When Logistics Is No Longer Just an Operational Cost
For many years, logistics was viewed primarily as a back-end support function. Today, amid increasing global trade volatility, logistics has become a strategic factor directly influencing business growth, risk management capability, and long-term competitiveness.
For Vietnam - one of the world’s most trade-dependent economies - this challenge is becoming increasingly significant. According to the Vietnam Logistics Business Association (VLA), logistics costs currently account for approximately 16.8–17% of GDP, substantially higher than the global average of around 10.6–11.6%. This gap highlights not only a cost challenge, but also a major opportunity for operational optimization.
In an environment where geopolitical instability, freight volatility, and supply chain disruptions can occur at any time, businesses are no longer competing solely on product or pricing. Operational visibility, data control, and responsiveness are becoming critical competitive advantages.
Compared to large corporations, SMEs often operate with more limited financial resources, manpower, and management systems. As a result, their resilience against supply chain disruptions is significantly lower.
Many businesses still manage logistics through fragmented emails, spreadsheets, and manual coordination processes. As operational complexity increases, this model can lead to the limit in operational visibility, delayed responses to disruptions, rising unexpected logistics costs, reduced shipment control, and inefficient coordination across departments and logistics partners
Today, businesses are not only under pressure to reduce costs, but also to improve adaptability in an increasingly unpredictable global market.
One of the most common misconceptions among SMEs is that digital logistics transformation requires heavy investment in complex systems such as ERP or WMS platforms.
In reality, digital logistics is not defined by the amount of software a company owns, but by its ability to efficiently organize and control operations across the supply chain.
Businesses with strong digital logistics capabilities are often those that can apply digital measures such as synchronize operational data in real time, track shipment status across the transportation journey, standardize documentation workflows there by improving coordination speed among departments. From that it can help identify and mitigate risks before they escalate into major disruptions.
In other words, digital logistics is not only about operating faster - it is about making smarter operational decisions in highly dynamic environments.
1. Standardize Operational Processes and Data
Many logistics-related costs do not originate from transportation itself, but from inconsistent data management and fragmented operational processes. Standardization improves visibility, minimizes errors, and enhances overall operational efficiency.
2. Leverage Digital Infrastructure From Logistics Partners
SMEs do not necessarily need to build proprietary systems from scratch. By integrating with digitally capable logistics partners, businesses can quickly access transportation management tools, shipment tracking systems, and electronic documentation solutions.
3. Shift From Reactive Operations to Proactive Supply Chain Management
Strong supply chains are not defined by the absence of disruption, but by the ability to anticipate risks and respond faster than competitors. This capability is becoming a defining factor for sustainable growth.
For export-oriented businesses, particularly shipments with POL located in Vietnam, freight forwarders are no longer simply transportation coordinators. Modern logistics partners are increasingly playing a strategic role in helping businesses improve operational capability and supply chain visibility.
Through solutions such as: electronic documentation (e-AWB, e-DO), tracking shipment visibility systems, clear quotation frame, real-time operational data synchronization, logistics optimization and cost-control support
In today’s volatile global business environment, competitive advantage no longer comes solely from company size or low operating costs. Agility, responsiveness, and supply chain visibility are becoming the key drivers of sustainable growth.
For SMEs, digital logistics transformation is no longer a trend-driven initiative. It is rapidly becoming a strategic foundation for improving operational efficiency, strengthening adaptability, and building long-term competitive advantage in global supply chains.
Sources: Compiled
Recent developments in the Middle East continue to have a significant impact on the global logistics industry. The ongoing closure of the Strait of Hormuz, combined with prolonged regional instability, is driving up transportation costs, affecting carrier operations, and placing additional strain on international supply chains.
Amid ongoing global supply chain restructuring, Vietnam is emerging as a key manufacturing and sourcing hub in Asia. The “China+1” strategy and the need for risk diversification are driving multinational corporations to expand their presence in Vietnam.
Entering April 2026, escalating tensions in the Strait of Hormuz have triggered a systemic disruption across global logistics networks. However, for Vietnamese import-export enterprises, the immediate risk is no longer confined to the Middle East. The critical pressure point has shifted to Asia’s transshipment hubs-most notably Singapore-where congestion is now constraining regional cargo flows at scale.
On the occasion of International Children’s Day (June 1st), GLOTRANS offices and branches nationwide simultaneously organized a meaningful gift-giving program for the children of employees currently working at the Company.
With the mission of discovering next-generation talents and reinforcing its position as a leading logistics enterprise in digital transformation, Glotrans HCM officially joined the Technology Exhibition & Recruitment Day 2026 (HUTECH Job Fair 2026). The event took place in an energetic and dynamic atmosphere, attracting thousands of students majoring in Economics, Logistics, and Information Technology from Ho Chi Minh City University of Technology (HUTECH).
From May 19–22, 2026, GLOTRANS is honored to participate in the PPL Networks Conference, one of the world’s leading networking events for international Freight Forwarding and Logistics companies.
The shipment of food additives was transported in container No. FCIU3301688 (20’), under B/L MPRSMUM1806, on the voyage from Nhavasheva Port (India) to Dinh Vu Port (Hai Phong, Vietnam) on 29/04/2017.
Company T (Plaintiff – the Insured) entered into an insurance contract with Company B (Defendant – the Insurer). After the insured event occurred, the Insurer alleged that the Insured had violated its obligation to prevent and mitigate losses. The Arbitral Tribunal acknowledged that such an obligation exists but concluded that the Insured did not breach it.
Under the insurance contract, the premium was to be paid in three installments, and in all three, the insured party was late in payment. When a dispute arose, the insurer (Defendant) argued that the insurance contract had terminated before the insured event occurred due to the late premium payment and therefore refused to make an insurance payout. However, the Arbitral Tribunal held a contrary view.
