Logistics Business News

Thailand WHA Corporation signs development MoU with Yunnan Energy
WHA Corporation, Thailand’s leader in fully-integrated logistics and industrial facilities solutions, has announced the signing of a Memorandum of Understanding (MoU) with Yunnan Energy Investment Group (YEIG) to develop strategic logistics cooperation between Yunnan, Laos and Thailand. The announcement was made during the China International Import Expo held in Shanghai during November 5-10, 2018, the company said in a press release issued on Thursday. As part of the “One Belt, One Road” initiative put forward by Chinese authorities, the MoU is named “The Belt and Road” Memorandum of Strategic Cooperation of Comprehensive Logistic Joint Work. Its main objective is to explore business opportunities in the areas of logistics and trade between Yunnan, Laos and Thailand. WHA Corporation said it will cooperate with Yunnan Energy Investment Logistic (YEIL), a subsidiary of Yunnan Energy Investment Group (YEIG), to enhance interaction between the two partners’ logistics and industrial sectors. Overall, the MoU covers cooperation in the areas of industrial properties, road and rail transportation, cold chain transportation, central Asia railway, the construction of an Asia-Pacific Model E-port network, car trading and others between China, Thailand and Asean countries, the company said. “We are truly delighted to sign this Memorandum of Understanding with Yunnan Energy Investment Logistic (YEIL),” said Jareeporn Jarukornsakul, WHA Corporation PCL Chairman of the Board of Directors and Group Chief Executive Officer. “This creates a promising cooperation framework with our Chinese partner to connect Thailand’s EEC initiative with the ‘One Belt, One Road’ project implemented by the Chinese government, opening tremendous opportunities for our two companies and our respective countries.” Yang Wan Hua, Vice President of Yunnan Energy Investment Group (YEIG), said: “This Memorandum of Understanding with WHA Corporation is based on huge potential synergy between our two companies. “We are confident that our vision, combined with that of WHA Corporation, fits in perfectly with the spirit of the ‘One Belt, One Road’ project that is based on peace and cooperation, openness and inclusiveness, mutual learning and mutual benefit.”    Source : The Nation http://www.nationmultimedia.com/detail/breakingnews/30359089  
Ramco Systems bags multi-million-dollar software deal from AP Cargo
Ramco Systems–an award-winning provider of enterprise software on cloud, mobile and tablets– beat local and global vendors to secure the partnership with AP Cargo. It has landed a multi-million-dollar software deal from the Philippines’ leading domestic provider of express logistics for air cargo and other goods, AP Cargo Logistic Network Corp. In order to streamline its freight operations nationwide, AP Cargo will implement Ramco Systems’ Logistics Software. It will begin implementation of its integrated Logistics platform, which is bundled with next-gen Finance and HR, and integrated with end-to-end HR and Payroll compliant with Philippines’ statutory requirements that will benefit more than 1,600 employees, reducing manual workloads, covering over 500+ fleet, and generating cost savings all the while automating other tedious administrative tasks. As per the agreement, Ramco will implement its unified, mobile-friendly modules at AP Cargo. These modules will be used for transport management, hub management; warehouse management, fleet management, visibility; rating and billing, finance and accounting. Ramco set up its Philippine subsidiary in mid-2016. Since then it has been gaining a steady pace of growth in the region, thanks to the almost 40% of new order booking for the Asia Pacific region in 2017-18 coming from the Philippines. Ramco’s continuous thrust on logistics segment and focus on locally employing some of the innovative minds, has been strengthening the company’s position in the region.   Source:https://bit.ly/2JWwaJk
EnvioClick the 1st Mexican portal to arrive to Peru and Chile
The Mexican company EnvioClick will expand its operations to Chile and Peru, with an initial investment of US $2.5 million, as part of its expansion plan in South America, where the company already has representation in Colombia. It is the main portal that brings together the most important courier companies and is a logistics partner for its customers, SMEs that want to enter the e-commerce market, highlighted their directors: Juliana Sarmiento and Rosa Costes. Its EnvioClickPRO service offers volume discounts and supports companies to manage their logistics operation from a single control panel, with modules for tracking and managing shipments. EnvioClick had very good response in Colombia, where every day it gains more clients in a market with a size similar to that of Mexico, valued at US $3.25 billion annually, highlighted Juliana Sarmiento. She stressed that in Mexico they already have more than a thousand customers and expect to reach two thousand between 2019 and 2020, also double the number of shipments to 135,000. For the South American region, they expect to reach a similar number of SMEs and new clients, in addition to more than 200,000 monthly shipments only in Colombia, Chile and Peru. The courier industry in Mexico registers more than 180 million shipments per year, from packages to letters, which represents a global value of US $10 billion, including storage, among other factors that make up the sector. It is composed of around 2,500 companies that account for a market of around US $3.25 billion annually, generated mainly by small and medium enterprises. Those who go to EnvioClick can achieve discounts of up to 50% in the shipment of their goods, as the firm has three services including: a real-time web quoting, focused mainly on those customers with occasional shipments.   Source: http://www.notimex.gob.mx/
