Bolloré Logistics has launched a pilot RPA project in Singapore to drive productivity and enhance customer service through the automation of key business processes.
RPA is an application of advanced software and algorithms to complete routine tasks and repetitive operation processes.
Implemented with the support of Accenture, this pilot project covers multiple aspects of freight forwarding operations, such as the accurate and timely update of transportation timestamps, creation of transportation files within the Transport Management System (TMS), and invoice dispatching to customers.
The business processes selected for enhancement under this pilot project were previously manually intensive, repetitive, and prone to human error.
With the implementation of RPA, the original processes are mimicked by software robots that are programmed by one of the market leaders in RPA tools. “With the removal of repetitive and time-consuming tasks, the business process owners can be upskilled to perform higher value added tasks, focusing on client communication, proactive shipment monitoring, and complex coordination,” says Cyril Dumon, CEO Asia-Pacific for Bolloré Logistics.
Following the successful pilot rollout in Singapore, Bolloré Logistics is looking to expand rapidly the implementation of RPA in the Asia-Pacific region and to extend it to other processes within the organization.
Robotics and supply chain automation company, GreyOrange, announced installations for the deployment of its ButlerTM robotics system at three new sites, located in Japan and Europe at CeMAT 2018. The upcoming site in Japan is for Trusco Nakayama Corporation (TSE:9830), a leading wholesale trading company specializing in machine tools and equipment for production sites, wholesale distributors and retailers. Its range of over 335,000 products includes over 2,300 brands and manufacturers.
A multinational technology company, GreyOrange is a market leader in AI-powered robotics systems for automation in warehouses, distribution and fulfilment centres. In recent years GreyOrange has rapidly expanded its presence across Asia-Pacific and the Americas and is now at the forefront of supply chain automation innovation, providing solutions for e-commerce, Retail, FMCG and logistics companies across the globe.
Nalin Advani, CEO – APAC, GreyOrange commented, “These sites will deploy an advanced combination of robotics and Artificial Intelligence which will increase their efficiencies multifold. GreyMatterTM, our warehouse execution software platform optimises large and complex operations in real-time. The Butler system was selected to improve productivity in distribution centers located where finding labour is a huge challenge.”
GreyOrange has acquired marquee customers in Europe. These include a Global 3PL using the Butler system for one of its pan-European distribution operations in Benelux and a leading e-commerce platform for their regional Fulfilment Center. Both have selected the Butler goods-to-person solution for its improvements in accuracy, flexibility and productivity. There is continued interest in GreyOrange robotics solutions among companies who seek to optimise their complex order fulfilment operations to achieve cost competitiveness and improved service levels to their customers.
Dieter Berz-Voege, CEO – EMEA, GreyOrange added, “The Butler robotics solution offers a compelling business case as logistics managers look to improve productivity from end-to-end of their supply chain processes. We are also seeing more interest in using these solutions for larger warehouses and in our upcoming sites, we will deploy hundreds of robots each to handle significantly higher volumes in shorter turnaround times. The boom in e-commerce globally has resulted in many more businesses needing to manage same day order-to-dispatch times instead of next or more days for delivery.”
British sports fashion retailer JD Sports has issued a vote of confidence in its fledgling Australian operation, revealing that it is expanding its local logistics capabilities to facilitate “anticipated future growth”.
Delivering its financial results for the 53 weeks ended 3 February in the UK on Tuesday, JD’s executive chairman Peter Cowgill said work to bolster its fulfilment in Australia was ongoing and that initial trading from its first five stores Down Under was “encouraging”.
“Our initial performance in these markets [including Malaysia] is encouraging and it has given us the confidence to investigate options in other territories,” Cowgill said.
“A smaller scale project to expand our logistics capabilities in Australia to facilitate anticipated further growth, both in stores and online, of the JD fascia is also ongoing,” he said.
The comments come just a week after JD’s local arm, which is being shepherded by Rebel founder Hilton Seskin, announced three new stores (bringing its total to 9), one of which is already open in Macquarie, Sydney.
JD has worked with the local veteran on slowly laying the bedrock for its Australian expansion over the last few years, launching about a year ago.
As of 3 February JD had 12 stores in Asia Pacific and 52 stores across other businesses in the region, such as Glue in Australia.
The listed British business does not separate its sales figures from individual markets outside of the UK, but revenue from operations outside of its home market and Europe increased by 46.6 per cent to £31.5 million (AUD$58.01m) during the year.
Record profit
Group-wide JD reported a record increase in its before tax profit for the year, up 24 per cent to £294.5 million (AUD$524.32m).
Group revenue was up by 33 per cent to £3.16 billion (AUD$5.82bn) on the back of 187 store openings, including a net increase of 70 stores in the UK and Europe alone. The business has 1237 locations globally.
Cowgill said he had been “very encouraged” by the result, which brings total profit growth since 2015 to more than 200 per cent.
“The investments we have made over a number of years in developing our multichannel proposition and driving improved buying, merchandising and retail discipline have ultimately led to the creation of a world class sports fashion business which combines the best of physical and digital retail on an increasingly global scale,” he said.
We are very encouraged by the progress that we are making internationally, and we continue to look for further opportunities to bring our dynamic multichannel proposition to new markets around the world with the support of our key brands”
JD is currently finalising a yet-to-be-approved deal to purchase American footwear chain The Finish Line for $558 million, a move that will supercharge its expansion into the US.
JD provided no specific outlook, but said it is satisfied with its progress and remains confident about the prospects for the current financial year.
Global logistics group Deutsche Post DHL Group is working to link Indian companies with businesses in the ASEAN Economic Community (AEC) to strengthen India’s economic relations with Southeast Asian markets.
