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Assignment 1/ Assignment 2
Program / Intake : PT UCD BBS 47
Pathway: Logistics and Supply Chain Management
Student

Chung Kah Fai

Student Number:

14212767

Name:
Module:

Business Strategy (BMGT3001S)

Lecturer/Tut

Dr. Claudine Kearney

Grade:

or:

DECLARATION: I hereby declare that the attached assignment is my own work. I understand that if I
am suspected of plagiarism or another form of cheating, my work will be referred to the Academic
Registrar/ or the Board of Examiners, which may result in me being expelled from the program.
Signed: __Chung Kah Fai___

Date Submitted: 26-Feb-2016

Acknowledgment of Assignment Receipt


(Students are required to fill up this acknowledgment slip upon submission of
assignments)
Student Name: _Chung Kah Fai_________Student Number:
___14212767________________

Program / Intake: PT UCD BBS 47


Module: Business Strategy (BMGT3001S)________ Assignment 1 / Assignment 2

Lecturer: __Dr. Claudine Kearney_______ Received by: ________________________________

Course: Bachelor of Business Studies

Module: BMGT3001S Business Strategy

Assignment Title: Sector Analysis Logistics & Supply Chain Sector

Submitted by: Chung Kah Fai


Student Number: 14-212-767

Lecturer: Dr. Claudine Kearney

Submission Date: 26-Feb-2016

Word Count: 1284

Contents
Introduction

Reason Choosing Logistics & Supply Chain Sector

Structural features of Logistics & Supply Chain Sector


Products for Logistics and Supply Chain Sector
Competitors

1
12
2
23

Key Markets

Conclusion

Appendix

Bibliography

Introduction
In 2014, Singapore ranked as the No. 1 Logistics Hub in the Logistics Performance Index by
The World Bank. As Asia become the new economic powerhouse, Organization are moving
forward to the region to expand their business. Logistics and supply chain sector becoming
the most important players in Singapore as its strategic locations in the heart of Southeast
Asia and the major shipping lanes had made Singapore as an important logistics hub and
conduit for world trade.
Reason choosing Logistics and supply chain sector
There are few reason for choosing the logistics and supply chain sector. Singapore, this
country act as a global connectivity. Based on Singapore Economic Development Board, they
claim that Singapores Changi Airport is one of Asias largest cargo airports and is served by
over 6500 weekly flights connecting to 280 cities in 60 countries, handling close to 2 million
tons of cargo annually. In addition, the country also boasts the worlds busiest transshipment
hub, handling about one-seventh of the worlds container transshipment throughput or 31.24
million TEUs of containers in 2013. EDB4 also claim that Singapore is connected by 200
shipping lines to 600 port in 123 countries, with daily sailings to every major port of call in
the world.
As global connectivity is one of the reason for the choosing the sector, security and efficiency
is another strong reason whereby Singapore local authority show its commitment to global
and national security thru building a trusted and reliable supply chain network that supports
successful business operations. Singapore local authority had include the streamlining of
security regulations and operational procedures to help local businesses cope with the
adoption of many international customs and security programs. In addition, Singapore had
recognized to have highly efficient customs and business-friendly import and export
procedures providing companies higher efficiencies in obtaining clearance, documentation,
permits for their goods. Platform such as TradeNet1 is a strong evidence that Singapore doing
efficiently in information management.
The third reason is Singapore provide the world class infrastructure enhanced with
specialized logistics capabilities. Based on EDB, the local authority is well-positioned to help
logistics companies build on the manufacturing leadership, innovate to differentiate
themselves and continue develop greater expertise in higher value services to keep upfront.
The growth and successes of logistics companies is support by the established infrastructure

to serve the distinctive needs of various industries. The place that provide the world-class
specialized infrastructure are the Airport Logistics Park of Singapore (ALPS) in the airports
free trade zone, the Changi International LogisPark which facilitates regional distribution and
the Bayan LogisPark on Jurong Island which caters to the specific demands of chemicals and
oil companies.
Structural features of Logistic and supply chain sector
Firstly, warehousing and materials handling is one of the key components of these sectors.
This refer to the space determination, stock layout and configuration for the whole logistic
process. The location of the warehouse, number and size of the distribution depots which are
determining the process flow of the distribution. While material handling are referring to the
equipment selection such forklift, pallet jet, trolley, and others important equipment that
involved in logistics sector. Besides that, the set up of procedure for order-picking, stock
storage and retrieval.
Second features is about the transport mode of the logistics sector. The mode of transport
which refer to air, land and sea freight decide the route of the shipment. Besides, the type of
the delivery operations is also important as customer getting demand on special handling on
their specialized good, for example, medicine, dutiable goods, medical parts, sensitive
electronic components. In addition, the load planning and route schedule must be planned
ahead in order to smoothen the logistics process flow.
Third features of logistics sector is the cost structure. This include the whole operation start
from the pick up till deliver the parcel to end customer. In the whole process, the cost incur in
every action which include the packaging, the transport, workers, information technology and
maintenance. For Third Party Logistics Company known as 3PL Company, they practicing
the cost reduction strategy to minimizing the variable costs associated with movement and
storage of the shipment.
Products for Logistics and Supply Chain Sector
For logistics and supply chain sector, the products among the 3PL company are almost
similar. In other words, products of logistics and supply chain sector is equals to services. The
products of this sector is related to the customer demand which referring to fast, on-time,
reliable, competitive pricing and quality. For example, DHL offer high quality service to their
customer. They have set up a team which gather marketing specialist and business analyst to

