Thailand Post Distribution joins hands with Singapore's Swat Mobility on AI for logistics push

With a goal of transforming into logistics 4.0, Thailand Post Distribution (THPD) on Wednesday signed MoU with Singapore-based smart mobility firm, Swat Mobility, to jointly research the use of Artificial Intelligence (AI) and machine learning in delivery load and route optimisation.

The partnership is expected to not only strengthen the logistics operations of THPD through the improvement of load utilisation and route planning optimisation but also become a crucial part of driving a shift to carbon-neutral mobility.

Under the agreement, Swat Mobility will use its AI-powered system to automate the management of route planning and optimise vehicle load utilisations for THPD. It is aimed at putting in place a more efficient planning process that will increase productivity and customer satisfaction while reducing the number of vehicles used in these deliveries.

Peera Udomkitsakul, CEO of THPD Co said that Swat smart solutions will align with its plan to launch a platform for small farmers and community enterprises in the last quarter of this year. The new service is aimed at reducing backhaul waste and energy consumption and also offers farmers good and affordable transport options.

Meanwhile, Swat technology will support THPD's project to expand B2B logistics service.

"We strive to be a model Thai logistics provider that adopts cutting-edge technology to provide efficient transport systems on par with foreign companies. In addition, the new operating procedures will help reduce the logistics costs of customers and promote sustainability with mitigation of carbon footprint," said Peera.

Arthur Chua, executive chairman and co-founder of Swat Mobility Co, said that this partnership, more than achieving outcomes beyond increased productivity, is driven by a common desire to create a positive impact through vehicles and mileage reduction. Sustainability and resource-use efficiency are priorities that Swat actively strives toward with the use of technology.

"Mileage reduction has always been at the core of Swat's technology, and so is the corresponding decrease in carbon emissions. We provide AI-powered technology that optimises your mileage and vehicle usage as well as tools that amplify your environmental impact."

For reduction of operating costs, Chua said that Swat Mobility has done a similar project with other logistics providers, showing that its smart solutions could reduce the number of vehicles by 50 per cent.

Currently, Swat Mobility has launched its solutions in eight countries with the main focus on Thailand, the Philippines and Japan. Swat Mobility has progressively secured the interests of key Thai stakeholders in the automotive, manufacturing and FMCG industries, following its expansion into the market in 2021 with the support of Enterprise Singapore.

"If we want to bring technology to real life in different countries, we need to act on many unique parameters and need unique operational tools."

Chua pointed out that the company is moving forward to build more parameters to customise solutions for the different needs of customers. So far, we have done over 200 kinds of customisations to fix different countries, different industries and different using patterns. We're moving forward to build more and more parameters to make customised solutions," said Chua.

Founded in 2016, Swat is a fast-growing tech startup and pioneered solutions that digitalise the traditional method of providing transportation services for multiple large companies in Southeast Asia and japan. Its dynamic routing algorithm ranked the N0. 1 of the Li & Lim Benchmark, which is the world-renowned benchmark for solutions solving pickup and delivery problems. In 2021, Swat Mobility was listed on the Forbes Asia "100 to Watch" list as a notable startup on the rise in the Asia-Pacific region.