Entrepreneur Dao Trong Khoa and his ambition to build Vietnam's first 4PL logistics company

As one of Vietnam's first private logistics companies to operate internationally, T&M has always been a pioneer in providing international shipping services. Along the way, we have achieved the following milestones being a founding member of the WCA network; Providing direct retail freight (LCL) services; “Opening the way” for the LCL route to the US; Offering cross-border e-commerce; and soon to become the first  4PL in Vietnam providing professional logistics and supply chain execution services.

- In the current era of technology 4.0, many businesses are becoming digital enterprises, "business 4.0." What makes T&M different in your strategy, first of all in building a human resources team, which is the "foundation" of development?

We have sought to be a smart logistics company from very early on, from applying modern technology to building a strong team. 

T&M was one of the first companies to use CargoWise’s technology solution. As early as 2004, CargoWise One has been the most advanced platform for logistics operations. It combines various solutions, such as administrative management, human resources, and internal exchange.

Therefore, the people of T&M have carried the modern “technological DNA” even before the term “digital transformation” or “technology 4.0” became popular. The current technological revolution will push us even further ahead.

In addition, T&M’s e-learning platform enables our employees to continuously learn and enhance their skills. For example, using CargoWise’s e-learning system, our staff can develop specialty areas, going from merely being an operator to becoming a professional.

- Will your company strategy change when the COVID-19 pandemic occurs?

The COVID-19 pandemic shows us the importance of developing organizational digital capacity.

Apart from the pandemic, market fluctuations mean that business need to quickly adapt to new ways of working, such as work-from-home and online real-time collaboration... In particular, the business development and customer service teams also need to adapt to online engagement channels to maintain an effective network of customers and partners.

- As the recruitment process strives to meet long-term requirements and goals, the retention of talent is a difficult problem for every organization. How did T&M solve this problem?

T&M has always had a growth mindset. The successful employees of T&M are those who are willing to work hard. Whether they are new university graduates or newcomers to the profession, we make sure that they undergo systemic training.

Overall, retaining talent is essential, so the company’s leadership, structure and policies must adapt to changing realities.

- A study by leading economists at the University of Warwick found that “happiness increases human productivity by up to 12 percent.” How is T&M Forwarding cultivating a welcoming workplace?

We strive to be a second home for our employees. Only when you come to work with a relaxed spirit can you work well and contribute your best. This is why we strive to create a friendly working environment. This vision starts from the top. For example, the management itself measures the success of the company not only by the numbers but also by the satisfaction of customers, the “happiness” of the staff. In addition, we offer a competitive benefits package.

- So, are your employees empowered to make the changes they want at work?

Decentralization and initiative-taking have been at the core of what we do since our founding days. With very clear job descriptions, you can work proactively and creatively. All suggestions for improvement are warmly welcomed and, if effective, thoroughly applied.

The “ISO9001 spirit” is what we call the system of governance and continuous improvement at T&M. In fact, T&M is the first company in the transportation industry that received a certificate of quality management according to ISO9001 in 2001.

- T&M has a reputation of cultivating many successful employees, many of whom become CEOs after leaving the company. Is this a success or a failure?

This is a resounding success. Many people call T&M a “hotbed of innovation”, and we take pride in training young leaders of Vietnam’s logistic industry.

- Besides human resources, how has T&M prepared its technology platform to become a smart logistics enterprise, specifically to become the first 4PL logistics enterprise of Vietnam?

T&M started out as a professional forwarder and transporter, being Vietnam's first private international forwarding company. 

The turning point of the 4.0 era coincides with T&M’s 25^th birthday. On this occasion, we are transforming into the first smart logistics company in Vietnam (Smart Freight Forwarder). 

In the near term, this means that we aim to expand our 4PL consultancy services for logistical chains. Specially, we will become the fourth-party logistics service provider who manages the entire supply chain for our customers. We will also help third-party service providers by serving as the sole point of contact with customers. To do this, technology and networking are critical, which T&M has in spades.

- Given application of Integrated Solutions to the various services you have mentioned above, how is T&M different?

