Logistics networks in Singapore can be improved by technologies and consolidation: Lawrence Wong

/ EdgeProp
December 5, 2018 12:49 PM SGT
At the launch of an exhibition on urban logistics on Dec 4, minister for national development Lawrence Wong spoke of implementing new technologies to improve the logistics networks in Singapore as an important economic strategy. This will optimise the delivery of goods around the country, help businesses lower costs, and enhance Singapore’s competitiveness as a regional hub, he says.
One area to improve on is last mile delivery for consumers, particularly for small items. He noted that Singaporeans are increasingly making online purchases from local and international businesses, but also the challenges in missed deliveries and the costs of extra trips to fulfil the order. The minister suggested an expanded network of collection points such as a nationwide network of lockers that can be used by all operators and mail services, which could be located across all housing estates.
Another area of improvement is business-to-business deliveries, which could be optimised through consolidation and use of technology. The minister suggested consolidating delivery trips to retail malls, and to have consolidation centres at the warehouse level. Companies like AAK Logistics Services which are utilising this method have been able to reduce truck trips by more than 20%, and this has led to a 15%-20% reduction in costs for customers, Wong says. Other consolidation plans include a common loading bay for nearby buildings, and this is being studied for new districts like Punggol and Jurong Lake District, he adds.
The government “welcomes and encourages retailers, logistics companies and other stakeholders to learn more about these ideas, so we can collaborate and work together to bring these ideas to fruition,” Wong says.