Digital transformation to compete in challenging logistics market

At the Vietnam Logistics Summit 2024, themed “Transform to Breakthrough” and hosted by VIR on October 31, experts unanimously highlighted that digital transformation has become a key driver in global logistics growth and discussed strategies for enhancing data analytics and integrating AI into logistics operations.

From the perspective of a global consulting firm, ABeam Consulting shared its commitment to leveraging its expertise in digital transformation to foster a sustainable supply chain evolution across Asia.

Drawing from deep project experience, ABeam is deploying digital twin technology, which integrates grid data and AI to digitise massive datasets such as transportation routes and modes. By analysing these with AI, clients benefit from continuous monitoring, allowing clients to easily track and enhance systems.

"Given Vietnam’s unique geography, stretching from North to South necessitates logistics hubs that prioritise not only sustainability but also speed and convenience, key for customer satisfaction. Digital twins will allow diverse scenario simulations, making it a pivotal application in Vietnam’s logistics sector to devise optimal transportation strategies," said Yoshihiro Wake, lead of transglobal expansion frontier at ABeam Consulting.

Yoshihiro Wake, lead of transglobal expansion frontier at ABeam Consulting. Photo: Le Toan

As Vietnam’s rapidly evolving market presents abundant opportunities, ABeam’s mission is to help clients continuously innovate and adapt to the challenging logistics landscape.

To address fragmented logistics hubs and an ever-changing business environment, Yoshihiro Wake noted that ABeam Consulting has developed the Coupa digital twin, which enables clients to prioritise data analysis, aiding in operational cost reduction and optimisation.

“The core value of this technology lies in cultivating a culture of continuous technological and operational improvement. ABeam’s clients have become proficient in running proactive simulations, empowering them to swiftly respond to global logistics market shifts.”

Digital Twins are designed for constant monitoring and adjustments to suit the dynamic business landscape, which is particularly beneficial in Vietnam’s fast-paced market,” added Yoshihiro Wake.

As a leading enterprise applying technology in Vietnam, Viettel Post’s Deputy CEO, Dinh Thanh Son, noted that digital transformation starts with a shift in human capital.

“With 40,000 employees nationwide, Viettel Post has undergone digital transformation across all operations using IoT tools, with investments in advanced IoT devices and IoT training for employees. This allowing us to harness data and analyse it with AI,” he said.

Post-transformation, the company introduced robotics in operations, significantly increasing productivity in sorting areas, as robots operate around the clock in warehouses, cutting delivery costs by roughly 40 per cent.

"Our ultimate goal is to reduce costs for both consumers and the company. In Vietnam, finding the lowest delivery price isn't possible; rather, we aim to continuously lower rates for our customers," stated Viettel Post’s deputy CEO.

Overview of the discussion session. Photo: Le Toan

Vietnam’s logistics sector has emerged as one of the fastest-growing globally, driving an influx of foreign companies into the market. Consequently, digital transformation plays a crucial role in helping enterprises remain competitive in an industry rich with opportunities yet fraught with challenges.

Eric Herding, managing director of DSV Air & Sea Vietnam, emphasised three pillars for successful digital transformation include IT personnel, process reengineering, and data quality.

“However, digitisation without a clear purpose rarely succeeds. The success rate of digital transformation projects varies, so a critical factor lies in people’s mindsets,” he noted, adding that the upcoming US presidential election results could significantly impact business, making it essential to view trends and projections carefully for 2025. Based on that, it is important to implement digital strategies effectively in the current context.

"From my experience, we anticipate unpredictable changes in 2025. Therefore, besides digital transformation, green transition is equally critical in the logistics industry to meet requirements from various import markets,” said Herding.

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