AI unlocks the bottleneck in logistics costs.

AI is becoming a crucial tool for logistics businesses to optimize transportation and warehousing, thereby enhancing their competitiveness.

Regarding this issue, Associate Professor, Dr. Nguyen Thanh Chuong, Chairman of the Vietnam Logistics Human Resources Development Association, discussed it with a reporter from the Hanoi Press and Broadcasting Agency.

Associate Professor, Dr. Nguyen Thanh Chuong, President of the Logistics Human Resources Development Association
Vietnam. Photo: Lam Giang

AI determines competitiveness.

- Sir, AI is being discussed as a significant technological trend in many fields. What role does AI play in the logistics industry?

- AI is primarily a tool to help businesses improve labor productivity and management efficiency. This technology enables workers and managers to make faster and more accurate decisions, thereby contributing to more stable and continuous business operations.

A very important benefit of AI is the reduction of intermediate costs in the operational process. By reducing intermediate costs, businesses will improve operational efficiency and increase competitiveness.

The essence of AI is processing data and repetitive processes. Tasks that humans would have to perform manually many times can now be assisted by machines much more efficiently.

For logistics, AI is particularly suitable because it's an industry that solves optimization problems. Examples include optimizing transportation, warehousing time, and goods flow. Effective optimization can improve vehicle utilization and significantly reduce costs.

Currently, Vietnam's logistics costs remain high, partly due to the lack of optimization in transportation operations. Many transportation processes are inefficient, resulting in significant costs because businesses haven't effectively utilized data to manage goods.

- In your opinion, have Vietnamese logistics businesses shown significant interest in applying AI yet?

- Nowadays, businesses are paying more attention to this issue due to increasing competitive pressure. This is not only competition between businesses but also national competition.

Therefore, in the process of digital transformation, businesses are compelled to consider applying AI in management and operations. This will be one of the decisive factors in their competitiveness in the future.

For AI applications to be effective, synchronized data is essential.

- In your opinion, what is the most important factor when implementing AI in the logistics industry today?

-The most important factor is data. To apply AI, you first need data, and to have data, you must implement digital transformation.

The current challenge is to build a synchronized data infrastructure. Who will manage the data, how the data will be connected, and how it will be shared are all crucial questions.

For example, in the transportation sector, data is currently quite fragmented across road, rail, air, and water transport. In my opinion, there needs to be a common data system for the entire transportation industry, as well as common data on warehousing, logistics, and supply chains.

With interconnected data systems, businesses can effectively leverage AI to optimize transportation, reduce costs, and enhance international competitiveness.

- What is the gap between the potential of AI and its current implementation in Vietnam, sir?

-The world has actually come a long way in the field of AI, while we are just beginning to build AI engineering training programs, AI centers, or AI research institutes, but overall it is still quite new. This requires Vietnam to accelerate its digital transformation and develop digital infrastructure more quickly.

Currently, our data and digital infrastructure is still in its early stages of development. This is a crucial foundation for AI to be widely applied in businesses and the economy .

Who helps businesses optimize warehousing and inventory flow? Photo: Hoang Hanh

But How is AI human resource training for the logistics industry currently being implemented, sir?

Educational institutions have begun incorporating AI into their curricula as a career support tool. However, the goal is not for AI to replace humans, but rather to help learners use AI effectively.

In logistics training schools, faculty members must first be trained in AI, and then gradually integrate AI knowledge into specialized subjects.

Most importantly, learners must understand that AI is merely a supporting tool. To effectively utilize AI, each individual, business, or organization must build its own data system.

- How will the Vietnam Logistics Human Resources Development Association support businesses in this process?

-We focus on three main groups of solutions. Firstly, we provide technology consulting for businesses, supporting them in accessing AI application solutions that suit their actual needs.

Secondly, we focus on training human resources so that workers know how to apply technology in their work. Thirdly, we have training programs to ensure that graduates can immediately meet the requirements of businesses.

Through forums, workshops, and business networking activities, we also create opportunities for businesses to share experiences, learn effective AI application models, and find optimal solutions for themselves.

- What recommendations do you have for logistics businesses in the current context?

Logistics is one of the industries that applies AI most effectively because it optimizes the entire operational chain.

AI can help businesses optimize transportation, warehousing, and inventory flow, as well as forecast market demand. Better forecasting can reduce inefficient transportation, minimize waste, and significantly save on logistics costs.

For example, poor forecasting can lead to situations where goods are transported over long distances but are not consumed effectively, resulting in increased transportation costs and significant waste.

Therefore, logistics businesses need to integrate AI into their development strategies as soon as possible, accelerate digital transformation, and invest in data infrastructure and human resources. This will be a crucial factor in helping businesses enhance their competitiveness and contribute to reducing logistics costs for the economy.

Thank you very much, sir !

Source: https://hanoimoi.vn/ai-go-nut-that-chi-phi-logistics-941798.html