AFM Fulfillment (AFM) has launched Malaysia's first smart robotic warehouse, and this facility offers faster, more precise and scalable solutions.
The company said the warehouse could reduce human error and labour costs.
AFM executive chairman Mohammad Taufik Othman said: "Our smart robotic system not only addresses fulfilment challenges, but also reshapes the market with advanced technology to build a scalable, space-maximising and productivity-boosting business for our clients."
He said the system's scalability allowed AFM to adapt to growing market demands, driving operational efficiency and cost savings.
TRANSFORMING E-COMMERCE
The concept emerged when Taufik sought solutions to challenges plaguing the logistics industry, particularly those affecting small- and medium-sized entrepreneurs.
"A friend had a flourishing business post-Covid-19 pandemic.
"However, as orders increased he faced challenges, from finding storage space and hiring part-time workers for fulfilment management to overseeing inventory and addressing customer complaints.
"This is a common issue for SME entrepreneurs," he said.
Taufik's concerns prompted him to explore more innovative approaches.
"Many third-party management centres in Malaysia rely on manual processes and lack effective warehouse management systems, failing to address logistics challenges."
Recognising this gap, he emphasised the need for sustainable solutions incorporating robotics and automation, leading to the development of the AFM Smart Fulfillment Robot.
The integration of robotic technology with sales and inventory management systems can tackle the challenges faced by the e-commerce industry, boosting productivity and optimising space utilisation, achieving up to six times the capacity.
"For instance, our warehouse spans over 5,574 to 6,503 square metres and under manual operations, it can handle around 5,000 parcels daily.
"However, with robotic systems and automation that capacity jumps to 30,000 parcels."
The integration of robotics and automation not only reduces human error to nearly 99.9 per cent, but it also enables real-time processing for same-day usage, providing businesses with the flexibility to scale operations according to market demands and meet rising customer expectations.
CHALLENGES
Developing Malaysia's first robotic system for e-commerce presented challenges for AFM.
"The complexity of integrating many systems was a major hurdle, as we needed to ensure seamless communication between our robotic system and e-commerce platforms.
"With numerous e-commerce solutions available, stabilising these connections required time and effort.
"We also had to ensure that our management systems, including inventory tracking, were linked to the robotic technology we imported from overseas.
"This necessitated extensive research and collaboration among our development team to connect all components.
"Fortunately, after overcoming these obstacles, we started operations early this year without any issues."
AFM Fulfillment chief executive officer Jookaplee Shaaibon said another challenge was in the differing needs of entrepreneurs.
"In terms of challenges, I see that there are two categories of entrepreneurs we are approaching: new entrepreneurs and existing ones.
"New entrepreneurs lack established systems, making it easier for us to work with them, while those in business for two to five years present a challenge as they may be resistant to switching from their systems.
"To address this, we have established an in-house software development team to manage middleware integration.
"This is one of the challenges we face as numerous systems exist, and our goal is to create a single platform that integrates with all of them."
EFFECT ON E-COMMERCE
Taufik said: "Over the past two years, we have learnt that the primary challenge for entrepreneurs isn't selling products online, but fulfilling orders efficiently.
"As sales increase, they often struggle to find storage space, sometimes moving into shoplots.
"They also need to hire staff for packing and shipping while managing customer complaints.
"This diversion of focus from sales to operational challenges is unsustainable."
To tackle these issues, he said AFM Fulfillment offered a "comprehensive solution that includes inventory management, fulfilment services, a marketing hub and consultancy for market strategies."
He said its ecosystem "enables entrepreneurs to concentrate on selling by increasing product discovery and boosting sales, while reducing the need for large budgets for storage or staff".
"Our technology is integrated with Lazada, Shopee and TikTok. We are confident that AFM Fulfillment will become a one-stop centre for entrepreneurs."
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