With a thousand motorbike registrations a day in Ho Chi Minh City (HCMC), the infrastructure is currently stretched to the limit. Consumer Goods companies will have to adapt to this changing environment. The following Transport Management System (TMS) components are likely to become increasingly important:
Scheduling. Major roads are too congested during peak hours, and alternative delivery times and routes must be evaluated.
Truck or bike configuration. A number of distribution vehicles are likely to be restricted by transport bands, or banned altogether. This will put additional pressure on the supply chain system. The new helmet law, coming into effect in December 2007, will soon be enforced on all roads in HCMC. Fines will be doled out to those not complying.
Routing. Routing will become increasingly important, as companies aim to save travel time and ultimately reduce distribution costs.
Human Resources. Traffic conditions will likely have a negative impact on employee turnover, as quality of life is increasing becoming an important issue. Additional time spent on the road, as well as increased exposure to air and noise pollution will exact a toll.
With a drastic increase in the number of motorbikes and vehicles on the road, the distribution landscape will require management team to respond with patience and creativity.