Shell & Ezyhaul To Drive Digital Transformation Of Malaysian Road Freight Market
Businesses can now derive greater value from the partnership via information transparency, improved efficiency and instant access to a range of Shell & Ezyhaul offerings.
Kuala Lumpur, 16 April 2021 – Shell and digital road freight platform Ezyhaul are partnering to further transform the Malaysian 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 partnership seeks to build a relationship with its customers by learning about their fleet management problems and then providing solutions for issues related to safety, maintenance, and fuel consumption using telematics, mobility services, and others.
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% .
As the third-largest economy of ASEAN, Malaysia is well-positioned to reap the benefits of the digital revolution. Furthermore, the nation has been positioning itself towards becoming a logistics hub in the region, encouraging more foreign companies to set up their logistics hub in Malaysia , .
“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 Malaysia,” 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. A digital marketplace provides improved pricing, visibility, quality of service and transport optimisation. Ezyhaul, 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 shared that “Transporters are at the centre of the freight industry and therefore, with this partnership, 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.”
Lim Wei Keat, Group Director of Levels Group Sdn Bhd shared “Shell and Ezyhaul have provided us with analytical insights which in the long run, help us make better decisions to further grow our haulage fleet.”
Eases the burden of cash flow
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 partnership allows registered transporters to contract jobs via the Ezyhaul platform while being fuelled by Shell quality products, mitigating these large upfront payments.
Veluppillay Somasundaran, Managing Director of Aveon Global Transports Sdn Bhd, shared that “Trusted partners are important for entrepreneurs like me. With the Shell and Ezyhaul partnership, I have been able to grow my fleet size by 300%, and the fuel upfront feature helps me reduce immediate expenses.”
Zain Hak further shared “Our transporters that use the Shell fuel card are facing increased expectations from their customers regarding digital capabilities. By partnering with Ezyhaul, we can enable our transporters to optimise capacity utilisation, increase their profitability and deliver real-time transparency their customers expect. Coupled with Shell’s fuel card, this partnership 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.”
Increased Convenience and Transparency
The Ezyhaul platform allows for truck tracking and tracing, granting shippers and transporters full transparency. Furthermore, with the Shell partnership, customers can control fuel payment and consumption via real-time informatics, while providing business analytics and insights.
Muhd Abu Baihaqi, Director of A&A United Logistics Sdn Bhd said “This partnership features a digitalisation aspect that has provided immense convenience. I can access a consolidated invoice, source for potential clients and track my shipments from anywhere within one platform.”
In addition to Malaysia, the partnership is also available in Thailand 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.
-Haezell Claudius /DG