One of the world’s leading non-volatile memory solutions providers, Numonyx B.V, recently unveiled its new Global Distribution Centre in the Republic. The Bedok North Centre, which was officially opened in July by Manohar Khiatani, Assistant Managing Director, Singapore Economic Development Board (EDB), comes shortly after the establishment of Numonyx’s presence in Singapore, in April 2008.

The Centre will serve as a one-stop global logistics base for the distribution of finished goods to their customers worldwide. With its web-based shipment visibility and simplified return materials flow, Numonyx can consolidate and more effectively channel the products from its back-end manufacturing plants, which are located mainly in Asia-Pacific, and from its suppliers, to its customers.

To achieve this, the company has appointed DHL as its strategic logistics service provider to manage all related inbound and outbound traffic of finished goods. “By outsourcing the logistics component to DHL, we are able to focus on our core manufacturing business and at the same time, create a differentiated menu of services to cater to the requirements of our customers in the various market segments,” explains Mathieu Clerkx, Senior Vice President and General Manager, Global Infrastructure, Numonyx.

Numonyx was formed out of Intel Corp. and STMicroelectronics earlier this year, with assets that combine to generate approximately S$4.1 billion (US$3 billion) in annual revenue. Building on 40 years of experience in the semiconductor industry, and combining the technology and manufacturing expertise of the flash memory divisions of its parent companies, Numonyx provides high density, low power memory technologies and packaging solutions to a global base of customers.

It currently has facilities in about 20 countries and has 1,300 staff in Singapore. The city-state plays an important role for Numonyx: it acts as its regional sales headquarters for Asia and has an advanced 200mm wafer fabrication plant.

Numonyx's decision to locate its global distribution base in Singapore capitalises on the city-state's thriving business ecosystem, which comprises a unique blend of competitive strengths.

Vibrant Business Ecosystem

The establishment of the new Centre clearly demonstrates the close partnership between Numonyx and Singapore, and is a significant milestone that affirms the Republic’s position as a world-class semiconductor and logistics hub.

Numonyx’s decision to locate its global distribution base in Singapore capitalises on the city-state’s thriving business ecosystem, which comprises a unique blend of competitive strengths. These include its central location in Asia, excellent and reliable airfreight connections, transparency of operations, strong logistics infrastructure, stable political environment and the availability of highly skilled logistics manpower.

“The new Centre will provide Numonyx significant supply chain efficiencies that will enhance our business competitiveness,” Clerkx adds. A large number of the company’s suppliers and plants are located in Asia, signifying the importance of this region. Locating the Global Distribution Centre in Singapore enables Numonyx to achieve faster time-to-market and direct delivery to its customers.

Integrated Logistics Network to the World

Numonyx is the latest addition to an array of major semiconductor players, including Qimonda, Qualcomm, and Texas Instruments, which have set up global distribution centres in the Republic. “Numonyx’s decision to locate its global distribution centre here is a strong testimony to the nation’s good connectivity and logistics infrastructure,” Khiatani reveals.

Today Singapore is the preferred location for both regional and global distribution because of its excellent connectivity. Total exports of semiconductor products in 2007 amounted to over S$94 billion (US$68.7 billion). As supply chains become more global, time and cost-effective solutions are critical.

Khiatani adds, “Transparency of operations and the availability of major third party logistics providers such as DHL are also strong advantages for the location of distribution centres in Singapore. Today, most of the top 25 third party logistics service providers have significant operations in Singapore. The confluence of manufacturers, regional distribution centres and logistics companies here have resulted in a deep institutional knowledge for the full suite of supply chain capabilities.”