Supply Chain Evolution. A Study of Opportunities and Challenges of Virtual Kitchens in Malaysia

Abstract

The recent growth of the online food delivery industry in Malaysia is changing the lifestyle of
Malaysians in terms of food consumption and food retailing. However, this dynamic industry is
beginning to evolve in other countries through the use of virtual kitchens. The maturity of online
food delivery services has enabled virtual kitchens to be utilized with the objective of lowering
supply chain cost and improving customer service. As the supply chain evolves, multiple parties
will be impacted, such as food delivery aggregators, food outlets, delivery riders and the
consumers. This paper examines the possibility of planting virtual kitchens in Malaysia and how
it would affect the local market. Supply chain evolution requires a high degree of supply chain
collaboration between suppliers, food aggregators, retailers, and the consumers themselves. It
also requires the right timing of implementation. This paper also contributes to the sharing
economy literature which is still lagging in many areas given the infancy of the economy