Vietnam’s logistics sector is experiencing rapid growth, facing numerous opportunities and challenges amidst international integration and advancements in modern technology. To gain deeper insights into the development strategies and solutions that U&I Logistics—one of the leading companies in the logistics sector—is implementing, Vietnam Logistics Review (VLR) conducted an interview with Mr. Nguyen Thanh Lam, Head of U&I Logistics' Warehousing Division.
From your position, could you share U&I Logistics' investment strategies in expanding bonded warehouse systems in Vietnam and the region in the coming years?
Mr. Nguyen Thanh Lam: U&I Logistics consistently focuses on expanding its bonded warehouse system to meet the ever-increasing market demands. In the coming years, we will make significant investments in infrastructure in key areas such as Binh Duong, Dong Nai, Ba Ria – Vung Tau, and major industrial zones in Central and Northern Vietnam. Additionally, U&I Logistics plans to expand into the Southeast Asia region, leveraging the development of the regional supply chain. Specifically, we will focus on implementing comprehensive logistics solutions (3PL and 4PL) and modern warehouse management technologies to optimize the supply chain for our clients.
With the increasing demand for bonded warehouses, what plans does U&I Logistics have to expand its warehousing system in terms of both scale and technology?
Mr. Nguyen Thanh Lam: To meet the growing demand, U&I Logistics has formulated plans to expand our bonded warehouse system in both scale and technology. In terms of scale, we will enhance the storage capacity in key industrial zones, particularly in Bình Dương and surrounding areas. Additionally, we will invest in more bonded warehouses in strategic locations near seaports and key export zones.
Regarding technology, U&I Logistics is implementing automation and digital solutions, including warehouse management systems (WMS), the Internet of Things (IoT), artificial intelligence (AI), and Big Data. These technologies will help improve storage efficiency, manage goods in real time, optimize the supply chain for clients, and ensure safety while reducing operational costs.
What advanced technologies has U&I Logistics implemented to improve warehouse management and logistics services?
Mr. Nguyen Thanh Lam: U&I Logistics has adopted modern warehouse management systems (WMS) that allow real-time tracking and management of goods, optimizing storage space and automating many processes. Barcode scanning technology helps ensure accurate inventory control and minimizes errors during the intake and release of goods. We are also exploring the integration of AI and Big Data analytics to predict demand, optimize distribution, and manage the supply chain. IoT systems help monitor storage conditions, such as humidity and temperature, ensuring goods are always stored in optimal conditions. All of our transport vehicles are equipped with GPS to track routes, optimize costs, and improve the accuracy of goods delivery.
In your view, how does technology play a role in optimizing costs and ensuring the safety of goods?
Mr. Nguyen Thanh Lam: Technology plays a crucial role in bonded warehouse management. It helps optimize operational costs through automated processes, precise inventory management, and minimized errors. We use automated warehouse management technology and AI to boost productivity, while IoT systems monitor storage conditions to ensure that goods are always kept in the best possible environment. Additionally, security cameras and access control systems guarantee absolute safety for the goods.
As global supply chain trends shift, how is U&I Logistics adapting?
Mr. Nguyen Thanh Lam: We are focusing on three key factors: technology, flexibility, and comprehensive services. U&I Logistics is heavily investing in automation and digitization with systems like WMS, TMS, and AI to optimize demand forecasting, reduce processing time, and enhance goods tracking capabilities. We are also expanding bonded warehouse centers in strategic locations and offering comprehensive logistics services to help clients optimize costs and access markets more easily.
How do you assess the potential of the bonded warehouse market in Vietnam and Asia over the next 5-10 years?
Mr. Nguyen Thanh Lam: I believe the potential for the bonded warehouse market in Vietnam and Asia will grow significantly in the next 5-10 years. Vietnam is becoming a major manufacturing and export hub in the region, especially as many international companies shift their supply chains to Southeast Asia. This will drive demand for bonded warehouse services to store and distribute import-export goods. I predict that businesses will increasingly seek flexible bonded warehouse solutions integrated with advanced technology, such as smart warehouse management systems and automation.
