IRONWOOD GLOBAL LOGISTICS was established in the year 2019. At the moment, we have 3 operation hubs located at Batu Pahat (Johor), Puchong (Selangor) and Ipoh (Perak), and a network fleet of more than 100 trucks. The founders, Kevin Gan and Yap Chin Hung had more than 10 years of experience in logistics and system management respectively. The aim of setting up this company is to provide holistic logistic solution to enhance sustainability. The company’s mission is to provide a platform for stakeholders by fulfilling customers’ expectations while increasing logistic provider profit at the same time.
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Revolutionize the last mile delivery through digital transformation
We noticed in logistics market there is a blue ocean in red ocean. Hence, we’ve decided to integrate the first mile and last mile delivery, optimizing time and cost across the supply chain. By implementing an intelligent logistic platform, we may gather all the resources to form a strong logistic network. Our mission is to become the leading logistic company in Malaysia through excellent logistic services and solutions.
BRAND START UP STORY
RM 0 to 1.8 million of revenue within 15 months
My name is Kevin Gan and I have 12 years of experience in the logistics industry. Together with my partner, Yap Chin Hung, we founded Ironwood Global Logistics in year 2019. We would like to share the exciting histories behind the company start up.
We began our operation in Klang Valley in March 2020. Unfortunately, that was the beginning of Malaysia lockdown e.g. Movement Control Order (MCO) 1.0 due to the unprecedented Covid-19 pandemic. At that point in time, no one could possibly guess the effects and how it could potentially change how we live on a global scale. However, our target remains clear, there’s no point of return as we’ve invested all we have and the only way out is to make it a success.
Surprisingly, the development of the company was far beyond our expectations.
Within a short period of 3 months’ time, our sales surged resulting in our warehouse being full of goods and the roller shutters unable to close properly. When we realised that the security guard had to sleep outside of the warehouse, that’s the moment we immediately moved to a larger warehouse to accommodate the business. We also recruited more fleets as part of the expansion. By the end of 2020, the company performance has hit 1.8 million from 0.23 million, a tremendous growth of more than 680% in just 15 months.
Due to the immense market change, we have set a vision to become Malaysia's leading logistic company by providing excellent services and solutions to our clients. On top of that, we also set our mission to provide a “Win-Win” solution for Malaysia logistic providers through our platform.
My family runs a courier company in Johor. My father always has a strong entrepreneurial spirit and probably that’s where the genes have rooted deeply within me since I was a kid who doesn’t show much interest in express delivery. Upon graduating, I was working in the financial industry for several years. In the meantime, I also ventured into business mainly in the food and advertising industry. Regrettably, my business wasn’t successful due to lack of experience and capital. I then decided to help out my father’s business as he was running short of manpower.
My father owns a medium size courier company. I first started out in his company as a junior employee. As time went by, I realised this industry is one of the vital links for in the economy chain and has a significant contribution to the regional economy. I’ve realised the pain points of the logistic industry through the few years of working in the company. Indeed, there are always room for improvement and the industry will continue to prosper in the near future. I foresee the opportunity and the idea of starting up a new business kicked in my mind again.
I registered a company back in year 2013 with a capital of RM 30,000 hoping to provide solutions to the logistic industry, especially in the area of not capable to courier the heavy and bulky goods. Nevertheless, I acknowledged that the manpower and resources management is very time consuming. I will not be able to grow my business alone but with help from a new partner.
Thankfully, Yap who was my university mate joined the company as my partner. Yap has vast experience in management and system operation which will further strengthen the company backbone. Together, we then established Ironwood Global Logistics in July 2019. Now, we have our operation offices in Puchong (Selangor), Batu Pahat (Johor) and Ipoh (Perak).
Managing Director - Founder
More than 12 years of experience in the logistic industry
Have a strong drive to reshape Malaysia logistic industry
Yap Chin Hung
Chief Technology Officer - Founder
Professional business consultant
More than 10 years of experience in ISO industry
Currently, we have more than 100 trucks in our fleet networks and our business covers:
B2B（90% of the company sale）：freight/transporter
B2C（5% of the company sale） ：last mile delivery for niche market with heavy (>10kg) and bulky shipment
Charter Truck（5% of the company sale）：Chartered freight
Market Pain Points vs our advantages
Ironwood, A platform providing total solution for logistic industry
The conventional logistic services in the market are mainly based on transporter and courier. Transporter mainly focuses on B2B, which goods transported in bulk but lack of customer service and tracking systems. While courier companies are focusing on B2C, but they have insufficient fleet networks and warehouses for storage. It is difficult for them to deliver large item or in bulk and the cost is high. Therefore, the grey area between B2B and B2C is becoming apparent.
