According to Lego, they plan to invest over US$1 billion into the project, spurred by growing demand for its products in Asia — it has seen double-digit growth in the region since 2019.

About the carbon-neutral lego Vietnam plant

The Lego Group will build its first carbon-neutral factory near the Southeast Asian country’s main business hub, Ho Chi Minh City. 

In a statement, the company aims to achieve 100% energy consumption through solar panels on its roof and on a nearby farm. 

Additionally, the company, together with VSIP, will plant 50,000 trees in Vietnam to compensate for vegetation removed during construction.

“We are very grateful for the support of the Vietnamese government in helping us achieve our ambition to build our first carbon-neutral factory,” Lego’s chief operations officer Carsten Rasmussen said.

Construction on their new site will start in 2022 and is slated to start production in 2024. The project is expected to create over 4,000 new jobs over a period of 15 years.

This will be the Danish toy giant’s second factory in Asia after it opened its first plant in China in 2016, and its sixth manufacturing site in the world. 

Lego locates factories close to its major markets, and this new project will expand the company’s global supply chain footprint. 

According to Lego, this strategy allows for the flexibility to respond quickly to shifts in consumer demand, shorten the supply chain, and reduce the environmental impact caused by long-distance shipping.

Lego building on strong bilateral ties between Denmark and Vietnam

Both Vietnam and Denmark have had a long history, with 2021 being the 50th year of its diplomatic relations. 

Denmark’s Ambassador to Vietnam and Laos, Mr. Kim Højlund Christensen said:

“During the past 50 years, both countries benefited economically and culturally from developing close ties – from development cooperation to trade and investment.”

“This is the largest investment in Vietnam made by a Danish company, and it shows the confidence and optimism we have in the future of this important partnership,” added Christensen.

Vietnam’s pursuit of green energy excellence

Vietnam is the ASEAN region’s leader in the adoption of solar and wind power capacity since 2019. 

Supported by strong government and public support, the nation of 97 million is on the way to establishing itself as a global leader in renewable energy production.

Due to high governmental participation in the energy sector, government policies are essential for renewable development, especially given its capital intensiveness and high-risk exposure.

The country boasts generous economic incentives such as feed-in tariffs, tax exemptions, and investment subsidies.

These policies have strongly incentivized industry uptake, according to a study by Do et al (2021), published in the journal Energy for Sustainable Development. 

The Vietnamese appeal

Within developing ASEAN nations, Vietnam’s labor costs are the third-lowest, with the average monthly wage hovering around US$248 in 2017, according to KPMG (as informed by Fitch).

This, together with its geographic proximity to the rest of Asia, makes it a viable location for richer countries looking to take advantage of lower labour costs by shifting their supply chains to the country.

Notably, this is amid a backdrop of US-China trade tensions, which has seen more US companies look towards SEA to avoid China.

However, due to the effects of lockdowns due to the Covid-19 pandemic, Vietnam, like the rest of the world, faced drastic socio-economic setbacks. 

The International Labor Organization (ILO) estimated that the pandemic would affect the livelihoods of up to 10.3 million (11%) of the nation’s workers. 

Nevertheless, Vietnam’s GDP growth is among the highest in the ASEAN region, at +6.42% (USD$ 224 billion) in 2020, beaten only by Cambodia. Furthermore, their currency, the Viet Dong, is rather stable, with a volatility of around 1.15% — an average percentage for the region. 

According to a 2020 report by Deloitte, companies investing in projects related to environmental sustainability in Vietnam can enjoy generous corporate income tax (CIT) rates of 10% – 17%, from between 10 to 15 years. Other goodies include tax holidays, CIT reductions in the following years, import duty exemptions, and land rental fee exemptions. 

Vietnam’s forward-thinking renewable energy policies, governmental support, lower labor costs, and multiple economic incentives are undoubtedly why MNCs such as Lego have chosen to set their operations up in the developing nation.

The post Why did Lego choose Vietnam for its first carbon neutral plant? appeared first on Tech Wire Asia.

Founded by Crystal Pang in Hong Kong in 2016, the data-driven platform is redefining the supply chain in Asia through the use of technology, promising transparent, customer-centric services. 

It expanded to Southeast Asia through Singapore and Malaysia in 2017. Yesterday, the company announced a US$37 million Series B fundraise, bringing its total funds raised to US$52 million. This is its third funding in 13 months, with its initial Series A in November 2020, and another Series A+ in July 2021. 

On-demand deliveries for seasonal delivery spikes

According to the statement, this funding will be used to deepen Pickupp’s presence in SEA and Malaysia, as well as strengthen its regional logistics network infrastructure to support the growth of Quick Commerce (Q-Commerce) and e-Commerce.

Q-Commerce refers to the speedier form of delivery in e-Commerce, where customers can get their purchases on the same day, even as quickly as within an hour’s window of time. 

“Today’s customers are looking for a more personalized and flexible logistics service, not only last-mile deliveries but next-day deliveries with no minimum order at affordable rates where customers and small businesses can enjoy a wider range of options,” said Calvin Ma, Co-COO of Pickupp.

According to their website, Malaysian e-Commerce sellers can choose from three different delivery options — on-demand (express), same day, and next day.

Deliveries can start from as low as RM 4.50 per order, making its affordable price point attractive to customers.

Pickupp claims to have over 20,000 delivery agents in Malaysia. As such, they are confident of meeting the needs of clients with seasonal last-mile delivery services at a lower cost.

Picking-upp the logistics slack in Malaysia

The services sector remained as a key driver of growth in Malaysia’s e-Commerce income which rose to 17.1% in Q3 2021, according to The Star.

