LOGISTICS AND SUPPLY CHAIN MANAGEMENT

IN BRIEF

With the rise of Asia as the new economic powerhouse, organizations are looking
towards the region to expand their business. There is a surge of investments
pouring in from the West and the Asian region needs to move swiftly to
accommodate incoming interests.
The World Bank recently ranked Singapore as the No. 1 Logistics Hub amongst
155 countries globally in the 2012 Logistics Performance Index. Singapores
strategic location in the heart of Southeast Asia and at the nexus of major shipping
lanes has made it an important logistics hub and conduit for world trade.
Today, Singapore is a prime location for major logistics firms, with 20 of the top
25 global logistics players conducting operations here. Most of them, like DHL,
Kuehne + Nagel, Sankyu, Schenker, Toll, UPS and Yusen Logistics, have set up
regional or global headquarter functions in Singapore.
With an expansive base of leading global logistics players, world-class
infrastructure and excellent global connectivity, Singapore is the preferred
logistics and supply chain management hub for leading manufacturers across
industries, which include Avaya, Diageo, Dell, Hewlett Packard, Infineon, LVMH,
Novartis, ON Semiconductor, Panasonic, and Siemens Medical Instruments.


OUR EDGE
GLOBAL CONNECTIVITY

Singapores Changi Airport is one of Asias largest cargo airports and is served by
over 6,500 weekly flights connecting to 250 cities in 60 countries, handling close to
2 million tons of cargo annually. The country also boasts the worlds busiest
transshipment hub, handling about one-seventh of the world's container
transshipment throughput or 31.26 million TEUs of containers in 2012. Singapore
is connected by 200 shipping lines to 600 ports in 123 countries, with daily sailings
to every major port of call in the world. It is also proximate to the worlds major
markets, being situated within a seven-hour flight radius to half of the worlds
population in Asia Pacific.
Our sea and air ports are readily accessible through a well-planned domestic road
network, ensuring that companies based in Singapore are better positioned to
serve customers and manage their operating entities, not just in Asia but globally.

SECURE AND TRUSTED LOGISTICS HUB IN SINGAPORE

There is increasing recognition of the need for supply chains to be more resilient
and secure as disruptions involving economic volatilities, political unrests and
natural disasters have shown the susceptibility of global supply chains. Singapore
has stood out as a trusted and reliable supply chain hub through our strong
commitment to global and national security initiatives that support successful
business operations. These include the streamlining of security regulations and
operational procedures to help businesses cope with the adoption of many
international customs and security programs.
Singapore has also been recognized to have highly efficient customs and business-
friendly import/export procedures providing companies greater efficiencies in
obtaining clearance/documentation/permits for their goods. Efficiencies in
information management are evidenced through platforms such as Trade Net, an
electronic national single window that provides a one-stop platform simplifying all
documentation, saving time, costs and improving efficiency. Trade Net 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.

WORLD CLASS INFRASTRUCTURE ENHANCED WITH SPECIALISED
LOGISTICS CAPABILITIES

Two broader industry trends suggest that many of the global transport and
logistics leaders of the future will come from Asia. First is the long-term shift in
trade and investment from the West to the East, which will provide ever more
opportunities for growth in the region across all segments. There will be further
consolidation in the sector, as firms grow to reap scale efficiencies and improve
their cross-border capabilities. Second is Asias early advantage in low-cost
competition and frugal engineering (a product design approach that emphasizes
using the bare minimum of resources to create basic, no-frills products).
Home to a diverse range of industries with different needs and specialties,
Singapore is well-positioned to help logistics companies build on our
manufacturing leadership, innovate to differentiate themselves and develop greater
expertise in higher value services to keep ahead. Established infrastructure is
necessary to support the growth and successes of logistics companies in serving
the distinctive needs of various industries. To that end, Singapore provides world-
class specialized infrastructure including the Airport Logistics Park of
Singapore (ALPS) in the airports free-trade zone, the Changi International
LogisPark which facilitates regional distribution and the Banyan LogisPark on
Jurong Island which caters to the specific demands of chemicals and oil
companies.





