Dr Kaizad Heerjee, Assistant Chief Executive, Online Development, IDA Singapore - Keynote Address AceFusion & Savi Technology Merger Signing Ceremony, Four Seasons Hotel
Dr Kaizad Heerjee, Assistant Chief Executive, Online Development, IDA Singapore - Keynote Address
AceFusion & Savi Technology Merger Signing Ceremony, Four Seasons Hotel
Singapore, 19 April 2001
1 I am very pleased to be here today at the signing ceremony for the merger of Savi Technology and AceFusion.
The logistics industry landscape and the development of e-logistics
2 The global logistics market is a fertile ground for intermediaries that thrive on its inefficiency, complexity, and tolerant shipper attitudes. The global e-commerce boom will, however, jolt traders and choke today's shipping infrastructures with unmanageable volumes. To cope, traders must connect to a global visibility and tracking network and forge new partnerships.
3 To support this plethora of trading complexities, participants must enrich and exploit an infrastructure that enables global visibility. Net-based systems exist today to allow traders to track products door-to-door across all involved parties -- an assembler is aware that critical parts of his products are sitting in a Hong Kong consolidator warehouse awaiting restocks from Singapore.
4 The number of carrier and intermediary links that exist in the network will determine today's tracking winners. Solutions providers who have embraced the technologies such as wireless and global positioning, to provide shippers with more accurate data to fine-tune production and distribution, will surely better its chance of success in the fast-changing global logistics market.
The significance of the merger
5 Savi Technology, a solutions provider in real-time logistics software and systems for robust supply chain execution, currently operates one of the world's largest real-time supply chain visibility network. It tracks over 200,000 assets per year through more than 300 chokepoints around the world. Savi Technology has a proven track record in its success in incorporating data collection network based on advanced radio frequency identification (RFID) into its range of solutions to provide real-time, sense and response supply chain solutions.
6 AceFusion is a Pan-Asian provider of a complete suite of multi-modal logistics solutions, that amalgamates technological capabilities with in-depth logistics expertise, to help businesses meet the challenges of distribution and e-fulfilment of warehousing, air and sea freight operations, as well as land transportation.
7 The complementary nature of the technologies, products and services of AceFusion and Savi Technology fulfils both companies' strategic objective. The merger brings immediate presence in both US and Asia Pacific; increasing the proposition of the merged entity by providing a broader range of integrated, ready-to-deploy, products and services for the industry. This marriage also leverages each company's domain knowledge, market presence, operating and sales infrastructure to cross-penetrate the US and Asia Pacific markets.
Benefiting from iLIUP
8 AceFusion joined the Infocomm Local Industry Upgrading Programme or iLIUP back in 1999. It has partnered with iLIUP multi-national companies such as ILOG, Lotus, Microsoft, Oracle, and Sun Microsystems. AceFusion's partnerships with the iLIUP MNCs have proven to be winning successes. We at IDA see AceFusion as a good example for other Singaporean infocomm local enterprises, that have ambitions to develop world-class solutions, to emulate.
9 AceFusion has benefited significantly as an iLIUP partner. Through the partnerships, it was able to access and adopt new leading technologies quickly into its product development. For example, it collaborated with ILOG to use the latter's optimisation components to power its e-Fulfilment portal, Fusionhub.com.
IDA's role in the Logistics industry
10 With the vast growth of Internet usage and continued proliferation of B2B e-commerce, it is crucial to ensure that Singaporean logistics companies continue to advance in tandem with business needs.
11 With such a backdrop, IDA's vision for the logistics sector is to be the architect of a new infocomm technology-savvy logistics industry. To achieve this vision, IDA will catalyse the digital transformation of the logistics industry and make infocomm technology an invaluable competitive tool to the players. We will do this through working closely with other economic agencies, such as the Trade Development Board (TDB) and the Economic Development Board (EDB), to push through innovative industry showcase and pilot projects, such as the IT Action Plan for Logistics, jointly driven by IDA and TDB.
12 Under the IT Action Plan for Logistics, IDA and TDB will channel efforts to upgrade the infocomm capabilities of the logistics industry through pilot projects and the deployment of emerging technologies such as RFID that will improve productivity and reduce overall business cost. The action plan comprises eight key programmes spanning across areas such as enhancing integrated inventory management, developing track and trace capabilities, integrating workflow and supply chain activities, optimising logistics planning and modelling, and developing e-commerce portals.
13 IDA and TDB are joining efforts to attract a critical mass of transportation and logistics portals to hub their Asia-Pacific operations in Singapore. The virtual connectivity will complement the physical connectivity of Singapore as a logistics hub. The aim is to build up the e-commerce & infocomm capabilities of our local enterprises. This will enhance their competitiveness and their growth will be sustainable.
14 On this note, I like to congratulate both AceFusion and Savi Technology on the success of the merger.
15 Thank you.