Market analysis organizations Precedence Research and Drewry predicted that by the end of 2023 and into 2024, e-commerce will continue to be a key driver of growth in the global logistics market. This is alongside improvements in infrastructure and high-speed connectivity.
E-commerce, or online shopping, is playing an increasingly important role in the growth of the domestic logistics market. According to a survey by the Vietnam E-Commerce Association (VECOM), e-commerce in the first quarter of 2023 recorded a growth rate of over 22% compared to the same period last year, with a forecast of over 25% for 2023 and a scale of over $20 billion.
This boom is not only changing the way consumers shop but also creating a huge demand for logistics services, especially in the management and transportation of goods. As a result, last-mile delivery is becoming a crucial factor in the strategies of retailers and logistics businesses in Vietnam.
According to Datex, last-mile delivery, which accounts for 28% of total shipping costs, is becoming a decisive factor in enhancing customer service quality. The rapid development of e-commerce has highlighted the importance of last-mile delivery, requiring businesses to invest in technology and process improvements to meet the growing demands of customers.
Companies such as Giao Hàng Nhanh (GHN), BEST Express Vietnam, Viettel Post, and Nhất Tín Logistics J&T Express are leading the way in last-mile delivery with service and technological innovations. For example, J&T Express has achieved significant success by providing services for TikTokShop and introducing new features like order notifications via Zalo, while VNPost has adopted electric vehicles for delivery.
However, businesses providing last-mile delivery services face two significant risks: intense competition in a demanding market and the potential for negative feedback from service users.
With the current high volume of online orders, it is challenging for a business to satisfy all customers. Even a few late or incorrect deliveries can lead to a crisis that requires immediate attention. As goods are constantly being shipped, potential crises can accumulate. Not every business has the resilience to withstand the challenges of this service industry.
The following are some notable companies in last-mile delivery services that are well-known to Vietnamese users and continuously apply “innovation” to optimize their transportation capabilities to satisfy even the most demanding millions of users.
GHN – Automation is Innovation
GHN, the owner of Vietnam’s first automatic cargo sorting conveyor system, has remarkably increased productivity to 30,000 orders/hour, demonstrating the power of innovation.
Investing over $2 million in this technology has not only helped GHN significantly reduce manual labor but also maximize operational time and minimize errors. This not only improves transportation efficiency but also enhances reliability and ensures the safety of customers’ goods. This automation is a key factor in ensuring that deliveries are made quickly and consistently, especially during peak shopping seasons.
Additionally, GHN demonstrates its innovation through the GHN App, a convenient transportation application with numerous attractive promotions, transforming the way users connect with and utilize transportation services. The integration of API technology further enhances convenience for customers by connecting with e-commerce platforms’ order systems, allowing for easy management and control even during the delivery process.
J&T Express – Pioneer in Technology, Breakthrough in Transportation Services
In the digital age, J&T Express has established itself as one of the leading transportation service providers, constantly innovating to bring maximum benefits to customers.
The company has successfully applied smart barcode and cloud computing technology to order receiving and processing, thereby enhancing accuracy and information security. By minimizing errors from the initial stage, J&T Express has significantly improved work efficiency, shortened processing time, and optimized operational procedures.
Their strong commitment to innovation is further demonstrated by the automation of warehouse management and delivery processes, enabling tight control over the procedure from warehouse dispatch to customer receipt. Additionally, their collaboration with KAIO, a live streaming sales support platform, has provided a comprehensive solution, modernizing online businesses and empowering retailers to thrive in the digital era.
J&T Express not only focuses on technological advancements but also prioritizes user experience. Their service allows for real-time order tracking and transparent financial management, giving customers peace of mind when using their services.
Moreover, their recognition through the Vietnam Digital Awards showcases J&T Express’s alignment with market trends and leadership in adopting new technology. This not only reduces costs and time for sellers but also provides customers with unique and convenient online shopping experiences.
Giao Hàng Tiết Kiệm (GHTK) – Honoring the “Make in Vietnam” Slogan
In recent years, GHTK has become indispensable when mentioning breakthroughs in postal services in Vietnam.
GHTK’s success stems not only from its extensive network across 63 provinces but also from its application of smart technology in every transportation process. They independently developed the GHTK App, a mobile application that showcases Vietnamese technological prowess. This app not only reduces delivery times but also provides users with a friendly and easy-to-use interface.
GHTK’s reliability and safety are evident in their impressive growth and profitability, making them a trusted partner for millions of online retailers. After 11 years in the delivery market, GHTK is present in 63 provinces with over 1,500 delivery points. The company employs approximately 30,000 delivery personnel and owns a system of 600,000 square meters of warehouses. They have reached a remarkable milestone of 1.5 billion orders circulated through their system.
In summary, with continuous innovation and upgrades, GHTK has not only solidified its position as a leading postal service provider but has also become a source of inspiration for creative development in the transportation industry, contributing to the enrichment of Vietnam’s digital economy.