The Malaysian logistics industry contributed 3.8% to its gross domestic product (GDP) and is looking to realize the untapped potential with the aim to raise GDP contribution to 6.5% by 2030.

So what’s driving this growth in the Malaysian logistics sector? The answer lies in e-Commerce — an industry Pickupp is aggressively courting.

Pickupp believes its reliable and flexible delivery services to retailers and shoppers in Malaysia combined with its tech-driven customer-centric solutions could be key to unlocking this potential in Malaysia.

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Pickupp promises on-demand, 4 hours slot 7 days a week deliveries with 24/7 real-time GPS tracking. Packages can be customized, insured, and come with API integration. Their couriers will also show a drop-off photo with the customer’s e-signature.

Pickupp already has had an operational presence within the Klang Valley since 2018 with recent expansions with regional hubs to Penang in September and Johor in December. The company aims to expand its presence locally in Malacca and Ipoh in 2022.

Pickupp building “Logistics Network as a Service”

Pickupp intends to use its latest funding to strengthen its network infrastructure with a “logistics network as a service” model. 

Pickupp’s plans in Malaysia include providing nationwide coverage and a network of self-pickup and drop-off points, providing customers with greater accessibility, flexibility, and convenience. 

The company is creating an ecosystem for SMEs and individuals with a network of easily accessible pick-up and drop-off (PUDO) points in Malaysia.

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It achieves this by utilizing satellite warehouses as well as multi-city warehouse expansion and developing partnerships with other industry players such as Kirimman and Parcelhub.

“We have taken a similar approach to warehousing, as we do to our delivery agents – we leverage existing, available resources rather than invest in developing new ones. With this nimble and efficient approach to using resources and idle capacity in the market, we aim to make Pickupp the leading logistics network in Malaysia,” added Ma.

“We are seeing more strategic partnerships growing across the e-commerce and logistics industries. Recently, we have been supporting PChome with our last-mile delivery service, which enables them to deliver the best seamless Online-to-Offline (O2O) experience driven by technology and innovation.” 

Pickupp’s customized last-mile delivery services and trademark technology have earned a loyal customer base from notable MNCs and logistics giants to retail and e-commerce.

“We pride ourselves as being an innovative logistics technology company that supports our customers not only with our technology, but with a range of platforms that help them meet the demands of e-Commerce and thrive — including a range of last-mile delivery options, and the Shop On Pickupp platform,” added Pang.

In the last 13 months, Pickupp has expanded rapidly while continuously diversifying its product portfolio and offerings across all industries and verticals, working with more than 23,000 active Malaysian merchants, as well as more than 26,000 delivery agents onboard across Malaysia.

The funds raised also allow the Company to execute not just a holistic business plan, but also to assist and support their strategic investors’ businesses and online strategies.

The Series B funding round was led by Innovate Jardines (Jardine Matheson’s innovation fund) alongside other existing investors including Swire Properties, PChome, Reefknot, Cathay Venture Inc., DRIVE Catalyst (the corporate venture arm of Far Eastern Group).

The post Pickupp: Asia’s on-demand delivery service for the holiday season appeared first on Tech Wire Asia.

The FICP will be serving e-tailers across ten markets including Australia, Hong Kong, India, Japan, mainland China, Malaysia, Singapore, South Korea, Taiwan, and Thailand.

According to a statement by FedEx Express, online sellers can now provide customers with an international shipping solution with “prices that offer value-for-money”, while ensuring shipments will be delivered within 1 to 5 business days.

e-Commerce market booming across APAC

Whilst improvements in cross-border trade have dramatically improved over the past decade, the Covid-19 pandemic has caused much disruption  to supply chains everywhere.

There are, however, some upsides to a world ravaged by the Covid-19 pandemic — the substantial rise of e-Commerce in almost all regions and countries being one of them. Digital retail sales in the Asia-Pacific reached nearly USD $2.9 trillion in 2021, as mainland China and India continue to lead e-commerce sales across the region. 

This growth has led e-commerce sellers to adapt and meet consumer expectations in a post-pandemic, digital-first era to reimagine their physical assets and make significant upgrades to their current logistics networks.

Can FedEx Express satisfy consumers?

The FICP offers facilities like tracking, update notifications to receivers, and flexibility to change delivery options. According to the company, online sellers can experience greater savings at competitive day-definite transits, whilst customers can get value for money by choosing pricing options for their specific delivery needs. 

Aside from home deliveries, the FICP service also enables e-tailers to give their customers the flexibility to pick up their packages from hundreds of available pick-up locations nearby, as well as the option to change delivery dates and locations.

Furthermore, both online and offline shipping automation solutions are available for e-tailers. With its parcel tracking capabilities, both sellers and customers will be able to have greater visibility of their packages as they move along throughout the journey to their doorstep.

According to FedEx, building a robust e-commerce ecosystem is a top priority. They believe their FCIP can help businesses meet the higher expectations of consumers for reliable and economical delivery services.

“By providing businesses with a broader range of shipping solutions, we help them accelerate their cross-border e-commerce offerings and connect to more online shoppers across the Intra-AMEA markets”, said Kawal Preet, president of the Asia Pacific, Middle East, and Africa (AMEA) region at FedEx Express. 

Logistical challenges and increasing consumer expectations

Due to the distance and logistical as well as customs hurdles involved in international deliveries, shipping fees can run very high, especially to and from APAC and the rest of the world.  As such, businesses, especially SMEs, are increasingly looking for more diversified, cost-effective solutions to meet consumers’ ever-changing needs, especially in cross-border, trade-heavy Asia-Pacific.

