Shopee is the leading online shopping and e-commerce platform in Southeast Asia with presence in countries like Malaysia, Thailand, Indonesia, Vietnam, the Philippines and Taiwan. Shopee Xpress Thailand is the last-mile logistics service to facilitate the delivery of the orders to the customer in the shortest possible time. Shopee Xpress Thailand is expanding its network of warehouses, distribution and sortation centres to meet rapidly growing demand.
Project forms blueprint for future sorting centre concepts
Simulation model used to validate vendor designs, evaluate manpower allocations, and answer “what-if” scenarios
Blueprint for future sorting centre conceptsThe Shopee Xpress Thailand team is managing the design and build of a new sorting centre that will contain a highly automated parcel sorting process. This project will serve as a blueprint for future sorting centre concepts within Shopee Xpress Thailand. An investment and project of this scale has multiple risks with significant business impact which the team looked to mitigate.
The Shopee Xpress Thailand team sought out a data-driven approach to validate and optimise the layout and engineering questions for the greenfield site. Furthermore, they sought a structured approach to evaluate various automation solutions and vendors, in order to select the right automation partner for a successful project.
Interdisciplinary approach combined with data-driven solutionsRoyal HaskoningDHV brings many years of engineering, logistics, and operations experience to the projects of our clients, supported by a digital and data-driven approach to problem solving. A simulation model was used that mimics Shopee parcel arrival patterns and future automation processes, machine processes and parcel flows, to validate and optimise the layout of the centre. The interdisciplinary approach from our team supported the client project team in this critical project phase.
The support provided was organised into four workstreams:
- Establish the baseline: risk & gap analysis to identify project scope and urgency
- Site logistics flows: using simulation-driven insights to align requirements
- Detailed validation: automation system, layout, & engineering advisory
- Structured evaluation: criteria development, vendor management, & contracting advisory
- Open design and future-state operations questions answered through combinations of material flow analytics and expert knowledge.
- Simulation model was used to validate vendor designs, evaluate manpower allocations, and answer “what-if” scenarios such as downtime and rejection rates.
- Vendor and procurement support were structured to provide comprehensive due diligence. Result was a clear path forward and organisational alignment on final vendor selection.
- Validation and insights from model used in blueprint for more future sorting centres.
The Royal HaskoningDHV team brought strong technical knowledge and guidance to Shopee’s project team, providing thinking frameworks and templates to guide our approach, which was very helpful.
Project Manager - Lead, Logistics & Operations Shopee Xpress Thailand
- ClientShopee Xpress
- ChallengeTo meet rapidly growing demand, a new sorting centre with highly automated parcel sorting process was needed.
- SolutionA simulation model was used that mimics Shopee parcel arrival patterns and future automation processes, machine processes and parcel flows, to validate and optimise the layout of the centre.