MALAYSIA LOGISTICS INDUSTRY

malaysia logistics industry

The Malaysia logistics industry is set to witness CAGR of considerable rate, during 2020-2024. Coronavirus can influence the worldwide economy by influencing production and demand, by making supply chain and market disruption, and by its monetary effect on firms and financial sectors.

The Malaysia logistics sector is constantly progressing and with the ascent of online business in the nation, organizations are taking advantage of this developing trend. The interest of the organizations in evolving areas, e.g., cold chain logistics, last-mile delivery, etc. is developing, because of the high profits and raised demand. The economy of the nation is likely to raise somewhere between 5% and 6%, driving the development of the Malaysia logistics business further. As the progress of the logistics sector is likely to be positive later on, there is a lot of scope for improvement.

To empower the Malaysia logistics sector to deal with more prominent volumes of freight, to accelerate the time taken to deliver products, and to bring down the delivery cost, a few changes should be made. There is a requirement for constant investment into infrastructure, for example, port redesigns and area expansion, rail and road network, and advanced IT system.

Key Trends of Malaysia Logistics Market

Malaysia is on the 29 positions with the longest coastline on the planet. The noticeable ports in Malaysia, which holds the significant portion of products traded, are, to be specific, Port Klang, Johor Port, Port of Tanjung Pelepas, Kuantan Port, Penang Port, Bintulu Port, and Kemaman Port. The essential location of the ports of Malaysia, combined with the minimal effort for docking, acts as a prominent driver for the market. Notwithstanding its geological advantage, the help of various shipyards, ports, and terminals reflects occasions to additionally build up the maritime economy of the nation.

The nation’s key geographic location makes it a significant transhipment hub. Port Klang is the significant port of the nation, is the main hub, with practically 70% of the volume being transhipment. However, certain difficulties exist for the ports of Malaysia; the delay in cycles in cargo operations has been affecting the logistics process of the nation, bringing about Malaysian ports losing to their local rivals. Moreover, the change of the government in Malaysia is relied upon to significantly affect the nation’s logistics sector in the future.

Logix Platform is designed in a way to handle the complex business operations of the logistics industry. With the future-proof technology at its disposal, it can with stand all the complications with ease. Complex algorithms and AI helps the system to handle multiple operations single-handedly and projects everything on a single dashboard. It also comes up with e-commerce and carrier integrations to enhance your business experience.

AUTOMATION & SMART LOGISTICS SYSTEM

smart logistics

Looking at the industry leaders, the speculation for the logistics industry is pretty clear. E-commerce giants like Amazon’s achievement at omnichannel delivery and fulfillment, has burdened retailers and transporters to give quicker, lower estimated, more convenient delivery and fulfillment. And they expect all of it from their 3PLs, transporters and logistics providers as key accomplices to meet these expectations. The increased expectations, combined with the current demand for deliveries, is driving innovation across the market and that is where smart logistics system is required to be adopted by the logistics businesses.

Simultaneously, these innovations can’t come at the cost of your long-term growth and benefit. And if you have to oversee more drivers or contractors guarantee the noteworthy delivery quantity or quicker delivery duration – a difficult process in any case – these progressions must be overseen so they improve the main concern, and not simply of the shippers. As a 3PL or logistics provider, if you are struggling with the help to provide better services to customers in the competitive delivery world then the answer is Automation Software to manage all Logistics Providers & 3PL Operations.

1. Increase business efficiency across the entire supply chain using smart logistics system :

Each business needs data to manage their deliveries, however, some will need updates every 30 minutes, others at regular intervals or in real-time. Some will integrate to move data across systems, while conventionally others will need a 3PL to physically enter information into portal, which is more inefficient and costly with scalability issues. That’s where automation comes in, every logistics provider and 3PL can improve efficiency by utilizing a smart logistics system that can automate and speed up their logistics processes. Likewise, working with contractors may grow your geographic reach or delivery capacity, yet training them takes quite a while which is a very tiring process.

That is where the automation comes in the role. Each logistics provider and 3PL can improve proficiency by using a smart logistics system or software that can accelerate & automate their logistics operations.

2. Fleet Management :

Are you handling drivers and vehicles in the most efficient and cost-effective way? Well, to deliver more – and smartly, you must take into account the best use of contractors, drivers and vehicles, as well as your own fleet with a smart logistics system.

3. Staging and loading :

The experience of efficiency and superb deliveries start in the warehouse, even before the orders are stacked into the truck. Are drivers in sync with the distribution center, or do they sit till an accessible loading dock? It is safe to say that you are stacking every vehicle to the full limit and in the right order? How long does it take to load every vehicle? How long do drivers spend in the distribution center, before starting their routes?

Aligning your staging, deliveries and stacking processes can accelerate loading and unloading times and can assist drivers to deliver more in a similar amount of time. Utilizing automated devices for quick scanning of multiple orders simultaneously can likewise accelerate the loading cycle. Essentially the optimization of vehicle loading and dispatching orders depends on most maximum vehicle weight or volume which will guarantee you to fulfill many orders out in small time hence saving cost.

4. Route planning and scheduling :

The automated route and driver planning, scheduling and dispatch system enable you to plan and dispatch requests to fleets with the delivery cost, distance, time, and so forth. Such driver management applications should take administrative prerequisites and driver breaks into thought for dispatching and directing.

5. Ability to adapt to change and meet shipper needs :

Giving an extraordinary customer experience is a key component of business success, a similar consideration is the ease of doing business with your company. And how easily do you integrate with your transporters’ systems, giving real-time data information? Or your ability to offer and meet quicker deliveries with restricted delivery windows?

