Digital transformation for logistics: The problem of “Optimizing resources, connecting supply and demand”
Logistics is considered the backbone of the economy, accompanying all fields of activity, from production, distribution, circulation to consumption. – Vietnam Digital Transformation Day – DXDay Vietnam 2020, co-organized by VINASA, Department of Information Technology (Ministry of Information and Communications) and Hanoi Tourism Trade and Investment Promotion Center, the afternoon of the day December 15, the conference “Digital transformation for the logistics field” took place.
The Logistics industry is considered the backbone of the economy, accompanying all fields of activity, from production, distribution, storage. through to consumption. Decision No. 200 / QD-TTg dated February 14, 2017 of the Prime Minister approving the action plan to improve competitiveness and develop Vietnam’s logistics services up to 2025 affirmed that Logistics is the translation industry. important department of the overall structure of the national economy, supporting the connection and promotion of socio-economic development, contributing to enhancing the competitiveness of the economy from the perspective of the State Management Agency.
Mr. Tran Thanh Hai – Deputy Director of the Import and Export Department (Ministry of Industry and Trade) said that on June 3, 2020, the Prime Minister approved the National Digital Transformation Program to 2025, with an orientation to by 2030; clearly stating 8 priority areas for digital transformation; including logistics.
The outbreak of COVID-19 had a strong impact and impact on all economic sectors; in which, there is logistics industry. Right now, digital transformation is really essential for businesses in the industry to overcome difficulties and accelerate development.
According to Mr. Tran Thanh Hai, in 2020, the hottest keywords are digital transformation and COVID -19, are all related to logistics. Social disparity forces people to stay indoors, but goods, on the other hand, are transported everywhere through global logistics services.
Translating COVID-19 is also a push for all areas of life to be digitized, promoting digital transformation … Some digital transformation activities of the logistics industry: trading floors, transportation, warehousing, intelligent data, undocumented; optimization of the last-mile delivery logistics process, automated urban logistics, process automation using IoT, AI, traceability and identification technology; Transactions between the state and enterprises through online public services. However, according to Mr. Tran Thanh Hai, digitization is the first step, but not all of digital transformation.
Digital transformation is the first step, but it’s not all about creativity. But digital transformation needs to be implemented synchronously, and the ultimate goal of digital transformation is to bring efficiency, reduce costs …
“With the central position of the supply chain, digital transformation in logistics will have the effect of” activating “the digital transformation of many other components,” said Mr. Hai. According to experts, the future of logistics through minh is not on single innovations, but requires comprehensive strategies and plans, with the participation of technology and cloud computing.
This transformation helps businesses and logistics services to better serve customers, control information flow and optimize automation by module and customer order. Global promises to create value that is shared in real time with stakeholders.
At the same time, integrating technology from start to finish is a prerequisite for the world to have an intelligent logistics network. Through the use of new technologies, the emergence of actors as well as tissue In the new business model, smart logistics is evolving into flexible, low-cost, decentralized, and “traceable” processes of information in real time.
Towards a transparent cooperation, synchronous coordination between departments in the organization as well as partners to meet customers’ expectations.
Referring to the topic of digital transformation in the logistics sector, Mr. Nguyen Tuong – Deputy General Secretary of the Vietnam Association of Logistics Service Enterprises (VLA) said: Most of the problems “obstructing” the movement of the logistics industry are old diseases, which have been mentioned a lot, such as: efficiency operation still has many limitations, lack of connection in the system; Service quality is not high while logistics costs are “higher than the world average”.
Specifically, Vietnam’s logistics costs account for about 20.9% of the value of goods, twice as high as other economies. develope; in which, transportation costs make up 60%; Limited initial investment finance because about 97% are SMEs. Difficulty in choosing the right technology; Psychology does not really believe in information security.
The application of high technology in the provided services has not met the requirements. Approximately 40% is a basic solution and not many businesses apply highly integrated software … Currently, the market has about 4,000 international and domestic logistics service providers (LSP); Of which, over 90% are small and medium enterprises (SMEs). Along with the specific characteristics of the Vietnamese market, digital transformation in this field is facing many difficulties and challenges. Specifically, it is the limitation of initial investment finance (because about 97% of SMEs), difficulty in choosing the right technology for each enterprise’s service activity, another barrier.
International standard software has not been applied much in Vietnam. Along with that, there is a psychology of not really believing in technology and the “fear of change” habit of enterprises. Mr. Tuong said that in order to overcome these barriers, in addition to the determination and concentration of investment resources of enterprises, there should be cooperation between the shippers and logistics service providers.
It is necessary to have the State’s support in reforming related administrative procedures, supporting capital in the possible conditions, especially with the leading enterprises in digital transformation. In addition, large logistics enterprises have also shared their digital transformation experiences in their respective units, such as Viettel Post, Vietnam National Shipping Lines …
Source: bnews
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