“India is a key market for us. We will help our clients there to work their way into the AEC, which will in turn be a springboard to the Far East markets in line with New Delhi’s ‘Act East’ policy,” said Alfred Goh, President, Global Fast Growing Enterprise and Regional Head, Customer Solutions and Innovation Asia Pacific, DHL.
In 2000-2017, there was over USD 514.7 billion of ASEAN investment flow into India. In 2015-16, India’s exports to ASEAN were valued at USD 25 billion, with imports at USD 40.6 billion.
“We want to capitalise on our presence in these high-growth markets with a combined population of 1.8 billion people, and partner businesses on growing cross-border commerce and trade,” he said.
DHL is already investing millions of dollars in India, increasing logistics hubs and warehouses, keeping up with projected demand for its services following the successful implementation of the goods and services tax (GST).
“Having been part of the GST process development from an early stage, we now have a very good understanding of the new single tax regime, which India-bound foreign investors are trying to learn,” he said.
“DHL is well versed in the business cultures of both India and Southeast Asia. We know the tax incentives, options and business locations in ASEAN,” pointed out Goh. India is industrialising, with an emphasis on export-oriented manufacturing, observed Goh, adding that ASEAN is also seeing development zones for global trade and commerce that would fit with Indian businesses’ regional operations.
He highlighted India’s continued port and airport development that will support exports, and that future shipment volumes will be transshipped into the regional markets through breakbulk. India’s population of 1.3 billion and ASEAN’s 638 million make the two territories the largest trading zones with bilateral and multi-lateral commitments under various India-ASEAN economic pacts such as the ASEAN-India Free Trade Area (AIFTA), which came into effect in 2010.
It drove further growth in two-way trade between India and ASEAN – as of 2012, this figure stood at USD 79.86 billion, surpassing its initial USD 70 billion target.
With India’s “Act East” policy and the Indian and ASEAN governments goals of connecting the South and Southeast Asian markets, the existence of a platform will allow India companies to have easier access to the Southeast Asian zones.
The newly set-up Global Center of Excellence (GCOE) in Iskandar Malaysia by DHL and Iskandar Investment Berhad will provide supply chain consultancy services, and support businesses to design logistics solutions specific to key industries including automotive, energy, engineering & manufacturing, life sciences & healthcare and technology. This GCOE can connect companies in India with the government and key stakeholders to strengthen the value proposition in operating in countries like Iskandar Malaysia which will drive bilateral trade further, he said, citing examples of India-ASEAN connectivity. (
What do semi-autonomous truck platoons, chat-bots, and fraud detection cameras have in common? They’re all part of a big plan that DHL unveiled yesterday to remake itself with artificial intelligence.
DHL is investing millions to take advantage of recent advances in machine learning that could help it optimize its sprawling $60-billion delivery service, which touches nearly every country in the world and involves 500,000 workers.
According to Ben Gesing, a project manager in DHL’s Innovation and Trend Research division, the Germany company is pursuing a multi-pronged strategy to utilize a variety of emergent AI technologies and techniques to help it cut costs, increase efficiency, and improve service levels across the company.
“In terms of data creation, processing storage and accessibility, the technology conditions for AI are very favorable,” Gesing tells Datanami. “Broadly speaking we think the future of AI and logistics is filled with potential.”
Here are some of the AI projects that DHL is currently working on:
Autonomous Vehicles – DHL is working on autonomous vehicles on three fronts, including the development of intelligent robotic workers in its own warehouses and air freight centers; the use of semi-autonomous trucks in the line-haul business; and “follow-me” robots used for last-mile route delivery in urban settings.
One of the more interesting uses of AI is the development of truck platoons in Europe, where anywhere from one to four autonomous semi-trucks follow a lead truck with a human driver down the road. By synchronizing acceleration, braking, and steering among the trucks, the platoon can boost freight capacity while minimizing costs, all without handing total control over to the AI program. DHL will be involved with testing a truck platooning in the UK next year with the British Transportation Research Laboratory and truck manufacturer DAF Trucks.
Chat Bots – DHL is looking into using autonomous customer service representatives by using deep learning-based natural language processing (NLP) technology, such as Amazon‘s Alexa, to automate some of the easier interactions between customers and DHL’s customer service representatives.
“Automating some of the low-level queries with chat bots can really increase the value of each interaction between customer and [human] agents by letting them focus on more high-level queries,” Gesing says. “That basically increases our throughput by a multiplier, not just a marginal increase.”
Computer Vision – DHL is exploring the use of deep learning-based computer vision algorithms for at least two use cases, including fraud detection and optimizing the loading of planes and trucks.
Some people try to defraud DHL by re-using shipping labels, which Gesing says could be automatically detected using cameras hooked up to fraud-detection algorithms. Similarly, computer vision could boost DHL’s capability to detect the size of packages so they can be stacked better.
“It doesn’t seem that interesting if you’re not in the logistics industry, but understanding how to best use your space and really optimizing the volume and capacity inside an aircraft or a truck” is important, Gesing says. “We’re getting better and better tools and technology to do that using AI-based vision technology.”
Resilience 360 – DHL plans to infuse this cloud-based risk management tool with AI capabilities that will give its customers an early warning that something is amiss in their supply chains. This product uses sentiment analysis to monitor 8 million sources of data on the Internet, including social media, for anything that could signal a disruption, including unhappy customers and even labor unrest.
“For a lot of our B2B or automotive or manufacturing customers, they have very vast supplier networks,” Gesing says. “We proactive identify risky parts of the supply chain so our customers can plan downstream more effectively.”
DHL Global Trade Barometer –DHL feeds this this recently introduced tool with import/export data and data about containerized air and ocean freight, giving it a view into 75 percent of the world’s daily trade. It uses AI techniques to provide a three-month forecast on the direction of global trade.
