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 THE LOGISTICS NETWORK DIRECTORY 2020/2021
 Catalysing Growth
through Specialisation
These are challenging but exciting times for the logistics sector. Like the wind, the direction of trade flows will change, and it has. Wherever the caravans of trade now ply, we can make the best out of prevailing opportunities.
We anticipate a rise in demand for cross- border trucking, especially in the Asia Pacific region. This demand is driven by the relocation of production from China to South East Asia, and the growth of consumer markets in the region. As countries continue to prioritise the construction of roads, overland services are set to become a compelling mode of transport - faster than sea freight and cheaper than air freight. Capitalising on this development, Enterprise Singapore partnered global logistics player Kuehne & Nagel to help local logistics SMEs build capabilities for handling higher- value cargo via land transport. The companies have benefited from the market insights on
cross-border trucking opportunities in Malaysia and Thailand, access to Kuehne & Nagel’s business networks and platform solutions, and the prospects of attracting higher-value work.
Cold-chain management and pharmaceutical logistics are two promising, high-value areas for logistics companies that check all the right boxes. Besides specific equipment and storage facilities, service providers need to comply with the requisite standards and harmonised handling procedures to maintain the integrity of the products handled. The Singapore Logistics Association (SLA) will be establishing a Pharmaceutical Logistics Work Group to look into ways to help local enterprises acquire the necessary capabilities and know-how.
Staying Abreast of
Consumer Trends
Rising consumer affluence and innovative digital platforms are driving robust e-commerce growth. The COVID-19 crisis will accelerate the
move from brick-and-mortar channels to online channels. This expansion of e-commerce spawns demand for last-mile delivery services. According to the World Economic Forum , demand for last- mile is expected to grow by 78 percent globally by 2030. There are exciting opportunities for logistics providers in this high-growth market. Parallel to e-commerce is another emerging consumer trend: omni-channel retailing. It is the new reality in a world of rising consumer expectations and instant gratification. In the fast-moving segment, retailers need to deliver a seamless personalised customer experience anytime, anywhere, on any device.
Merchants in both e-commerce and omni- channel retailing have business models that exact challenging demands on logistics operations. A high-performing, cost-effective fulfilment network that supports real-time customer engagement is key. Logistics facilities such as warehouses need to support seamless inventory visibility and optimisation across channels. Improved speed, flexibility and convenience are par for the course for thriving in this space.
Competition in the e-commerce space is heating up. Logistics insourcing is gaining momentum; though it may not replace outsourcing, some of the logistics sector’s clients have started their own logistics operations. Leading e-tailing businesses such as Amazon, Alibaba and Walmart have focused on building up their last-mile delivery and logistics services, while increasingly going after the middle and first-mile of the logistics chain. They are investing in multi-modal assets, offering highly customised delivery options at competitive rates. Strategic moves by these large retailers will intensify competition for both large and small logistic players eyeing a slice of the e-commerce pie.
For logistic players who constantly seek to reinvent and remain relevant, these competitive elements will not pose any barriers. First-movers
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