MALAYSIA LOGISTICS INDUSTRY

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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.

Budget 2020

BUDGET 2020

Budget 2020

Finance minister Nirmala Sitharaman delivered her Union Budget 2020-21 speech on February 1.

Higher logistics costs lead to higher export expenses, which impacts the intensity of Indian products in foreign markets. While the logistics sector is ruled by transportation, containing 85% as worth, trailed by warehousing that contributes the rest 15%, key changes in the transportation can help to significantly cut down the general logistics cost.

Consequently, the budget has accompanied various positive updates for the logistics and transport sector. INR 1.7 lakh crores of funds are allocated for logistics and transportation infrastructure including railway infra upgrade, and investments in warehousing and logistics. Budget 2020 Going ahead, we anticipate a progression of strong activities, as compelling execution of National Logistics Policy (NLP),

Rationalization and relaxation of duties for warehousing , push for digitization in the sector & boosting green supply chain initiatives and spotlight on making a skilled workforce for logistics and supply chain. Explaining further on the key regions of change as under:

1. Focused approach for logistics development :

While there are a ton of logistics infrastructure projects in the pipeline declared in this budget with a goal of improving transportation network, an engaged way to deal with logistics would assist with quick developments. The Union Budget also declared the apportionment of Rs 1.7 lakh crores for transport infrastructure, promising to monetize 12 highways, spread over 6,000 KMs, by 2024. A critical way will be to push towards infrastructure development, which, besides the roads and railway network, will also include creating supporting bases in terms of warehouses, storage facilities etc.

2. Streamline process to GST and warehouse leasing :

While the execution of GST has streamlined a few procedures, it has affected the renting of warehouses. Tax subsidies and relaxation in the indirect taxes for warehouse renting can support the development of 3PL providers and warehousing operators. India has an estimated capacity of 162 million MT of agri warehousing, cold storage, reefer van facilities etc. NABARD will undertake an exercise to map and geo-tag them. With introduction of National Logistics Policy (NLP) under which development of warehouses would provide impetus for increasing warehousing supply which is expected to rise from 211 million sq. ft in 2019 to 379 million sq. ft in 2023. Net absorption of 36 million sq. ft in 2019 will get a further boost.

3. Encouraging Digitization (Automation) :

In a bid to ramp up the pace of the Digital India initiative, the government has now increased the outlay for the budget to INR 3,958 Cr for the financial year 2020-21 which will include the promotion of automation and digitization for the logistics industry. While a few global players, driven to a great extent by the eCommerce boom, have actualized implemented the latest technologies like IoT, AI based Transport software and Cloud Logistics ERP System for smart warehousing and logistics, supporting policies and encouragement for digitization is currently the need of great importance. To guarantee India figure out how to reach at objective of reducing Logistic expenses to 10% of GDP from the current 14%, executing tech-enabled smart logistics solutions are important.

4. Developing Skills, A key challenge :

Lack of un-qualified labor stays a big challenge for the industry. With technology and innovations in the cold supply chain, specialized warehousing, and digitization, it has become compulsory to have a skilled workforce that is well prepared and productive. While logistics keeps on being one of the biggest employment generators, a large portion of its labor is utilized in transportation. Specialized and fast developing sectors catering pharma, agriculture, meat and dairy, remain crippled with a handicapped workforce.

5. Promoting Green SCM :

Road Transportation stays probably one of the biggest contributors of air pollution, particularly in urban regions. While freight forwarding across railways and roadways is a more environmentally feasible option, these are at present ill-fitted and damaged with long journeys and delays.

Moreover, setting up of a green supply chain, with reasonable warehousing, utilization of electric vehicles and recycling of packaging material and so on., is yet to become standard and cost-efficient.

LogixGRID’s complete logistics software and transport software are capable to manage all types of logistics business and operations single handedly. LogixERP (Cloud Logistics ERP) which can handle your supply chain demands and warehousing operations and can be integrated easily with all the third-party software to give more insights about your business along with all the invoicing, billing and accounting. Logix.Network (AI-Based Transport Management System) is an advanced TMS for Manufacturers and Shippers to manage complete Inbound and Outbound Logistics and gives an upper hand to manage their operations more efficiently and gives upper hand amongst their competitors by saving cost and operational time.

LOGISTICS SUPPLY CHAIN EVOLUTION

Logistics Supply Chain

Logistics and Supply chain innovation is consistently developing over a decade, changes to address the issues of the worldwide supply chain, and offering huge advantages. We will take a close watch on Logistics and Supply chain Evolution happened over a decade.

1. Paperless Warehouses Will Influence Automation :

Ground breaking 3PLs need to use the immense data flow through their logistics and supply chains to settle on informed choices, better foresee future demands, potential issues, and manage workflows to satisfy such demands.

