Current Situation: Fragmented Distribution
Urban logistics is the movement of goods within an urban setting. Global spending on urban logistics is forecast to reach US$5.98 Trillion by 2020. Mega global trends such as urbanisation and the rising middle-class pose serious implications on the sustainability of cities and logistics service providers who are increasingly finding it difficult to tackle rising demand and road congestion.
Singapore’s population has grown to about 5.4 million in 2013 and by 2030, our total population can range between 6.5 and 6.9 million. This puts tremendous stress on our national resources and infrastructure. Our logistics industry faces labour crunch, declined productivity and rising business costs. With limited resources, there is a need for logistics industry to tap on new technologies to augment resource sharing. This will increase productivity and ensure sustainability in a long run.
Goals for Urban Logistics
The logistics sector supports many other sectors and consumers in ensuring goods get delivered. So, if logistics becomes more efficient, related sectors will benefit. In the retail sector today, logistics resources are not optimised. Goods are delivered in an unconsolidated and uncoordinated manner, causing congestion at unloading bays. The industry also deployed more trucks to overcome the inefficiency, aggravating the driver shortage problem.
Aggregated Distribution, or consolidated delivery, through shared infrastructure and assets is the short term goal to optimise our limited logistics resources. In the longer term, we envision a Digitised Distribution model where crowd-sourced technologies can evolve to create new business models that bring about sector-wide asset optimisation. This will improve the productivity of the industry as a whole and reduce the need for more assets to serve the growing demand.
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