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Industry Background



Negotiating Complex Supply Chains and Asia
Global supply chains are becoming more complex with rising fuel prices, changing business models, and an increasing demand for sustainable logistics solutions. In addition, multinationals are negotiating the complex Asian landscape as they expand into the region.

Leveraging its strategic location between the East and West, as well as its world-class logistics and supply chain capabilities, Singapore is well positioned to design and deliver sustainable solutions for companies’ global operations.



World's Top Logistics Hub

A 2010 World Bank report ranked Singapore as the no.2 logistics hub in the world, ahead of Netherlands, Sweden and Asian heavyweights such as Japan, Hong Kong and China.

Singapore offers world-class infrastructure and excellent connectivity, a base of leading industry players and customers, as well as thought leadership/knowledge in logistics/supply chain management. Backed by an integrated, whole-of-government approach towards growing the logistics industry, these propositions provide a strong foundation for Singapore as a vibrant, multimodal hub that develops and delivers sustainable supply chain solutions for the global economy.



Leading Industry Players

Singapore provides access to the world's best solutions, with 20 of the top 25 third party logistics companies (3PLs) having established significant operations in Singapore. Most of them have established regional or global headquarter functions in Singapore. They include DHL, Gati, Kuehne + Nagel, Sankyu, Schenker, Toll, UTi and Yusen Logistics.

Leveraging Singapore's world-class infrastructure and excellent global connectivity, Singapore has become the preferred logistics and supply chain management hub for leading manufacturers across industries. They include Avaya, Diageo, Hewlett Packard, Life Technologies, LVMH, ON Semiconductor, Roche Diagnostics, Schneider Electric, and Siemens Medical Instruments.



World-Class Infrastructure, Global Connectivity

Singapore has established world-class specialised infrastructure, which include the Airport Logistics Park of Singapore (ALPS) in the airport's free-trade zone, the Changi International LogisPark that facilitates regional distribution, and the Banyan LogisPark on Jurong Island that caters to the specific needs of chemicals and oil companies.


Targeted to be operational in the first half of 2012, the new Air Cargo Express (ACE) Hub is a specialised cargo and logistics infrastructure for use by air express companies. The ACE Hub will have direct airside access to facilitate the unrestricted flow of cargo to and from aircraft, enabling air express companies to shorten the processing time for time-sensitive shipments to achieve greater efficiency and speed in transporting express cargo.


In addition, 3PLs have also invested in facilities and capabilities to meet industries' needs for specialised handling of products such as temperature-sensitive, time-sensitive clinical and diagnostics materials; chemical and petroleum products.


Besides infrastructure and specialised facilities, Singapore also offers excellent global connectivity with its extensive network of logistics linkages. The sea-port is linked to 600 other ports in 123 countries via 200 shipping lines. 27 million TEUs of containers were moved out of Singapore in 2010.


For air-cargo, Singapore's Changi Airport is ranked amongst Asia's top five. The airport is served by over 6,100 weekly flights connecting to 210 cities in 60 countries, handling close to 1.7 million tonnes of cargo in 2011. Singapore is also proximate to world's major markets, being situated within a seven-hour flight radius to half of the world's population in Asia Pacific.



Thought Leader in Asia

In response to the increased complexity of global supply chains, global 3PLs and supply chain management companies here are developing innovative logistics and supply chain solutions for their Singapore-based and regional manufacturing and trading customers.


The world's leading third party logistics player, DHL, established the Sustainable Supply Chain Centre Asia Pacific in Singapore, a global Centre of Competence, to look into sustainable supply chain solutions for the future of the industry.  


In addition, Asia's leading logistics think-tank, The Logistics Institute - Asia Pacific, is also based in Singapore. TLI-Asia Pacific has established close links and partnerships with the industry and government to arrive at practical and impactful solutions. A collaboration between the Georgia Institute of Technology and the National University of Singapore, TLI-Asia Pacific has a good grasp of the evolving industry in both the West and the East. This has enabled the institute to train more than 100 world-class professionals to deal with today's complex supply chains.


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Last updated:20 January 2012
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