Domestic transportation service in the supply chain
Domestic transportation service is a flexible and efficient solution for moving goods. With advancements in transport infrastructure and modern management technologies, this method not only optimizes delivery time but also ensures cargo safety throughout the journey.
Domestic transportation services are widely trusted by businesses, with 2,420.4 million tons of goods transported in the first 11 months of 2024, marking a 14.1% increase compared to the same period last year (according to the General Statistics Office of Vietnam). This highlights the essential role of domestic transportation in meeting domestic cargo transport needs, particularly for SMEs.
The role of domestic transportation service
Domestic transportation service serves as a critical link enabling businesses to efficiently manage their supply chains, reduce costs, and enhance competitiveness. With the development of transport infrastructure and modern technological solutions, domestic transportation plays an increasingly pivotal role in helping businesses optimize logistics operations.
Flexibility to meet transport demands
Domestic transportation offers significant flexibility, allowing businesses to easily adjust routes, schedules, and cargo volumes to meet customers’ specific requirements. Additionally, this method provides access to remote or difficult-to-reach areas where other transport modes face limitations, ensuring the continuous flow of goods, even to remote and rural regions.
Cost optimization in transportation
Domestic transportation reduces intermediaries and enables direct delivery from warehouses to distribution points, significantly cutting costs for businesses. Furthermore, its ability to handle partial loads (consolidated shipments) allows businesses to share transportation expenses with other units, thereby lowering financial pressures while meeting their transport needs.
Support for diverse cargo types
Domestic transportation service is not only suited for fast-moving consumer goods (FMCG) but also facilitates the transport of heavy industrial goods. This flexibility enables businesses to meet a wide range of customer demands while streamlining their operational processes.
Enhanced inventory management
With domestic transportation, businesses can avoid maintaining large inventories to mitigate stock shortages. Instead, they can make small, frequent adjustments to shipments based on real-time customer demands. This approach minimizes storage costs, reduces the risk of inventory damage, and helps businesses adapt quickly to market fluctuations.
Ensuring stability and control in the supply chain
Thanks to advanced technologies such as GPS and transportation management systems (TMS), businesses can monitor and control the transportation process effectively. This ensures timely deliveries and minimizes risks during transit. In cases of unforeseen incidents like traffic congestion or adverse weather conditions, domestic transportation allows for flexible route adjustments to mitigate potential damages.
Challenges of domestic transportation service
Despite its numerous advantages and widespread adoption by businesses, domestic transportation still faces several challenges:
Inconsistent transport infrastructure
Although Vietnam’s road infrastructure has seen significant improvements in recent years, many areas, especially remote regions, still suffer from degraded roads or a lack of comprehensive connections. Additionally, traffic congestion in major cities like Hanoi and Ho Chi Minh City remains a common issue, directly impacting transportation efficiency.
These limitations result in delays in cargo deliveries, increased transportation costs, and difficulties in maintaining and developing customer relationships.
Rising transportation costs
Domestic transportation costs are significantly influenced by factors such as fuel prices, toll fees, and vehicle maintenance expenses. Amid fluctuating fuel prices and increasing toll fees, service providers must adjust their pricing to stay operational, causing businesses to face higher transportation expenses.
Shortage of professional drivers
Another challenge in domestic transportation is the shortage of skilled and experienced drivers for long-distance transport. Without proper training in vehicle operation, maintenance, and handling unexpected situations, delays in delivery schedules may occur, leading to potential cargo damage or delivery uncertainties.
Intense competition
The domestic transportation sector is witnessing fierce competition among service providers. Large companies often have an advantage thanks to modern technology, extensive service networks, and operational flexibility. Meanwhile, smaller providers tend to compete on price, which may compromise service quality. Poor decision-making in selecting service providers can lead to risks such as cargo loss, delayed deliveries, and subpar service experiences.
To help businesses optimize transportation processes and overcome the challenges of domestic transportation, VELA offers comprehensive domestic transportation solutions, covering warehousing to transport services. VELA guarantees absolute safety for goods throughout the delivery process.
With a professional network of transportation partners, VELA provides flexible solutions for all business needs, regardless of scale or cargo type. VELA’s services help businesses save time and costs while improving operational efficiency.
Additionally, VELA integrates advanced technologies, including real-time track-and-trace capabilities, offering transparent and clear information around the clock. Businesses can monitor and control delivery locations and schedules 24/7, enhancing efficiency and minimizing supply chain risks.
Domestic transportation offers businesses exceptional advantages in flexibility, speed, and route control. With VELA’s digital platform support, businesses can optimize transportation processes, fully leveraging this method to ensure fast, accurate, and transparent deliveries.