Sadly, some supply chains keep working with an obsolete processing model, using paper. Who needs paper in the present time? 3PLs that desire to remain advanced must develop their operations past the nuances of paper-based tracking and deploy fresh framework and the digitalization took place.

2. Growing E-Commerce Customer Expectations :

The normal volume of online business packages has expanded, and with all associations hoping to accomplish 100% transparency, clients hope to know it all. The expectations of customers expand further keep on growing, and customers play an imperative job in building brand reputation.

3. Business Intelligence and Analytics Will Govern 3PL :

The majority of shippers and 3PLs, concur analytics are important to progress. The rationale for these issues may change, including a lack of analytics information, inability to understand data, and poor arrangement of data.

4. Integration Between Systems Will Finally Get Grip :

Integration stands apart is another trend influencing supply chain innovation all through the coming year. As organizations search for better approaches to deliver more value to customers and B2B partners, the integration will be critical to streamlining picking, packing, and shipping operations.

To stay efficacious, shippers and 3PLs should guarantee integration with various sets of systems, including supplier and B2B partner connection technologies, such API and EDI frameworks, third-party picking, packing, and transport software, customer e-com business sites, for example, marketplaces, online shopping carts. While a few shippers may have at least one of these integrations, only the full set of integration can guarantee success.

5. Dynamic Workflows Will Enable More Improvement :

When standard rules were set to govern logistics and supply chain management. Sadly, the continuing evolution of the supply chain and growing interest for more web-based business development and abilities require shippers and other supply chain partners to work together and process more orders faster.

In other way systems must advance, utilizing AI, machine learning, virtual and augmented reality, robotics, and other trend-setting innovations, to empower ceaseless improvement. Such capacities are just conceivable through powerful work processes that adjust to the changing necessities of the supply chain.

6. Billing Automation to Enhance Accounting :

Another prevailing trend to expect in 2020 returns to automated billing and accounting. Previously, the utilization of auditing processes and accounting software stood apart as a key area of added value for customers, and the market hadn’t grabbed hold of the opportunities for automation in accounting.

The right applications of technology, inclusive of analytics, Cloud Logistics ERP, advanced Transport Management Systems, and automation, will make the biggest difference and help shippers stay competitive and survive.

LogixGRID’s innovative cloud-based logistics software is capable of managing your whole logistics and supply chain operations with ease. LogixERP is fully capable of handling all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows.

Logix Platform is fully customizable according to your organizational needs. It comes up with e-commerce and carrier integrations to enhance your business experience. Also, Logix Platform can easily help supply chain managers with Digital Supply Network by predictive AI where enterprises can easily avoid such catastrophic events and keep their business running without hampering customer experience.

AUTONOMOUS DELIVERY ROBOT

Automatic Delivery

The universe of delivery is changing, and with new advancements reforming the way that our products are delivered to us even more. There are countless organizations hoping to try out new technologies available to help streamline their delivery services much more. Here, we’re taking a glance at the future of door step delivery services to see where the future lies past standard delivery possibilities and package delivery. Without further a do, the following upcoming technologies are the ones that are set to revolutionize delivery business model –

1. DRONES :

Self- flying aircrafts, e.g. copters or vertically starting planes, transport packages (up to 15 kg) to their end point along the most direct route and at moderately high average speed. Like droids and AGVs, they too need to be overseen.

2. AUTONOMOUS GROUND VEHICLES (AGVs) with LOCKERS :

Self-governing delivery robots do door step delivery packages with no human involvement. Customers are informed of the precise arrival time. Upon arrival at their doorstep, customers are asked to get the package from the predetermined locker mounted on the van or truck – picture a portable parcel locker. In truth, such vehicles should be supervised. We assume that a central supervisor could manage roughly eight to ten AGVs.

3. LogixERP Support in helping business manage their SMART DELIVERY :

Whatever innovations happen in logistics space LogixGRID has always been a step ahead to introduce it to LogixERP. LogixERP is fully functional and capable of all the new innovations occurring in delivery and its processes.

Few Capabilities of LogixERP are listed below :

Variable Load Sharing : Advanced software includes constraints like delivery boy, vehicle models, capacity, operating hours, locations, etc. This ensures that resources are used optimally and logistics costs are reduced.

Intelligent Routing Plans : AI-backed routing plans factor real-time variables on-road such as roadblocks, traffic, etc. to give you dynamic delivery route optimization plans leading to efficiency and increased service-level agreements (SLAs).

Smart Parcel Sorting : Automated shipment sorting first converts the fuzzy addresses into their accurate geo-coordinates, and then groups them based on their geographic zones. This helps in higher first-time delivery rates for companies.

Instant Alerts and Live Tracking : Mitigation plan for any network disturbances or deviations in real-time, facility or customer notifications resulting in a delightful customer experience

Adherence to SLAs & Business Constraints : Servicing of critical time-bound deliveries (Scheduled & On-demand) with data-driven planning and execution, which allows companies to prioritize orders and minimize customer complaints.