Efficiencies building with enhancements in e-logistics

June 13, 2024 | 10:34

(0) user say

Further enhancements and upgrades in e-logistics are being geared up throughout the country.

Speaking to VIR last week, Nguyen Anh Minh, head of ground operations at Lazada Logistics Vietnam, discussed how the company is contributing to the reshaping of the e-commerce landscape in Vietnam and driving sustainable e-logistics.

Efficiencies building with enhancements in e-logistics, photo Le Toan

“Amid the surging growth potential of Vietnam’s logistics industry, Lazada Logistics has and will continue to make strategic and sustainable investments in technology, infrastructure, and workforce training to drive a sustainable e-logistics and e-commerce industry in Vietnam,” he told VIR.

Lazada’s strategy hinges on three key pillars: elevating delivery experiences anytime, anywhere; embracing cutting-edge technology in operations; and fostering sustainable green logistics, Minh said.

He added that in Vietnam, e-logistics growth was propelled by booming e-commerce, infrastructure development, and technological advances. “At the same time, the growth of the wider e-commerce industry also presents opportunities to e-logistics businesses like market expansion, service innovation, and collaborations with other players in the ecosystem,” Minh said.

For example, Lazada Logistics Park was launched in early 2023 to optimise operational efficiency, improve service quality, and create many benefits for customers, sellers, and partners.

To date, Lazada has built sorting centres, thousands of drop-off points, hundreds of pick-up points, and a smart locker system in Ho Chi Minh City and Hanoi, along with a network of hundreds of post offices across the provinces and cities, ensuring that goods are handled to the highest standards with the fastest transit time.

According to the Vietnam Logistics Business Association (VLA), e-logistics is the backbone that will help drive the sustainable and robust growth of the e-commerce industry, and it is essential to continue to leverage advanced technologies and existing infrastructure to streamline such operations.

“Building an efficient and sustainable e-commerce logistics system to meet customer expectations requires many parties to invest in digitalisation and infrastructure,” said VLA chairman Le Duy Hiep.

“For example, e-logistics businesses face the challenge of constantly increasing their efficiency and reducing delivery costs to improve customer experience. In addition, they also have to focus on developing human resources and paying more attention to upskilling their workforce, to keep up with new technology and processes.”

There have been clear advances and transformations in digital transformation for logistics services. The majority of logistics businesses have applied electronic delivery orders, electronic bills, and electronic service invoices. “Seaports have also applied e-port electronic customs clearance of ships, submission of documents to relevant authorities through software and online,” Hiep added.

For instance, Saigon New Port has been applying e-port customs for years, while Gemadept, the parent company of Gemalink, has applied a Smart Port solution since 2023. Meanwhile, large logistics companies Transimex, Sotrans, and ITL have digitalised transport documents.

Saigon New Port is now the biggest port operator in Vietnam, and its three ports hold the top positions in import-export container throughput. Meanwhile Tan Cang Cat Lai Port is deemed the most modern seaport in Vietnam, and ranks 30th in the world.

Meanwhile, ITL has actively developed a sharing ecosystem to meet customers’ needs. To effectively expand its ecosystem, ITL has expanded resources by synergising with major enterprises in the industry, making investment in technology and others.

Hiep of the VLA said that the race to adopt advanced technologies was on for several major logistics companies in the country, but the majority in the industry are small- and medium-sized companies, which have limited technology due to financial constraints.

“Further enhancements and upgrades in e-logistics will be the direction for the entire logistics industry in Vietnam. Investing in logistics means investing in the future of e-commerce. However, this requires significant costs, and it takes smaller businesses longer to keep up,” he said.

Ee-Hui Tan, managing director for Vietnam and Cambodia FedEx Express

We recognise that the future of our business depends on the future of our planet, and we have set the goal of achieving carbon neutrality by 2040.