“We have data scientists all over the world, internally and partners with external companies, to do different kinds of optimization of our network, things like predicting demand and capacity needed, or predicting delays in airfreight either by trade lane, by airline carrier, or by day of the week or day of the month,” Gesign says. “It gives us a directional assessment of where global trade is headed…to really get out ahead of our current daily operations to plan more effectively.”
Big Data to AI
Over the past several years, DHL has invested in exploiting recent innovations in areas like big data, augmented reality, and Internet of Things. In 2013, DHL published a Trend Radar report on big data, and yesterday it published another report called Artificial Intelligence in Logistics with support from its partner IBM, which you can download here.
AI is viewed as a big component of DHL’s digital transformation strategy, says Gesing, who works in DHL’s corporate innovation lab in Troisdorf, Germany, one of three innovation labs the company runs (the other is in Singapore, while the one in the United States is currently under development). “AI and machine learning are the extension of big data analytics,” Gesing says.
DHL’s board views AI strategically, but the innovation centers aren’t the only places where work on AI is being done. “We have a very broad digitalization strategy that comes from our corporate board,” Gesing says. “AI is inherently part of that. But really the best teams are the ones making productive use of this are really empowered to go learn and test and use this stuff.”
DHL isn’t doing a lot of core research into AI, because much of that work has already been done. Instead, it’s utilizing technology that has already been placed into the public domain by companies like Google, Amazon, Microsoft, IBM, and Facebook.
“Pretty much anyone who’s doing AI is benefiting from all these great open source tools and platform from all the tech giants,” Gesing says.
Earlier this week, UPS heralded the most recent additions to its Marketplace Shipping offering, which it described as a technology solution that enables merchants to view, process, and ship orders from various e-commerce marketplaces and online stores through a single online interface.
UPS introduced marketplace shipping four years ago to provide customers with a simple option for getting their sold orders into the hands of their buyers, a company spokeswoman told. UPS Marketplace Shipping has been live on UPS.com since January of 2014 but has not been formally publicized by the company until this week.
“UPS recognized the growth trends in e-commerce third-party marketplaces for small business owners and wanted to provide an easy, low cost solution to help them manage and ship their online orders,” she said. “UPS has always been focused on helping our customer grow their business on both a domestic and global platform. This is why we launched UPS marketplace shipping in 11 countries.”
The two new additions to UPS Marketplace, the 19th and 20th companies involved with the offering, are Houzz, a popular site for home remodeling, design and purchasing of related products, and Pricefalls Marketplace, an online retail marketplace offering a wide variety of goods, with Magento, an open source e-commerce platform, added late last year. UPS said it expects to continue adding additional marketplaces, which will further facilitate the ease of shipping and selling on multiple sites.
Marketplace Shipping benefits online sellers by saving time in their order processing, reducing cost from eliminating the need to purchase third- party software programs and benefiting from what the UPS spokeswoman called a “vast array of service options,” including reliable time-guaranteed deliveries and enhanced visibility tools that come from using the UPS network.
In terms of how Marketplace Shipping works, the spokeswoman explained that customers that have created online stores on any of the 20 platforms supported by Marketplace Shipping, simply register their online stores with UPS marketplace shipping to view, edit and ship their packages.
“It as simple as 1,2,3…Connect, view and ship,” she said.
Prior to the introduction of Marketplace Shipping, online sellers had to copy and paste address information from their online buyers shopping cart into UPS shipping systems.
“UPS marketplace shipping was designed to automate this process by automatically pulling in the buyer’s shipping address and then uploading tracking numbers back to the shopping carts once the orders are shipped,” the spokeswoman said.
Michele Cooper, senior manager of customer technology marketing, UPS said in a statement that smart sellers know they have to be on multiple marketplaces to reach the most customers, but juggling transactions from an ever-increasing number of sales sites can get complex.
“UPS Marketplace Shipping is designed to address that pain point,” she said. “UPS Marketplace Shipping is an innovative solution for businesses seeking a tool to offer customizable shipping services in the rapidly-growing world of e-commerce.”
Rising competition and costs in China saw Kerry Logistics’ business on the mainland decline in 2017, with the Hong Kong-listed third-party logistics provider (3PL) planning to increase its focus on cross-border trade to capitalize on Asia’s rapidly growing e-commerce market.
More than 78 percent of the group profit is derived from its integrated logistics division, which covers e-commerce and the express business where the logistics operator is seeing considerable growth. The Asia segment within integrated logistics in 2017 grew by 56 percent from 2016.
Kerry Logistics’ year-over-year revenue for 2017 rose 28 percent to $3.9 billion, with operating profit increasing 13 percent to $271 million and net profit up 7 percent to $150 million. William Ma, group managing director of Kerry Logistics, said global economic growth was behind the recovery in investment, manufacturing, and trade activity, especially in Asian markets.
“The overall performance of Asia remained robust, driven by pronounced external demand and rising domestic consumption,” Ma said. “Kerry Logistics performed better in the second half of 2017 when compared to the first half, buoyed by the continued strength in global e-commerce, the sound performance of Apex in the Americas, and the accelerating growth of our express business in Thailand.”
The 3PL will be looking to build on the strong momentum that has developed in cross-border e-commerce, particularly between greater China and Association of Southeast Asian Nations (ASEAN). “In light of the outstanding performance of the express business in Thailand, the group plans to extend the success to other ASEAN markets such as Vietnam, Malaysia, and Singapore,” Kerry Logistics noted in its earnings release.
The international freight forwarding division in 2017 recorded a 41 percent increase in revenue and a 14 percent rise in segment profit, fueled by overall volume growth and a significant contribution from Apex Maritime, a trans-Pacific trade specialist in the United States that Kerry Logistics acquired in mid-2016.
Yet even with increasing cargo volume, rising freight rates in 2017 — caused by carrier consolidation, reshuffled alliances, and managed capacity — compressed the profit margin of the forwarding division.