According to Deloitte, consumers today prioritize not just products but a holistic, end-to-end shopping experience. Shipping costs and delivery options are two of the most significant drivers of cart abandonment – about 40% of consumers won’t complete checkout if the delivery costs are too high. Another 10% will abandon their cart if a package cannot be delivered on time or if the delivery time is unclear.

The heightened consumer preference for online shopping means more focus will be placed on e-commerce services and experiences than ever before. (IMG/ Deloitte)

This, then, may alienate a substantial portion of the 4.3 billion consumers in the Asia Pacific, most of whom are in emerging Asian markets that suffer from weaker currencies. Nevertheless, the number of consumer trade from APAC and elsewhere is still increasing.

Furthermore, with the easing of trade restrictions and implementation of new regulatory initiatives in the region such as the ASEAN Customs Transit System and the Regional Comprehensive Economic Partnership, trade cooperation will see continued uptake and further strengthen inter-Asia trade. 

FedEx Express — a strong competitor for the rest?

FedEx’s newest offering comes on the heels of their competitor, UPS, which expanded domestic services in Malaysia early this year. 

From as early as 2016, the other US delivery giant DHL started up its e-Commerce arm to boost local last-mile delivery services. They are currently operating in a few SEA markets such as Thailand and Malaysia.

Whilst DHL and UPS have targeted local markets here, it remains to be seen if FedEx Express will expand its presence by going for local, last-mile logistics in e-Commerce heavy markets such as China and Southeast Asia. 

In the supply chain, air freight is often considered the fastest mode of travel. However, these moves by DHL and UPS appear to be on the back of increased interest and uptake of road, instead of air freight in Southeast Asia. 

More businesses are now seeing road freight as a more convenient route as well, thanks to new capabilities and features provided in the road freight industry.

Nevertheless, this development from FedEx may hint at more exciting times ahead in the logistics industry across the Asia Pacific. 

With new players such as FedEx coming on board, competition is heating up for not just international brands, but for local and regional logistics SMEs as well.

All these, of course, will augur well for not just their e-merchant clients, but for customers looking for affordability and choice when selecting a delivery service for their online purchases.

Seizing new opportunities in a changing supply changing landscape will be key to SME survival, and these include digitized solutions that can help accelerate growth or ways to help small businesses pivot towards a different, lucrative vertical.

The post FedEx Express promises “attractive” international shipping rates for APAC appeared first on Tech Wire Asia.

In the supply chain, air freight is often considered the fastest mode of travel. However, road freight is now increasingly growing in demand in Southeast Asia. More businesses are now seeing road freight as a more convenient route as well, thanks to new capabilities and features provided in the road freight industry.

For DHL, one of the largest logistics companies in the world, the growth in the e-commerce sector in the region has pushed for increased demand in cross-border transportation.  The predicted upswing is driven by the renewed economic growth in many of Southeast Asia’s leading economies, as manufacturing rebounds and companies regionalize and diversify their supply chains. This outlook is similarly echoed for Malaysia as the market is expected to see a slight economic rebound of 6% this year.

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“With the easing of trade restrictions and implementation of new regulatory initiatives in the region such as the ASEAN Customs Transit System and Regional Comprehensive Economic Partnership, trade cooperation will continue to strengthen and bolster intra-Asia trade. This augurs well for ASEAN countries as they gear up to bounce back strongly from the Covid-19 pandemic,” said Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific.

One of the most significant developments in the ASEAN Customs Transit System (ACTS) introduced in 2020, which allows operators to move goods seamlessly across multiple ASEAN borders with a single guarantee that covers duties and taxes for the entire journey.

(Photo by PATRIK STOLLARZ / AFP)

The ASEAN road freight market in particular is expected to witness a CAGR of greater than 8% during the forecasted period of 2020-2025. The rise in e-commerce consumer spending and B2B e-commerce, which is predicted to see a 70% increase by 2027, is also pushing demand for door-to-door logistics solutions.

At the same time, there has been an increased number of logistic players emerging in the market as well. While companies like DHL have been focused purely on perfecting road freight, eCommerce companies have also developed their own logistic services to ensure faster deliveries.

Technology modernizing road freight 

The key enabler for this is technology. Just as how DHL leverages modern tracking systems, visibility tools, and such, other logistic companies are also doing the same. For eCommerce companies like Lazada and Shopee, most of them offer customers a choice on which delivery company they would prefer. This would range from in-house delivery companies to large established ones like DHL.

“Road freight is now playing a more significant role in international long-haul solutions across Asia as it offers a cost-effective and sustainable option. As we have seen in the last year with volatile air and ocean freight rates during the Covid-19 pandemic, road or multimodal solutions have offered more stable pricing, capacity, and easier border access in Southeast Asia,” said Thomas Tieber, CEO, DHL Global Forwarding Southeast Asia.

(Photo by Ina FASSBENDER / AFP)

Interestingly, Tieber also said that businesses are willing to compromise on the longer shipping period on road freights compared to air as it enables them to evolve their supply chain based on demand and supply. Road freight also allows them to reach more customers and is significantly cheaper to air freight.

At the same time, road freight also generates fewer emissions than air freight, while offering increased security and faster lead times than ocean freight. Road solutions are also highly flexible with trucks able to manage door-to-door local, cross-border, long-haul, and short-haul deliveries.

“Road logistics is seeing a greener future, powered by technology to become more efficient and secure, and being more sustainable with carbon-efficient fuels. Together, these factors are transforming the road freight sector and creating ever more attractive and sustainable logistics solutions,” added Tieber.

With autonomous transport and drones expected to disrupt the industry in the future, Teiber feels that they are prepared for the competition as it only allows businesses to grow and be better at what they do. Also, drone delivery services are no match for road freights as the trucks can carry significantly higher load compared to drones.

