Logistics takes a digital leap

By Kami Navarro

For ten years in a row, the World Bank has recognised Singapore as Asia’s top logistics hub. It’s a well-deserved honour, considering the city-state is home to the world’s largest transshipment container port, with 20 of the world’s top 25 logistics companies managing their operations from Singapore. Accordingly, the logistics industry has become a cornerstone of the economy, contributing to 1.4 percent of the country’s GDP and employing 2.3 percent of the national workforce. Then came COVID-19.

Border closures worldwide massively disrupted global supply chains, forcing industry players to rethink their operations. Digitalisation, with its potential to enhance business capabilities, increase efficiency through data-driven analytics and even automate operations, provides a lifeline for companies in the logistics industry in these unprecedented times. Although going digital is necessary, it may not be easy at first—especially if you don’t know where or how to start.

Fortunately, the recently refreshed Logistics Industry Digital Plan (IDP) developed by the Infocomm Media Development Authority (IMDA) and Enterprise Singapore (ESG) provides a step-by-step guide on suitable solutions for logistics SMEs at each stage of their growth. Building on the previous IDP launched in 2017, the refreshed IDP contains five new solutions, including a digital trade platform and even augmented reality, to encourage data-driven decision making and digital collaboration in logistics.

The IDP also lays out a new Digital Training Roadmap on the training programmes that meet the needs of different workers in various job roles. Digital skills are classified into two categories—tech basics and tech advanced—to offer more tailored support to prepare workers for a digital work environment, such as demand forecasting and e-commerce logistics. In this feature, learn about how three logistics enterprises—namely Ever Rich, Allied Container Services and CMS Logistics— benefited from digital solutions in the Logistics IDP.

Planning gets a digital boost

Ever Rich is an operator of food storage warehouses and cold rooms. As business expanded, Ever Rich was quickly overwhelmed by the high numbers of orders and customers. To cope with the load and increase productivity, the team decided to go digital in 2019—starting with an Enterprise Resource Planning System (ERP), a Stage 1 solution under the Logistics IDP.

“The ERP system gives me a good overview of the operations, including stock movement,” shared Mr Wong Wai Hong, a warehouse supervisor at Ever Rich. Beyond inventory, the platform also stores relevant data from other departments including purchasing, sales and accounting. Different departments can easily share information, eliminating the need for inefficient manual reconciliation processes.

Safety takes a front seat

Though Singapore’s roads are among the safest in the world, it’s no excuse for complacency, according to container haulier company Allied Container Services (Allied). After all, aside from the potential costs to human lives, accidents can also significantly impact business operations—from costly repairs to immobilised vehicles and higher insurance premiums. Night shifts were particularly accident-prone, and the company found it difficult to probe the real cause of roadside mishaps, even with dash cams installed.

Deciding that a different approach was required to improve safety on the roads, Allied introduced the Fleet Safety Management System (FSMS). It detects the fatigue level of drivers and alerts them of potential road hazards. 

“The system helps me to stay alert on the road,” shared Mr Selva de Roy, an Allied prime mover driver. “Sometimes, when I feel sleepy there will be an alarm that makes noise and keeps me awake. I then get a call to check on my condition.”

The system also collects data on driving patterns and fuel consumption that give drivers insight on better driving practices. With the FSMS’ success, the company is now exploring using artificial intelligence (AI) to manage driver fatigue.

Combatting COVID-19 with contactless payments

The safe management measures required due to COVID-19 spurred freight enterprise CMS Logistics Group to embrace digitalisation. Historically, the company used cheques to transact with customers and partners. As the pandemic progressed, workforce restrictions meant that only a limited number of staff could manually process cheques at the office at any given time.

This prompted CMS Logistics to adopt a B2B e-payment system in May 2020. The system, which enables contactless transactions, accelerates the workflow by reducing the need for documentation and time-consuming reconciliation processes. Instead of five hours, for instance, checking payment and collection now only takes two hours, according to CMS Logistics shipping executive Ms Juvena Fong. The system can also be accessed remotely, allowing the company to make and receive payments in a timely manner even while its staff work from home.

Kickstarting your digital journey

“Digitalisation requires the support and cooperation from all stakeholders,” explained Mr Lim Kian Chin, Managing Director at Allied. “This is the way to move the sector towards greater growth.” Although taking that first digital step may initially seem daunting, you can rest easy knowing that support is available from IMDA’s SMEs Go Digital programme.

For a comprehensive digital roadmap of the solutions and resources you can tap on, visit the Logistics Industry Digital Plan webpage. Take a leaf out of Ever Rich’s book and adopt a resource planning system, harness data to stay safe like Allied Container Services or follow CMS Logistics’ example and go contactless!

Even in the face of challenges like COVID-19, the possibilities are endless when your business goes digital. Take your company to the next level by exploring the resources available at SMEs Go Digital today!