One should search for better software systems that expand your operational flexibility and offer easy integration options. This won’t just make it simpler for you to adjust to various customer’s needs, but in addition to reassuring transporters and their business to be future proof.

So, whenever another wave of innovation and technology enters the market, delivery trends change. And to include abilities based on what’s presumed in your market, transporters have perceived this for a while which is the reason why most of them accept that 3PL and logistics technology is vital to their success and growth.

The logistics business is changing and will appear to be totally unique in an additional five years. Since no one knows what those variations will be, Organizations need a solution that will permit them to develop effectively toward any path and modify their offerings to best help transporters as they compete in this new world. The greatest test is the way to future-proof your offerings by implementing smart logistics software that will grow and adapt with you, as swapping your technology partners at regular intervals is essentially impractical.

Logix platform Benefits :

1. Logix Platform is a comprehensive logistics management software that helps in managing global logistics operations and eCommerce logistics with future-proof technologies.

2. It comes up with e-commerce and carrier integrations to enhance your business experience.

3. Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce.

4. We also have more than 20+ major carrier partners like FedEx, Aramex, DHL, and UPS.

WAREHOUSE AUTOMATION AFTER COVID-19

Warehouse Auto

The push to automate warehouses and distribution centers is on ascend as more organizations search for ways to manage social distancing rules, remote workforce and other new difficulties.

A year that brought with it a whirlwind of uncertainty has likewise put a greater focus on the utilization of automation in warehouses around the world due to rising eCommerce transactions.

1. The technology valuation process :

While evaluating automation frameworks and solutions, organizations have some reasonable plans at the top of the priority list. Most need great durability and up-time, Others cautiously survey total expense of possession, return on investment (ROI) and maintenance costs, with extra contemplation including price tag, parts accessibility, risk of obsolescence and integration /compatibility with existing systems.

2. Dealing with disturbance :

Considering the coronavirus outbreak, organizations expect to change their plans for buying warehouse solutions, while some are uncertain of their way ahead though a few organizations despite everything intend to finish on their forthcoming buys, obviously Covid-19 has made a situation of uncertainty.

3. Rise in Order fulfillment trend :

Currently, order fulfillment operations are taken care of generally or totally manually, a number that tumbled from earlier. As far as to order fulfillment exercises, most organizations use warehousing and storage; full and mixed pallet load fulfillment; and individual pick, pack and ship wholesale distribution. Organizations presently need to execute or improve current individual pick, pack and ship e-commerce business fulfillment activities, while some are generally keen on upgrading their order customization, repacking and value-added services.

4. The quest for more data :

Inside the warehouse, the well-known data collection innovations by far are bar code scanners and mobile/wireless technologies. RF terminal technologies and pick-or put-to-light picking utilization remain modestly popular. Within the upcoming years, organizations intend to execute pick-or put-to-light technology. RFID is likewise expanding as a popular choice. Voice-directed picking technology and heads up display & vision innovations are additionally working their way into more warehouses. Organizations intend to implement mobile and wireless innovations.

For warehouses transportation management systems (TMS) saw the greatest increment in current use. Warehouse management systems (WMS) still remain the most mainstream software choice. More organizations are currently planning to implement WMS and need to add labor management system (LMS) and TMS. At present, numerous organizations utilize an enterprise resource planning (ERP) system and are expanding quickly. The utilization of order management systems (OMS) additionally observed a critical raise. Other well-known supply chain management systems incorporate customer relationship management (CRM), supply chain planning (SCP) and distributed order management (DOM) are also in demand.

Facts to Know

1. Global e-Commerce sales have grown at a CAGR of 20% over the last decade, reaching ~$3.5 trillion worldwide in 2019 and expected to grow to ~$7.5 trillion by 2026. The share of online retail sales has gone from ~2% of the total to ~13% and is further expected to reach ~22% by 2026. Existing fully automated systems can reduce warehouse-related labor costs by up to 65% and logistics-related spatial use by up to 60% at the same time as it increases the maximum output capacity.

2. The adoption of technology is by no means uniform. While one-hour delivery is available when buying online in some parts of the U.S. and Europe, the average promised delivery time in Brazil is nine days. JD.com had a record-breaking Singles Day in 2019, with transaction volume exceeding CNY204 bn (US$29 bn), up by 27.9% on the previous year. Logistics played an important role, with 90% of areas achieving same-or next day delivery and a 108% YOY increase in the number of orders fulfilled by automated warehouses.

3. Amazon Robotics automates the company’s fulfillment centers using more than 200,000 autonomous mobile robots, up more than 600% from 30,000 at the end of 2015. Last year, DHL announced an investment of $300 million to modernize 60% of its warehouses in North America with IoT and autonomous robots. The company also committed deployment of 1,000 LocusBots for delivery fulfillment. The funds are earmarked to bring emerging technology to 350 of DHL Supply Chain’s 430 operating sites.

4. Warehouse labor shortages are also an issue with peak labor demands occurring around major shopping holidays viz. Black Friday, Cyber Monday, Amazon Prime Day, Thanksgiving Day and Singles Day. Warehouses have to hire temporary labor around these peak times to meet the customer delivery schedules. Supply chain robotics company Cainiao has installed 700 robots at China’s largest robot-run warehouse to process orders on Singles Day.

Logix platform Benefits :

With LogixGRID’S smart logistics solutions companies can easily choose from vast range of supply chain management solutions to automate their warehousing. Multi integration and easy functionality make the solution renowned globally.

It comes up with e-commerce and carrier integrations to enhance your business experience. Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce. We also have more than 20+ major carrier partners like FedEx, Aramex, DHL, and UPS.