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Speech by Mr Lim Kok Kiang, Director (Logistics), Singapore Economic Development Board, at Supply Chain Exchange 07 Forum at Copthorne Waterfront on Thurday, 1 November 2007, at 8.30am
Ladies and Gentlemen
Good morning and welcome to Supply Chain Exchange 2007. In the next 2 days you will hear from industry experts about the latest market trends and best practices in the industry. Such a gathering of top minds is beneficial for the Asian logistics industry as it aims to help supply chain managers be more effective in driving their organizations’ businesses
I am sure that all gathered here today would agree that in a “buy anywhere, make anywhere, sell anywhere” environment, supply chains have become more complex and extended. As a result, demand for international logistics services and global freight management has increased many-fold. Logistics providers today are also doing more than just moving boxes between two points. They are trusted with providing true end to end supply chain solutions, starting from sourcing to order management to optimised network distribution.
Singapore, A Supply Chain Solutions Hub in Asia
In Singapore, we have also positioned ourselves to be solutions-focused. I will take you through some of the initiatives we have embarked on.
1) Specialised Infrastructure
Firstly, in the area of infrastructure. Singapore’s top-of-class basic infrastructure is already a given. Building on that, we have developed a suite of specialised infrastructure that cater to the specific needs of different industries. For example, the oil and chemical Logistics Park on Jurong Island is now further enlarged with underground rock caverns that are under construction. There is also the Airport Logistics Park. Located next to Changi Airport, it allows direct access to the airport for rapid turnaround of time-sensitive products and services. Under development is the Air Cargo Express Hub for express cargo.
There is TradeXchange, an integrated B2B and B2G platform created to facilitate the exchange of information across the different players in the supply chain. In the time when information technology is a key differentiator, it aims to bring about greater supply chain visibility and efficiency, not just within Singapore, but also across borders. TradeXchange is a neutral and secure platform with a range of applications that can bring value to supply chain operations. For example, there are applications that can help speed up overseas customs clearance electronically, others that provide links to shipping lines and Rosettanet, and even an electronic solution to title transfers. Moreover, there are also value-added service providers that tap on these applications and package it into a plug-and-play end-to-end solution for businesses
2) Industry Expert Capabilities
Secondly, we are getting industry players to build and develop expert capabilities in Singapore. Today, industry players in Singapore serve the region using regional distribution centres that provide specific solutions for industries such as in biomedical sciences and aerospace. These niche capabilities involve specialized infrastructure to ensure safe and time critical delivery of customers’ shipments.
For example, 3PLs that have specialised capabilities to service the biomedical sciences sector employ the latest in cold chain management technology to safely transport and store goods such as medical devices, clinical diagnostics and pharmaceuticals. Staff are trained and systems put in place to ensure that the temperature of products is maintained throughout the supply chain process. By ensuring no breaks in the cold chain, 3PLs give healthcare companies complete assurance of the integrity of their products throughout the supply chain.
For aerospace, logistics providers carry repairable, expendable and structural parts for aircraft manufacturers. They provide rapid response fulfilment to customers through capabilities in inventory planning and demand visibility. In turn, customers can expect quick despatch of parts, even within two hours of order, and 10 – 20% savings on inventory holding and other supply management cost.
Logistics companies involved in such specialised handling have built up significant expertise and capabilities, helping to move Singapore up the value chain of the global logistics industry.
3) Extending Scope of Supply Chain Solutions
Thirdly, Singapore is solutions-focused because we want to extend the scope of supply chain solutions. By this, we mean taking solutions beyond supply chain activities into related areas which in turn will strengthen our logistics sector. Today, 3PLs in Singapore are increasingly providing sourcing, procurement, postponement and order fulfilment solutions. The successful coordination of physical flows comes about from reliable information flow, thereby allowing logistics providers to manage risks along the entire supply chain and avoid nasty surprises. Beyond this we want to encourage our logistics community to be involved in providing financial solutions for companies. Innovative financing solutions leverage on 3PLs’ supply chain visibility to reduce financing risks. We see collaborations between 3PLs, banks, factoring houses and insurance credit companies to provide such value-added services of inventory financing to clients.
All Possible due to Singapore Talent Pool
Our desire to be solutions-focused will be possible because Singapore is supported by a trained workforce. Approximately 100,000 are employed in this industry that contributes to more than 8% of our GDP. The Singapore government has made efforts to ensure the continued supply of manpower through training of the local workforce. The setting up of The Logistics Institute, Asia Pacific, TLI-AP, is one such initiative. All in all, a full suite of supply chain training programmes produce 850 graduates per year from apprenticeship programmes, logistics diplomas and degrees, and post-graduate programmes.
Conclusion
Ladies and gentlemen, as you share knowledge, experiences and best practices and take these back into your workplace, I want to assure you of EDB’s commitment to our vision of building Singapore into a global logistics gateway in Asia. We want to work with you, the movers and shakers of this industry, to accelerate the growth of logistics in this region. I wish you a very fulfilling session ahead.
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