George Yeo, chairman of Kerry Logistics, said the group was widening its network. “With the addition of Globalink Logistics and Lanzhou Pacific Logistics [both acquired in 2017], we now have the strongest road and rail freight network across Eurasia,” he said. Globalink Logistics extends the group’s reach into the Commonwealth of Independent States and Central Asia, while Lanzhou Pacific adds rail logistics to its portfolio.
“The deepening and widening of our capabilities positions us well for rapidly growing, cross-border e-commerce, which is facilitated by better physical connectivity and greater international cooperation,” Yeo said.
Paris-based French and Cambodian startup ShopRunBack was launched in 2014 and has been revolutionising returns management for e-merchants and retailers, it is established by a group of experts in e-commerce, supply chain and the latest web technologies. ShopRunBack is looking to expand into Asia, especially Southeast Asia, and Cambodia is the starting point for a new branch to be opened this year.
The company is finalising its cooperation model with 4PX, which is partially owned by Alibaba Group and by SingPost and is part of Alibaba Cainiao Logistics, to seek ways to use Cambodia as a regional hub for e-commerce in Southeast Asia. Eddy Richauvet, CEO of ShopRunBack, spoke to us about e-commerce, business expansion and the introduction of the 4PX Group to Cambodia.
RN: ShopRunBack was established a few years ago in France. You and your wife both graduated in both logistics for e-commerce and web technologies. Why France? How are you progressing?
Eddy: I have spent the last 20 years in Paris in logistics and supply chain management and we started our company ShopRunBack five years ago, specialising in reverse logistics solutions for e-commerce and retail.
Why France? Because, it is strategically located within Europe where one can easily span out one’s services throughout the other European countries. That is why our first company was established in Paris.
So far, we have been doing very well because we focused over the last five years on a nice segment which is reverse logistics for e-commerce.
The objective is to improve customers’ experience during and post-shopping, that is after-sales services.
E-commerce is not only a process to deliver goods ordered online but it also involves shipping goods to customers who may also seek to return goods due to manufacturing faults or wrong orders.
Hence, ShopRunBack built its platform and expertise in after-sales service to meet customers’ satisfaction and merchants’ obligations.
We were the first one to embrace that niche service five years ago, which was an innovating model since most service providers mainly focus on delivery, including the last-mile option.
Thus our business growth is satisfactory and we are developing and improving the platform as well the markets. To date, our services stretch to 70 countries worldwide.
RN: What sort of products have you been dealing with primarily?
Eddy: Well, on a global scale, cross-border e-commerce transactions mainly involve clothing, electronics and furniture. But throughout the years, we can see that e-commerce transacted items have varied from small to big items. Today, all types of products are offered and transacted online.
RN: Does your company have any operations in Cambodia? And if not, why?
Eddy: We built our logistics network first in Europe and America and have been looking into Asia since 2017, especially Southeast Asia.
We are starting with Cambodia first. We have operations in China and Hong Kong through our partners and Southeast Asia is our natural expansion in the region.
We intend to use Cambodia as a springboard and offer to train Cambodian SMEs to sell their products online to global customers as well as introduce global merchants’ products into the Cambodian market.
We are in the process of customising our platform for Southeast Asia with our tech team.
RN: The government announced its intention to have Cambodia become a digital economy by 2023. How do you view the trend of tech business now? How may this be relevant to your business?
Eddy: I think the government’s intention to embrace the digital economy within the next five years is a very good strategic move.
In Europe for instance, we have seen transformations in the traditional business to business (B2B) and business to customer (B2C) models.
Digital technology is the enabling medium to improve people’s standard of living by facilitating trade and extending connectivity and collaboration with each other.
Therefore, we are happy to contribute our expertise to the government vision and strategy to integrate further with the region, that is Asean.
RN: Since Cambodia doesn’t have e-commerce legislation in place yet, do you view it as a constraint to start your business here?
Eddy: We understand that the law is being finalised and should be passed soon, probably right after the elections at the end of July.
We would need such legislation to facilitate and regulate e-commerce transactions. Just like back in Europe, over a decade ago they initiated similar legislation.
No one was familiar at that time with e-commerce, consumer protection and online business, but they improved the legislation as time went on and regulators gained more experience.
RN: Logistics cost is one of the major constraints in Cambodia that hamper the flow of foreign direct investment. Since you are involved in that domain, how do you think Cambodia can improve its logistics costs?
Eddy: This is indeed a crucial matter. We started our business in traditional logistics and B2B, which is not solely about networks but also about collaboration.
Of course, logistics providers will compete with each other but they also need to cooperate with each other to improve connectivity and smoother functioning of the supply chain network.
As far as Cambodia is concerned right now, we are at the gestation phase of an e-commerce logistics base and platform.
We need to enhance the regional and domestic network by establishing more hub-and-spoke networks because in logistics, consolidation through better distribution and last-mile services enable cost reduction.
Eddy Richauvet says Cambodian special economic zones are being established successfully. KT/Mai Vireak
In this market, I see many service providers competing with each other instead of collaborating with each other. In Europe and elsewhere, businesses embrace the “competition collaboration” modus operandi.
Sure, you have businesses competing but cost-effective and efficient logistics is about collaborating.
Cambodian infrastructure has been gradually improving over the last decade as we see better roads and bridges, and lower electricity costs thanks to the many hydropower schemes built with Chinese funding and to the many special economic zones being established successfully.
Our ports and airports are continuously being upgraded to augment their capacity and this has improved the hard aspects.
However, the soft part such as cross-border goods clearance. Trade-facilitation wise, still need more work to facilitate faster transit times.
RN: Last December, the government approved the establishment of the National Logistics Council to deal with logistics in a holistic and cohesive manner. Do you think this can work out well?