How has U&I Logistics addressed the challenges of logistics costs and the volatility of the transportation market?
Mr. Nguyen Thanh Lam: In response to the fluctuations in logistics costs, we have focused on optimizing our operational processes through modern technologies like TMS (Transport Management System) and WMS (Warehouse Management System), which help automate activities and minimize errors. U&I Logistics has also invested in multimodal transportation, combining road, waterway, and sea transport to increase flexibility. Additionally, we apply Big Data analytics to forecast demand and create more efficient transportation plans, avoiding surplus or shortages in transportation capacity.
What role does compliance with international standards like C-TPAT play in U&I Logistics' development?
Mr. Nguyen Thanh Lam: Compliance with international standards like C-TPAT is crucial for U&I Logistics, particularly in enhancing our reputation and expanding into international markets. C-TPAT helps ensure the security of the supply chain and provides significant advantages when working with foreign partners, especially in the U.S. market. In addition to securing goods, compliance with standards like C-TPAT reduces the time and costs associated with customs procedures, speeding up the cross-border transportation of goods. This also helps U&I Logistics build a strong reputation with global clients, reinforcing our position as a trusted partner.
In an increasingly competitive environment, how does U&I Logistics differentiate itself and enhance customer experience?
Mr. Nguyen Thanh Lam: U&I Logistics focuses on providing personalized services, offering flexible solutions tailored to meet the specific needs of each customer. We don’t just offer standard warehousing and logistics solutions but also provide strategic consulting and customized supply chain optimization plans. A key differentiator is our integration of modern technology across all warehousing management stages, allowing customers to track their shipments in real-time.
What solutions has U&I Logistics implemented to provide comprehensive logistics services (3PL and 4PL) and optimize supply chains for customers?
Mr. Nguyen Thanh Lam: U&I Logistics has heavily invested in large-scale bonded warehouses, equipped with advanced WMS technology that enables real-time inventory management and tracking. We’ve also developed multimodal transportation solutions, combining road, water, and sea transport to optimize costs and transit times. All our transportation vehicles are equipped with GPS tracking systems, allowing us to monitor routes and streamline delivery processes.
For businesses with higher supply chain integration demands, U&I Logistics offers 4PL services, managing the entire supply chain from storage, transportation, to distribution. We work closely with customers to understand their needs and provide the most suitable solutions, helping them optimize their entire supply chain.
Does the company have any policies to support small and medium-sized enterprises (SMEs) in using your logistics services?
Mr. Nguyen Thanh Lam: U&I Logistics fully recognizes the importance of SMEs in the economy, so we’ve developed several flexible policies to support them. We offer flexible logistics service packages, ranging from small to large scale, allowing SMEs to access services that fit their budget and needs. Additionally, we provide supply chain consulting services and assist with customs clearance, helping SMEs overcome logistical challenges and procedural difficulties.
We also offer preferential pricing for SMEs, along with comprehensive logistics services, so that small businesses can manage their entire supply chain without needing to make large infrastructure investments. This allows them to focus on their core business operations without worrying about logistics.
One of the standout results is the significant reduction in order processing times, providing customers with greater ease in managing and tracking goods in real-time. The GPS monitoring system allows for route optimization, helping to reduce costs and ensure accuracy in goods delivery.
What are some of the notable achievements U&I Logistics has made during its digital transformation process?
Mr. Nguyen Thanh Lam: The digital transformation process at U&I Logistics has been implemented in multiple phases, delivering positive results. First, the upgrade of our warehouse management system (WMS), integrated with barcode scanning technology, has automated the goods handling process, increasing storage efficiency by up to 30% and minimizing errors. We also implemented a Transport Management System (TMS) for managing transportation services and a Human Resource Management system (HRM) to optimize resource management.
Looking ahead, we plan to deploy additional technologies such as Big Data analytics and artificial intelligence (AI), which will help forecast demand, optimize storage space, and manage the supply chain more efficiently.