We plan to achieve this through enterprise-wide initiatives that focus on vehicle electrification, sustainable fuels, fuel and aircraft modernisation, more efficient facilities, and natural carbon sequestration. Timetables and targets have been set for these. We aim for half of new vehicle purchases to be electric in 2025, increasing to 100 per cent by 2030. That will help get us to our goal of making our entire pickup and delivery fleet electric by 2040.

There is a simple philosophy woven throughout our sustainability efforts: reduce, replace, and revolutionise. We are focused on reducing emissions and waste, replacing older technologies and vehicles, and revolutionising our operations with new technologies. This approach enables us to use our resources efficiently and responsibly.

In Vietnam, we are helping to minimise the environmental impact of our operations through actions that include using modern, more fuel-efficient freighters.

We also empower customers to track their FedEx shipping carbon footprint, which can help them make smarter shipping choices. Last year, we launched FedEx Sustainability Insights across the region, including in Vietnam, to give customers better visibility of the emissions associated with their shipments, which can be used to support reporting and strategic future planning.

Wataru Nakano, general director Isuzu Vietnam

The economic downturn severely affects most businesses, and we are no exception. But we would like to collaborate with logistics companies to overcome this tough situation.

We have supported many logistics companies to conduct eco-drive, daily maintenance seminars for their managers and drivers and analyse their vehicle usage using data record modules equipped in all Isuzu vehicles. These seminars not only help many customers to optimise their operation, improve their drivers’ driving skills, but importantly reduce carbon emissions into the environment.

In 2022, we were the first truckmaker in Vietnam to launch the full line-up with the Euro5 emission standard Green Power, complying with the government’s roadmap on emission standards, contributing to environmental protection and the sustainable development of society in Vietnam.

Along with developing technology and products, we commit to supporting our customer operation to help move more goods and businesses by enhancing the quality of transportation.

Currently, the eco-drive, daily maintenance seminars, and our genuine service still accompany and help customers to optimise their operation and reduce the impact on the environment. We hope, through the Logistics Exhibition 2024 in August, we can bring this kind of seminar to many more customers.

We aim to strengthen the foundation for long-term growth and sustainable development by reinforcing existing businesses and investing in new areas. Isuzu Group unveiled a new corporation philosophy in 2023 called Isuzu ID, which includes environmental, social, and governance elements. We will localise this and synchronise mindsets in Vietnam step by step.

Ta Minh Vang, managing director Vietnam Smarthub Logistics Technology

The smart logistics trend in Vietnam is now driven by a number of factors. First is the change from major shipping lines that directly affects changes in technology application. Also, state agencies such as the General Department of Customs and port authorities have been digitising applications and integrating authentic data with legal elements. These affect service providers such as port warehouses, land transport, water transport, and others.

The trend of applying technology to change the way of managing goods and transportation in the world and the region has led to changes in Vietnamese businesses. Ports will gradually lose customers if they do not change in accordance with new technological criteria.

Currently, smart logistics solution providers in Vietnam are quite diverse, including domestic and foreign businesses. In port management and operation applications, there are Catos (South Korea), Navis (the US), TOPS (Australia), and VTOS (Vietnam). About 25 per cent of businesses have invested in the VTOS platform.

In addition, 45 per cent of businesses are still using the traditional CMS product developed by Vietnam in the 2000s. This leads to limitations in the integration of national data and provision of online service applications.

Some of the foreign-made solutions are also costly. Most of them are very difficult to upgrade and change to suit everyday realities. Along with financial investment, the application of foreign products also requires a qualified IT team, understanding both technology and port operations, thus leading to increased costs and difficulty in implementation.

LEL Express to pioneer e-logistics

The second automatic sorting centre of Lazada E-Logistics Express (LEL Express) in Hanoi is expected to improve LEL Lazada's services. Vu Duc Thinh, director of LEL Express talked with VIR's Nguyen Huong about the new facility.

E-commerce, e-logistics – the key to success for exporters

Vietnamese exporters are urged to give priority to e-commerce and e-logistics platforms to increase opportunities to join major value chains while preventing possible loss risks amid changing global trade rules and the wide influence of Industry 4.0.