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The changing logistics environment and disruptive megatrends are pushing companies to create logistic operations that are integrated, collaborative and optimised. Find out how GOGOVAN is pushing the boundaries to redefine the last mile.
Last mile – the last leg of delivery process in a supply chain – is often the weakest, most complex and most costly link, representing up to 28 per cent of the total logistics cost. Over the last two decades, urban population in Asia has risen from 33 per cent of total population to 53 per cent, and the United Nations products that the number will go up further to 64 per cent in 2050, driven mostly by urban population boom in China, India and Indonesia. Of the 28 mega-cities in the world today, 16 are located in Asia, and by 2030 there will be 41 mega-cities, each with 10 million residents or more.
During rapid urbanisation, any urban inefficiency will hinder economic growth and sustainability. Lags in physical infrastructure, poor urban planning, and pollution resulted from surging population and industrial production are affecting both the productivity and livability of cities. The logistics and transport sector, for one, has to fulfil the massive needs in facilitating the movement of people and goods, while minimising the environmental impacts it creates. For the urban logistics sector to be sustainable, industry players have to strive to optimise operations and minimise carbon footprint, and at the same time be scalable enough to meet the growing demand.
For the urban logistics sector to be sustainable, industry players have to strive to optimise operations and minimise carbon footprint, and at the same time be scalable enough to meet the growing demand.
E-commerce boom, on the other hand, is also making a profound impact in the logistics industry. Asia-Pacific now accounts for 35 per cent of the global business-to-consumer (B2C) e-commerce market, recording a total value of over US$1.5 trillion. Online consumers today demand for fast delivery, even within the same day, and they are purchasing smaller, cheaper goods online, all of which requires logistics to become more cost-effective, fast and flexible.
Logistics is no longer seen as a back-end operational function to companies.
Logistics is no longer seen as a back-end operational function to companies. As one primary aspect of overall competitiveness, logistics has earned its seat in the boardroom. There is a growing recognition that when done right, logistics can be key to revenue growth, cost reduction, operation efficiency and customer satisfaction. The changing logistics environment and disruptive megatrends are pushing companies to create logistic operations that are integrated, collaborative and optimised. Modern technologies, such as the Internet of Things and Data Analytics, have opened new doors for such innovations. Specifically, technologies promoting information sharing and logistics synchronisation among trading partners and logistics service providers are driving the market a transformation from the traditional ecosystem to a new era.
Logistics can be key to revenue growth, cost reduction, operation efficiency and customer satisfaction.
GOGOVAN, a mobile app platform built with the purpose of industry collaboration, is one example of technology-driven optimisation. Built upon a central data platform with over 50,000 drivers’ information globally, GOGOVAN revolutionises the logistics ecosystem by matching the right fleet with the right customer instantly, thus greatly improving the last-mile efficiency. Customers, often SMEs or individuals, can save on transportation costs and improve distribution efficiency, without owning an in-house transportation fleet. In some cases, it even results in the elimination of a distribution centre or inventory storage. To logistics service providers, GOGOVAN empowers drivers to tap into a city-wide pool of demand that was previously out of their reach. This also drives better utilisation of the transport fleets.
As the region attracts a larger share of global trade flows, opportunities in the industry will continue to grow, so are competitions. Both service providers and industries have to collaborate and evolve to continuously improve the last-mile sustainability.
First seen on November 2015, Logistics Asia Magazine.
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