Schneider Electric opens new carbon-neutral logistics hub in Tuas

French energy management and automation company Schneider Electric opened a multimillion-dollar logistics hub on Monday, and will invest $110 million in the facility over the next 10 years.

Located at Tuas South near the Tuas Mega Port, the 21,000 sq m hub is about 30 per cent bigger than the company's previous site in Penjuru that was vacated about two weeks ago.

The facility, on the second floor of a four-storey warehouse building, has smart features and employs about 280 people, serving some 400 customers globally.

Mr Stuart Whiting, Senior Vice-President of global supply chain, logistics and planning, said the company decided to relocate because the new site offers more room and fewer restrictions.

The old facility had height curbs and too many pillars, which resulted in space constraints.

"We had been in the former facility for over 10 years, it was an old building. It wasn't economically efficient. We took the opportunity to move, so we could be more sustainable, get more space and create the right working environment where we can optimise energy and the resources we have," he added.
 

The move allows Schneider Electric to digitalise some operations and use data to increase efficiency. The site is also powered by solar energy and is carbon-neutral.

For example, data on the building's energy consumption and indoor air quality is collected via sensors, controls and mobile applications that can help to indicate when appliances, such as air-conditioners, can be switched off when not in use.

The control tower will also monitor and collect key data linked to, say, the number of containers coming to the hub or inventory management. This will help the company to deploy manpower where needed to help streamline operations.

A weight control station will allow the number to be compared with that in the system to ensure that the weight of each package is accurate before it is shipped out.
 

Schneider Electric is also aiming to eventually use recycled and recyclable cardboard, and eliminate single-use plastic from all its packaging.

It is also practising sustainable packaging now, such as by shredding discarded or unused cardboard boxes to be used as packaging material.

It also uses a virtual reality software to help train its new hires on operating industrial vehicles such as forklifts.

These new features will allow the logistics hub to withstand disruptions in the supply chain, said Mr Jean-Pascal Tricoire, chief executive of Schneider Electric. "Geopolitical tensions and energy prices - all of these have shown us that supply chains can be hit by dramatic disruptions. But at the same time, the disruptions helped us to rediscover the value of resilience, agility and efficiency."

Singapore Economic Development Board Chairman Beh Swan Gin said the hub will help to enhance the nation's position as a leading logistics hub in Asia, and as a critical node in global supply chains.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.