Falabella’s Powerful Upgrade

Falabella adds a 2,000-square-meter transshipment center to strengthen the last mile logistics delivery

Falabella is a multinational department store chain owned by the Chilean multinational company S.A.C.I. It is the largest department store in South America and a member of the International Association of Department Stores. Falabella is one of the largest retailers in Latin America. At present, Falabella has 567 offline stores, located in seven countries including Chile, Peru, Argentina, Brazil, Colombia, Mexico and Uruguay. Together with online stores, they form a strong and mature sales network. Falabella focuses on product supply, has advanced lifestyle and concepts, and has both brand characteristics and market competitiveness. Recently Falabella is adding transshipment centers and expanding services.

For all e-commerce platforms, improving their own logistics capabilities is the most important task. In order to strengthen customer-facing operations, shorten delivery times and provide better service in extreme regions, Falabella is adding a fulfillment center of more than 2,000 square meters, covering Arica and Punta Arenas. So far, Falabella has established operation centers in 17 Chilean cities, with logistics facilities covering an area of more than 770,000 square meters. These logistics facilities expand their reach and optimize distribution in extreme regions, allowing their customers and suppliers to improve their buying experience.

The area of the transshipment center that will be added in Punta Arenas this time exceeds 1,000 square meters. The transshipment center can receive 2,000 units per day and send 52,000 orders per month. At the same time, lead times are expected to be cut in half. Based on a horizontal and decentralized business model, they are striving to cover all cities across the country, which is complemented by an omni-channel strategy focused on simplifying the customer shopping experience. Before the newly added 2,000-square-meter transshipment center, Falabella had already become the largest e-commerce logistics platform in Chile.

In order to provide better service, Falabella has always had extremely high requirements for its own logistics. It also made a lot of investment and improvement in the first half of this year, hoping to maintain its competitiveness among many competitors and occupy a larger market. Falabella has a very important position and development in Latin America, and the local e-commerce traffic in Chile and Peru is very large. In short, having perfect logistics is the key to the long-term development of e-commerce platforms, so each platform is investing in the development of its own logistics instead of relying on logistics companies in the market. Falabella is also stepping up last-mile logistics delivery. The rise of e-commerce has increased the need for last-mile logistics, as consumers increasingly expect convenient and flexible delivery options. This results in increased shipments that are difficult and expensive to manage.

From the perspective of sellers, sellers also hope that the platform has strong logistics, so that buyers can get better services. If the seller and the platform reach a good cooperative relationship, they can develop together in the long run. Falabella is also aware of this problem and is also working on the last mile logistics delivery.

The competition in the market is now fierce, and all e-commerce platforms and sellers are actively attracting customers. Logistics is the most important part of the entire e-commerce process, so sellers must choose their own platforms and corresponding logistics, and finally the buyer’s experience feeling is the most important thing.

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