Singapore’s freight and logistics market can register a growth rate of 8% during 2022 – 2027. It isn’t surprising, owing to the country’s strategic position as a trans-shipment hub that links it to major markets and drives global trade. It is also a major tech hub with a thriving eCommerce market that the US International Trade Association forecasts to be worth USD 10 Bn by 2026.
While Singapore’s logistics and freight networks are renowned for their competitive advantages, businesses still need help with efficient logistics management. This is especially a concern with last-mile deliveries, which account for over 50% of the overall logistics costs. End-to-end freight management software is critical to lower last-mile delivery costs, deliver shipments timely, improve customer experience, and driving efficiencies. Here are some factors to consider while choosing the right one for your business.
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Improves logistics management
Much like its regional peers, the growth of Singapore’s eCommerce sector has also led to a rise in returns. Singapore is in a prime position to leverage the resulting opportunities, with the relative ease of its eCommerce ecosystem offering the potential to drive consumer confidence that products will be returned or exchanged without a hassle.
Smart freight management solutions allow automated freight procurement, quotation management, real-time tracking, etc., that extend better operational control. It helps shrink freight costs by up to 12%. Businesses can efficiently plan, assign, and monitor their shipments and vehicles. Smart allocation rules also factor in various parameters to assign the best courier partner to execute last-mile deliveries, depending on the delivery requirement.
Monitoring and improving the performance of the workforce and vehicles add up to efficiencies. Here intelligent route planning and optimization engines come into play. Smart logistics management tools extend real-time visibility, making monitoring, managing, tracking, and optimizing these assets easier. The technology automates driver and vehicle selection based on multiple factors, such as the courier partner’s knowledge of the area, experience, and language they speak. In contrast, vehicles are chosen based on the type of shipment, vehicle capacity, and other factors. It is instrumental in optimizing processes, ensuring timely deliveries, and maximizing business profits.
Siloed processes and legacy systems have done no good for logistics businesses, as the lack of a centralized system causes trust and transparency issues. It leads to a disconnect between relevant stakeholders, affecting delivery experience and overall delivery outcomes in terms of delays and cost leakages.
A unified approach or a centralized system helps in a big way here. It helps businesses achieve transparency and ensure that all stakeholders can seamlessly communicate and coordinate on the delivery progress. Real-time shipment tracking also lets businesses know the courier partner’s exact location. They can use a single dashboard to manage all their operations, track resources, and allow customers to track their shipments in real time, instilling trust in the supply chain. Such tools lower customer complaints by up to 28%.
Digitization and automation
If done manually, route planning, driver and vehicle allocation, freight procurement, and RFQs can result in many inefficiencies. It leads to wrong and longer routes, underutilization of assets, high logistics costs, and delayed deliveries.
Smart freight management solutions help businesses digitize and automate the above tasks, reducing reliance and the scope of error from manual intervention. It improves overall operational efficiency, reduces last-mile logistics costs by 18%, increases vehicle capacity utilization by 31%, saves 18% in route planning and optimization time, drives on-time deliveries, and does much more.
Legacy software with static functionalities cannot handle last-minute orders, cancellations, or mid-way route changes. They cannot deal with unpredictable changes, harming customer experience and the business’s bottom line.
Having dynamic functionalities in the belt helps manage such unprecedented changes easily. A vehicle can be dynamically routed in case of roadblocks or traffic congestions to ensure minimum delays and logistics costs.
Most importantly, freight management solutions tailored to business needs are the best. They can prove a game changer in helping Singaporean businesses thrive despite increasingly complex supply chains and customer demands.
The article titled ” ” was contributed by Soham Chokshi, CEO, and Co-Founder, Shipsy under the original title “Singapore’s Best Freight Management Software: Top Capabilities Businesses Must Seek”
About the author
Soham Chokshi is the CEO and co-Founder of Shipsy, India’s first and only end-to-end Global Trade and Logistics Management Platform that helps customers reduce logistics costs, achieve transparency, and improve on-time delivery of goods across the Ocean, Air, Rail, and Road with an intelligent approach. Under his supervision, the company has rapidly blossomed into a leading SaaS-based solution provider dedicated to reducing logistics costs and improving on-time delivery of goods across the ocean, air, and road transportation through its pioneering ‘Bloomberg for supply chain’ model. In his professional capacity, Soham spearheads the overall business growth of the organization.
His auxiliary responsibilities include ensuring revenue pipeline and ARR growth, maintaining key customer relationships, directing measures for brand amplification, ensuring a strong product roadmap, fundraising, investor relations, and overseeing key processes and initiatives for people development. Under Soham’s helm, Shipsy is fast developing as the preferred technology partner for logistics management for bolstering domestic and cross-border trade.