Are you currently wondering how the process of applying technology in logistics activities is carried out? So please refer to Proship below to grasp the details.
General assessment of technology application in logistics
Applying technology in the field of logistics
The year 2018 marked remarkable progress in the application of technology in logistics, demonstrated by the increase in local application solutions and especially the appearance of overall solutions with system integration. artificial intelligence systems and applications. More individual applications have appeared, table 13 lists 11 groups of devices and local solutions that have been applied in Vietnam. However, the number of known systematic solutions including equipment and software has increased to 24, including 12 groups of systems and 12 types of software (tables 13, 14).
If in 2017, the concept of logistics during the fourth industrial revolution, also known as "logistics 4.0", was still quite vague, this year it has been mentioned a lot in the media and in the world. specialize. Technology companies are making strong inroads into the service system, both as solution providers and, in some cases, as service providers.
There are four main application areas of new technologies
- The most common applications are in Road Transport through optimizing vehicle capacity - improving the ratio of exploitation to the total distance traveled, optimizing planning and control of routes, time and schedule. The rise of companies like Uber clearly shows signs of a new wave. Uber itself has the ambition to enter the logistics market with the "Uber Truck" solution.
- The second dominant internal segment is the solution to automate e-commerce warehouses - express delivery, last-mile delivery. There have been the first applications like Lazada's and it seems that this will be the next wave with the participation of many large companies in the industry.
- Some large manufacturing companies such as Samsung show that an operating system that combines production automation with “Just-in-Time” lean manufacturing principles works very effectively.
- A small number of domestic retailers are implementing applications combining information systems - automation - artificial intelligence in supply chain management from
Difficulties in applying technology in logistics activities
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. Specifically as follows:
- Difficulties in finding 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.
- Difficulties in capital issues and requirements for effective investment in logistics technology Having a good technical solution is a necessary condition, but businesses often have to calculate whether their investment in technology will bring financial efficiency. 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 administration, operation, and maintenance Many businesses have leadership and management staff 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; Maintenance staff are untrained and suppliers are often difficult.
- Lack of consultants and managers for 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 Projects in the field of logistics are still very small and primitive.
- Develop specific programs to improve the capacity of logistics service providers through the application of technology with defined indicators of productivity, speed, accuracy, quality and service level, … Use the national technology innovation fund to fund these programs.
Above is the process of applying technology in logistics activities. You can refer to it to grasp more knowledge you need to know. If you need support in the field of shipping, transport, or express delivery, please contact us for help.
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