C onsolidation,

ollaboration,
ommunications
Strategic challenges for the logistics industry

FRONT ROW (LTO R) Gerald Wee, C K Lee, BG Philip Lim Feng, Bill Chang, Karmjit Singh, Thong Leng Yeng, James Loo Wai Kheong,
BACK ROW (LTO R) Patrick Chua, Sim Chear Wah, Professor Vijay Sethi, Wong Soon Nam, Alfred Goh, Stefano Battan,
Jonathan Asherson, Eddie Sng, Associate Professor Hum Sin Hoon, Kelvin Wee

The logistics sector is stirring with mergers and acquisitions, leading to consolidation
and the creation of a handful of big global players.
In the light of these developments, is there still room for smaller players?
How can technology help to make logistics companies remain competitive?
How can they leverage the opportunities created by Free Trade Agreements (FTAs)?
Sixteen industry leaders – logistics players, academics and end users – gathered at Xi Yan
Restaurant at Craig Road on 10 March, 2006 to deliberate and discuss these developments.
They were taking part in the Chartered Institute of Logistics and Transport (CILT)-SingTel
Thought Leadership Forum facilitated by CIO Magazine Executive Editor Gerald Wee.

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 L
ike it or loathe it, consolida-
tion is now part and parcel of
the emerging trend in the glo-
bal logistics industry. Driven
by globalisation, increasing
customer demands and a highly com-
petitive market, many logistics players
have taken the merger and acquisition
path to expand geographical coverage
and provide more integrated solutions
along the entire supply chain.
However, consolidation is not privy
to just the logistics industry. Air-
lines are consolidating through global
equity stakes and global alliances. The
global shipping sector is undergoing
the same thing, as is the land-based
transport sector – trucking and rail-
ways.
“You have consolidation at differ-
ent streams. All these will involve ma-
jor restructuring and shake ups,” said
Karmjit Singh, Chairman of the CILT.
CK Lee, former CEO of Exel, be-
lieves that the peak has been reached
in the logistics industry with probably
only a few more deals coming.
Mixed perception
There is a mixed perception as to
whether consolidation is good for the
logistics industry.
“My personal view is that consolida-
tion is generally good for the industry.
Today, the environment, global supply
chain and global customer base require
the kind of network and resources and
IT infrastructure that big players have.
It is inevitable,” said CK.
Agreeing with him is Alfred Goh,
Asia Pacific Head of Supply Chain
Consultancy at DHL, who sees the
moves as being positive. “When things
get fragmented, you have to liaise with
different parties for different things
and that is a challenge and increases
cost. With consolidation, we are able
to provide end-to-end solutions. We
can go to companies and say ‘let me be
your one-source provider of services’,”
he said.
Consolidation is a natural phenom-
enon in a competitive environment,
according to Sim Chear Wah, Vice
President of Information Technology
at Jurong Port. “We see this happen-
2
“ You have
consolidation at
different streams.
All these will involve
major restructuring
and shake ups.”
Karmjit Singh, Chairman,
The Chartered Institute of
Logistics and Transport
“ Technology is the
easy part. SingTel
would be very keen
to be a partner not
just in logistics but
other industries such
as healthcare.”
Bill Chang, SingTel’s Executive
Vice President of Business
“ There is a need for
a champion agent.
If someone in the
logistics industry
wants to do so,
SingTel would be
delighted to help
them.” Wong Soon Nam,
SingTel’s Vice President of
Business Marketing
ing in the IT industry and I think it
would not be different for the logistics
industry. Ultimately, the industry will
find its equilibrium.”
Jonathan Asherson, Regional Direc-
tor of Rolls-Royce International, is not
too bothered by consolidation. “When
big companies buy small companies,
it is often because there is a missing
link. We used to have 400 suppliers
but now we have suppliers four times
bigger than our old ones and that has
brought us huge benefits – really huge
benefits. We have been able to pass
on cost reductions to our customers,
In that sense, consolidation has been
good,” he said.