Eddy: From my understanding, the NLC aims to improve efficiency and inter-ministerial collaboration.
As said earlier, logistics is about connection, collaboration, communication, and anything related to supply chains across multiple businesses from different sectors and across countries.
Therefore, establishing the NLC does make sense as the government seeks to better comprehend this complex topic and enhance logistics efficiency.
The government should conduct more stakeholder consultation or dialogue with the private sector, the real business practitioners, to better assess businesses’ needs and how they may contribute better inputs.
RN: Earlier last month, you met the Minister of Public Works and Transport with 4PX, part of the Alibaba Cainiao Logistics arm. Are you going to cooperate with them to set up operations in Cambodia? If so, when will that happen?
Eddy: 4PX is a Shenzhen-based Chinese firm and is one of the largest logistic players for cross-border e-commerce in China and they also have worldwide branches.
They are already our strategic partner in Europe and in the US. As you mentioned, they are part of the Alibaba Cainiao Group.
Together with Singpost, they are a 45 percent equity holder in 4PX. 4PX is presently handling a million packages daily for Ali-Express in Southern China with a capacity of two million packages daily.
Cainiao Network is a 100 percent owned subsidiary of Alibaba Group and basically their logistics arm.
Its business is operating a logistics network for all Alibaba’s market places. 4PX is the only one doing cross-border logistics among companies invested by Alibaba Cainiao.
The reason they invested into 4PX was because 4PX has been in cross-border e-commerce logistics for more than 14 years and was considered a market leader in this field.
When we discussed with them about how to carry out the 4PX’s objectives, we shared with them the strategy and vision on how to train local SMEs to use the platform to sell from Cambodia to customers around the world and for make it easier for international merchants to sell to Cambodia.
We also told them Cambodia was a very strategic location as a possible regional hub for Southeast Asia. So the 4PX chairman and his team came for the first time on a fact-finding visit to Cambodia and appreciated the opportunities.
So yes, we will cooperate with 4PX in Cambodia. We will bring together our experience, the technological platform and our existing trained human capital to provide professional e-commerce services.
Most importantly, together with 4PX, we will transfer knowledge to Cambodians to beef up domestic expertise.
The online shopping experience will be improved much more than before. So the primary goal is to bring new high-tech, professional technology to Cambodia, create job opportunities and provide better services.
Though the market size is small, Cambodia possesses a high percentage of tech-savvy young people which makes it an ideal place for more innovation.
Our partner 4PX is a company skilled in innovation. They have to be, since e-commerce is a very fast-growing and fast-moving sector.
Three years ago, 4PX’s revenue was about $450 million but this increased to about $900 million last year.
As a very young market, we could bring many innovations without confronting much historical luggage or impediments.
Think about how the Americans used new technology to nurture the development boom during the second industrial revolution.
Now, it is time for us to leverage e-commerce and the digital economy to help Cambodian people leapfrog and improve their living standards.
Logistics is always a business of support and collaboration. As a pioneer of this industry, our friend and partner, Kevin Li, the founder and group CEO of 4PX, is always scouting for investments in new markets. We should become operational in Cambodia soon enough within the second half of 2018.
Locus.sh, an Indian startup which provides a platform for enterprises to manage intra-city logistics for scheduled and on-demand deliveries with data analytics capabilities, is expanding operations into Southeast Asia.
The Bangalore-headquartered company has live initial engagements with major e-commerce, third-party logistics, and retail players across countries in the region, Locus Co-founder and CEO Nishith Rastogi told e27.
“Some of the clients are at a live pilot stage, and are excited at the value we can accrue for them in terms of reduction in logistics cost. Thus, the initial traction has been encouraging, and motivates us to make further inroads into all the major countries in Southeast Asia,” Rastogi said.
Established in 2015, Locus helps organisations automate and optimise their logistics, while they focus on customers. This, the firm claims, results in reduced logistics cost, on-time deliveries and a better end user experience. The platform also helps companies dispatch, track and manage their on-field workforce efficiently.
By 2020, the company aims to automate all the human decisions involved in sending a package from point A to point B, using Artificial Intelligence and Machine Learning.
“Over the last two years and half, we have worked across industries and accrued value for enterprises of all sizes and scale in India. Having mastered the specific problem statements that the geography presents, and the associated change management, we are confident of our international expansion plans as our platform is now ready to be deployed across countries with specific problems of their own. We see huge similarities between the Indian and the Southeast Asian markets on how e-commerce as a industry is shaping up, and we want to utilise our learnings in this space to add value to clients right from day one,” stated Rastogi.
In his view, for countries like Indonesia, where the logistics cost as a percentage of GDP is greater than 20 per cent, a number which is double that of Singapore and Malaysia, there’s a huge potential for cost reduction and savings, and this is where Locus fits in.
In Southeast Asia, Locus’s key strategy is to analyse the growth potential and challenges faced by the e-commerce and third-party logistics industry. “We settled on targeting the Southeast Asia region following an internal research that shows the constraints faced by the market are very similar to that of India, including similar consumption patterns, poor road infrastructure, inconsistent address structuring, and a burgeoning tech-friendly user base validated by smart phone/ mobile-internet penetration.”
On being asked about the plans to integrate blockchain into the platform, Rastogi said: “With consumers being more and more aware, they want to know if the companies they support share the same values as them, and for that transparency is a must. Plus, when dealing with companies that work across countries with multi nodal points, the parent company will want to know where the product is and where it is being processed.”
“It’s imperative across industries, to have solid records to trace each product to its source. With a focus on introducing efficiency, consistency and transparency in supply chains across industries, adding blockchain capabilities fits right into our plans. This capability will further strengthen the Locus solution, and our product team is forming a strategy around incorporating this in our pipeline,” he noted.
