WHAT IS THE SOLUTION TO THE URBAN LOGISTICS PROBLEM IN VIET NAM?

So what is urban logistics? According to a definition by Tanaguchi et al. (2001), urban logistics is a system that combines transportation networks, modern means of transport, methods of loading and unloading goods, applying advanced technologies, and smart logistics service models to minimize transportation costs and improve the environment.

The urban logistics system is the optimization of supply activities in urban areas based on considering specific factors of traffic, social situation, environmental pollution and customer needs.

The goal of urban logistics is to best meet the logistics service needs of the subjects (shippers, logistics service providers and customers), while minimizing transportation costs and reducing the level of negative impact on infrastructure, environment and society;

Thereby aiming at sustainable development in all 3 aspects (economic, social and environmental).

Urban Logistics Issues in Vietnam

Hanoi and Ho Chi Minh City are the two economic, political and social centers of Vietnam, and are also facing a lot of pressure related to urban logistics issues. Specifically:

Traffic congestion

Hanoi and Ho Chi Minh City are facing serious traffic congestion, especially during rush hours and holidays. The main reason is the rapid increase in population and vehicles, while the traffic infrastructure has not kept up. This has greatly affected the movement of people and business activities, reducing transportation efficiency and service quality.

Many solutions to reduce traffic congestion have been researched and applied by the government, including hour and load bans. Although this solution has brought certain effectiveness, it has also caused some difficulties for business activities.

Large volume of goods in circulation

The dense population in Hanoi and Ho Chi Minh City has turned these two cities into "golden lands" for the retail industry. Large supermarket chains such as Central Retail, MM Mega Market, and a series of convenience stores have created an extremely vibrant market.

However, the diversity and large number of small retail orders in the modern channel (MT) pose significant challenges for logistics businesses. Having to deal with thousands of orders with many different product codes, each order only has a small quantity, has made the stages of preparing, exporting and delivering goods complicated and time-consuming.

The explosive growth of e-commerce has caused the demand for delivery to increase sharply

The explosion of e-commerce has turned the urban logistics system into a "battlefield". The number of orders has skyrocketed like consecutive "waves", weighing down the already overloaded transportation system. This not only causes traffic congestion but also increases transportation costs and affects service quality.

Urban Logistics Solutions

Building a Hub system (cross-docking model)
Hubs are like small "branches" of large warehouses, located in strategic locations in the city. They act as "transit stations", helping to distribute goods quickly and efficiently to consumers. Using compact means of transport such as motorbikes and vans will help goods "sneak" into every corner of the city.

Optimizing nighttime delivery

Nighttime delivery by large trucks is a potential solution to reduce logistics costs. However, to maximize this benefit, close coordination between the parties is needed: businesses need to adjust freight rates and improve delivery processes, while customers need more flexibility in receiving goods. At the same time, solutions to shorten delivery times and minimize costs incurred when vehicles are stuck in the city also need to be considered.

Using "grab-ization" models to take advantage of free vehicles

Connecting freight transport needs with existing vehicles, similar to the Grab and Gojek models, is a potential direction. Technology has facilitated the construction of these connecting platforms. However, for sustainable development, it is necessary to solve problems such as ensuring cargo safety, clearly dividing responsibilities and building an effective management system.

TMS (Transport Management Software) Integration

Planning freight transport in urban environments is a big challenge. TMS, with its ability to optimize routes based on AI and big data, will help solve this problem effectively. TMS not only helps reduce operating costs but also enhances order tracking capabilities, helping businesses proactively respond to emerging situations.

(Source: Synthesis)