Fuel is the lifeblood of the delivery industry; erratic fluctuations in fuel prices affect the entire sector's health. Currently, with rising fuel prices showing no signs of stabilization, a BEST Express representative states the company is optimizing operations through three strategic pillars.

BEST Express uses a big data platform to optimize fuel costs. Photo: BEST Express

The first pillar involves technology and data. Leveraging its existing logistics technology capabilities, BEST Express utilizes big data and artificial intelligence (AI) technology to calculate optimal routes. This shortens the journey for each vehicle in specific areas, directly saving fuel consumption per vehicle.

Operationally, the transport team employs the R2 system to control depreciation and fuel costs. Specifically, the system enforces discipline by assigning fuel consumption quotas per kilometer for each vehicle type and closely monitors actual consumption to detect anomalies. To reduce cost pressure, R2 also optimizes vehicle lifespan by managing operating hours, scheduling regular maintenance to lower repair costs, and managing usage time and mileage for tire replacement to increase tire lifespan by 20%. Dispatch specialists also monitor cargo flow data to update the transport system, preventing empty runs or overlapping deliveries that lead to fuel waste. Through this approach, BEST Express is optimizing up to 60% of its transport fleet's costs to cope with rising fuel prices.

The second pillar focuses on load optimization. Integrating bulky cargo (BEST Cargo) and small parcels (BEST Express) onto the same routes proves effective by maximizing the load factor. Optimizing routes with full loads helps dilute the fuel cost per delivery, enabling the company to maintain competitive costs. Therefore, a BEST Express representative states that management is considering a plan to increase the number of heavier-capacity vehicles in its current fleet. This aims to fully optimize fuel costs per order, absorbing the impact of fuel price shocks.

The third pillar concentrates on infrastructure. The company has franchise partners nationwide. To support partners facing fuel price pressure, BEST Express plans to open additional transfer hubs in the Northern and Southern regions. This will shorten transit distances for local post offices, helping partners reduce operational cost pressures. A company representative indicates this strategy aims to build resilience against future cost fluctuations.

Local post offices leverage routing platforms to adapt to fluctuations. Photo: BEST Express

According to a company representative, the effort to optimize operations amidst fuel price volatility tests the company's calculation and adaptability capabilities. This is especially critical as parcel volumes from e-commerce platforms show no signs of decline. The company notes that in key localities like Da Nang, post offices reported a 150% increase in incoming parcels since early march, including both heavy and express shipments. This suggests that the projected 4.2 billion parcels for 2026 is well-founded, despite macroeconomic fluctuations. However, rising fuel costs are prompting local post offices to adopt various adaptation strategies: optimizing routes for shippers to maintain income, planning consolidation points, and utilizing larger loads for more shipments. Such measures aim to maximize the sudden surge in volume.

"Fuel price volatility is a common challenge, but it presents an opportunity to adapt and optimize internal capabilities. Through this, the company remains steadfast in its goal of long-term partnership and sustainable development, continuing to provide reliable transportation solutions for Vietnam's digital economy," a BEST Express representative emphasized.

The Dan