BEST Express Vietnam – Exemplifying Innovation in the Transportation Industry
In the ever-evolving logistics industry, BEST Express Vietnam has established itself as a breakthrough leader by adopting advanced technology solutions. A notable example is their use of AI SAAS, an intelligent supply chain solution that enhances efficiency and accuracy in the transportation process. Notably, the automated system at BEST’s sorting centers has significantly contributed to improved productivity and service quality by enabling rapid sorting.
BEST Express also stands out for its reliability and safety in operations. The company demonstrated its unwavering commitment by maintaining operations during the recent National Day holiday, supporting online shop owners during the peak shopping season, which is a rare feat among transportation companies. Their robust system, including nearly 200 diverse vehicles, ensures the efficiency and safety of users’ goods.
Moreover, the strategic partnership between BEST Express and AIZEN, a Korean company specializing in AI and electric vehicles, has opened up new opportunities for shippers to access smart financial solutions. With their deep expertise in AI and global recognition, BEST Express and AIZEN are skillfully applying green initiatives to the service industry.
BEST Express prioritizes user experience, as evidenced by their focus on cashless payments, live chat channels, a dedicated customer care hotline, and a smart mobile application. These features enable customers to easily manage and track their shipments conveniently and swiftly.
Nhất Tín Logistics – Innovation Makes the Difference
In today’s fast-paced world of transportation and logistics, Nhất Tín Logistics has established itself not just as a name in the industry but as a symbol of innovation and efficiency. By collaborating with Zebra Technologies, Nhất Tín Logistics has implemented an advanced barcode scanning solution, ushering in a new era of smart transportation processes, increasing operational efficiency by 15%, and significantly reducing operating costs.
The handheld and desktop barcode scanning technology ensures extremely fast barcode recognition, accurate information, reduced errors, and accelerated delivery speeds. This is not only a technological advancement but also a demonstration of their commitment to user experience, as each parcel is accurately and swiftly tracked.
Their creativity doesn’t stop there. Nhất Tín has recognized the potential of integrating public transportation into their tracking and delivery processes, such as connecting with Vietnam’s urban railway system. This initiative increases on-time delivery rates by up to 10% and optimizes transportation costs while allowing customers to control logistics costs while ensuring timely delivery.
Their achievements are evident not only in impressive figures, with revenue surpassing 1,000 billion VND, but also in the trust and choice of prominent brands. Nhất Tín Logistics has not only transformed the face of the logistics industry in Vietnam but also set new standards for modern, safe, and economical transportation services.
Viettel Post – Building a Solid Foundation for Future Logistics
In the era of the 4.0 technology revolution, Viettel Post continuously innovates to maintain its leading position in the logistics industry. With advanced technology solutions such as the NOC system, IoT Scales, and RFID Bags, Viettel Post has revolutionized the management and operation of transportation services, providing unlimited experiences for customers.
The NOC system tracks the real-time journey of each shipment. The smart monitoring system, including Digital Twin technology and AI cameras, oversees the status of the entire equipment system and cargo handling operations, detecting and alerting abnormal behaviors for timely issue resolution.
The NOC system instantly monitors 372 quality indicators and 241 business indicators, enabling Viettel Post to quickly locate and address issues, ensuring 100% quality and business indicators. Additionally, it reduces daily reporting time by 75% and data retrieval time by 80%.
The IoT Scales optimize the cargo receiving and delivery process by connecting and transmitting data via Bluetooth, saving time and costs for businesses and customers. The RFID Bags, on the other hand, are reusable bags equipped with RFID tags for internal cargo transportation within Viettel Post. These bags offer excellent detection capabilities within the system, with a 99.99% success rate, allowing for easy identification of all cargo through the unique RFID tag.
To meet the diverse needs of customers, Viettel Post continuously improves its user interface and optimizes its mobile application, offering a diverse and comprehensive logistics ecosystem. Customers can now access delivery, warehousing, e-commerce, and other services with just a few simple steps on their mobile devices.
Viettel Post focuses not only on business efficiency but also on customer service quality. This relentless effort has been recognized through a series of prestigious awards, including the “Vietnam Digital Awards” for three consecutive years. The impressive results, with soaring revenue and profits, prove that Viettel Post is not just a valuable player in the domestic market but also has a global reach.
Swift247 – A Transportation Fleet That Includes Aircraft
Swift247 has emerged as an icon of innovation in the fast and efficient transportation industry in Vietnam. Founded in 2019, Swift247 continuously showcases its technological prowess through multimodal transportation connections, notably its strategic partnership with Vietjet Air, one of Vietnam’s largest airlines.
With a vision to become Asia’s leading logistics service provider, Swift247 offers express delivery services that save time and costs for customers, who can accurately track their shipments 24/7. Through the mobile application, sending and receiving parcels has become more flexible and convenient than ever, requiring just a few simple steps on a smartphone.
Swift24
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