However, Eddie Sng, Asia Pacific
Air Freight Director of Eagle Global
Logistics, does not believe that all is
rosy.
“There will always be fallouts. Cus-
tomers do not want to put all their
eggs in one basket. Merged entities
have become so big that they become
dominant players and control too
much. Customers begin to wonder
how to treat that one combined en-
tity,” he said.
Room for all
In a consolidated market, big players
get bigger but is there room for small
players?
Associate Professor Hum Sin Hoon,
Lecturer of the National University of
Singapore’s School of Business, asked
a pointed question from an academic
standpoint to those who are not so big
– what is your role?
“The essence of the logistics indus-
try is to provide a bridge to support
customers in moving goods across
boundaries to extend their reach to
China, for example. Consolidation is
one approach to achieve this. But there
is room for mid-sized and smaller play-
ers,” he said.
CK believes that there is still space
for the hundreds of thousands of small
players though he is cautious about
mid-sized players. “Some mid-sized
players may have serious concerns be-
cause they do not have the scale of the
big ones nor the nimble-footedness of
the small ones.”
 The key, according to BG Philip
Lim, Head of Joint Logistics at Min-
def, is to find a niche. He noted that
there are places for big players such as
SembCorp Logistics as well as niche
players.
He cited the example of a small lo-
gistics company who is the only opera-
tor of trains in a certain part of India.
This company can fulfill the needs of
customers who need logistical support
in that area.
“But, If you are only a medium-sized
company with no real focus, niche nor
specialty, then you may have prob-
lems,” he cautioned.
Price and service matter
Whether a big player or a small niche
player, the bottomline is about price
and service level.
“There are pros and cons on whether
to be a niche or large player. At the end
of the day, how much of a single point
of contact can the company provide?
What is “single point of contact”? A lot
of tactical things are done at local sites.
We cannot say that big companies have
100 percent advantage, nor can we say
that a mid-sized player has no place in
the market. At the end of the day, it is
about price and service level. We cannot
ignore economies of scale,” said Kelvin
Wee, Regional Director of Supply Chain
Development at BAX Global.
Speaking from his experience at Cis-
co, Bill Chang, Executive Vice Presi-
dent of Business at SingTel, recalled
that one of the first few things which
Cisco did, when acquiring companies,
was to aggregate volumes.
“There is a consolidation where
one plus one equal two. Cisco looks
at consolidation pretty much like what
Compaq and HP did when they came
together. They [logistics players] need
to be innovative and match their val-
ue chain. Companies who can’t get it
right will be left out. People who are
caught in between will get edged out,”
he said.
Impact of consolidation
Mega mergers may result in loss of val-
“ Li & Fung is a third
party that services
others and provides
flexibility according
to the customer’s
requirements. There
is a role for somebody
in the community
to facilitate this.”
Associate Professor Hum Sin
Hoon, Lecturer, NUS School of
Business
“ There will always be
fallouts. Customers
do not want to put
all their eggs in one
basket.” Eddie Sng,
Director, Air Freight, Asia Pacific,
Eagle Global Logistics
“ Technology must
overcome the barrier
of controlling others.
Many companies
have created their
own private hubs.
It is going to be very
difficult to overcome
these barriers.”
Patrick Chua, Chief Executive
Officer, Autoscan Technology
ue and service quality. CK attributes
this to three possible reasons.
“One is that strategic rationale could
be at fault. The second is execution be-
cause in the aftermath of an acquisi-
tion, sometimes top management does
not see the radar screen. They do not
see what is happening three to four lev-
els down. The third reason is a timing
issue. When you put two companies
together, one plus one equal one and a
half, though it may become three, four
or five later. The pain will get worse
before it gets better,” he said.
DHL is well aware of the impact
of mergers, having gone through one
round with Danzas. “This time round,
what we have done differently is to put
customers first. We try to identify cus-
tomers that are impacted,” Alfred said
in reference to the company’s merger
with Exel.
