Shell joins forces with Ezyhaul to drive digital transformation of Thailand road freight market
Jun 02, 2021
The collaboration will provide instant access to Shell & Ezyhaul offerings to Thai business owners and opportunities to grow business.
Bangkok - Shell and digital road freight platform - Ezyhaul are collaborating to further transform the Thai freight market. Equipped with over 60 years of global fleet management experience, Shell combines their expertise in mobility solutions with Ezyhaul’s digital freight capabilities.
The collaboration seeks to build a relationship with its customers by understanding their fleet management problems and then providing solutions for issues related to safety, maintenance, and fuel consumption using telematics, mobility services, and others.
Shell – Ezyhaul Collaboration Benefits
- Lower operating expenses for transporters
- Better credit terms on fuel
- Opportunities to grow business and better utilize vehicles through jobs via the Ezyhaul platform
- Greater visibility into fuel consumption
- Access to customers and transporters in and around Thailand
- Digitise transportation and requirements
- Technology to assist in greater business growth and sustainability
Zain Hak, General Manager, Shell Fleet Solutions Asia shared “The freight industry is relatively analogue, with operations being managed without the use of online platforms. The concept of digitalisation is rising and at Shell, we aim to drive the future of mobility to address the various pressure points for both shippers and transporters.”
Manual booking of shipments, limited real-time visibility on delivery status, lack of reliable and consistent data for analysis and improvement, difficulties to measure, manage and control vendor performance, billing inaccuracies and lack of data integration are some of the common challenges companies are facing when running an outsourced transport operation. Besides these, transporters are also faced with issues such as under capacity and empty backhaul issues.
However, digital and technology disruptions are starting to bring about a positive change. According to Frost and Sullivan, effective data use can help fleet managers increase productivity by 10-15%, cut fuel expenses by 20-25% and reduce vehicle idle time by 20-30%1.
1 Executive Analysis of Big Data in Commercial Vehicles, Frost and Sullivan
Mr.Ruengsak Sritanawiboonchai, Executive Director – Mobility Business of The Shell Company of Thailand Limited added “According to the International Data Corporation (IDC), there are 33 Zettabytes of data in the world and 80% of it will be unstructured by 2025. If structured, these vast data volumes make information more accessible and make algorithms much smarter resulting in opportunity to react and make decisions quickly and effectively. As the second-largest economy of ASEAN, Thailand is well positioned to reap the benefits of the digital revolution. The Kingdom has one of the region’s highest number of internet users and the continued expansion of e-commerce which has created greater demand in the logistics space, has had significant impact on freight operations in Thailand. Our collaboration with Ezyhaul signifies Shell strategic movement in digital transformation and continuous efforts to offer mobility solutions that meet different demands of every segment of customers. This partnership allows registered transporters to contract jobs via the Ezyhaul platform while being fuelled by Shell, access to wide-range of offers i.e. Shell’s world-class lubricant services, promotions. These enable our transporters to optimise capacity utilisation, increase profitability and deliver the real-time transparency to their customers”
“Road freight in South Asia is characterised by fragmentation and high inefficiencies. We are very proud to have gained such a strong global player as Shell as our partner and make our services available to more shippers and transporters across Thailand,” said Raymond Gillon, Co-founder and Chief Executive Officer, Ezyhaul.
Powered by technology
The Shell and Ezyhaul solution aims to solve challenges faced by shippers and transporters, one key challenge is cash flow burden. Many transporters face the challenge of maintaining their cash flow specifically with credit requirements from customers and their operational expenditure. Most transporters have a 45–90-day payment term which could result in around 20%–25% upfront fuel expenditure. This collaboration allows registered transporters to contract jobs via the Ezyhaul platform while being fuelled by Shell quality products, mitigating these large upfront payments. With the collaboration, Shell aims to provide Shell fleet card to Ezyhaul’s carriers to ease the burden of cash flow.
Zain Hak further shared “Our transporters that use the Shell fleet card are facing increased expectations from their customers regarding digital capabilities. By partnering with Ezyhaul, we can enable our transporters both big and small fleet owners to optimise capacity utilisation, increase their profitability and deliver real-time transparency their customers expect. Coupled with Shell’s fleet card, this collaboration gives transporters instant and ongoing access to a range of outstanding fuels, mobility products and business services across the world's largest fuel retail network. This collaboration also gives us an opportunity to widen our customer base in Thailand.”
Thanya Yimchaiyabhum, Owner of Siripong Logistics shared, "With Shell fleet card, my drivers can pay at the pump and get on the road without worrying about their payment method. Additionally, assigning fleet cards to drivers is a much safer alternative to carrying cash.”
Besides, Ezyhaul provides improved pricing, visibility, quality of service and transport optimisation through its cloud-based marketplace, levels the playing field for both transporter and shipper via a user-friendly interface on mobile or desktop. Thousands of quality shippers can now accurately control their operational costs while connecting with a host of new shipping clients, and conversely, shippers can now access a new range of qualified transporters with transparent and competitive costs.
Raymond also shared, “Transporters are at the centre of the freight industry and therefore, with this collaboration, we aim to further encourage their movement towards a digitalised business platform, as it will improve their profitability and permit affordability to scale based on market requirements.”
Increased Convenience and Transparency
This collaboration enables customers to access Ezyhaul’s digital platform that allows convenient truck tracking and tracing, granting shippers and transporters full transparency. Additionally, customers can control fuel payment and consumption via real-time informatics, while gaining business analytics and insights. As a result, shippers can enjoy competitive rates and an access to unlimited capacity.
Matinee Talsatit, Owner of Tong Pattana Logistics shared, “Receiving a detailed monthly report has been beneficial to manage and improve our cash flow.” and Suthipong Pimwan, Transport Manager at Bina Logistics, added, “There is immense convenience in using the Shell fleet card as it allows for greater visibility and control over fleet costs through real-time tracking.”
In addition to Thailand, the collaboration is also available in Malaysia and India. The companies will also extend the collaboration to other new markets such as the Philippines, Indonesia and beyond, to further improve and grow the digital freight market.
APPENDIX
Shippers
A shipper is a person/entity/business that seeks the transportation of their shipment.
Transporters
Transporters are parties that haul freight for third parties.
ENQUIRIES:
Sudarat Peetakanont
External Relations Advisor
Thitipa Laxanaphisuth
Country Manager – External Relations
The Shell Company of Thailand Limited
Maynica Sachdev
Edelman (Thailand)
Tel: +668 1455 8044
E-mail: maynica.sachdev@edelman.com
Chayanan Kumhom
Edelman (Thailand)
Tel: +666 1246 9351
E-mail: chayanan.kumhom@edelman.com
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