Making e-commerce delivery better and faster

Reliable Transport & Logistic Services has been able to take on 20 per cent more jobs since adopting VersaFleet's software.
Reliable Transport & Logistic Services has been able to take on 20 per cent more jobs since adopting VersaFleet's software.PHOTO: URBAN REDEVELOPMENT AUTHORITY

SINGAPORE - All it takes is a click to send presents to loved ones this festive season yet all those delivery vans could quickly clog up our roads... but as is usual these days, there is a tech solution.

Software company VersaFleet is employing algorithms that aim to alleviate the problem with more optimised routes so trucks do not have to waste time going back and forth.

It put its solution on display at an Urban Redevelopment Authority (URA) exhibition on innovations in urban logistics that opened on Tuesday (Dec 4).

One of VersaFleet's clients, Reliable Transport & Logistic Services, said its daily operational planning, which includes drawing up routes, has been cut from two hours to 30 minutes thanks to the software.

Reliable's business development director, Mr Mohammad Faizal, said manpower and routes were once painstakingly done on pen and paper. An employee now just keys in the routes and all the drivers can be tracked while on jobs to maximise manpower allocation.

"They just put their phones there and follow them," said Mr Faizal. "The system even reminds drivers if they miss a drop-off point."

The software was one of a range of innovations showcased at the exhibition opened by National Development Minister Lawrence Wong at the URA Centre atrium.

He said at the event: "We need to optimise the delivery of goods within our island to bring greater convenience to consumers, to help businesses lower costs and ultimately to enhance our competitiveness as a regional hub."

International market research firm Statista said e-commerce sales here will exceed US$4 billion (S$5.45 billion) this year, well up on last year's US$3 billion or so.

A recent study by the Singapore University of Technology and Design and the Singapore-MIT Alliance for Research and Technology found that trucks going into Orchard Road are less than 40 per cent full and usually bound for only one shop at each mall.

Assistant Professor Lynette Cheah, who led the study, said a more holistic perspective to evaluate urban logistics solutions is necessary to avoid road congestion.

"We need collaboration between all stakeholders, including multiple suppliers, carriers and consumers, in order to achieve efficiencies," she said.

One way to reduce the number of delivery trips is to pool more goods in vehicles.

AAK Logistics Services has been trying to do this since last year. Its consolidation centre in Penjuru Road gathers goods from separate companies before delivery to stores. Retailers usually use their own logistics providers to deliver merchandise from multiple warehouses to their shops.

AAK business manager Jason Chan said it has been able to reduce truck trips by more than 20 per cent, resulting in cost savings of 15 per cent to 20 per cent for its customers.

However, challenges remain in pooling resources.

"Some luxury goods and sports apparel brands don't want to mix their products with other merchandise in the same truck," said Mr Chan, who sometimes has a hard time persuading such companies to get on board.

Efforts are also being made on the other end of the delivery process.

For example, the Locker Alliance, a government initiative, aims to create an integrated parcel locker system that is accessible by delivery companies. Lockers are now owned by different operations on various computer systems.

If the project is launched islandwide, there will be an estimated 50 per cent reduction in distance travelled by delivery vehicles.

The exhibition runs until Jan 25.