Technologies clash
Eddie highlighted that when two com-
panies the size of DHL and Exel come
together, there will be obviously some
clash in terms of the technologies
adopted today.
“In terms of challenges in any op-
eration, not just in cases of mergers
and acquisitions, the three important
factors are people, processes and tech-
nology. You may be in the same busi-
ness but the way that you do things
may differ – in terms of the people, the
culture and the way you integrate. If
you are missing one of these elements,
you are not going to the next level. The
challenge is to advocate these three fac-
tors,” he said.
BAX Global is another company un-
dergoing merging pains. “It is still very
early days for us. But I think we will be
kidding ourselves if we say that there is
not going to be any fallout. You do not
talk about instant synergies in acquisi-
tions. You will never get synergies for a
long time to come,” said Kelvin.
“You can do the best paper plan but
if you do not manage the culture well,
you may have a great adverse impact.
If you service your customers properly,
there may be some initial discomfort
but after some time, life goes on,” he
added.
3
 Re-invention of semiconductor
industry
A decade ago, consolidation was
one of the imperative forces driving
the semiconductor industry. Indus-
try watchers were predicting that the
number of players would decrease.
However, the reverse happened.
“The number of players has in-
creased. The players have re-invented
themselves. Today, you have fabless
semiconductor companies and foun-
dries. Execution plays a big part in
whether they are successful or not.
What really matters is that there will
be an internal focus. Rationalise your
cost structure and leverage your infra-
structure to deliver superior service
as compared to what you used to be
able to do individually,” said Steffano
Battan, Director of Transportation
Logistics Worldwide at ST Microelec-
tronics.
Combining resources
Riding hot on the consolidation trend
is a move towards collaboration where
a network of smaller players come
together to provide an entire supply
chain to customers.
“There is another model that we are
beginning to see, where an individual
company orchestrates the equivalent
of a consolidation – orchestrating a
network of players to respond to the
needs of the customers. So different
entities still function separately but
belong to a network driven by a neu-
tral player who facilitates the co-ordi-
nation process,” said Prof. Hum.
Li & Fung’s extensive network
in China
One such example is Li & Fung, which
acts as a supply chain manager for
United States and European retailers
sourcing high-volume, time-sensitive
consumer goods, primarily in Asia.
Offering comprehensive logistics serv-
ices, the company has an extensive
network of suppliers in China – it’s an
extended supply chain model.
Prof. Hum noted that the Li & Fung
4
“ With consolidation,
we are able to
provide end-to-end
solutions.” Alfred
Goh, Head of Supply Chain
Consultancy, Asia Pacific Global
Customer Solutions (GCS), Supply
Chain Logistics Group, DHL
“ Today, the
environment, global
supply chain and
global customer
base require the
kind of network and
resources and IT
infrastructure that
big players have. It
is inevitable.” C K Lee,
Former CEO, Asia Pacific, Exel
“ We see this
happening in the
IT industry and I
think it would not
be different for the
logistics industry.
Ultimately, the
industry will find its
equilibrium.”
Sim Chear Wah, Vice President,
Information Technology,
Jurong Port
example is an open network with each
player still doing their own business.
“Li & Fung is a third party that serv-
ices others and provides flexibility
according to the customer’s require-
ments. There is a role for somebody
in the community to facilitate this.”
e-Auto Hub aggregates China’s
automotive industry
The e-Auto Hub is another exam-
ple. The business-to-business plat-
form connects and integrates original
equipment manufacturers (OEMs),
suppliers and their processes in the
Chinese automotive industry. The
purpose is to aggregate the automo-
tive industry and their supply chains
in China for greater efficiency and ef-
fectiveness.
“Whether you are a supplier of
spare parts, financing company or
bank, you are plugged into this com-
munity network. The service provider
hosts this. The smaller players are
really keen because they see it as an
equaliser against the big boys as it al-
lows them to gain access to a myriad
of services. It allows them to hit the
market faster,” said Bill.
