Friday, 22 Mar 2019

Logistic businesses should take advantage of technology

Updated at Tuesday, 17 Apr 2018, 16:06
The Hanoitimes - Technology is seen as one way to help domestic logistic enterprises cut costs to gain an edge amidst higher demand in global transport.
A survey by Vietnam Logistics Association (VLA) revealed that 87 percent of logistic enterprises agreed that technology creates a competitive edge and 83 percent it’s up to them to better use technology.
IT use in Vietnamese logistic firms, though at a medium level compared to the world, has increased in recent years.
Logistic businesses should take advantage of technology
Logistic businesses should take advantage of technology
About 40-50 percent of businesses have used technology in transportation, higher than the 15-20 percent two years ago. Some big firms have even utilised technology from the world’s leading companies such as Oracle and IBM.
However, as most of them are small and medium sized enterprises (SMEs), they mostly use mandatory applications such as customs declaration software Manifest on the national one-stop system or truck positioning software. Only 10-15 percent of companies use technology to manage transportation, vehicles or warehousing.
The boom of e-commerce is changing the market, as the size of each order is getting smaller while the number of orders is getting bigger. Moreover, the workflow of local companies overlaps which causes waste and higher costs.
Digital bills of lading can allow businesses exchange information with authorities across the border without the need for paper. Digitalising waybills also helps create big data, so firms can exploit this data to grow their business.
Logistics cost in Vietnam are still high, accounting for 16.8 percent of enterprises’ costs, higher than the average of 12.5 percent in Asia-Pacific, in which transport cost accounts for up to 50 percent.
Regarding transport and logistics, the State should plan wharves and transport grounds to avoid traffic jams and unreasonable expenses, he said, adding that the Ministry of Industry and Trade should advise on the re-construction of the logistics centre.
Trung Kien
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