The post Why road freight is gaining traction in the SEA supply chain appeared first on Tech Wire Asia.

This is amidst a substantial rise of e-Commerce in a Covid-19 ravaged world. As such, it is important for both the public and private sectors to ensure efficient strategies for both delivery and collection methods, says Knight Frank Malaysia.

Knight Frank capital markets executive director Allan Sim said in a press release: “Growth in the logistics sector is supported by more new requirements and space expansion from e-Commerce players as well as last-mile logistics service providers. 

“The accelerated shift from traditional retail to online order fulfillment will continue to generate strong demand to propel sustainable growth into the future.”

For Malaysia, a Southeast Asian (SEA) country dependent on exports, improving the logistics services sector to be more efficient should be a priority.

The recent RM 300 million (US$ 71 million) allocation for e-commerce campaigns under the RM15 billion Malaysian Economic and Rakyat Protection Assistance Package (PERMAI) has been a boon to the nation’s e-Commerce players.

It has helped to further expand e-Commerce activities, which will eventually lead to higher demand in logistics and warehousing space in the region — especially in strategically located centers.

According to Knight Frank, there is sustained interest in the logistics industry supported by strong demand for warehouse and distribution facilities.

Interestingly, within the manufacturing space, there seems to be more interest surfacing in the E&E sector driven by the global shortage of semiconductors as well as the 5G network roll-out, opined Sim. 

The E&E sector is amongst the top performers amongst key indices i.e. manufacturing output, export as well as manufacturing sales, among others.

Total  investments in foreign and domestic investments into the Malaysian electrical and electronics (E&E) industry doubled in 2019 compared to the previous year, according to figures from the Malaysian Investment Development Authority (MIDA), 

However, in 2020 there was consolidation in investments due to the uncertainty brought about by the Covid-19 outbreak and imposition of the first Movement Control Order. 

“Having said that, we anticipate significant interests and growth potential in the E&E space moving forward, bolstered by current global demand for sensors, semiconductor, solar, Internet of Things (IoT) products, as well as further investments into artificial intelligence (AI), smart machines and others, of the future”, added Sim.

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Knight Frank Malaysia said that strict containment measures to curb the spread of the coronavirus such as travel restrictions have resulted in limited new foreign entries to the market. 

Amidst uncertainties, developers, investors, and local prospective buyers are adopting the wait-and-see approach and conserving cash.

The consultancy firm maintained that nonetheless, Malaysia remains an attractive destination for high-value manufacturing and global services in Asia due to its favorable investment environment with the availability of excellent infrastructure, telecommunication services, financial and banking services, supporting industries, and skilled workforce among other factors.

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Knight Frank Malaysia research & consultancy executive director Judy Ong said: “As Malaysia grapples with the alarming spike of Covid-19 infections, its growth momentum, which is initially expected to continue into 2H2021 and beyond, will be derailed. The strict containment measures, currently in place, continue to severely disrupt supply chains.”

She added: “The Covid-19 crisis, however, has a silver lining for the logistics industry. With prolonged periods of lockdowns and restrictive movements, there is a structural shift towards omnichannel retailing. 

“The pandemic [has] driven an e-commerce boom; [and it] augurs well for the industrial property market due to growing warehouse space requirements to cater to the surge in last-mile delivery-cum-collection.“

The post Logistics services in Malaysia dramatically growing, spurred by e-Commerce appeared first on Tech Wire Asia.

Today, AI-driven technologies have revolutionized the way we work, especially after the effects of the pandemic. In Southeast Asia, the pandemic has accelerated the digital transformation of not just large enterprises, but small and medium-sized businesses as well.

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However, according to a survey by AIBP and Oracle, close to half of manufacturing and supply chain professionals perceive their companies to be lagging in the industry. The survey was conducted on IT professionals in manufacturing and supply chain companies across the largest economies in Southeast Asia — Singapore, Indonesia, Malaysia, Thailand, Philippines & Vietnam.

In Southeast Asia, the manufacturing industry contributes more than 20% to the GDP in markets like Singapore, Malaysia, Indonesia, and Thailand. As demand for better services and products increases in the region, it’s a bit surprising that many IT professionals feel their companies are still lagging in terms of tech adoption.

Some of the reasons for this could be the high costs of implementing new technologies as well as the shortage of talents in managing these technologies. Countries like Singapore and Malaysia are already experiencing a high shortage of tech-related skillsets.

The survey also found that 46.6% of respondents believed that the top priority of implementing digital solutions should be to drive operational efficiency in a bid to reduce costs, while 16.6% feel that it should be used to increase or create revenue opportunities.

Interestingly, according to a report by Deloitte, commissioned by Autodesk Foundation, Singapore is the country least at risk from automation, ranking second for preparedness, behind Australia, and ahead of Japan. Heavy investments in education, assist at-risk workers, and support workers’ transition to new roles and industries are some of the key contributing factors towards this.

Thossaporn Petporee, SVP, and part of Charoen Pokphand Foods’ digital committee outlined how Charoen Pokphand Foods have been ahead of the curve when it comes to digital transformation because of their experiences navigating past disruptions like the African swine fever and Avian Influenza.

“Each time a pandemic hit, we prepared ourselves better. In our farms, we have the highest level of biosecurity and AI to identify animals across the farm and sales areas. We do well because we keep up to date, keep challenging ourselves.”

The recent pandemic has led them to develop innovative online solutions like Vet Online and chatbots which are made available to the farms across their network to allow for the diagnosis of animal diseases remotely.

