How are companies adapting to logistics disruptions in Southeast Asia?

Logistics companies based in Southeast Asia are facing rapid change, as digitization is becoming more prevalent and customer expectations are higher.

Today, Southeast Asia is home to more than 600 million consumers, and some primary markets like Singapore, Indonesia, Thailand, Vietnam, Malaysia and the Philippines stand out as growing economies.

delivery management software

The digital era is also booming, and more consumers are using smartphones, expecting a level of consistency and visibility in delivery quality and speed, pushing organizations to innovate even higher. This is why, a new model of logistics has to align with the demand of these companies.

To reflect these trends, more events focus on tech, as more companies want to learn how to bridge the gap between operations and tech. CarPal strives to offer that kind of mix of service and tech, allowing companies to layer an innovative business model on top of their current one. One such event is TECHINNOVATION in Singapore, where CarPal will participate in September.

What are the catalysts of change in the logistics industry?

Other than consumers, there are other factors which are catalysts for change in the industry such as inefficient operations and speed of delivery. As online retail is booming, the volume of orders is also on the rise, which implicitly creates a surge in last-minute deliveries and on-demand requests.

Big players like Amazon and Alibaba are continuously changing the pace of the e-commerce landscape by offering a wealth of options. Due to this unpredictable volume in orders, many small companies are faced with unprecedented challenges and can easily lose out in the long-run due to the inability to fully-utilize their available resources.

This is why new, modern technologies emerge and are enabling greater efficiency and more collaborative operating models; they’re also reshaping the industry in ways that are only just beginning to become apparent.

For instance, in Singapore alone, the recent launch of Amazon, may have caused disruption, but actually, this could work as a great benefit for local businesses as more consumers become used to receiving goods on the same day, a fact which pushes smaller companies to adopt alternative tactics.

In order to stay on top of their game, organizations know that they have to compete with the same levels of service like giant retailers provide and even take it one step ahead – tapping on same-day delivery services to stand out.

How can smaller organizations thrive in this market? 

CarPal has taken a step further to empower organizations by offering to layer a tech platform on top of existing business models. This sort of platform is a highly scalable tech platform, that can provide comprehensive analytics with granular visibility.

A study by PwC on the future of logistics, highlights that “all data about operations processes, process efficiency and quality management, as well as operations planning are available real-time, supported by augmented reality and optimize in an integrated network.

Horizontal integration stretches beyond the internal operations from suppliers to customers and all key value chain partners. It includes technologies from track-and-trace devices to real-time integrated planning.”

delivery management software
Image credit: PwC

This type of automation is likely to reshape the industry and strives to allow firms to offer faster service and save costs at the same time. For companies, automation through a delivery management software also means more control and visibility into deliveries.

Also, automated routing systems are now available and become the norm; with accurate algorithms which ensure that drivers complete most deliveries in the least amount of time and by taking the best routes, companies will be able to create a truly advanced end-to-end delivery platform, reducing fulfilment costs whilst delivering a top-notch experience.

Through tech platform, there’s also more control and visibility into deliveries, and having access to data is one of the most critical requirements for any business. This is why many experts will emphasize the importance of leveraging analytics to gain insight and uncover patterns related to processes, customers and trends.

What are the current challenges organizations face in this sector?

Today, some of the last-mile delivery challenges are the lack of new technology and automation, which leads back to lack of information on one hand and huge data loss.

To work smarter and faster, more businesses choose to tap on insights from data so they can then translate it into real actions and results. This is crucial as organizations can now make sure that they fulfil all customer interactions in terms of deliveries and services in the best way possible.

The workforce needs to become more tech-savvy

Organizations have started considering an on-demand delivery model as they have realized the market need to provide last-mile connectivity to consumers. This is a win-win situation which gives companies the possibility of easily responding to customer requests while adhering to high-quality standards.

But in order for a company to thrive in the tech world, the workforce has to learn to adapt to change, and start influencing how technology is used. With such an innovative workforce, the next years will experience changes that will prove to be highly disruptive!

 

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