Toyota brings suppliers
together
SingTel also helped Toyota to set up
a hub for its suppliers. “It’s not just
Toyota competing with others but ex-
tracting value from within and with-
out. Toyota brought all its suppliers
into this network. The latest that it
has done is to bring up the capabili-
ties of the infrastructure for real-time
collaboration,” he said.
Kelvin pointed out that collabora-
tion is common in the trucking indus-
try. “In Australia, there are several
such models. At the end of the day, it’s
still very niche because each of them
is an entrepreneur and may walk out
to service their own customers than
that of a consortium.”
BG Lim feels that that a network
is far more attractive if one needs to
know what’s going on. “I have some-
one I can hang on to as my supply
chain director. I think it’s your key
business construct that will determine
whether you intend to work with a
network or a big player.”
How will the big or merged entities
respond to collaboration?
“If you talk about having a neutral
network where small players have
equal ground, the big players will
not want this to happen. When you
talk about people around the globe,
“ At the end of the
each player has its own agenda. There
are many power centres out there. In
many areas, collaboration is the ideal
answer but other constraints and in-
terests will not allow that to happen,”
said CK.
day, it is about price
and service level.
We cannot ignore
economies of scale.”
Kelvin Wee, Regional Director,
Supply Chain Development,
BAX Global
Call for champion
If community networks are needed,
then there is a need for champions to
drive the creation of such networks.
Both Li & Fung and e-Auto Hub are
driven by people who see the needs and
are prepared to take the lead to bring a
network of players together.
“I think there is an opportunity
for logistics players in Singapore. The
Chinese move much faster than us.
They realise the need for a champion
agent. Is there a champion agent who
will take up the role to help to bring
these people together in Singapore,”
asked Wong Soon Nam, Vice Presi-

Chinese community network increases

supply chain competitiveness

A
community network for the Chinese automo-
tive industry has helped thousands of players
survive and thrive in a highly competitive
environment. Called China e-Auto Hub, the busi-
ness-to-business platform connects and integrates
OEMs, parts and raw materials suppliers, automo-
tive dealers, aftermarket retailers, and third-party
logistics providers and their processes in the
rapidly expanding industry.
Based on China Entercom’s IP VPN network
CENet, it supports a wide range of industry stand-
ards including EDI, ODETTE, and ROSETTANET.
In the initial stages, an information exchange
platform with a capacity of 20 million transactions
per year will be set up to provide fraud-control
services for e-transactions and to facilitate fund
settlement, management and coordination, as
well as verification services.
China e-Auto Hub provides a comprehensive
portfolio of online packaged services for the
automotive industry. Enterprises will be able to
perform transactions across the entire supply
chain – from the issuance of purchase orders (POs)
to invoicing through the Virtual Private Network
(VPN) connections between China Entercom and
the banks.
The hub enables automotive industry com-
panies and supporting logistics companies to
compete effectively by improving their market
reach while keeping costs low through value-
added services and applications. One of the major
benefits China e-Auto Hub members will enjoy is a
single point of access to a growing community of
customers, suppliers and supporting services.
This automotive community portal allows
enterprises to be connected to a wide range of
value-added services via the e-Procurement, e-
VMI, e-Logistics, and e-Finance platforms, making
administrative and operational transactions easier
and faster. For example, equipment manufactur-
ers can connect their ERP systems to those of
their customers and parts suppliers, automating
the procurement and PO issuance process, thus
speeding up delivery. The portal’s e-Logistics ca-
pabilities also provide a common platform for the
exchange of logistics data, end-to-end visibility of
shipments, as well as the tracking and tracing of
goods in transit.
SingTel is collaborating with China Entercom
to connect logistics customers into China and
e-Auto Hub. “They were looking at how they can
put all their partners in a network beyond just the
domestic market but into the international arena,”
said Wong Soon Nam, Vice President of Business
Marketing at SingTel.
