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Lazada opens first hub in Davao

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E-COMMERCE site Lazada Philippines on Wednesday opened its first warehouse in Davao City — its third warehouse in the country — which is expected to speed up the delivery of items to online customers in the area.

The company said in a statement on Friday that the new facility along Diversion Road, Barangay Buhangin can send out 25,000 items to customers every day, and has a holding capacity of 250,000 items from brands like Apple, Samsung, Mac, L’Oreal, and Levis.

“Our new warehouse provides our sellers a distribution hub in a high-potential region, allowing Lazada to fulfill more orders from and to Mindanao faster and more efficiently,” Lazada eLogistics (LeL) Philippines chief executive officer Juan Pavez Spencer said in the statement.

The establishment of a new facility will enable their partners send out items to customers in three days, it said.

Lazada said the new warehouse is hoped to spur the growth of e-commerce in Mindanao, as almost 500 businesses from the region are currently with the online shopping platform. It noted that the warehouse in the south is expected to double the number of shipments to and from the region before the year ends.

“This is just the beginning of e-commerce… and Davao is part of this now,” Lazada Philippines chief executive officer Raymond N. Alimurung was quoted in the statement as saying.

Mr. Alimurung said last month that Lazada is looking to improve its logistics facilities to ensure faster delivery of goods. The company’s goal is to achieve next-day delivery of items in the whole country, similar to what its parent company, the Alibaba Group, aims for in China.

Aside from its warehouse in Davao, Lazada also has a 30,000 square meter (sq.m.) facility in Laguna and a 5,000 sq.m. hub in Cebu. — Denise A. Valdez