PChome Online’s President and CEO, Kevin Tsai, announced that the company has started leveraging cloud computing services since three to four quarters ago, in a bid to enhance the firm’s operational efficiency.
Tsai added that PChome, which is the largest online shopping service operator in Taiwan, now uses cloud computing for more than half of its services, and is set to step up the pace of cloud-based operation in 2022 by starting trial application of virtual reality and other innovative technologies within its operations.
Currently, PChome has seven logistics facilities, five warehouses, and eleven distribution centres, which supports its e-commerce operations in the Taiwan market.
Tsai noted that PChome will use spaces it has rented from a logistics building constructed by Chunghwa Post in northern Taiwan to house its AI-based automated logistics centre.
The logistics centre will come into operation from October 2022, and is set to increase PChome’s total logistics capacity in floor area by 50%, and total parcel processing capacity by 100%.
Cloud Computing to Meet Consumer Demand for E-commerce
Tsai noted that consumer electronics take up about 70% of merchandise items sold through PChome, and PChome remains optimistic about its business in the second-half of 2022.
In addition, PChome had been enjoying high net profits and surges in revenue beginning from the first half of 2021, when the COVID-19 outbreak had just begun and drove more people to stay at home and shop online. Notably, there was an explosion in customer demand for daily supplies, work-from-home equipment, home appliances, and home fitness products, during the pandemic.
However, even then, the significant explosion in demand for e-commerce services also led to logistics woes for PChome, and customers would also complain of delays in order arrival.
Hence, beyond opening up physical space with warehouses, increasing operational efficiency through moving services to the cloud is also an important and necessary step undertaken by PChome, which may enhance its competitiveness amid strong competition from other e-commerce companies, such as Amazon or Shopee.
It remains to be seen whether PChome’s adoption of cloud computing would also enhance its international business, since PChome has also ventured into overseas markets such as Southeast Asia.
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