This article concludes a series exploring movers and shakers in Malaysia’s logistics segment.
Co-founder Nadhra Fauzi
Core Business: E-fulfillment and tech logistics
Management Team: Co-founders Nadhra Fauzi and Safiyya Azman
Headquarters: Taman Perindustrian Subang, Selangor
1. What was the story behind TresGo’s start? How does its business model works?
TresGo was my and Saffiya’s third concept for a venture together. The name comes from the word tres or “three” in Spanish referencing our three core services (storing, packing and delivering) as well as the fact that we’re always on the go.
E-fulfillment provides storage and logistics solutions for online merchants. The typical online vendor wakes up at 8am and checks all his orders by 9am. By 11am, he’s made his marketing post on social media, so he needs to start packing orders by 12pm so that he can head to the post office by 4pm and queue and send them off.
People come to us because we can do some of that for you. We also work with marketplaces such as Lazada which have their own fulfillment operations, but don’t cater below a certain scale.
2. E-fulfillment is dominated by larger players. How has TresGo carved a niche for itself in the segment?
We hired a third party to create a proprietary system which lets merchants check their inventory level anytime. Orders come in automatically from marketplaces, and can be processed with minimal delay between receipt and fulfillment.
Orders coming in before 12pm will go out on the same day. Conventional logistics players are accustomed to B2B distribution, where demands are larger in scale. Below that, it can take up to 100 merchants coming in to make sure cash flow is there, which is a lot of work, so they may be less agile in that sense.
We target clients with fulfillment values from RM300 up to RM10,000. We think there’s a market gap there, and we think we have the ability to engage with clients who need these kinds of services, as well as merchants who want to come in to pick up inventory to sell at physical outlets when orders are slow.
3. What is your outlook for the segment and TresGo itself moving forward?
Our new Subang facility increases our storage capacity eightfold while making sense in terms of price and location. This move also accommodates clients who need more space, as we’re targeting more corporate players.
Priorities moving forward include marketing, talent recruitment and training, and we will be pursuing vendors with cosmetics, supplements and certain types of F&B inventory.
These fast-moving markets can be challenging, so we need people to know we’re here to serve them. While the segment has seen the entry of numerous players such as Deliveree, they are not direct competitors. We actually work with delivery companies such as Ninja Van, while concentrating on pick-and-pack aspect operations.