Difficulties and solutions to problems when applying technology to logistics
Although the trend of technology application is very clear, the current hot issue is that very few domestic businesses invest and apply new technology in their operations. There are three groups of problems:
Look for good technical solutions
There are very few logistics technology solution providers in Vietnam, so it is difficult for businesses to choose the right supplier. Many businesses providing forwarding services currently do not have international freight forwarding management software (FMS) because major software provided from abroad is expensive, usually not less than 100 thousand USD, while the When domestically developed FMS software is developed, some suppliers sell it for only 1,000 USD, but customers are worried about not having enough features and reliability. This makes it difficult for both foreign and domestic suppliers to survive because either way they do not have enough sales to develop in the current market.
Capital and effective investment requirements in logistics technology
Having a good technical solution is a necessary condition, but businesses often have to calculate whether their investment in technology will be financially effective or not? It is this requirement – for example the payback period – that is the second challenge and is very difficult to overcome. There have been a number of businesses continuously looking for solutions but after more than a year they still cannot decide, because economic targets have not been met. Capital for equipment purchases is often still a source of bank loans or internal mobilization, but the cost and capital recovery time required for technology investments is no more than 3 years. While improving productivity or the advantages created from technology application is unclear because domestic businesses do not have precedent or experience, their investment decisions are very difficult.
Human resources for management, operation and maintenance
Many businesses have a team of leaders and administrators who lack the ability to update knowledge and information about technology applications, so it is difficult to decide on a solution. The operations team has never experienced it before; The maintenance team is not trained and it is often difficult for suppliers to provide online support in maintenance and troubleshooting with the desired efficiency.
Lack of consultants and managers of technology application projects
Domestic businesses also do not have the habit of paying for design consulting and technology application project management, so the project management consulting market in the logistics field is still very small and primitive.
- Proposed solutions to increase technology application in logistics 1) Develop specific programs to improve the capacity of logistics service providers through technology application with defined productivity targets , speed, accuracy, quality and service level, etc. Use the national technology innovation fund to fund these programs.
- Support applied research, training, and technology transfer activities to build design capacity, system integration, installation and maintenance of applied automation systems in transportation and warehouse management , distribution center,…
- Capital support or initial working conditions for start-ups in logistics electronic platform solutions and start-ups in related applications.
- Research and apply available solutions developed by international/regional partners to take advantage of technological resources and rapidly develop links to the region