Multi-Modal Transportation Management in ASEAN countries
In trade logistics, it is important to have professionally managed transportation systems in place. Generally, shipping costs are higher in long-distance trades. The multi-modal transportation management concept was first developed in Western Europe. Cost-effective “port-port”, “door-to-door”, “yard-yard” movement of cargo are facilitated through a single transport operator. Asian countries were late to adopt this model of transportation due to stringent rules & regulations among countries. Technologically too, Asian countries were lacking behind to aid multi-modal transportation management. There was absence of strong logistics integration service providers who could provide effective transportation management software.
Multi-modal transportation involves numerous industry verticals and sea, air, road and rail modes of transportation. As a result, logistics integration can be a lengthy and tedious process. In their 2015 blueprint, ASEAN countries have identified improving logistics integration as their top priority.
The strategic transport plan of ASEAN countries mentions four key facilitation measures
- Increasing competitiveness among ASEAN logistics service providers by simplifying trade documentations
- Enhancing ASEAN logistics providers management capability
- Human Resource (HR) development
- Increasing multi-modal infrastructure and investment
So, it is evident that logistics and transportation management plays a key role in multi-modal service providers in the region. The challenges become more evident in developing countries like Myanmar, Cambodia, Laos, etc. In these countries, there isn’t an adequate infrastructure or skilled workforce available. I guess most of you will be using management software in varying levels of capacity. The question is, whether your transportation management system is capable of being par with these four key facilitation measures. Are your documentations simplified and stored electronically? Do you have a single point operational control management system? Is your system well-equipped to aid the unskilled workforce?
The effective utilization of trucks and timely communication with your customers become key factors here. These factors will decide how profitable your multi-modal transportation business can be. A robust multi-modal transportation management software system becomes a crucial entity in meeting all your requirements. Always look for software from integration service providers that can be customized to your needs and wants. Don’t go for “off the shelf” software products which can be a headache while expanding your business.
Thailand-Cambodia Border Checkpost
More opportunities for logistics service providers in the region…
I know improving transportation infrastructure is in the government’s hands. But, you as a transportation company can do your bit in improving the logistics economy in the region. The manufacturing sector is slowly moving to countries like Thailand, Cambodia, and Malaysia due to a labor cost surge in China. As a result, more logistics and storage opportunities are created in the ASEAN region. According to a statistical report from SpireResearch, ASEAN Nations collectively is the world’s seventh-biggest economy and have a combined GDP OF $2.92 trillion as of 2018. With each transportation company adopting an improved management system, there is no doubt that the multi-modal transportation logistics industry will thrive and flourish in the ASEAN region in the coming years.
If you wish to learn more about integration service providers and how to manage your fleet effectively, do write to us.