According to Michael Lim, GTM Leader, ERP & Digital Supply Chain, Oracle, “There is an urgent need to reorganize one’s supply chains in the wake of 2020 and the recent Suez Canal blockage, and manufacturers in the region are rightly realizing that what they have in-house is not enough when creating robust and resilient logistics processes that keep the business moving efficiently.”

Overall, while the survey shows the low technology adoption, businesses in Southeast Asia are still investing heavily in new technologies, especially in automating most of their tasks. Supply chain tech such as warehouse management tools and the use of robotics in logistics are just some of the new technologies being applied to increase productivity.

As Michael puts it, the affordability of tech will hopefully see more businesses in the manufacturing industry increase their technology adoption in the future.

The post Technology adoption by manufacturing and supply chain sectors still slow in SEA appeared first on Tech Wire Asia.

This is especially glaring in Southeast Asia, where the region’s digital economy’s GMV is expected to reach peaks of US$ 300 billion by 2025, according to the 2020 e-Conomy SEA report by Google, Temasek and Bain.

In fact, they just released a new report for June 2021, which found that over 40 million new users came online in 2020, a 40% increase from the previous year. 

The growth of digitalized goods and services consumption

As digital consumption rose, 30% of digital service consumers started using such services during the pandemic, with 94% saying they would continue when the pandemic is ‘over’.

With the increase in digital consumption and e-commerce, traditional logistics players in these nations are also struggling to keep up. The same goes for players offering digital payments, said a CNBC report.

Like before, the supply chain and logistics industries have always been the key drivers of growth for economies, especially those in emerging markets. Whilst e-Commerce has always been a big thing in SEA, consumers are increasingly demanding speed and convenience, a challenge for many SEA nations. 

According to a report by ISEAS, the “availability, reliability, and cost-effectiveness of transportation, distribution, financial intermediation, information, and communication technology (ICT) and other services” will be the key factors determining the competitiveness of each country.

Logistical inequalities and challenges

The report delved into key trends that drive logistics development in the region. These include economic growth; increasing urbanization; participation in international trade and investment; the rise of e-commerce platforms, and the emergence of economic regional groupings such as ASEAN, which facilitate and enhance trade.

Pain points in logistics differ for ASEAN countries – virtually all ASEAN countries do not have a shared definition of logistics. Worse still, there is little clarity on customs, laws, and governance policies for most of these countries, especially on cross-border trade. 

Larger nations such as Indonesia, Vietnam, and the Philippines face tougher challenges to serve a large and widespread consumer base, as compared to smaller ones such as Singapore, Brunei, and Laos. 

Complicating that are infrastructural inadequacies, especially in lesser-developed nations and archipelagos comprising thousands of islands, such as the Philippines and Indonesia.

For intermediately sized countries such as Malaysia and Thailand, they have found that seamless cross-border arrangements are favorable, such as the recent Malaysia-Thailand QR cross-border payment arrangement.

Indonesia’s logistics startups

Indonesia’s logistics market is highly fragmented and competitive, with a few large companies and thousands of SME logistics players driving up pricing wars. 

Complicating this is the lack of technological utilization such as GPS and RFID, mostly due to a lack of technical infrastructure in underdeveloped areas (e.g. Kalimantan with limited electricity).

Since neither of these players can actually service the entire nation, multiple players exist to address different services across the supply chain, which effectively raises costs and complicates supply chain management for shippers. 

Some startups are rising to the challenge by offering more robust, end-to-end supply chain solutions powered by technology. An example is Advotics, which offers SaaS (software as a service) for suppliers to monitor their entire supply and logistics chain. Another is Logisly, which aims to optimize truck usage by digitalizing the ordering, management, and tracking of trucks. 

Logistics startups elsewhere in SEA

Another startup, Locad, recently raised US$ 4.9 million in a seed round. The Singapore-based startup provides an end-to-end e-commerce fulfillment solution for cross-border trade. 

Locad currently serves the Philippines, Hong Kong, Thailand, Singapore, and Australian markets. Its solution relies on a cloud software platform that serves as a “control tower,”, so users can receive real-time inventory and order updates across their network. In the future, Locad aims to add on data analytics to enhance its offerings. 

Ninjavan is an up-and-coming potential unicorn from Singapore providing last-mile delivery services. So far, they have raised US$ 400 million, and have claimed to deliver over a million parcels across multiple countries. These include Singapore, Malaysia, the Philippines, Indonesia, Thailand, and Vietnam. 

Ninjavan leverages social media to allow customers to track their packages in real-time over their preferred messenger, be it Facebook, WhatsApp, Telegram, or others. Ninja Van works closely with e-commerce giants such as Shopee, Lazada, and Tokopedia to directly serve the end-user market.

International logistics giants have also stepped foot in the region’s market, with the latest being UPS in Malaysia, which has previously established its hub in Singapore. The UPS-Parcel Hub partnership will enable local players to access a greater international market with its established global presence that’s underpinned by its technological service upgrades.

The post Can tech-powered startups fill the logistics gap in SEA? appeared first on Tech Wire Asia.

UPS already has an existing partnership in Malaysia with third-party fulfillment services provider Mail Boxes Etc (MBE), which has over 90 outlets in the country. But the sharp rise in not only online shopping behavior, but also in last-mile parcel delivery and logistics management, has seen the American firm raise its fulfillment profile locally with a move to leverage ParcelHub’s 200 outlets nationwide.

A survey on COVID-19 found that 57% of Malaysians have been purchasing goods and services online in droves, far more than they ever did prior to the pandemic. This new behavior is not expected to abate even in the future, as the contactless benefits and convenience of e-commerce will likely become a mainstay of consumer shopping attitudes from this point on – contributing towards a local e-commerce boom.