What makes T&M different is technology. T&M is using the same CargoWise One technology platform that leading global logistic providers are using. This solution meets the needs of small businesses but also meets the needs of global businesses with tens of thousands of employees. As a cloud-based logistics service platform, CargoWise One covers all the functions necessary for the operation of the business. This includes key areas of customer relationship management, personalized processes, finance, human resources as well as implementation of online capabilities, e-business for all logistics activities in the chain such as freight forwarding, transportation, customs declaration, warehouse management, cross-border transport, global compliance systems, and real-time status update,…

- Is being small scale “hindering” the development of Vietnam’s logistics business? How has the technology solution overcome this?

It is true that the majority of enterprises in Vietnam’s logistics industry are small and medium-sized enterprises, with a common staff of 10-20 employees. However, this is a global pattern. One of the peculiarities of logistics services how customer-partner relations relies very much on personal relationships.

“Small but mighty” is an inevitable trend for the development of small and medium-sized enterprises (SMEs). Why? SMEs are more agile. They can adopt solutions and transform their operations faster. Those who are quick to adopt technology will be “the early bird that catches the worm”.

In addition, following the path of digital transformation is inevitable. This used to be very difficult, but that has changed. With the development of the industrial revolution, cloud computing, SaaS service delivery models (software as a service), PaaS (platform as a service), and paid models by usage, access to top notch solutions has become easier.

However, technology cannot solve all of a company’s problems. A key organizational “weakness” is the leadership. They need to be visionary, competent, and willing to try hard things. They need to have the can-do spirit. We are lucky to have both technology and leadership.

- So, as you said, digital transformation in the business has to start at the leadership level?

Absolutely. Leaders must know what they want and guide their team. They must dare to change themselves and encourage their team to transform together.

Foresight and perseverance are prerequisites for starting the digital transformation journey.

- To achieve high efficiency, what advice would you offer organizations seeking to embark upon the digital transformation process?

Choose the right technology, have a long-term vision, and see technology as an investment rather than a cost.

-25 years is neither too long nor too short for a development journey of a business. What will T&M pursue at the age of 25?

Over the past quarter of a century, we would like to emphasize T&M’s pioneering spirit.

We aim to be at the forefront of all types of services. Therefore, from our early days, we have been involved in founding the WCA network – a network of independent global logistics companies. We have been providing direct shipping (LCL) services since the 1990s. We have been “opening” the LCL route to the US since 2005. We have been providing services for cross-border e-commerce in recent years. This pioneering spirit will remain forever.

As mentioned, we will aim to become Vietnam’s first 4PL, specifically, 4PL is a professional chain logistics consultant and operator. This means that we will manage the entire supply chain, while serving as the sole point of contact for customers and third-party logistics service providers.

To do this, T&M will leverage its unique access to technology and networking.

- Specifically, how will T&M use technology and network "weapons" to become a professional 4PL service provider?

As a company in T&M’s ecosystem, DTK can become a 4PL service provider. It can manage the supply chain and coordinate 3PL activities for its customers. It can offer solutions on the CargoWise platform. It can connect the customer's system to the logistics partner's systems.

In addition, we are a partner of Wisetech Global, with separate solutions for each sector, such as ports, warehouses, shipping, delivery, e-commerce, and price management.

In terms of agents and partners, T&M is one of the founding members of the WCA Network, a network of independent global logistics companies with more than 10,000 partners.

Besides, partner agents include logistics and delivery services companies with specialized services for each industry (Specialty Networks) such as Pharmaceuticals (Pharma), Perishables, and Time Critical goods. T&M also has a network of leading experts with in-depth knowledge and experience in the field of logistics chain management.

- The Covid-19 epidemic has caused the global supply chain turn upside down, including logistics activities that are considered the "backbone" of the supply chain. How did you and T&M get through this phase?

The supply chain has at times disrupted but the logistics industry has been remarkably resilient. The industry still shows incredible growth prospects over the past two "COVID years".

T&M is no exception. We have maintained our services, improved our technology platforms, and strengthened our team. T&M was not only able to overcome these trying times, we also managed to grow beyond our expectations this past year. This is because of three reasons, a highly experienced and committed leadership, a young, dynamic and dedicated personnel and a bullish market such as the U.S where we have strong advantages.

Having exceeded expectations after our 25th anniversary, we will continue moving forward with confidence and excitement in this "2nd COVID year".

- Thank you!