Enterprises and domestic partners can utilise
the existing VPN network of China Entercom to
connect to China e-Auto Hub with local access
while international partners can connect to China
e-Auto Hub through providers such as SingTel.

5
 dent of Business Marketing at Sing-
Tel.
“When Singaporeans go out to the
marketplace, they do not hunt in a
pack but instead compete against one
another. They do not help one another
either in Singapore or overseas. This
is unlike the Japanese and Korean
companies who help one another,” he
added.
According to Soon Nam, in a SME
“ But, If you are only
roundtable organised by SMBNet,
SMEs were lamenting that there were
no champions to help them. “There is
a need for a champion agent. If some-
one in the logistics industry wants to
do so, SingTel would be delighted to
help them.”
Unlike North East Asia
Perhaps the dearth of a willing cham-
pion in Singapore has to do with the
mentality and culture, which differs
from those in North East Asia.
“If you look at people from China
and Hong Kong, they adopt a kamika-
ze approach. In Singapore, we have a
more cautious approach. Why we lack
the pack mentality has to do with our
a medium-sized
company with no educational system,” noted Kelvin.
real focus, niche nor “We take too long to think about it.
specialty, then you There is a huge supplier base in Chi-
may have problems.” na,” said Eddie.
BG Philip Lim Feng, Head, So, is critical mass an issue?
Joint Logistics, MINDEF Jonathan does not think so as he
feels that having a champion is more

FTAs open doors in North Asia, Asean and beyond

I
n an increasingly globalised
market, logistics companies
are called upon more than ever
before to help customers deliver
goods around the region. With the
emergence of bilateral Free Trade
Agreements (FTAs) they would do
well to understand the benefits
they can derive, apart from improv-
ing their supply chains, in order to
add value to their customers.
A FTA is a legally binding
agreement between two or more
countries to bring about closer
economic integration and liberal-
ise trade bilaterally or among FTA
partner countries. The three basic
components in Singapore’s FTAs
are the trade in goods, trade in
services and investment chapters.
There may be additional chapters
covering government procure-
ment, intellectual property protec-
tion, competition policy, and other
cooperation measures.
Singapore has been on a FTA
drive since 2000 and has com-
pleted FTAs with Japan, US, Korea,
and India.
“What we try to do with FTA is
to enshrine the rights of service
providers,” said Thong Leng Yeng,
Senior Assistant Director, Trade Di-
vision Directorate B in the Ministry
of Trade and Industry of Singapore.
“In terms of services, there is
no logistics sector per se. They are
broken down into maritime, air
services and land transport sectors.
These sectors are government sen-
sitive to a lot of our FTA partners.
In various aspects of these sectors,
we have managed to seek com-
mitment to liberalise from our FTA
partners,” she added.
Increasing opportunities
Singapore’s FTA network with its
tariff concessions for Singapore-
originating exports to its FTA part-
ner countries provides increased
opportunities for the logistics
sector.
Singapore is exploring a FTA
with UAE where the Dubai Logis-
tics City is emerging as a massive,
one-stop, multi-model logistics
interchange that will serve as the
central cargo hub for the Middle
East and a major gateway for inter-
national trade.
To reap the benefits of such
agreements, Leng Yeng urged lo-
gistics companies to be cognizant
of the concessions available under
Singapore’s various FTAs.
“Beyond tariff concessions,
there could be Mutual Recognition
Agreements, waiver of customs
user fees, etc. They could then
advise their customers accordingly
of such cost-saving possibilities,
thereby providing a value-added
service,” she said.
Some logistics services have
been committed under the FTAs.
“Where committed, it means that
Singapore logistics companies can
enter the FTA partner country’s
market to provide that specific
service on a non-discriminatory ba-
sis as that for local logistics opera-
tors,” she said.
Technology available now
A technology partner such as
SingTel can provide a ready
infrastructure to support logistics
companies’ entry into FTA partner
countries and other markets in the
Asia Pacific.
