Why road transportation is prioritized in Logistics
Despite the high costs associated with domestic road transportation, it remains the top choice for many businesses in the Logistics sector. This preference is not only based on its flexibility and speed but also on various business-specific needs. Join VELA as we explore the reasons why this method of transportation continues to be favored and plays an irreplaceable role in the supply chain.
Factors contributing to high costs of road transportation
- Rising fuel costs
Transporting goods by road requires vehicles that consume more fuel compared to other modes of transport such as sea or rail. With fuel prices constantly fluctuating, this directly increases transportation costs, especially over long distances. - Inconsistent infrastructure
Vietnam’s road network is still developing, with many sections lacking in quality and traffic flow capacity. This leads to longer transportation times and significantly higher vehicle maintenance costs. - Labor and management costs
Road transport requires a large number of drivers, management staff, and coordinators. Additionally, costs related to vehicle maintenance, insurance, and security contribute to higher overall operating expenses.
Why is road transportation still the preferred choice?
Despite its high costs and the operational uncertainties caused by various external factors, domestic road transportation remains a popular choice for many businesses due to its unique advantages that other modes of transport cannot easily replace.
- Flexibility in route and timing
Road transportation offers rapid and flexible route adjustments, ensuring goods arrive according to plan and on time. This is especially crucial for goods that require quick delivery or have high value. - Suitable for all types of goods
From consumer products and agricultural goods to industrial items, road transport can meet every business need. Furthermore, its ability to directly reach residential areas, distribution centers, or factories for pickups is a significant advantage. - Connecting diverse destinations
The road network connects nearly all destinations across the country, from major cities to remote areas. With comprehensive coverage, road transport creates a seamless connection, meeting delivery needs across all terrains. - Ensuring the integrity of goods
Unlike some other forms of transportation, road transport allows for better control over the shipping process, reducing damage and loss. For businesses, this is crucial to maintaining quality and providing peace of mind to customers.
Cost-effective solutions for domestic road transportation
Given the many challenges in today’s business landscape, businesses must adopt smart management strategies and technologies to optimize costs and enhance end-to-end supply chain efficiency.
- Use of GPS and transport management technologies
Implementing GPS systems and transport management software helps optimize routes, save fuel, and reduce delivery times. This technology also enables monitoring and managing the entire transportation process, reducing risks and improving performance. - Optimizing operational costs
Smart transportation planning, combined with the use of fuel-efficient vehicles and regular vehicle maintenance, helps minimize fuel and maintenance costs. Additionally, using environmentally friendly vehicles is a trend worth considering. - Partnering with reputable transport providers
Choosing reliable transport partners allows businesses to leverage extensive network connections, reduce risks, and save costs through long-term contracts and special offers.
At VELA, we offer superior domestic road transportation solutions that ensure efficiency, safety, and flexibility, with a transportation network spanning all provinces and a team of experienced drivers. VELA’s advanced digital platform enables businesses to control and optimize the entire process, from pickup to final delivery. With comprehensive insurance coverage for every trip, we provide absolute peace of mind regarding quality and safety. By partnering with VELA, businesses can maximize their logistical efficiency, reduce costs, and maintain a high standard of service, ensuring that every shipment reaches its destination safely and on time.