AEROSPACE

As Asias leading aviation hub and the leader in the aerospace maintenance,
repair and overhaul sector (MRO), Singapore has worked diligently to ensure that
industry players needs are met. Singapores base of leading global 3PLs
(including DHL, Kuehne + Nagel, SDV and DB Schenker) offers a wide range of
capabilities (AS9120 certified) for aerospace companies and airlines in Asia.
Some of these aerospace specific solutions would include:
Aircraft-on-ground (AOG) services that ensure rapid delivery of mission-critical
spare parts to waiting aircraft
Service parts logistics (SPL) services tailored to provide a full range of
aftermarket support (both consumables and rotables)
Integrated material management of airlines spare-parts inventory
Specialist transportation for engines, landing gear and other high-value, outsized
parts

CHEMICALS

Singapore is one of the worlds top three integrated petrochemical hubs. Being at
the forefront of the industry, it is developing competitive feedstock for
petrochemicals, advanced materials and specialty chemicals. To support the
continual growth of this industry, a strong base of world-
renowned chemical logistics companies has set up significant operations in
Singapore.
Global logistics service provider Katoen Naties facility at Jurong Island provides
chemical manufacturers with storage and packaging facilities and value-added
services such as chemical processing. Another global name that has made
Singapore one of its key hub locations is Vopak, the worlds leading independent
terminal operator. From its regional headquarters in Singapore, Vopak also
manages operations in many other Asian countries including Malaysia, Indonesia,
Japan, Korea and India. The company provides tank storage, regional distribution,
and value-added services for petroleum products, gases, and chemicals from its
four terminals in Singapore.


ELECTRONICS

The electronics industry forms the largest component driving Singapores
manufacturing economic engine. Leveraging Singapores manufacturing
excellence in electronics, DB Schenker set up a global Competence Centre in 2012
to focus on developing Production Vendor Managed Inventory (PVMI)
installations for the Electronics and Industrial Manufacturing sectors. This centre
is DB Schenkers first global Solution Competence Centre outside of Europe. With
a traditional strength and market reputation within the Electronics PVMI area
already established in Asia-Pacific, the Competence Center in Singapore will be
the base camp for numerous supply chain experts to support development of the
solution and accelerate the roll-out of customized manufacturing logistics
solutions for Asia and global markets.



HEALTHCARE AND COLD CHAIN LOGISTICS

With a growing global demand for more sophisticated, yet also more
affordable healthcare options, the biomedical industry is booming. Today,
Singapore is entrusted by both pharmaceutical and medical technology companies
to handle delicate medical materials. To cater to the growing base of complex
biomedical manufacturing, research and clinical trial activities in Asia, 3PLs such
as DHL, UPS and TNT have established life-sciences logistics hubs in Singapore
that can provide GDP-certified temperature and humidity-controlled shipments to
global markets. There is also a growing presence of niche transportation providers
such as World Courier and Marken that are familiar with the regulatory
complexities of moving small volumes of investigational drugs and clinical trial
test kits using customized packaging solutions.
Coolport@Changi is Asias first and largest dedicated on-airport facility for
temperature-controlled and time-critical cargo. The 8,000-square-metre facility is
located within the Free Trade Zone with direct airside access. With multi-tiered
zones and individual cold rooms set at different temperatures ranging from -28C
to 19C, Cool port is able to handle a wide range of perishables such as live
seafood, meats, fresh produce, flowers and pharmaceuticals. A host of value-added
services include warehousing and distribution, inventory management and control
and an express lane for urgent bio-medical products. Designed in accordance
with internationally recognized Hazard Analysis and Critical Control Points
(HACCP) guidelines for food safety and in compliance with the highest standards
of cold chain integrity, Cool port is also the first Halal -certified air cargo hub for
perishables in the Asia Pacific region.
ART

With the increase in the number of Asian artists and a rising demand for Asian
art, Singapore has taken the lead in nurturing the growth of museums and galleries
to connect buyers to artists and vice versa. The government took this initiative
further with the setting up of the Singapore Free Port which offers 30,000 square
meters of storage such as showrooms, photo studios and wine cellars to facilitate
the storage and movement of delicate, exclusive cargo. Companies that offer
storage and logistics services at Free Port include Christies Fine Art Storage
Services, Fine Art Logistics Natural Le Coultre and Helutrans Group.