UPS President for South Asia Matt Parkey believes that the robust e-commerce growth coupled with the shifting supply chains in and around Malaysia, will favor logistics specialist UPS in the long run. “Notwithstanding the near-term impact of the Covid-19 pandemic resurgence, Malaysia has strong long-term growth fundamentals, and these fundamentals bode well for many small and medium enterprises (SMEs) that support industries along the value chain,” Parkey told local news agency Bernama.

He also pointed out that SMEs are the cornerstone of the local economy, making up 98.5% of businesses in Malaysia. “UPS’s focus right now is on improving the resiliency of SMEs and their access to global markets.

“The pandemic has exposed vulnerabilities in supply chains and SMEs have been one of the worst-hit. Throughout the past year, we helped many traditional businesses pivot online to reach new audiences amid tightening domestic demand and physical store closures,” Parkey said.

Seizing new opportunities in this changing landscape will be key to SME survival, and these include digitized solutions that can help accelerate growth, or help a small business pivot towards a different, lucrative vertical.

“On our part, we have implemented customized solutions for businesses of any size,” Partkey commented. “For example, to boost Malaysia’s electronics manufacturing, we’ve developed capabilities to move expensive semiconductor shipments halfway around the world with almost zero sorting to move quickly and eliminate any damages.”

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The UPS President for South Asia went on to highlight how Malaysia had been making in-roads to boost its value-added manufacturing capabilities, to capitalize on changing supply chain needs in the country. Parkey noted how electrical and electronics products remained the country’s top export earner last year, this includes investments from over 50 semiconductor companies including Intel and AMD.

And despite the global semiconductor shortage, US semiconductor processing equipment designer Lam Research recently added manufacturing hub Penang to its list of global production locations, which include the US, South Korea and Austria.

The post UPS extends footprint in Malaysia on back of e-commerce, logistics boom appeared first on Tech Wire Asia.

We got the lowdown on Asia-Pacific fleets from Deepak Kadambi, General Manager of Southeast Asia for Geotab, plus we were joined by Colin Sutherland, Executive Vice President of Sales & Marketing, who’s based out of Canada.

Already a big player in the US and Europe, the company is on the brink of maximizing its worldwide success by offering its unique blend of telematics and open data to the APAC market.

Firstly, we asked Deepak Kadambi, General Manager of Southeast Asia for Geotab, about the differences between commercial fleet operations in this specific part of the world and Geotab’s more established markets.

Deepak: “There is a difference between fleets in the US versus in Asia, such as fleet size, vehicle mix and vehicle type. Fortunately, Geotab’s services and products are suitable for all fleet sizes and compositions, offering businesses […] the power of telematics, regardless.”

Given those differences, we asked whether Geotab’s offerings were only suitable for the big multinationals. Colin Sutherland was quick to put us right.

Colin: “When you hear the word ‘fleet management,’ it may bring to mind entire yards of trucks or taxicabs [but] many businesses with only a handful of vehicles engage with fleet management every day. […]

Most recently, during Geotab’s first virtual event, Geotab Extend, the company announced the launch of Geotab for Small Business, a new offering designed to support businesses that own and operate only a few vehicles. With this plan, small business owners gain greater data insights to help make more informed decisions. With the same telematics insights and tools used by multinational corporations, small businesses are equipped to help stay competitive within the market.”

We asked Deepak why the company was so enthusiastic about Asia.

Deepak: “There are numerous macroeconomic trends that make Asia of significant importance to most global businesses. […] Key drivers of the economy [are] the middle class, size of the working population, and consumption trends: all a massive tailwind for many organizations.

Asia is also home to seven of the world’s 11 most-congested cities, and countries [and so many] are looking for more sustainable ways to move people, goods, and services. Residents of the region are largely ahead of the curve when it comes to adopting clean-energy transportation solutions, so Geotab has identified an opportunity to offer its expandable telematics to provide the foundation for businesses’ current telematics needs – but also to meet future needs, including support for EV.

The trends themselves, in addition to the conversations with multinationals, helps to validate our strategic expansion in Asia.”

So, what might users of Geotab’s solutions in the region gain by looking deeper and implementing some of the technologies on offer?

Colin: “The most obvious benefit of telematics is the cost reduction from improved safety, fuel efficiency, maintenance and productivity. Geotab’s Fleet Savings Summary Report, helps customers estimate a fleet’s operating costs and discover new savings based on rich telematics data. By identifying saving opportunities, a fleet manager can help reduce the cost of ignoring (COI), improve a fleet’s operating efficiency and grow their bottom line.”

Over the longer term, companies established in Europe have used the tech to grow and expand their businesses, in one example. Clearly, there is a great deal more behind some of the logistics industry’s success stories with regards to the Geotab solutions?

Deepak: “Geotab classifies a variety value proposition sought by our customers in six pillars: Productivity, Fleet Optimization, Safety, Compliance, Expandability, and Sustainability.

Each of Geotab’s pillars is relevant [but in Asia], much of the conversation is around Productivity (trip miles, accurate arrival, and departure times, etc.); Fleet Optimization (vehicle speed, fuel, etc.); and Expandability (hardware Add-Ons like cameras, asset trackers, etc. offered through Geotab Marketplace).

Source: Geotab

On the Geotab Marketplace, [we and our partners] offer in-vehicle cameras and Bluetooth asset tracking and apps for managing maintenance & fuel tracking, all integrated with Geotab’s open telematics platform. Our customers choose from a variety of solutions to help them customize and/or scale their data to help meet the changing needs of their fleet.

The interoperability between multiple systems with Geotab’s help makes the solution one that is (literally) open-ended. Companies with investment in technology platforms already will be pleased to learn that those solutions will continue to provide ROI — with the Geotab offerings working in harmony.”

