How Chan Furniture Reduced Operational Costs With Lalamove

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In the ever-evolving landscape of consumer preferences and business dynamics, adaptability is the key to longevity for Chan Furniture.

In this blog, we spoke to Kelvin Chan, the general manager of Chan Furniture, to delve into their evolution and more notably, their strategic partnership with Lalamove.

From overcoming the challenges of an internal fleet to enhancing last-mile delivery, Chan Furniture's experience with Lalamove serves as a testament to the transformative power of streamlined logistics in the pursuit of customer satisfaction.

A Personalised Taste

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Commencing its operations in East Malaysia, Sabah, back in 1986, Chan Furniture initially began its humble business focusing on selling rattan furniture. Over time, the company transformed, branching out into the business of home furniture and broadening its product range to include modern conveniences like mobile phones and electrical home appliances.

In the age of personalisation, modern-day customers seek satisfaction from brands that can provide freedom in their goods and services well-accustomed to their taste.

From personalised street burgers to thoughtfully curated handbags etched with names, personalised goods are unique selling points that ought to be pursued by brands to stand out among their competitors.

And Chan Furniture understands this very well.

“The furniture company can generate various design concepts tailored to their customers' preferences, accommodating different styles and home sizes”

Their expertise in home aesthetics includes more than just finding the perfect lounge chair that provides comfort and luxury. It also goes as far as recommending furniture placement to achieve specific living concepts.

In an effort to entice their customers, Chan Furniture provides a cost-effective option for purchasing their products through a convenient and accessible easy payment plan.

Facing Challenges Of Internal Fleet

As Chan Furniture prioritises customer satisfaction, it's vital to operate with a delivery service that can handle last-minute requests and changes.

So how does a furniture company establish its brand while maintaining last-mile delivery?

They figured it out, though it was far from an easy task.

In the past, Chan Furniture maintained its fleet of lorries, which posed numerous challenges. This included overseeing the workforce, managing costs, addressing maintenance issues and handling insurance matters.

The expenses associated with these aspects were considerably high, with unforeseen costs such as unexpected maintenance charges adding to the financial burden.

On top of that, their in-house drivers also needed help grappling with route management. This resulted in operational costs hovering around 6%.

 

The Strength of Lalamove

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All challenges considered, Chan Furniture sought a delivery partner that provides convenience, efficient time management and cost-effectiveness. 

“Since transitioning to Lalamove, their operational costs have reduced and never surpassed 4%, representing a substantial and noteworthy improvement.”

Today, the furniture company consistently secures a driver within a swift 10-minute timeframe.

Subsequently, they coordinate with the customer to make necessary arrangements, enabling them to commit to same-day delivery. The utilisation of Lalamove has significantly alleviated their cost-related challenges, which were once a major concern.

By leveraging Lalamove's services, they’ve successfully trimmed down expenses, allowing them to fulfil their commitments to customers.

As a result, their customers no longer experience unnecessary waiting times, as Chan Furniture can efficiently deliver their items within the agreed-upon schedule.



The Results Are In

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As their overall costs have experienced a significant reduction from 6% to 3%, leveraging Lalamove as their sole delivery partner has contributed to heightened customer satisfaction, more sales opportunities as well as a long-term partnership with Lalamove.

If you’re interested in replicating the success of Chan Furniture’s partnership with Lalamove, feel free to contact us today.

We’ll help your business reduce logistics costs as well as increase the efficiency of your everyday business delivery. 

Start Your Business Partnership With Lalamove Today

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