In May 2016, Locus raised US$2.75 million Series A led by Exfinity Venture Partners, with participation from Blume Ventures, Beenext and Fung Capital managing director Rajesh Ranavat. Prior to that, the venture raised an undisclosed seed round from growX, Bhupen Shah, Manish Singhal, Amit Ranjan and others in 2015.
On Thursday, March 29, Bolloré Logistics USA inaugurated its new Foreign Trade Zone facility in Miami, in presence of Clément Leclerc – Consul general of France in Miami, Cyrille Bolloré – Chairman of Bolloré Transport & Logistics and Thierry Ehrenbogen – CEO of Bolloré Logistics.
The new site of more than 200,000 square feet consolidates freight forwarding and contract logistics activities previously housed at two different locations and will support operational synergies and cargo turnaround time for customers with time-critica! logistics requirements.
By combining traditional freight forwarding with value added logistics services, coupled with industry vertical expertise, the Miami hub hos become a multimodal platform meeting the needs of its various customers. The new logistics hub is designed to deliver logistics excellence with an end-to-end solution offering and to create value to its customers, especially in the cosmetics, aerospace and travel retail industries.
The secure facility hos on-site 24/7 guard coverage, biometrie access control, CCTV monitoring and recording, perimeter fencing and fire sprinkler systems engineered to handle specific commodity classifications. The warehouse offers state of the art infrastructure with 52 doek doors, 32′ clear height. 60′ speed boy and a line of material handling equipment that can handle the warehouse challenges with reliability, power, productivity, performance, and efficiency.
The facility also reflects the environmental dimension required today for any real estate project of Bolloré Logistics and is built to Silver LEED.
“Weare extremely proud of our newest logistics center. Miami is geographically pivotal to regional trade and a strategie location for Bolloré Logistics Americas. With this investment. we aim to play a key role in supporting the supply chain transformation of this industry,” said Tony Rodrigues, CEO Americas.
Maersk Line may have captured the headlines with its new focus on becoming a global provider of integrated container logistics, but it is a strategy that China’s Cosco has been pushing for the last couple of years with increasing assertiveness.
Cosco Shipping Holdings, China’s largest shipping company, has continued to aggressively expand into landside logistics, building on Beijing’s Belt and Road strategy to grow its terminal and inland footprint in Asia and Europe.
The group — which consists of carrier unit Cosco Shipping and terminal operator Cosco Shipping Ports — steamed back to profitability in 2017, with a recovering market and freight rates driving up revenue 22 percent compared with 2016 to $14.3 billion, with generous government subsidies leading the company to a $423 million net profit.
Cosco has returned to profitability at the right time. Not only is the container shipping market recovering — the carrier’s volume in 2017 increased by 23.7 percent to 20.9 million TEU while Cosco Shipping Ports handled more than 100 million TEU during the year — Beijing’s is also placing increasing importance on investment along the land and ocean Belt and Road routes.
Belt and Road logistics channels progress
Cosco Shipping Holdings said it had made progress regarding the construction of logistics channels along the Belt and Road route. By consolidating its global shipping networks, the company said it has increased service frequency and efficiency along the ocean route, and also connected the shipping routes with other important, emerging, regional markets, such as the United States, West Africa, the Caribbean, and North Europe.
It is difficult to separate Cosco’s global shipping network from its Belt and Road routes, with the carrier including most of its services under the trade strategy umbrella. For instance, Cosco said 62 percent of its entire container shipping capacity was deployed on the Belt and Road routes, comprising 180 container vessels with a total capacity of 1.15 million TEU.
But it is in the terminal and inland services where the carrier’s move into controlling the landside supply chain can be seen more clearly. This is especially true within China, where Cosco operates more than 150 sea-rail container transportation routes, covering more than 100 major ports and hinterland stations across 27 provinces, autonomous regions, and centrally administered municipalities.
Cosco stated early last year, “The company will also increase its efforts in construction of ancillary facilities in important logistic nodes in the supply chain, and gradually achieve the transition from a shipping carrier to a provider of comprehensive container logistics solutions.”
Logistics solutions push started in 2017
Those efforts in 2017 began in January when Cosco Shipping Ports entered into a strategic cooperation agreement with Qingdao Port International, taking an 18.41 percent equity interest.
Outside China, Cosco continues to strengthen the position of Piraeus Port in Greece as a transportation hub and accelerate the development of what it called the China-European sea-rail express business. In 2017, the freight volume carried on the service, which includes China-Europe rail, increased by 134 percent compared with the previous year, Cosco said in its earnings statement. Cosco Shipping in May 2017 acquired 24.5 percent equity interest in the KTZE-Khorgos Gateway, the rail hub on the Kazakhstan-China border that is a key point in the landbridge.
Then in October 2017, Cosco Shipping Ports completed its acquisition of a 51 percent equity interest in Noatum Port Holdings, a port company in Spain. The controlling stake gives China’s second-largest port operator access to several terminals on the Iberian Peninsula.
In November 2017, Cosco Shipping Ports began the construction of a terminal in Abu Dhabi, and in the same month completed the acquisition of additional equity interests in APM Terminals Zeebrugge in Belgium, taking full control of operations.
Launched in January 2018, the DHL Global Trade Barometer uses large amounts of logistics data to forecast demand for the next three months. In its second report, the barometer increased to 66 points, up from 64 points in January.
According to DHL, an index value above 50 signals solid positive growth for global trade, while the increase from the initial forecast in January indicates that growth is gaining momentum.
Compared to the findings in January, the improved global index is mainly driven by an increasingly positive outlook for South Korean and trade in the USA. In contrast, the prospects for German trade eased after the strong peak seen in 2017.
India continues to show the highest index value of all seven countries for the overall trade predictions, while the UK, after a modest decline since January, scores the same level as China at the lower end of the country ranking.
