The Technological Side Of Logistics

While logistics is indispensable in our daily lives, many overlook its intricacies. This is particularly true in Southeast Asia (SEA), where navigating the complexities of parcel collection and delivery presents a distinct set of challenges. Unlike the well-established logistics infrastructure found in many Western countries, SEA grapples with fragmented road networks and limited digital mapping capabilities. In this article, we delve into the tech-driven solutions reshaping the logistics landscape in SEA, illuminating innovations that are propelling the industry forward in the face of unique obstacles.

First Mile Operations

The process of package collection, known as the first mile, involves drivers collecting packages from senders or senders delivering directly to warehouses or designated drop-off locations. For such basic operations, companies usually have their package management system that allows for partner integrations and franchise participation, both meant for placing package delivery orders. Logistics companies usually have their own mobile applications for drivers to receive and manage their pickup and delivery routes and packages, as well as for process management and accountability. Such applications utilize mobile device cameras or integrated barcode or QR code scanners to facilitate package recognition and decrease procedure times.

Sortation Centers and Technology

After packages are collected, they are transported to a sortation center. Sortation centers usually separate the grain from the chaff, where most technology investments happen. This is not unexpected, as sorting takes a lot of effort and is time-consuming if done manually. Usually, this is where companies invest first—into very big (can take a few floors of a big building) and fast sortation machines that can be programmed to automatically sort parcels to the correct next leg of their journey. Most of these machines have the bonus of refining or validating package dimensions and weight, which adds even more to time, effort, and financial savings. Having such machines is not nearly enough, as once acquired, they need to be integrated into each logistics company’s main package management system.

Additionally, some logistics companies provide crossdocking or warehousing services, with many technological investments, such as warehouse automation robots. There are currently only a few companies that are so advanced to use robots, but I won’t be exploring the robotics topic as it deserves an article of its own. For cross-docking, the main challenge resolved by technology is inbound scheduling, as warehouses have only a limited number of docks for truck loading or offloading. Without proper management, traffic jams in the warehouse inbound zone will be generated. Systems that help to resolve such issues have different levels of sophistication, from simply enabling manual scheduling to automatically calculating and proposing optimal schedules based on multiple criteria.

Middle Mile Challenges and Solutions

After packages have been sorted, they embark on a middle mile or long haul—that means they are transported in big trucks, shipping containers, or airplanes to a great distance and possibly even across borders to other sortation centers or logistical hubs. There needs to be a centralized system to facilitate, optimize, and track all these massive amounts of package transportation using different means. Again, such systems vary drastically in sophistication—from simple registries to pallets using RFIDs for seamless loading and offloading procedures.

Another important functionality of middle-mile systems is route optimization. Route optimization, the process of calculating and generating the best possible routes for drivers over their entire work day, if done right, allows for significantly reduced costs, as it can consider multiple factors: distance, travel time, vehicle utilization, driver working hours, road conditions, seasonality, etc. Route optimization challenges are especially exacerbated in SEA due to many countries being island nations, and boat logistics between small islands is a separate challenge on its own. This topic brings us to the last leg of the package journey, known as the last mile.

"As engineering teams and data scientists continue to collaborate and innovate, we can expect further enhancements in logistics technology, driving greater efficiency, reliability, and sustainability throughout the supply chain"

Last Mile Optimization

During the last mile, drivers transport packages directly to the recipients' locations. This is the most challenging route to optimize in SEA due to the suboptimal road networks, a lack of digitalized maps, and their accuracy. If, in Western countries, one can get a decent optimal route just from Google Maps, then in SEA, it takes a lot of effort to get to that level. Each SEA country has quite different challenges in optimal route calculation. Hence, engineering teams and data scientists are working hand in hand to gather and use extra information to improve models and applications. For example, it is a common practice to use driver locations to improve location accuracy of delivery or pickup addresses.

Last-mile drivers would normally use a logistics company’s mobile application to manage their delivery routes and packages. Unlike most Western countries, SEA countries are not that well covered with mobile internet. Hence, such applications have to seamlessly support drivers occasionally being offline, which brings a bunch of challenges regarding real-time updates, data accuracy, delivery time predictions, etc.

In summary, the logistics landscape in SEA presents a unique set of challenges that demand innovative technological solutions. From the complexities of the first mile to the intricacies of the last mile, logistics companies are leveraging advanced technologies to streamline operations, improve efficiency, and meet the region's evolving needs. As engineering teams and data scientists continue to collaborate and innovate, we can expect further enhancements in logistics technology, driving greater efficiency, reliability, and sustainability throughout the supply chain.