Cambodia Logistics Embraces Tech for Efficiency: VRK Pioneers EV Adoption and AI Integration for Cost Reduction

Sok Virak, CEO of Virak Bunthain Express (VRK), a leading logistics company in Cambodia, has emphasized the importance of technological innovation for efficiency and cost reduction in the logistics industry, drawing on over two decades of experience. Virak highlighted that modern logistics operations cannot rely solely on human resources but require advanced technological systems for precise management and oversight. VRK employs GPS technology to track vehicle locations and monitor fuel consumption in real-time, significantly boosting operational efficiency. According to Virak, the implementation of GPS has led to an approximate 20% reduction in daily fuel expenses and has enabled cost savings of about 30% to 40% for customers. Despite rising fuel prices, the company has maintained its transport service rates, preserving its market competitiveness. Addressing the issue of high domestic transportation costs, which Virak noted can be nearly double the cost of imports, VRK is actively transitioning to electric vehicles (EVs). Currently, about 60% of its fleet of over 1,000 vehicles are EVs, a move expected to lower operational costs and enhance efficiency. The company aims to further reduce service fees in the future. To support the transportation of agricultural products, VRK has also introduced refrigerated trucks. This service ensures the freshness and quality of produce such as vegetables, fruits, and meat during transit, facilitating easier market access for farmers and Small and Medium Enterprises (SMEs), particularly through online sales channels. Furthermore, VRK has developed and implemented an automated cargo sorting system, reducing reliance on manual labor and thereby saving time and minimizing errors in goods preparation and distribution. Looking ahead, VRK plans to introduce electric container trucks by 2027, aiming to further reduce costs and improve the efficiency of Cambodia's logistics and supply chain systems. Virak asserts that the adoption of technology and the shift to electric power not only enhance the company's operational management but also bring added benefits to customers, farmers, and the broader business sector in Cambodia. Source: Kampuchea Thmey Local