The outlook for global airfreight, according to DHL, remains positive despite dropping slightly by one point compared to January. With 70 points, airfreight remains robust as air trade growth in China and the USA is expected to accelerate.
Meanwhile, the outlook for global ocean trade improved to 63 points in March from 60 points in January. This growth is also driven by the USA and China, together with a strong increase in South Korea, offsetting a slightly reduced growth outlook for UK and German oceanfreight.
The DHL Global Barometer is published four times a year. The next release date is June 27, 2018.
Amazon has nearly mastered e-commerce deliveries in the U.S. Sure, there are occasional hiccups, particularly due to surges at the holidays, but the company has built a solid network of partners – particularly UPS, FedEx and USPS – that have large logistic networks that have gotten the job done.
While Amazon was able to lean on established partners in the U.S., JD.com did not have that luxury when building its logistics network in China, a country of some 1.4 billion people covering 3.7 million square miles. Consequently, if JD.com wanted to become a major e-commerce player in Asia, it needed to build its own network.
“One [factor] is that the 3PLs in China are pretty fractured,” Josh Gartner, vice president of international corporate affairs, explained to FreightWaves. “That is why we decided to build out our own system.”
JD.com built its logistics operation, JD Logistics, which is now a subsidiary of the e-commerce company. JD Logistics was just infused with $2.5 billion in investment, led by Tencent Holdings and Sequoia Capital China, to help to further develop its logistics operations, which already include everything from warehousing to packaging and last-mile delivery. It is also now offering services to third-party companies as well. There is also rumors that some of that money will be used to develop a U.S. operation to support online sales in this country.
The funding valued JD Logistics at about $11 billion. JD.com holds 81.4% of that after only starting the logistics business in early 2017.
Gartner walked FreightWaves through the company’s logistics operations, but like Amazon’s, it all starts with providing quality service to the customer, and that means last-mile efficiencies. According to Gartner, the last-mile services cover 99% of China’s population and it is done through a variety of methods, from vehicles, to drones, to electric bikes.
Gartner says that final mile delivery for much of China is handled by electric, three-wheeled vehicles. These vehicles collect packages from local facilities for home deliveries.
“We have what we call ‘delivery stations’ and those are in neighborhoods,” Gartner said. “We deliver by truck from warehouses to these smaller stations and they have about 50 to 100 last-mile delivery drivers (based on the size of the city) making the final delivery.”
To JD Logistics, the value of having its own drivers make those final deliveries is important. “When people look at our logistics, they see our couriers,” Gartner said.
Like all e-commerce companies, JD.com has learned that to deliver goods quickly requires proper positioning of product. JD Logistics uses technology to help predict where product will be needed.
“Most of the efficiency and speed is done at the warehouse level and predicting where [product will be needed],” Gartner said. Full truckloads of freight are loaded at the warehouse level and brought to the delivery stations for final delivery. This keeps the larger trucks running set routes back and forth and speeds the delivery process.
JD Logistics also offers a “white glove” service for shoppers, complete with specially-trained JD employees wearing white gloves. These drivers deliver special luxury brands that qualify for the service in electric vehicles rather than the tricycles and scooters often used.
Technology plays a big role in JD Logistics’ efficiency, and that includes automation, drones and more, both on vehicles and in warehouses.
Last year, JD Logistics opened the world’s first fully automated B2C warehouse in Shanghai. The warehouse can reportedly process over 200,000 items a day at full operation. Technology in general helps JD Logistics plan where product should be located and helps ensure that customers are receiving one delivery a day with their complete order, regardless of where any individual product is sourced.
“A few months ago, we had a logistics expert come through and order a few things and he was really impressed with the operation,” Gartner said, adding that the expert ordered items from several locations and received a single order with all items.
Gartner credits the network design – larger trucks moving products from warehouse to delivery station – for that delivery success.
“It’s a much more efficient process, otherwise you would have more vehicles,” he said.
On the vehicle equipment front, the company has been utilizing electric vehicles and entered into an agreement last year with SAIC Maxus and Dongfeng Motor Corp. to develop autonomous delivery vehicles. JD Logistics has jointly researched two models of autonomous light electric vans with SAIC Maxus and Dongfeng, respectively, for delivery of goods from JD’s distribution centers to delivery stations in the future.
The company began testing autonomous delivery via robots at Renmin University and Tsinghua University among other schools last June. The autonomous robots deliver goods to a designated location and customers receive a unique passcode to open the robot’s secure locker to retrieve their packages.
“With technology as the driving force, JD operates the most advanced retail operation in the world,” said Zhenhui Wang, CEO of JD Logistics. “Our extensive in-house logistics network provides the ideal real-world scenario in which to test autonomous vans. Working with our partners, we will continue to enhance our smart logistics and push the bounds of traditional logistics solutions.”
Like Amazon, JD Logistics is also venturing into drone delivery. Currently, the company is using drones to make deliveries to remote areas of China, bringing online shopping and quick delivery to residents of these areas.
The program works by dispatching orders from regional delivery stations to JD’s network of dedicated “village promoters” in each village, who then distribute the orders directly to customers, significantly shortening delivery times and reducing logistics costs. JD.com currently has more than 300,000 village promoters across the country.
“The focus is one rural areas that have lower order densities,” Gartner said.
On a larger scale, the company has also started testing “heavy-load drones” capable of carrying 1 ton of goods at a time. Gartner noted these drones will move product traditionally carried by truck between warehouses.
JD signed a strategic cooperation agreement with the municipal government of Hangcheng, in Shaanxi Province, to set up the first urban drone delivery platform in the world. JD will explore the model and plans to test city drone delivery in Hancheng to evaluate its viability. Additionally, the company will also test its automated delivery vehicle and logistics facilities and hopes to build Hancheng City into a model city for smart logistics.