Sy’s SMIC plans to extend logistics tentacles in buy-in of Airspeed
The country’s largest conglomerate SM Investments Corp. (SMIC) is in talks to invest in Airspeed International Corp. as part of its expansion in the logistics space. Airspeed International Corp. is a freight forwarding and e-commerce enterprise that has been operating in over three decades. Industry sources reports that the Sy family-led SMIC was insistent on acquiring at the least 35 percent of the freight enterprise. Since a 35-percent stake is influential enough to affirm or veto key corporate decisions which often requires a concurrence of two-thirds of shareholders. A spokesperson from SMIC commented “It was just an investment opportunity”. In a separate interview, Airspeed founder and president Rosemarie Rafael confirmed “serious” discussions with SMIC but stressed that nothing had been finalized yet and the talks were still ongoing. Rafael said when asked about SM’s prospective investment, “It’s almost there but there’s nothing final yet,” adding that there was another group interested and also talking to Airspeed. When asked why Airspeed was considering to bring in a big conglomerate as an investor, Rafael said the 33-year-old company, would benefit from the fresh capital and beneficial collaboration that can catch up with the fast pace characteristics of e-commerce. SMIC and Airspeed are both familiar with each other with regards to the logistics business. Airspeed bagged a deal to exclusively handle the logistics requirements of tenants and concessionaires at SM malls nationwide in 2012. A veteran banker familiar with Airspeed comments, “It’s a relatively small but good company”. Airspeed provides air and sea forwarding, international domestic door-to-door parcel and cargo services, packing and crating and long-time storage arrangements, among others. It has also ventured into the e-commerce space by providing the last mile requirements of online retailers like Lazada. The company has a P341-million balance sheet based on Airspeed’s latest regulatory filing. Net profit in 2017 amounted to P15.1 million out of the P134 million in revenues. Net profit last year nearly doubled from the P8.48 million bottom line in 2016. Last year, in buying a 34.5-percent stake in the parent company of publicly listed 2GO Group Inc., SMIC debuted in the logistics business.   Source:https://bit.ly/2Deeh7A
Tracking Systems & Fleet Management
QY Research Reports notes that a fleet management system (FMS) is formed by the integration of hardware, software, and communication technologies. As a platform to fleet operators to efficiently control, track and monitor commercial vehicles, they improve the overall operational efficiency by reducing non-value-added activities of operators. Fuel cards also form part of this as it tracks fuel management and driver safety systems monitor driver behaviour. Solutions for location or tracking of vehicles, driver navigation assistance and ensuring that operators meet the regulatory standards set by national governments are also used. Tighter integration with mobile phones into vehicles, beyond connecting hands-free will exist. Mobile devices can sync key vehicle data such as mileage, health checks, and performance for use in information applications. Mobile devices are seen as the sole way that drivers will handle their fleet tasks. Big data will drive decisions for all aspects of fleet management – this will include vehicle selection, maintenance management, and driver safety planning. With continued use of fleet analytics and accessibility to larger amounts of data, fleets will become more efficient, operate with fewer resources, and show an increase in productivity. What can Fleet Management do for you? According to Dovetail, fleet management systems will not only allow you to keep track of your vehicles but also help businesses keep in line with all regulatory and road safety requirements. Road freight and transport is one of the biggest contributors to the South African economy and sadly also the largest contributor to road accidents. During the past five years, South African roads have seen a steady increase in the number of vehicles on the road (3.3% increase) and newly acquired driver licenses at an average of 4.7% per annum. Fleet management systems however cannot stem the tide of road accidents but a well-structured fleet management system can assist businesses in reducing incidents which in turn will have a follow-on effect to help stem the tide of accidents in general. While this view is great for the situation on South Africa and African roads, the benefit of a FMS is far closer to home and that is to reduce the amount of downtime on a fleet. A decent FMS will be able to track the wear and tear on a vehicle and allow you to attend to it before it becomes a problem. Not only improving on your delivery service record, your vehicles will be in good nick all the time. A good FMS could possibly also lead to reduced operational costs (service, maintenance, wear