“There are many things we
can bring to the table, whether
it is hosting of applications or
provisioning of mobile/fixed
technologies. We have a myriad
of technologies,” said Bill Chang,
Executive Vice President of Busi-
ness at SingTel.

6
important than having a critical mass.
“After a while, there is not a lot we
can build on one island. We are com-
peting against the Japanese and Kore-
ans. I think the local logistics industry
needs to figure out how to play the
game a little better. This cannot hap-
pen overnight,” said BG Lim.
Disintermediated
As an entreport, Singapore has a rich
trading history but we have not capital-
ised on that, according to Prof. Hum.
“We have been disintermediated. Li
& Fung realised that and it has lev-
eraged the huge hinterland of suppli-
ers. This position of coordinating, or-
chestrating and controlling processes
across boundaries is something that
Singapore can do. Singapore has intel-
lectual assets. We should leverage our
huge infrastructure available to man-
age and control the network. This is a
loose community. Build a supply chain
for that purpose,” he urged.
James Loo, Chief Operating Officer
of YCH Group, pointed out that how
we compete and play in the market
depends on each individual enterprise
with its own people, process and tech-
nology.
“We just have to move up the value
chain. The World Trade Organisation
(WTO) is trying to build a collabora-
tive platform for everybody. Just work
with a key customer and grow with
them,” he said.
And Singapore is not lacking in
capabilities though capabilities also
abound in Hong Kong and elsewhere.
“There is no substitute for those like
Li & Fung. There are global models
emerging as best practices. Sometimes
we say, ‘we can’t build them because
we are too small’. Is that a liability?
The more fragmented the industry,
the more there is a need for coordi-
nation. The Korean government has
played a very large role in facilitat-
ing many of the innovations. There
is something that we can learn from
them – some from Korea and some
from China. We have great regional
companies but whether they have
global best practices is debatable,”
said Professor Vijay Sethi, Lecturer of
“ There is no substitute
for those like Li &
Fung. We have great
regional companies
but whether
they have global
best practices is
debatable.”
Professor Vijay Sethi, Lecturer,
Nanyang Business School,
Nanyang Technological
University
“ When big companies
buy small companies,
it is often because
there is a missing
link.” Jonathan Asherson,
Regional Director, Rolls-Royce
International
“ We just have to move
up the value chain.
The WTO is trying to
build a collaborative
platform for
everybody. Just work
with a key customer
and grow with
them.” James Loo
Wai Kheong, Chief Operating
Officer, YCH Group
Nanyang Technological University’s
Nanyang Business School.
Technology ready
When it comes to technology and in-
frastructure, SingTel is well equipped
to support any willing champion and
its network.
Bill said it all boils down to the
ability for the industry to collabo-
rate. “Technology is the easy part. It
is really about the strategic intent of
the industry, whether there is some-
one to rally the industry to come to-
gether. SingTel would be very keen to
be a partner not just in logistics but
other industries such as healthcare.
It’s a global economy and Singapore
needs that. If there is someone who is
keen to do this, SingTel would jump
in and help. We have the experience,”
he said.
“I think outside technology, we
have to constantly forge forward. Why
Singapore has been successful over the
past decades is because we have con-
tinued to push the envelope. If not, we
will be outdone,” he added.
Experience matters
Beyond e-Auto Hub and Toyota’s net-
work, SingTel also has a wealth of ex-
perience in supporting consolidation in
the logistics industry, counting among
its customers BAX Global, Schenker,
DHL, Danzas, and Exel – all of which
have been part of the industry’s con-
solidation.
“As a service provider, the first
thing we realise when we are called
in is to see how we can help them to
integrate telecommunications. In these
consolidations and mergers, there is
true value that they can derive out
of simplifying their communications
needs. Each has its own suppliers and
customers. We find that in these in-
stances where we understand the game
of these customers, we could also sit
down with them to see how we could
help them to remove duplication. That
is one area where we see that we have
a part to play in consolidations,” said
Soon Nam.