Having conquered China delivery – more than 92% of products sold by JD.com are delivered within one day, including many that are delivered same day – JD Logistics may be looking abroad, specifically the U.S.
According to a report in January, the company is planning U.S. operations later this year and will use some of the $2.5 billion in funding to do so. Gartner declined to confirm any U.S. plans, saying only that “we’re still focused on China and Asia.”
The Bloomberg article quoted founder Richard Liu as saying the company will begin selling online to U.S. customers in the second half of this year.
“This year, Vietnam, India, Philippines, Malaysia – every Southeast Asian country – we will come by the end of this year,” Liu is quoted as saying. “Our future is we will invest in U.S. and build a warehouse fulfillment center in U.S. so you can get same-day delivery.”
The story noted that JD.com could leverage its relationship with Walmart Stores, which is an investor in the company, for help in building a U.S. logistics network.
The approach to last-mile delivery in China is very different than it is in the U.S., so it remains to be seen how JD Logistics would handle that operation in America. If the stories are true, we may find out very soon.
A delivery service launched by DHL eCommerce that makes use of shops as drop-off points has received a boost with the participation of nationwide retailer SE-ED Book Center.The logistics operator yesterday said the operator of the bookstore chain was joining its domestic delivery service known as e ServicePoints, tapping demand in the fast-growing e-commerce sector.
The collaboration announced yesterday between DHL eCommerce and SE-ED Book Center means that the book retailers’ outlets nationwide will become part of the ServicePoints network. Until now, the participating shops had been small operators. DHL eCommerce started the service nine months ago.
Under the service, registered and walk-in customers can drop off their parcels at ServicePoints for nationwide delivery. Soon, shoppers will also be able collect their e-commerce orders from these ServicePoints
Kiattichai Pitpreecha, managing director of DHL eCommerce Thailand and Southeast Asia, said that the ServicePoints service is designed to offer a convenient domestic logistics service for small online merchants that typically need to send out five to 10 products a day. For such deliveries, the customers are usually nearby.
“Thailand’s e-commerce sector is the second largest in Southeast Asia and has 22 to 25 per cent growth per year,” Kiattichai said.
“This pattern of growth is expected to continue over the next five years. The Thailand 4.0 initiatives also are encouraging a lot more small and medium-sized enterprises (SMEs) to turn to e-commerce. Therefore, there are a lot of demand for domestic delivery services. We want to offer Thai merchants and consumers a quality choice for logistics with an easy and convenient service.”
There are around 100,000 small online merchants on the four main e-marketplaces in the country, Lazada, 11Street, Shoppee, and JD.com.
Through the partnership, ServicePoints will be available at 150 SE-ED Book Center shops in Bangkok and across the country. The service rollout will reach all 394 branches by end of this year.
DHL eCommerce plans to expand the DHL ServicePoint network to more than 1,000 locations by the end of 2018, before increasing this number to 3,000 in 2019.
“ServicePoints is a shop-within-a-shop concept that facilitates the need for people to drop products for delivery at a retail shop,” said Kiattichai.
“The parcels can be processed within seconds and customers will receive immediate shipment confirmation via SMS or email. The process at the ServicePoint is quick and hassle free, with no need to stand in long queues. The DHL ServicePoint network aims to serve the growing SME and C2C markets’ unmet demands.”
In addition, consumers will soon be able to use SE-ED Book Center outlets as an alternative delivery address for their domestic e-commerce orders.
“We will continue to offer more access points, more payment options and an integrated service delivering the quality to enable easier and simpler access to the rapidly growing Thai e-commerce ecosystem,” added Kiattichai.
He expected that over the next 12 months, some 25 to 30 per cent of all parcels handled by DHL eCommerce will be delivered via ServicePoints. This would represent an increase from 5 per cent for previous nine-month operation.
“The total volume of parcels we delivered in 2017 increased by four times from 2016. We expect the same growth for this year,” Kiattichai said.
DHL is making headway in Southeast Asia’s highly competitive ground shipping market largely by adopting a so-called microdelivery model employing motorcycles.
In the two years since entering Thailand’s door-to-door-delivery sector, DHL has built up a network of 200 service locations and will raise the tally to at least 1,000 this year. It has also amassed a fleet of motorcycle couriers, recognizable by the yellow shipping containers on their bikes.
“I feel at ease whenever I see the DHL logo,” said a 43-year-old man who frequently purchases clothing and electronics online.
Retailers have similarly warm sentiment. “Delivery satisfaction is directly linked to an online store’s ratings,” said a representative of a womenswear seller that does business with DHL.
DHL has already established a strong track record in Thailand through its international air transport and corporate-client logistics businesses. Its regular local staffers number more than 500.
The package volume DHL handles for e-commerce clients has climbed to 15 million units a year. DHL can pick up and pack an item for a seller when needed, and deliver the item to the recipient in one or two days. Customers can pay with cash upon receiving the item.
This type of home delivery service has yet to fully take root throughout Southeast Asia. DHL has sought to get a head start by setting up shop in Malaysia and Vietnam last year. It now has 1,000-plus service locations in three countries, with short-term plans to expand the network to thousands of locations.
Online shopping is on the verge of igniting the home delivery business in Southeast Asia. The home delivery market in six key nations of the region will grow to $7.5 billion in 2020, or more than double 2015 levels, according to Nomura International (Hong Kong). Online retailing’s share is expected to rise to 38% from 15%.
“There is currently no single global player in e-commerce logistics that is able to offer an end-to-end solution from fulfillment, cross-border to last-mile delivery” besides DHL, said Charles Brewer, CEO of DHL eCommerce.
The DHL group also has the Chinese market, where it established a footprint before heading to Southeast Asia. “China has massive growth potential for outbound cross-border e-commerce,” Brewer said. Southeast Asia, with its population of 600 million, is key to realizing its promise.
