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Ni Hsin Ventures into Fifth-Party Logistics (5PL)
[21/10/01]
KUALA LUMPUR, Oct 1, 2021 - (JCN Newswire) - Ni Hsin Ecologistics Sdn Bhd, a wholly-owned subsidiary of the Bursa Malaysia Main Market-listed Ni Hsin Group Berhad (formerly known as Ni Hsin Resources Berhad) ("Ni Hsin"), has today entered into an Investment Agreement for the acquisition of a 60% stake in Pride Logistics Alliance Sdn Bhd ("PLA") ("the Proposed Acquisition").
Established in 2014, PLA is principally engaged in providing freight forwarding services. The Company's business includes freight, forwarding, haulage & transportation, warehousing and international agency services.
Managing Director of Ni Hsin Ecologistics Sdn Bhd, Khoo Chee Kong, said: "We are diversifying into the logistics industry to complement our food and beverage business as we see this acquisition as cementing the last mile of the ecosystem where we are using electric vehicles for delivery. PLA has an experienced team with the knowledge and expertise in logistics that we can leverage on."
Ni Hsin also sees the acquisition as a springboard into the logistics business, especially in fifth-party logistics (5PL), where it can manage all supply-chain processes for customers supported by a sizeable warehouse equipped with Automated Storage and Retrieval System (ASRS), which is designed to buffer, store, and retrieve product and inventory on demand. Other ASRS benefits include more efficient use of floor space, increased storage density, increased order-picking accuracy and improved product security for premium inventory.
"Our ASRS-equipped warehouse is strategically located in the Klang Valley and is well suited for 5PL operations as well as fulfillment services business through the entire value chain from storage to shipping to handling returns from customers at minimum cost. The market is also currently facing a shortage of warehouse space and rentals have risen significantly."
Khoo adds "Given the more complicated supply chain arising from the growth of e-commerce and higher expectations from customers, many businesses are now looking to outsource their logistics management to others and we are in a good position to seize this opportunity with the support of PLA and the resources of our warehouse. We believe the share of 5PL providers in the global logistics market will increase considerably over the next few years."
Issued by: Swan Consultancy on behalf of Ni Hsin Group Berhad
Please contact the below for more information:
Hakim Juraimi
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz
Copyright 2021 JCN Newswire. All rights reserved. www.jcnnewswire.com
Established in 2014, PLA is principally engaged in providing freight forwarding services. The Company's business includes freight, forwarding, haulage & transportation, warehousing and international agency services.
Managing Director of Ni Hsin Ecologistics Sdn Bhd, Khoo Chee Kong, said: "We are diversifying into the logistics industry to complement our food and beverage business as we see this acquisition as cementing the last mile of the ecosystem where we are using electric vehicles for delivery. PLA has an experienced team with the knowledge and expertise in logistics that we can leverage on."
Ni Hsin also sees the acquisition as a springboard into the logistics business, especially in fifth-party logistics (5PL), where it can manage all supply-chain processes for customers supported by a sizeable warehouse equipped with Automated Storage and Retrieval System (ASRS), which is designed to buffer, store, and retrieve product and inventory on demand. Other ASRS benefits include more efficient use of floor space, increased storage density, increased order-picking accuracy and improved product security for premium inventory.
"Our ASRS-equipped warehouse is strategically located in the Klang Valley and is well suited for 5PL operations as well as fulfillment services business through the entire value chain from storage to shipping to handling returns from customers at minimum cost. The market is also currently facing a shortage of warehouse space and rentals have risen significantly."
Khoo adds "Given the more complicated supply chain arising from the growth of e-commerce and higher expectations from customers, many businesses are now looking to outsource their logistics management to others and we are in a good position to seize this opportunity with the support of PLA and the resources of our warehouse. We believe the share of 5PL providers in the global logistics market will increase considerably over the next few years."
Issued by: Swan Consultancy on behalf of Ni Hsin Group Berhad
Please contact the below for more information:
Hakim Juraimi
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz
Copyright 2021 JCN Newswire. All rights reserved. www.jcnnewswire.com
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