Spring S'pore launches $10m logistics scheme.......

An extract of the LCDP article from the Straits Times dated 09/12/06 

Spring S'pore launches $10m logistics scheme......By Gabriel Chen

Better use of technology and better collaboration.

These are two vital measures to help give local small and medium enterprises (SMEs) in the logistics industry a leg-up under a new $10 million programme.

Since logistics involves the rapid movement of components, finished goods and other items door-to-door across the globe, scale is a key factor for success.

Unveiling the logistics capability development programme (CDP), Mr Inderjit Singh, an MP for Ang Mo Kio GRC, said the productivity of logistics SMEs is only about two-thirds the level of their multinational and collaboration with other companies can play a key role.

The CDP will support the upgrading of technology designed to make logistics operations more effecient. Logistics SMEs can tap into the CDP either individually, or as a consortium by applying for grants - with the amount to be decided on a case-by-case basis.

Mr Singh, also chairman of the government parliamentary committee for Finance and Trade and Industry, spoke to about 120 logistics industry members at a seminar held by Container Depot Association and Spring Singapore.

He said logistics SMEs in Singapore lack economies of scale or the global footprint needed to serve the needs of global and regional companies.

"As a result, they can't provide integrated end-to-end solutions to their customers."

These SMEs, therefore, needed to improve their productivity in order to be competitive, both locally and overseas, he said.

Those with complementary strengths could team up to provide new services or a wider range of services, he said.

Spring's deputy chief executive Png Cheong Boon agreed.

In order to compete globally, logistics SMEs must "build up new capabilities, and partner one another to offer integrated supply chain solutions", he said.

An interview by Lian He Zhao Bao with Mr Eddie Tan (Dextrans Worldwide Group Director - Supply Chain Solutions)

One company who is keen to apply for this scheme is Dextrans. Dextrans was established in 2003, with several regional offices including Indonesia, Malaysia, Thailand, Vietnam, Hong Kong and China.

Dextrans Director of Supply Chain Solutions, Mr Eddie Tan said the company will continue to expand it's presence in Asia in 2007 particularly in China where it has plan to open 3 new offices.

In the discussion about the main problems encountered in logistics management in China, Mr Eddie Tan said that China is a big country and complex market. There will always be issues with customs and it's regulations.

Different customs have different issues and regulations that needs to be managed. Thus this is an area where we need time and experience to manage well.