In fact, Geotab is well-known in technology circles for its integration capabilities with other systems. Is that aspect a big part of the platform’s attractiveness?

Colin told us: “One of Geotab’s key differentiators is its open platform and ability to seamlessly integrate with other systems. With an open platform, customers have unlimited access to the data generated by their vehicles. This is important because it allows customers to have complete control over their data, enabling businesses to share and utilize the data as they see fit with API developer support from Geotab.”

A case in point is the Geotab Marketplace that Deepak mentioned earlier. It brings together different vendors of solutions that plug-and-play with Geotab, providing more choices and possibilities than a single vendor could hope to support.

Colin: “With access to the Geotab Marketplace, a business solution storefront of hardware Add-Ons and software Add-Ins that integrate with Geotab’s open platform, customers can choose from a vast variety of solutions to help them customize and/or scale their data to help meet the ever-changing needs of their fleet. Integration partners offer IT services that use Geotab’s SDK to integrate with other internal business systems and applications, helping customers save time and money and improve the overall efficiency of their organization.

[Our] product partners build various apps and Add-Ins that help integrate with third-party systems like SAP, in addition to mapping Add-Ins, dispatch, workflow automation, scheduling, routing, customer management, and more.”

As technology enthusiasts here at Tech Wire Asia, we were keen to learn about the next generation of IT that the company is looking at right now: a glimpse of what’s to come if you will.

Source: Geotab

Colin: “With [our] newest pillar of innovation being Sustainability, Geotab intends to further support EV adoption and enhance mobility to help improve air quality and help businesses achieve their sustainability goals. Geotab has introduced a variety of tools and resources to further those objectives.*

As Geotab moves into the future, it will continue to encourage and help businesses electrify their fleets to help meet new reduced emission goals. In addition to EV adoption, improved mobility will help the transportation industry achieve its sustainability goals. Our current infrastructure cannot sustain the demands of our modern mobility needs — traffic congestion and our current dependence on fossil fuels make transportation a major contributor to greenhouse gas emissions.”

^* Tools and resources include Green Fleet Dashboard, EV Battery Degradation tool, the Electric Vehicle Suitability Assessment tool (EVSA), and the Temperature Tool for EV Range.[ed. use <small> tags around this]

Finally, we asked the General Manager for Southeast Asia what happens next with Geotab in the region:

Deepak: “We are humble enough to know that we don’t have solutions for all problems, and while we might be a large company, we consider ourselves a start-up in the Asian region.

[…] We want to have as many conversations as possible to understand the specific needs of the market. This will allow us to modify and cater our rich offerings to the specific needs of the region, which will then help us to grow to be the respected technology provider for fleets in the region — much like we are in various continents in the world.

Our regional strategy in Asia is Learn, Modify and Build, Expand and Grow.”

To start one of those conversations that can change the way your fleet operates in or around the APAC, reach out to the company and request a demo. Early adopters have a unique opportunity to leverage this market-leading company’s offerings as it expands and grows in the region.

The post Bringing New-Gen Fleet Management to the APAC: Geotab Interviewed appeared first on Tech Wire Asia.

For logistics and deliveries, there are often mentions of self-driving trucks or drones that can handle last-mile delivery. For depots, distributions, and warehouses, the images are ones of massive aircraft-hangar-sized warehouses without a human soul on site, entirely staffed by robots.

To a certain extent, there are some elements of truth in these visions. Robots do play an increasing part in many warehouses across the world, and while driverless trucks are still safely in testing stages, entire worldwide fleets of all types of transport are carefully tracked and scheduled by advanced technologies.

In practical terms, many challenges face supply chain and logistics managers today that can and are being solved by technology. This series of articles hopes to describe some of the more exciting solutions, and focus on the ones that make practical business sense in 2021. Issues like peaks in demand over national festivals and shopping events, the need to dramatically cut carbon emissions to keep delivery trucks rolling through many of the world’s cities: these are among the many issues that concern supply chain professionals today.

Iterate to improve

Day-to-day operations require changes that create little-and-often improvements. These improvements are then reflected in today’s businesses’ order books and finance software, from those of ocean-going freight operators through bike delivery outfits. In this series of articles, we hope to look at some of the more practical technology-based solutions that make significant differences in several areas of the supply chain and logistics industry.

As an area of technological evolution, our vertical is particularly exciting because of its interconnected nature. Change and improvements in one niche area, like improvements in loading bay metrics, can cause an increased need for improvement in digital connectivity further up and down the chain. As an integrated and organic system, the supply chain, and the elements in it, are an area that is one to watch for anyone with an interest in how technologies are changing business.

For the operations manager in any business anywhere in the supply chain, keeping tabs on the rest of the industry is very necessary: changes to platforms, practices and protocols will indubitably have their effects felt close to home, sooner or later.

In this opening article, we’ll be considering four technical innovators in the industry, vendors whose solutions and practical offerings will make that significant difference to operations. From vehicle fleet management, through picking and warehouse robots, to integration with varying government Customs APIs for import/export, to e-commerce platforms — the intermeshed supply chains and logistics networks that cover the globe are a hotbed of technological innovation.

Here is our opening salvo of four vendors: these are the movers and shakers in this hotbed of technology that is the supply chain of the modern age.

GEEK+

Smart logistics solutions are what Geek+ delivers all over the world today. Right now, its robots and control systems create automations across facility shop floors that drive efficiency, increase the flexibility of the supply chain, and lower costs. The cut in labor costs is significant, and so are reductions in associated overheads caused by mistakes, accidents, and holdups from any source.