The biggest advantage of Ironwood is that it combines both the freight/transporter and last mile delivery service. Therefore, we are able to complete the last step of delivery of heavy and bulky goods at a much lower cost. Instead of having a comprehensive online tracking system, we customized one to one customer service regardless B2B or B2C, allowing clients to track their item in real time. In other words, we are transporter that provides courier standard service at a cheaper cost.
This is the blue ocean that we noticed in the red ocean of the logistic industry
Human resource management has always been a big challenge for the industry as it relies on manpower. The next issue will be empty running for the returning trucks. According to transport4u website, statistics have shown that the empty running rate for return journey of the local freight trucks could be as high as 77%. Therefore, we are inspired to create a platform that enables a flawless integration of resources, especially cooperating with small logistic companies. This integration benefited all logistics providers such as higher efficiency, higher sales, more environment friendly and building a stronger fleet network. These will then resolve the manpower issue while increasing the service quality when everyone is treating the platform as their own business.
Trends in Logistics Industry
A promising prospect in the logistic industry
Due to the Movement Control Order (MCO) implemented by the government, the B2C demand surged exponentially due to the increasing online purchasing trend. Our business model fits very well in this as we are reaping the benefits of the change in consumer buying trend e.g. online shopping. When the MCO is lifted, the B2B demand will increase too as the purchasing rate in physical stores increases.
In the long run, e-commerce has brought a huge business opportunity to the logistics industry. Looking at the regional market, the population of South East Asia will continue to grow and the logistics market will inevitably be increasing over time. The prospects are even more optimistic as our government has a plan to make Malaysia into an ASEAN hub.
Integrate resources to create a “win-win” economic model
Expansion of Operation Base
We planned to expand our business by setting up three more branches in Johor Bahru, Penang and the east coast of peninsula Malaysia to further improve the logistic networks in West Malaysia. At the same time, we will expand the existing warehouses and provide warehousing services to facilitate customers to store their goods and speed up the logistics processes.
IT Development and Digital Marketing
Through the development of AI platform and expansion of the fleet networks, the load carrying limits is increased. As front liners to engage in customer service, automated customer service will be provided for convenience purposes. Further escalation of customer service will be a one-to-one customer service attendant for a seamless interaction with customers with regards to their needs.
Increase Brand Awareness
Our services can resolve the pain point of logistic industry and most importantly at a very competitive price point. We hope to further increase our brand awareness through equity crowdfunding.
Why must invest in Ironwood?
The best timing to become leader in logistic industry in Malaysia
We are currently the leader of the niche market
We target the "last mile" market with delivery more than 10kg item and in bulk to meet our client’s requirements. Nowadays, many importers and manufacturers tend to deliver the goods directly to customer after a brief connects through the Internet. Therefore, the demand for integrated freight and home delivery services will become more than ever. We are one of the very few companies in the market that provide such services.
Recognize the concept of sharing and win-win
Through the integrated resources, we could help small logistic companies to reduce the empty running rate, and we also implementing the "asset-light strategy", without having to spend excessively on the fleet and manpower. This will provide more room maneuver when have to deal with business emergencies. In addition to profit sharing with investors, we will also include our partners such as drivers and executive level employees for a win-win situation.
Huge Potential Growth and Profit-Making
As a we’re relatively new in the industry, we still have a huge room for growth. In the future, we are also considering to venture into other types of services, such as warehousing, oversea shipping, etc., to completes the one-stop service platform.
As an entrepreneur, I believed in the spirit of teamwork and togetherness to achieve victories, and Yap has been a strong believer of "be courageous and constantly adapt to changes”. This is the best moment for the logistics industry. We decided to seize the opportunity and use the strength of the team to providing excellent services and solutions for logistic industry in Malaysia
I sincerely invite you to come onboard with us and be part of the future leader in the last mile delivery market.
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OUR LOCATION & CONTACTS
Batu Pahat, Johor
No. 6, Jalan TPP 5/17, Taman Perindustrian Puchong, 47100 Puchong, Selangor.
03-8052 3436 (Customer Service)
No. 48, Jalan Damai Utama, Taman Industri Damai Plus, 83000 Batu Pahat, Johor.
013-945 2369 (Mr Hakimi)
No. 1, Persiaran Tawas Permai 5, Taman Tawas Permai, 30100 Ipoh, Perak.
011-64451368 (Mr Thiru)