Adopting technology is ‘key to survival for businesses in digital era’ – Nation Thailand

Fulfilment and warehousing in 21st century

Nattapume Pavaratn, executive committee member and senior vice president at JWD InfoLogistics, said there were many pain points in doing business, including finding the right sales channel and managing operational costs.

Nattapume, who is also president of Warehouse Silo and Cold Storage Business Association, said consumers feeling toward brands poses a challenge to businesses.

To tackle these challenges, he advised entrepreneurs to improve warehouse management and be flexible so they can fulfil consumers demands effectively. He also advised small business owners to adopt technology as it can solve their pain points effectively.

"Even though technology can help entrepreneurs with warehouse management, they should pay attention to many factors, such as business size and investments," he said.

He also asked entrepreneurs to pay attention to the environment as green economy is part of the 21st centurys megatrends, along with robotic automation, fintech, data-driven business and e-commerce.

Tips to start door-to-door services

Jamie Ko, director of regional public affairs and policy at Grab, said the digital economy has brought benefits and opportunities to entrepreneurs, especially when it comes to seeking customers.

Since Southeast Asias digital economy has grown significantly during the Covid-19 crisis, she said, entrepreneurs should collaborate with partners to gain maximum benefits from the digital economy.

The question is how do we work together across all stakeholder groups to gain benefits from the digital economy, she said.

E-commerce, cross-border impact on Asean logistics industry

Cecile Barayre-El Shami, chief of United Nations Conference on Trade and Development (UNCTAD)s Digital Economy Capacity-Building Section, said many e-commerce platforms had benefited during the pandemic.

She explained that e-commerce sales have increased exponentially from US$2.5 trillion in 2019 to $3.9 trillion in 2021, with the top three platforms being Alibaba, Amazon and jd.com.

She went on to say that Asean countries are working on e-commerce development, focusing on cross-border trade, business facilitation and consumer satisfaction by 2025.

However, she added, many countries in the region are less ready to engage in and benefit from e-commerce, such as internet access, logistics, skills availability and government strategies.

To make digital trade more sustainable and inclusive, she said, Asean countries should develop affordable and reliable ICT connectivity, build digital skills to ensure everybody can access digital trade, and improve regulatory framework and measurement.

"E-commerce ecosystem needs cooperation from every sector, such as government, digital commission and non-governmental organisations," she said.

Collaboration at the heart of e-commerce logistics

Behzad Goudarzian, logistics manager of the United Arab Emirates supply chain solutions provider ISS Global Forwarding, said collaboration is the heart of e-commerce logistics.

He said all sectors, including consumer, marketplace, vendor, international freight, customs clearance, fulfilment and delivery, should work together, otherwise the operation would face difficulties.

"All gears should relatively move on the same page. If one gear stops, all gears will stop, he said.

He also advised related agencies in e-commerce and logistics industries to focus more on data integration, ease customs procedures, streamline processes and use trusted digital payments.

Meanwhile, Pravin Shetty, ISS Global Forwardings regional IT manager, said technology also plays an important role in the e-commerce and logistics industries as they can facilitate many issues, such as system integration, secure transactions and risk mitigation.

He advised related agencies to apply four technologies to e-commerce and logistics operations, namely application programming interface, blockchain, internet of things and big data.

"Related agencies should optimise rules, improve delivery, ensure that the country's infrastructure is in place and make use of equipment and resources," he said.

Time for logistics marketplace platform in Mekong region

Piyanoot Sumrith, president of the Thai Transportation & Logistics Association, said the Mekong region is well prepared for adopting the logistics marketplace platform.

She added that people were now familiar with online shopping, thanks to the Covid-19 crisis over the past two years, as well as the governments incentives, such as the Khon La Khrueng (Lets Go Halves) co-paying scheme.

Piyanoot, who is also managing director of the delivery service WeMove Platform, expects the logistics marketplace platform to meet customers demand once factors like logistics and customs procedures are made smoother.

"It's a good time to build the logistics marketplace platform as everything is ready, especially technology," she said.

James Marchant, chief logistics officer for Lazada Express (Thailand), said even though the Covid-19 crisis changed customers' behaviour, their expectation of the best service never changes.

He said it is only a matter of time before technology will play an important role in providing a different experience to customers, such as drones and robots.

There are many trends that continue accelerating, such as how fast and how cheaply you can deliver and how strong is your return process, he said.

Rachelle Alexis Lim, executive director of strategy and business development of payments platform 2C2P, said people preferred online shopping not just because of convenience but also because their demands have changed.

Echoing Marchant, she said online adoption will help boost the marketplace's efficiency to provide experiences to customers, adding that many people preferred online payment instead of cash on delivery.

"Many businesses have shifted from traditional commerce to e-commerce even after the pandemic, she said.

The panellists also urged the government to collaborate with related agencies to develop a logistics marketplace platform in the Mekong region and address it from various aspects, such as easing customs procedures and promoting technology adoption for sustainable growth.

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Adopting technology is 'key to survival for businesses in digital era' - Nation Thailand