Throughout seasonal peaks and troughs of consumer demand, Geek+ platform continues to adapt and provide solutions across the multiple industries, including e-commerce, retail, 3PL, pharmaceutical, and more.

The solution creates technology infrastructure that can pre-emptively adjust the supply chain according to prevailing conditions — that’s down to the information flows that happen in real-time. Day-to-day operations are revolutionized, the business becomes more agile, and its partners benefit too.

Planning and facilitating real-time events can become a fully automated process, with robotized pickers and warehouse robots maximizing capacity on the fly, ensuring human operators work more productively and safely. The Geek+ advantage is one of being able to be proactive rather than reactive to business. It offers modernization of facilities; via the platform, the positive effects spread out across the enterprise through synchronized data and visibility of information silos with benefits beyond the supply chain, allowing the whole business to thrive.

Geek+ offers a glimpse of a high-tech yet practical future where digital transformation creates better business outcomes, drives up customer experience standards and brings down a more profitable bottom line for retailers of many types.

We’ll be taking a deeper dive into Geek+ in a later, dedicated article, but for now, check out the 3D immersive interface on the company’s site (there’s a handy ROI calculator that’s very informative) and see for yourself. Alternatively, Geek+ will be joining SEAMLESS AUSTRALIA 2021 and will share insight in two sessions on Thursday 6th May looking at The secret of e-commerce success in Australia and Getting your E-commerce Logistics Right. You can sign up here.

GEOTAB

As a global leader in IoT and connected transportation with over 2.2 million connected vehicles, Geotab provides advanced data insights and fleet management solutions to organizations all over the world, including thousands of logistics companies. Its interoperability with other technology platforms is unrivaled as proven through its vast ecosystem of partners. By implementing Geotab’s technology, many organizations have revolutionized the way they operate through increased fleet efficiency, improved driver safety and reduced maintenance costs.

By monitoring vehicles and driver behavior, companies can unlock a wealth of metrics and performance data that can positively affect every part of the business. Maintenance plans for machinery and vehicles can be honed to help keep investments running for longer, yet performing more optimally, safely, and with greater fuel or power efficiency. Even small details like vehicle movements across depots or yards can yield powerful information that help increase management’s visibility and enable data-driven insights to change operations for the better.

Geotab’s innovations are centered around six pillars: Productivity, Fleet Optimization, Safety, Compliance, Expandability and most recently, Sustainability. These pillars are strategically selected to ensure that the customers’ business remains relevant in a world that is experiencing rapid social, economic, environmental and technological change.

Geotab’s unique open platform and ability to seamlessly integrate with other systems helps to provide Geotab customers with unfiltered access to their data. With access to the Geotab Marketplace, a robust platform of hardware Add-Ons and software Add-Ins that seamlessly integrate with Geotab’s open platform, customers can choose from a variety of integrated solutions from world-class Partners to help enhance their telematics platform. If you are interested in learning more about how Geotab can help you enhance your operations, watch this space for an upcoming interview on the pages of Tech Wire Asia.

ANCHANTO

Anchanto’s solution was born and bred in Asia, and its multilingual support on the platform (customizable for each user) means it’s the go-to in the APAC for many in the industry. The GUI transitions neatly and clearly from English through Japanese, Mandarin, Bahasa, among others, and provides oversight and management of inventory, order, pricing, and discrete catalogs.

The Anchanto solutions also “speak computer,” integrating via open-standard APIs into other enterprise systems. Companies can tie together logistics, supply chain, and, for instance, internal finance, HR, and CRM systems. Even outside the company’s logistics operations, staff feel the benefits, as previously manual copying & pasting from one system to another gets fully automated.

The Anchanto eCommerce management system (SelluSeller) integrates with 70+ marketplaces common in the region, from niche specialists up to the giants: the likes of Lazada, Flipkart, and Tmall. It handles ordering and fulfillment processes from marketplaces and other websites — including your own e-commerce facilities — and then co-ordinates the supply chain for a fully inclusive service that puts customers’ experiences first.

For warehousing and stock control, the Wareo platform handles stock expiry dates, SKU lists, re-ordering, consignment notes, delivery orders, and so on – the list is long enough that it’s best read on the company’s website!

The Anchanto solutions are typically deployed as a SaaS, which means they can be used and addressed by any connected device. There is one clear source of truth throughout operations globally, from distribution center staff on their iPads, through head office staff on multi-screened desktop PCs. You can read in more detail about Anchanto here.

FLEXPORT

Flexport’s mainstay offering is around all things sea-going and ocean freight forwarding. Full load shipments and multi-port partial loads are tracked, either being carried the company’s own network of vessels or across the common major shipping alliances. That means exceptions (so much part of ocean freight) can be immediately acted on, with operations staff alerted via the highly customizable dashboard that gives a literal worldwide view of real-time activities.

Source: Flexport

This type of insight plays a critical role in a connected supply chain for companies bound by SLAs or those on a journey to improve metrics and customer experiences. To push this goal more effectively and reduce costs for all its clients, Flexport offers partners container-space-to-requirement matching service. When there’s unused space, it can be offered to other Flexport clients, helping both parties achieve better efficiency and slash consignment costs.

The Flexport solution integrates with truck and air logistics, too, with a highly extensible system that boasts fully ready-to-go APIs for inter-connectivity. There is also a customs and duties facilitation service, which means companies get direct electronic access to filing and rebate systems right across the world. That feature alone saves literally hundreds of hours spent filing paper records with multiple agencies.

To learn more about Flexport, start by reading about its offerings right here.

*Some of the companies featured on this article are commercial partners of Tech Wire Asia

The post The case for advanced tech in supply chain, freight & logistics: review appeared first on Tech Wire Asia.