go to the store to buy a particular product because they can not wait for delivery. "But that's about to change," he says.
The company is present in 18 countries in Latin America and has run nearly $ 12 billion in sales in 2017. More than 12 million sellers have 247 million customers. In Brazil, the company generated operating income of $ 831.4 million in 2017.
New distribution center
The new distribution center will be located in Cajamar and will be 111,000 m², and will be foreseen by the fulfillment operation, where Mercado Livre manages all stages of logistics for the seller, such as collection, storage, mail and delivery.
In addition, the company has a distribution center in Louveira, whose structure has increased from 17,000 square meters to 51,000 square meters, but a new expansion of space will be built by the end of this year. In total these new premises will employ more than 3,500 people by the end of next year. State SP concentrates most of the buyers and sellers in Brazil, and hence the new centers are in the country.
Mail increased transport costs for e-commerce earlier this year. This has led to friction with ecommerce companies. Also, since most deliveries are made by mail. For Bassoi, the increase in the load targeted at the market was eventually hurt mainly by small sellers. This is because the company had to transfer the price.
Therefore, this is one of the reasons for large investments in distribution centers. "The e-commerce sector expects an improvement in the transport service, which has not happened. Companies have opened their eyes and it's time to invest," says the director.
The free market wants to deliver products on the same day
Finally, most of the 7,000 employees in Latin America are committed to the development of new technologies, including logistics and delivery. If one of these new technologies is delivered up to one day. The free market this year will make use of the Flek Shipping Market application, which confirms whether the sellers and customers are nearby. This opens the possibility for the seller to recruit deliveries of various modalities. Whether walking, pedaling, riding a motorcycle or driving a vehicle so that you can deliver products on the same day and the next day.
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