provide one-to-one service meet the customer demand. In order to keep the market share in
this sector, DHL had put a lots of effort in enhancing their services.
Currently the logistics and supply chain sector is still growing. Based on Department of
Statistics & SPRING Singapore (2013), there are total 7,606 establishments in logistics
business. Total $18.4 billion had invested into the logistics and supply chain sectors. In 2013,
logistics and supply chain sector contributed 5.2% in GDP2.
Competitors
In Singapore which act as a logistics hub, they are few key competitors which are DHL,
Fedex, UPS, TNT, DB Schenker and Keppel. These are 3PL companies whom handle all kind
of shipment from the start of the supply chain till the end. In addition, these multinational
companies had already have big market share in the logistics sector. Their fame are very high
compare with other small logistics company in Singapore.
Key success factors in Logistics Sector
In order to be success in this sector, there are many key factors include company economic of
scale and cost efficiency, industry focus and expertise, network coverage and IT systems. A
company economic of scale and cost efficiency bring huge impact to the company operations.
A successful logistics company usually offer standardized and time-definite products to
deliver customer demand and keep company promise on top priority. Besides that, company
offer customers volume discount with carriers and consolidated benefits.
Now day, many successful company put more industry focus and enhance logistics expertise
to meet specialized customers demand such medical product, high sensitivity electronics
components. Sector specialist3 can serve specialized customers more effectively.
For multinational company such DHL, Fedex, and UPS, they have huge network coverage as
their strength to fulfill customers worldwide transportation needs. Indeed, they can optimize
utilization of transport capacities globally. IT systems play an important key factor to be
success in Logistics sector. As information technology enhance and improve customer
experience and retention. It helps to enlarge the visibility of the whole process of supply
chain from pick up till delivery.

Key Markets
The market in logistics sector in Singapore have high booming potential. From logistics
company owner perspective, Singapore have lots of small medium enterprise which known as
SME. SME also demanding reliable and faster delivery service now days. Now SME
becoming a target for those 3PL company to gain market share in logistics sector. Besides
that, Singapore is recognized as a leading logistics hub. Singapore strategic location is in the
heart of Southeast Asia and the nexus of major shipping lane. Hence this benefits Singapore
is a prime location for Logistics Company to expand.
Conclusion
Based on all findings above, Logistics sector is still booming in current time frame.
Singapore act as strategic location to start a logistics business. Singapore Government always
looking forward and taking care logistics sector due Singapore income revenue is mostly
based import and export goods trading. In order to start a logistics business in Singapore, we
must know our strength and opportunities and analyze potential threat well. So we can
compete and gain part of market share in this sector.

Appendix
1. TradeNet An electronic national single window that provide a one-stop platform
simplifying all documentation, saving time, costs and improving efficiency. Its allows
traders and freight forwarders to apply for and receive trade permits from 35
controlling agencies for the purpose of import, export and transshipment of goods.
2. GDP Gross Domestic Product (GDP) is huge range quantitative measure of nations
total economic activity. Also represent monetary value of all goods and services
produce within a nations geographic borders over a specified period of time.
3. Sector Specialist Sector Specialist is a professional who provide specialist advice
and service to an industry.
4. EDB Economic Develop Board lead by Singapore Government for planning and
executing strategies to enhance Singapores position as a global business centre.

SWOT of a 3PL company (DHL Express Pte. Ltd.)

Strength
Worldwide spearhead in in the air
cargo industry and classified as
Worlds Top 50 Cargo Airlines
Able to customize and tailor make
services for their Customers
Solid brand equity, manages its
reputation well
Financially stability and flexible,
market share headship
Excellence in-house consultancy
Well established network across the
region
Weakness
Not as technologically advanced as
competitors (Fedex, UPS)
Slightly higher rates compared to
competitors
Major DHL Express's competitors in
the
worldwide
market
are
government owned or subsidized
carriers, which makes them less
complimentary
to
government
compliances and regulations.

Opportunities
Organizations of all sizes depend on
the deliverance of In-time inventory
to assist them cope faster and more
resourcefully
Able to accommodate and maintain
multiple customers in a single
warehouse (cost saving)
Developing markets used as hub and
expansion abroad
Global expansion, thus saving cost
for Customers
Abundant opportunities in Financial
markets
Threat
Stormy economies
Declination of traditional services
(Letters, Mails) due to electronic
communication (Emails)
Competition for fellow Freight
Forwarders and 3PL Logistics
providers
Constant changes to government
policies

Bibliography
1. Logistics and Supply Chain Management (2014). Economic Development Board.
Available at: https://www.edb.gov.sg/content/edb/en/industries/industries/logisticsand-supply-chain-management.html
2. TradeNet Overview (2014). Singapore Customs. Available at:
http://www.customs.gov.sg/about-us/national-single-window/tradenet/what-you-needto-know-about-tradenet
3. Kasilingam R.G. (1998). Logistics Basic Concepts & Characteristic. Kluwer:
Lifelong Learning Programme.
4. Logistics Contribution for GDP (2015). SPRING & Department of Statistics.
Available at: http://www.spring.gov.sg/developing-industries/log/pages/logistics.aspx
5. Thorsten Blecker, Wolfgang Kersten, Cornelius Herstatt (2007). Key Factors for
Successful Logistics. Berlin: Erich Schmidt Verlag Gmbh & Co.

Confirmation Certificate

Congratulations!
You have successfully completed the Library Plagiarism Quiz.
Student Name: Chung Kah Fai
Student Number: 14-212-767
Date: 31-Dec-2015

THIS IS TO CERTIFY THAT (signature) Chung Kah Fai HAS


COMPLETED THE PLAGIARISM QUIZ
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