Logistics service businesses transform digitally to reduce costs

Many businesses apply green, sustainable logistics. Photo: Enterprise’s source

Green and sustainable logistics trends

At the recent Logistics Forum 2024, the Ministry of Industry and Trade released the Vietnam Logistics Report 2024 outlining a panoramic picture of the Vietnamese logistics industry, with many bright spots.

In particular, green and sustainable logistics is becoming an important trend in Vietnam, especially when Vietnam has committed to reducing net emissions to zero by 2050.

According to a report by the Ministry of Natural Resources and Environment published in January 2024, 53% of medium and large logistics enterprises have applied energy-saving solutions in transportation and warehousing; 38% of enterprises have invested in means of transport using clean energy (electricity, natural gas). CO2 emissions from logistics activities decreased by 12% compared to 2020.

According to a survey by the Vietnam Logistics Association (VLA) in 2023, 65% of corporate customers prioritized choosing logistics service providers with environmental certification; 47% of logistics enterprises have applied ISO 14001 standards on environmental management.

4.0 technology is increasingly widely applied in logistics management in Vietnam, helping to improve efficiency and reduce costs.

Accordingly, 68% of medium and large logistics enterprises have applied IoT in warehouse and transportation management; 52% of enterprises have deployed Big Data and AI solutions in demand forecasting and route optimization; 35% have tested Blockchain technology in traceability and supply chain management.

The application results show that 4.0 technology have reduced logistics costs by an average of 23% compared to traditional methods and shortened order processing time by an average of 35% thanks to automation.

To maximize the benefits of logistics, manufacturing and trading enterprises need to focus on solutions such as:

Promoting investment in technology. According to data from the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), 61% of Vietnamese enterprises have applied digital technology in logistics activities.

However, there is still much room for development. Enterprises need to focus on applying advanced technologies such as AI, IoT and Blockchain in supply chain management to enhance forecasting capabilities, optimize shipping routes and increase transparency throughout the process.

Develop high-quality human resources. According to the VLA Association, only about 24% of logistics human resources are currently trained in specialized fields. This poses an urgent need for investment in training and skills development for employees. Enterprises need to develop a systematic training strategy, combining internal training and cooperation with specialized educational institutions.

Optimizing business operations

Logistics in manufacturing and trading enterprises is the process of effectively managing the flow and storage of goods, services and related information from the origin depature to the point of consumption, in order to meet customer requirements and optimize operating costs.

Logistics plays a key role in optimizing the operations of manufacturing and trading enterprises.

A survey by the Ministry of Industry and Trade on 241 enterprises using and providing logistics services in Vietnam has showed that businesses highly appreciated the role of logistics in production and business activities.

All three aspects of logistics are considered very important, with an average score of over 4/5. Of which, output logistics is rated the highest (4.43), followed by input logistics (4.41), and finally reverse logistics (4.27).

Notably, very few businesses think that logistics is not important or less important. The majority rate logistics as important or very important, especially for input and output logistics.

This result reflects the increasing awareness of businesses about the importance of effective supply chain management.

The main logistics activities in manufacturing and trading enterprises include a series of important processes and functions, playing a key role in ensuring the efficiency of business operations.

These activities include order management; warehouse management; transportation management, supply chain management, etc.