Exciting times ahead for Malaysian entrepreneurs
TRADITIONALLY, October is the logistics month where the Global Logistics and Supply Chain (GLCS) Conference is held in Malaysia. This year’s conference took place on October 1 and November 1 with 150 delegates and 32 speakers discussing “Supply chain in digital economy”.
Various presentations by industry leaders and in-depth panel discussions on innovation and the sharing economy took place.
Chartered Institute of Logistics and Transport Malaysia deputy president Ramli Amir gave a keynote address on digital transformation of supply chains in Asia.
He said the digital economy was a true industry shift for manufacturers, retail and the logistics sector. New technologies will allow industries to dramatically improve asset utilisation, logistics and supply chain efficiencies, and reduce purchasing costs to a level never seen before in history.
For a competitive advantage of the logistics sector in Malaysia, the adoption of new technologies is indispensable, in particular high impact areas such as frontend systems that improve customer experience, big data, blockchain technology and warehouse automation.
Warehouse automation is needed to facilitate e-fulfilment of all e-commerce packages, which are much smaller than the conventional pallet movements the logistics industry is used to. Drone technology was discussed in various panel discussions. However, experts believe drones will mainly be used for warehouse environments for stock counting and surveillance, but not for physical e-commerce deliveries.
TradeGecko Pte Ltd chief operating officer Nathalie Benzing stressed the importance for the industry to embrace the digital economy. Costs of advanced logistics, supply chain systems and analysis tools have come down significantly. These technologies are now also affordable for small and medium enterprises through flexible software-as-a-service models.
PASIA chairman Charlie Villasenor said ethics and excellence were essential requirements of the digital economy that should be anchored in logistics and supply chain processes.
E-procurement is at infancy stage in Asia, thereby providing huge cost savings potential that is now often left on the table.
An academic panel discussion with professors from Malaysia’s leading supply chain management universities, namely Universiti Malaysia Pahang, UCSI University and the Malaysia Institute for Supply Chain Innovation, called for a greater collaboration between universities and industry with a two-pronged approach suggested.
Universities need to teach logistics niche areas, such as halal logistics, cool chain management and dangerous goods. University programmes should include more practical training and (graduation) projects within the industry.
On the other hand, the industry should also take ownership in creating practical training programmes for students in the company and contribute to university’s curriculum development.
The panel on green logistics said sustainability should be high on the agenda of the industry, particularly in the warehouse design and asset utilisation. The good news is that going green now makes business sense in saving operational costs by sharing warehouses, trucks and vans.
GLCS this year showcased a high number of Malaysian entrepreneurs that have developed world-class innovative technologies and logistics services. A promising new generation of local logistics professionals are shaping the digital economy. In other words, exciting times ahead for the local sector.
The good news is that going green now makes business sense in saving operational costs by sharing warehouses, trucks and vans.