VietNamNet Bridge – In the cutthroat competition in the forwarding service market, the maximum delivery time  has been cut from several days to several hours, and now to 60 minutes. 

DHL, a big player in the field, states that cargo will be delivered within a day. Lazada has launched an express service. Tiki Now commits to deliver within two hours. 

Meanwhile, Ship60, a startup cooperating with many big businesses, pledges to deliver within 60 minutes.

Experts say that 60 minute delivery time is a challenge. Even the fast delivery service of Amazon Prime delivers within two hours.

As more and more new players have appeared, the delivery market has become scorching hot. There are many suppliers such as Viettel Post, VNPost, Saigon Post, Giaohangnhanh, Shipchung, Giaohangtietkiem and other smaller firms.

According to the Vietnam E-commerce Association (Vecom), the online retail market segment grew by 30 percent in the first three months of the year.

Goods prices and delivery time are the two most important factors that consumers consider when shopping. 

A survey by KPMG in 2017 on 18,000 consumers in 51 countries, including Vietnam, found that 34 percent of consumers would rather shop offline rather than book online because they fear they will have to wait too long to get goods delivered.

In Vietnam, the competition has just begun and the potential in the logistics industry remains promising. 

The Vietnam Logistics Association (VLA) estimates that the expense on logistics services in Vietnam is 16.8 percent, higher than the average level in Asia Pacific (12.5 percent), Thailand (15 percent) and Singapore (8.5 percent).

Phung Khac Huy, CEO of Ship60, commented that Vietnam’s logistics services remains unprofessional because large freight & forwarding firms still used traditional management models. They do not apply modern technology which the world’s leading firms are utilizing to optimize their operations.

As for Ship60, Huy believes that with the application of high technology, the goal of delivering cargo within 60 minutes is within reach.

The operation model applied at Ship60 allows it to take full advantage of existing transport means in circulation, thus cutting management and operation costs. With the model, post offices and receiving stations no longer exist.

“Utilizing machine learning, big data and analyzing information about transport on Google Maps platform, we can foresee all possible scenarios about traffic conditions so as to give most accurate predictions,” he said.

“The information and predictions help us figure out the most reasonable itineraries for delivery, thus shortening delivery time,” he explained.

Vecom predicted that the 30 percent growth rate of Vietnam’s e-commerce could be maintained until 2020.

Source: Vietnamnet