Two massive logistics and warehouse facilities open in Singapore

With Singapore’s strategic location and the ready availability of world-class infrastructure, many major logistics companies are setting up or expanding their operations here.

From 2007 to 2014, Singapore has consistently been ranked among the top five logistics hubs out of 155 countries, according to the Logistics Performance Index by the World Bank.

With Singapore’s strategic location and the ready availability of world-class infrastructure, many major logistics companies are setting up or expanding their operations here. Last month, two new massive facilities opened their doors to further service the logistic and warehousing needs of the region.

LF Logistics, the logistics arm of Li & Fung Limited, which has operated in Singapore since the 1970s, has just completed the building of a one-million sqf green warehouse facility, which will serve as the company’s regional distribution centre.

The new centre is designed to tap the booming e-commerce industry and serve as a logistics hub meeting the fast-changing needs of brands and retailers across Asia and the rest of the world. This nine-storey, multi-temperature facility is touted as Singapore’s largest automated and customs bonded warehouse, and leverages a suite of best-in-class technologies and product handling methods including automated storage & retrieval system, semi-automated pallet shuttle system, robotics, put-to-light pick systems and market-leading e-commerce logistics solutions. It is a LEED Gold and BCA Green Mark Platinum-certified building for its outstanding design and performance in environmental sustainability.

Last year, LF Logistics won the Asia-Pacific Regional Logistics Service Provider of the Year and Asia-Pacific Warehouse Service Provider of the Year awards at 2015 Frost & Sullivan Asia-Pacific Best Practices Awards in Singapore.

Frost & Sullivan made the assessments based on its own research and LF Logistics’ performance, including revenue growth, market share and growth in market share, product innovation as well as LF Logistics’ marketing and business development strategy.

“LF Logistics offers a complete package when it comes to its service offerings and experience in logistics handling in Asia-Pacific. Its dependable supply chain management capabilities, incorporating inter-modal transportation, supply chain network design and cross-docking among others, have produced reliable services for its customers,” said Zainal Izham, research analyst, Asia-Pacific at Frost & Sullivan.

Said Joseph Phi, president, LF Logistics: “Our real competitive strength lies in our people. This recognition is a tribute to all of our team members who always go the extra mile to make things happen and get things done. This is also a testament to our dedication to form partnerships with our customers who value our comprehensive suite of customised and innovative logistics solutions covering both in-country logistics and global freight management.”

Phi added that the awards will spur LF Logistics to continue providing its customers with value optimisation and service excellence.
LF Logistics has grown rapidly within the past few years, having gained new business, increased market share with existing customers and successfully entered into e-logistics.

Offering in-country logistics and global freight management services, LF Logistics has developed distribution centres across the region in countries such as China, Hong Kong, Korea, Taiwan, Singapore, the Philippines, Thailand, Indonesia, Malaysia, Dubai and India.

The second company which opened a new facility in Singapore is DHL Supply Chain, a global provider for contract logistics solutions. Called the Advanced Regional Centre (ARC), it was built at an investment of more than S$160 million (US$118 million). The 90,000sqm facility features an S$18.8-million multi-customer automation system featuring advanced robotics.

This “pioneering system” allows customers to enjoy the benefits of automation solution without the need for significant capital investment. The technological enhancement uses 130 robotic shuttles to pick and store products from 72,000 locations spread across 26 levels, improving picking efficiency by 20% and utilising 40% less space than conventional warehousing operations.

DHL said this is the first of its kind globally, thus creating a model for the future of warehousing in land-scarce countries and dense cities where land availability is limited and expensive.

“As an organisation, our spirit thrives on a hunger for new knowledge and innovations that we can bring to customers to meet the challenges of Industry 4.0, the fourth industrial revolution. We see the Asian region as a swift adopter of technologies for enhanced productivity and efficiency. By 2020, Asia will constitute 30% of our total revenue. Facilities such as the ARC offer a ready model of innovations that reduce complexity, improve accuracy and maximise opportunities for productivity gains,” said Dr Frank Appel, CEO, Deutsche Post DHL Group.

Co-located within the ARC is the DHL Asia-Pacific Innovation Centre (APIC), DHL’s first innovation centre outside of Germany and a joint development with the Singapore Economic Development Board (EDB). Launched last year, APIC is the first dedicated centre for innovative logistics services in the Asia-Pacific region and showcases futuristic technologies.

“We are witnessing a pivotal chapter in the transformation of the Singapore logistics industry, as these best-in-class supply chain practices exemplified by DHL’s ARC start to take off in Singapore. DHL’s decision to locate its first innovation centre outside of Germany in Singapore is another testimony to Singapore’s commitment to promote supply chain innovation,” said Kelvin Wong, assistant managing director of the Singapore Economic Development Board.

“It is also a vote of confidence that Singapore is well placed to support companies in their efforts to explore and create new businesses here to serve Asia. These developments are significant milestones in DHL’s partnership with Singapore,” added Wong.

Singapore: A base for regional logistics hubs
As a multi-customer facility, the ARC also offers bespoke solutions to cater to specific industry needs. For example, the facility boasts clean rooms for Life Sciences & Healthcare businesses, specialised infrastructure for aerospace operations and customised storage solutions for managing service parts for technology customers.

Purpose-built to industry-leading standards, the ARC facility has been awarded ‘gold status’ for its energy and environmental design. The company has also implemented robust security measures that are in accordance with global TAPA (Transported Asset Protection Association) standards.