Logistics Industry in Singapore

Introduction

Digitalization is becoming an essential and transformative opportunity for businesses, particularly in enhancing processes, efficiency, productivity, and connectivity. In 2019, a significant transition was made towards an Enterprise Resource Planning (ERP) system, shifting from a fragmented approach to a consolidated one. This transition allowed for better data analysis, improved coordination of operations across various departments, and more effective tracking of progress and outcomes.

The ERP system provided a comprehensive overview of operations, including stock movements. With all inventory data centralized on a single platform, information errors were substantially reduced. As a management team member, instant access to management reports enabled better business insights. Following the implementation of the ERP system, there was a remarkable reduction of about 15% in operational costs and a 20% increase in capacity.

Additionally, the company traditionally transacted with customers and partners using checks. However, during the onset of the COVID-19 pandemic, face-to-face interactions were limited due to restrictions on employee attendance. Consequently, cash flow was adversely affected. To counter this, the decision was made to implement a Business-to-Business (B2B) e-payment system. This online e-payment solution has significantly improved efficiency; processing payments and collections now takes only two hours instead of the previous five. The accessibility of this system from home has alleviated backlogs of documents each time employees returned to the office, allowing for timely payments.

Furthermore, the introduction of a Fleet Safety Management System has contributed to ensuring driver safety. This system detects early signs of driver fatigue or potential accidents and connects to a call center, which checks on drivers who are flagged for fatigue alerts. In a span of six months post-implementation, the system identified 48 fatigue cases during night shifts. For drivers, alerts help to maintain alertness on the road, with alarms that sound when fatigue is detected, preventing accidents. The data gathered on driving patterns and fuel consumption also equips the company with insights for driver training and performance reinforcement.

Business transformation is an ongoing journey, and it is crucial for logistics SMEs to stay relevant and competitive in the fast-evolving digital landscape. While many logistics companies have already embarked on their digitalization journeys, there remains ample opportunity for collaboration within the sector to elevate standards. The Singapore Logistics Association (SLA) is committed to exploring further ways to support growth in the digital economy. Companies are encouraged to start their digital transformation today.

Keywords

Digitalization, Logistics Industry, Singapore, SMEs, Enterprise Resource Planning (ERP), B2B e-payment system, Fleet Safety Management System, Operational Costs, Cash Flow, Driver Safety.

FAQ

Q1: What is digitalization in the logistics industry?
A1: Digitalization in the logistics industry refers to the integration of digital technologies into operations, enhancing efficiency, productivity, and connectivity.

Q2: What benefits did the implementation of an ERP system provide?
A2: The ERP system allowed for better data analysis, coordination across departments, reduced information errors, and led to a 15% savings in operational costs alongside a 20% increase in capacity.

Q3: How did the COVID-19 pandemic impact the company's cash flow?
A3: Restrictions on staff attendance during the pandemic limited the ability to process checks, adversely affecting cash flow.

Q4: What improvements did the B2B e-payment system bring?
A4: The B2B e-payment system reduced the time spent on payments and collections from five hours to two, allowed for remote processing, and helped avoid document backlogs.

Q5: Why is fleet safety important in logistics?
A5: Fleet safety is crucial to prevent accidents and ensure the well-being of drivers, with systems in place that monitor fatigue and provide alerts to maintain alertness on the road.