and tear, insurance, fuel consumption). Dovetail notes that ‘Implementing a Fleet Management System means that the driver, the vehicle and the environment are brought together in a holistic strategy irrespective of the size of the company’s fleet’. Even though the initial cost is a major investment, the cost-benefit analysis will always weigh in favour of telematics as it provides for comprehensive desk top real time monitoring of fleets. Berg Insight is of the opinion that despite South Africa’s current weak economic performance, they see the market for FMS as in a growth period which will continue for a couple of years still. The FM systems in active use is expected to grow at a compound annual growth rate (CAGR) of 14% from 1.3 million units at the end of 2017 to 2.5 million in 2022. Non-privately owned fleet vehicles used by businesses is estimated to increase from 28.6 percent in 2017 to 49.8 percent in 2022.  The South African telematics market is relatively mature and the penetration is comparably high from an international perspective. The largest share of the installed fleet telematics systems on the South African market is represented by comparably low-end tracking systems, e.g. light FM solutions, including SVR systems extended with basic FM features. Five domestic players with broad telematics portfolios dominate the FMS market in South Africa. Cartrack and MiX Telematics are ranked as the largest fleet management solutions in South Africa by Berg Insights. Both the aforementioned companies have an estimated installed FMS base of more than 200,000 active units in the country. After these Tracker comes into play which, in addition to its in-house solutions also market FM systems powered by TomTom Telematics (TomTom Business Solutions has been rated the fastest growing vendor worldwide). The tail end of the top 5 players are made up by Netstar and Ctrack of which both have active installed units of 100,000 plus in South Africa. Further to the top 5, additional domestic aftermarket players include Digit Vehicle Tracking (Digicell), GPS Tracking Solutions (Eqstra Fleet Management/enX Group), Autotrak and PFK Electronics. Other than TomTom Telematics, renowned international solutions vendors active on the market include Gurtam, Pointer Telocation and Geotab. However, none of these players have generally achieved any top-ranking market shares in the South African fleet management market to date. Commercial vehicle OEM’s such as Scania, Daimler, MAN and Volvo Group have all introduced fleet telematics solutions in South Africa, but the adoption levels generally have remained relatively modest. According to ‘Drive Alive’ tracking technology has evolved from the developments in personal computers, mobile phones, the GPS Global Positioning System and the Internet into what is now described as “vehicle telematics”. Vehicle tracking is also described as ‘Passive’ and ‘Active’. "Passive" devices store GPS location, speed, heading and sometimes a trigger event such as key on/off, door open/closed. Once the vehicle returns to a predetermined point, the device is removed and the data downloaded to a computer for evaluation.  "Active" devices also collect the same information but usually transmit the data in real-time via cellular or satellite networks to a computer or data centre for evaluation. Advantages of Effective Road Risk Strategies by Fleet Managers Vehicle tracking technology has become an important requirement for effective fleet management and improving the safety of company drivers. The advantages of a responsible road risk strategy include the following: Effective control over costs such as insurance premiums, fuel bills and repair costs. Ability to make informed decisions about purchasing vehicles and training drivers. Less time on paperwork, lowered vehicle repair and maintenance bills Reduced likelihood of an employee being involved in an accident. Reduced running costs with employees driving more professionally and efficiently. Drivers less fatigued and healthy Objectives of Fleet Safety Initiatives Vehicle accident prevention Accident investigation /analysis and reporting Improved safety on the road Driver education and driver alertness Costing A tracking system will vary in pricing dependent on who you get it from, whether it is an active or passive system, if it is private or company use and whether it is a fleet or not. Pricing will also be determined on which features you would like to have included in your tracking system. Pricing on private systems can range from a cash price of R495.00 for the system up to and over R5,000.00. Most persons installing the systems will take out a contract with their tracking company and could pay from as little as R99.00 per month up to or over R500.00 per month – again this would depend on whether you have an active or passive system and what benefits are included in your tracking system. Fleet management tracking systems will depend on what features you would like your system to have and pricing is based on individual requirements, fleet size, etc. A 36-month contract could set a company back as little R1,699.00 per vehicle and a monthly fee of R119.00 per month or it could be as high or even higher as R3,299.00 per vehicle and a monthly fee of R229.00 per vehicle per month over a 36-month period. As a company you would need to decide what features you would like included and what value you would want the system to bring to your company.