BASE FOR SUPPLY CHAIN TALENT AND LEADING SERVICE PROVIDERS

Singapore has stood out as a leading supply chain hub with the presence of world-
class service providers and talent equipped with the knowledge of accessing the
diverse geographies in Asia.
Supply Chain Talent

Singapore offers a base of home-grown talent, including more than 8,500
graduates in science and engineering annually, as well as graduates of specialized
SCM courses. Singapores high quality of life additionally, draws global and
regional talent who can further enhance Singapores vibrant logistics/SCM sector.
Riding on the boom in Asia and strong growth in intra-Asia trade, EDB is working
with companies to develop pan-Asian talent through exposure particularly to Asian
giants China, India and emerging economies in South and Southeast Asia. By
centralizing the knowledge and expertise in Singapore, logistics companies and
manufacturers can better navigate the fragmented trade and regulatory landscape
in Asia, and orchestrate their supply chain solutions for the Asian market.

The Logistics I nstitute-Asia Pacific Double Masters Program

Drawing on the academic standing of both the National University of Singapore
and Georgia Institute of Technology (in the US), the renowned Double Masters
Program (DMP) by The Logistics Institute-Asia Pacific (TLI-AP) is a highly
selective programs tailored to train logistics professionals for strategic and
management roles in the supply chain.
As the winner of the Asian Freight & Supply Chain Awards for Best Education
Course Provider for ten consecutive years, the DMP has groomed a new
generation of leaders familiar with world-class SCM methods and best practices.
The program has nurtured more than 150 professionals who now work in a wide
spectrum of logistics companies and supply chain control towers that manage
regional supply chains in Asias key markets, forming Singapores very own
Circle of Logisticians.

TLI -AP THI NK Forum

TLI-APs THINK Forum in Singapore is a platform for thought leadership,
knowledge dissemination and executive learning. The Forum brings together
industry leaders, supply chain practitioners and academia to address issues that
shape the industry landscape. Programs include events for top executives that are
focused on IT (THINK IT), Strategy (THINK Executive) and Innovation (THINK
Innovation); regular Solutions platforms on optimization, intelligence and
technology; as well as the annual THINK Logistics Conference. These forums
provide top executives with opportunities to network, share and discover new
opportunities.

Supply Chain Consulting

Besides anchoring top 3PLs in Singapore, consultancies like Accenture and A
Beam provide a complete ecosystem to help global companies streamline their
Pan-Asian supply chains. These consulting firms offer professional support in
areas such as strategic planning, sales and marketing, efficient operations and
systems implementation to help logistics companies strengthen their competencies
and value propositions. Accenture supports organizations that are increasingly
looking to establish Singapore as their entry point to the growing Asian markets,
and to create regional centers of excellence in Supply Chain Planning,
Procurement and Operations. Its staff of 90 professionals across the region teams
up with organizations to transform their operations capabilities, collaborate to
align process and operating models, and enhance the skills of the supply chain
workforce.
Additionally, A Beam has been assisting companies in Singapore and the region to
capitalize on opportunities in Asia by implementing business processes and
solutions specific to their customers needs. One of A Beams supply chain
solutions is the SAP Rapid Deployment Solution called Distribution Management
Solution (DMS). The DMS solution integrates the distributors demand planning,
sales, inventory and logistics processes to the manufacturer, enabling the
manufacturer to have insights into their end customer enabling the manufacturers
to provide superior services, and products by responding proactively to market
conditions