7
 Need for standardisation
Alfred highlighted the importance of
standardisation. “We need to push for
standardisation. The e-Auto Hub is re-
ally very needed in the logistics indus-
try. What we can do now is to make it
less of a system but more of a business
integrated with processes,” he said.
Eddie noted that the fundamental
challenge in China was not the system.
“It is the processes that change from
one zone to another in China. Singa-
pore is one of the most competitive
hubs in this part of the world. It is so
difficult to bring products into China.
The systems are there but the processes
do not support the systems. It is cheaper
to ship out from Singapore than from
Hong Kong.”
Bill agrees on the need for standardi-
sation and feels that the intermediary
plays the key role. “It is not the tech-
nology. The platform is very easy to
build. It is the intermediary that defines
the standards, applications and poli-
cies,” he said.
In terms of technology, providers
such as SingTel are there, said CK.
“The challenge is not in Singapore
but how to gain acceptance outside
Singapore. The challenge is to have a
party who is going to set standards and
gain acceptance,” he said.
One size doesn’t fit all
There is no one-size-fits-all solution for
all logistics companies. Technology must
be customised according to needs.
“Logistics is too big an industry. We
should be more focused on our custom-
er base, which specific industry we want
to support. Aircraft spare parts are dif-
ferent from automotive spare parts.
Again, technology has to be industry
specific. SAP does enterprise resource
planning (ERP) and wants to serve the
whole ERP market. It wants to do a lot
of things – the last count was that there
are more than 15,000 functionalities in
its solution,” said BG Lim.
A major hindrance to technology is
the fear of being controlled. That is per-
haps the reason why many companies
prefer to create their own private hubs.
“Technology must overcome the
8 Copyright © 2006 SingTel. All rights reserved. Singapore Telecommunications Ltd 199201624D.
barrier of controlling others. Many
companies have created their own pri-
vate hubs. It is going to be very dif-
ficult to overcome these barriers,” said
Patrick Chua, Chief Executive Officer
of Autoscan Technology.
But, James reiterated that YCH
Group does not see itself as the owner
of the hubs as “those hubs are our cus-
“ It would be tomers’”.
beneficial for “We are only facilitating and or-
logistics companies chestrating them. We are using tech-
to be cognizant of nologies to enable the exchange of in-
the concessions formation,” he said.
available under “In the past, logistics meant living
Singapore’s various with the inefficiencies of our custom-
FTAs. They could ers. You put more cargo in our ware-
then advise their house. We run more trips and make
customers more money from you. The new model
accordingly of should be living on the efficiencies of
such cost-saving our customers to increase the global
possibilities, thereby pie and increase volume. Technology
providing a value- and infrastructure can cut that much
added service.” but ultimately, it’s the content that
Thong Leng Yeng, matters,” he concluded.
Senior Assistant Director, Kelvin said that private hubs and
Trade Division Directorate B, collaboration are contradictory. “It’s
Ministry of Trade and Industry
difficult to have true collaboration. We
need to identify our core collaboration
and build around it. There’s no one
model for everybody.”
Opportunities abound
Consolidation and collaboration –
both augur well for the logistics indus-
try and point to a bright future.
“The logistics industry has a tre-
mendous opportunity to grow. Sing-
Tel has done several of these models
across the globe, whether it’s a shared
community network, dedicated supply
“ What really matters chain, technology provisioning, and
communications convergence of data,
is that there will
voice and video,” said Bill.
be an internal
“We believe communications is not
focus. Rationalise
just a connectivity but a vital asset in
your cost structure
logistics. Having said that, it is only a
and leverage your
technology piece, there is still a people
infrastructure to
piece and process piece. Ultimately, all
deliver superior
these pieces must come in mind, and,
service as compared
the strategic intent of the company
to what you used
needs to be there first, before these
to be able to do
pieces can come together. SingTel has
individually.”
got all these solutions in Singapore, re-
Stefano Battan, Director
of Transportation Logistics gionally and globally. We want to be
Worldwide, ST Microelectronics the best partner,” said Bill.