Investment in transit hubs contributes to increasing competitive advantages for express delivery businesses

17:09 | 17/12/2021 Society

J&T Express is currently investing in the 37th transit hub in Vietnam with an area of up to 60,000sq.m, expected to go into operation in early 2022. The investment in the transit hubs system is one of the factors that helps increase the competitive advantages of express delivery businesses in terms of maximizing the customer experience and responding well to the strong growth of e-commerce.

investment in transit hubs contributes to increasing competitive advantages for express delivery businesses

According to the annual report SYNC Southeast Asia conducted by Facebook and Bain & Company, Vietnam is predicted to be the fastest growing e-commerce market in Southeast Asia by 2026, with a total e-commerce gross merchandise value reaching US$56 billion, about 4.5 times the estimated value by the end of 2021. In recent years, the strong development of e-commerce and online shopping habits formed during and after the pandemic have opened opportunities for express delivery businesses, since delivery is considered one of the important factors influencing customers’ experiences on the online shopping journey. According to this report, the number of digital consumers is expected to reach 71 percent of Vietnam’s population by the end of 2021, bringing the total number of e-commerce users to 53 million. With the number of orders continuously increasing and expanding to other provinces and cities across the country, investing in the transit hub system will help ensure smooth transportation, minimize the loss and damage of goods compared to manual handling, shorten the delivery time, and improve the service experience for the customer.

In order to timely grasp the needs and context of the current market, express delivery companies are constantly improving their capacity and optimizing logistics solutions to bring the best service experiences to customers. J&T Express – an international express delivery brand that is also investing in the 37th transit hub in Vietnam. This is the largest and most modern transit hub in the country, with an area of up to 60,000sq.m, expected to be in operation in early 2022. Thanks to the application of modern technologies such as the DWS intelligent classification system, automatic handling based on Smart Logistics standards, and automatic matrix conveyor system. It is estimated that the center can handle up to two million large and small packages per day with high accuracy in a short time.

One of the benefits of a transit hub is its large storage space and professional management system, which help ensure goods are properly classified, stowed, and handled. Thanks to modern handling technologies, businesses can save money and time in handling goods, as well as meet the growth rate of parcel volume in the future. Investing in a modern transit center system helps businesses control the quantity and quality of goods, ensure the circulation and transportation of goods to consumers quickly and accurately. Therefore, express delivery businesses have better preparation to cope with the increasing demands in online shopping, especially in peak sales seasons.

Mr. Phan Binh – Brand Director of J&T Express Vietnam, said, “When the 37th transit hub comes into operation in early 2022, it is expected that the total area of transit hubs of J&T Express will reach 168,000sq.m. The investment in the transit hub system and the application of technology and AI to the management and operation chain not only help J&T Express improve control efficiency and speed up the delivery process, but also help parcels reach consumers faster and more accurately, contributing to improving the reputation and competitive position of the company.”

J&T Express is a technology-based and internet development express delivery company in Indonesia, established in 2015. J&T Express is one of the international companies in the field of express delivery, currently present in seven countries in Southeast Asia, including Vietnam. In Vietnam, although still fairly new, J&T Express has achieved a high growth rate in just three years. J&T Express is committed to using advanced information technology systems to enhance the timeliness and quality of service, as well as satisfy the criteria of convenience, speed, and efficiency in delivery services to customers. J&T Express has a wide network to support fast delivery of goods not only in the inner cities but also in the suburbs and remote areas of provinces and cities all over Vietnam, and at the same time, expand the coverage of express delivery services to many countries worldwide. With the slogan "Express your online business", J&T Express focuses on supporting customers to do online business more easily and efficiently, as well as providing utilities to help customers expand their businesses in the e-commerce trends.