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Category: Logistics

Retail News Asia is committed to providing both local and global retailers with the latest Logistics news throughout the Asian market. This on a daily base.

  • IoT, other connected technologies will accelerate security threats

    IoT, other connected technologies will accelerate security threats

    Life sciences and healthcare companies will follow the lead of other industries and integrate connected technologies including Internet of Things (IoT) and intelligent scanners across their ecosystems as a means to improve operational efficiencies, enhance supply chain visibility and deliver better patient care – but the increasing use of such technologies will accelerate security risks, according to a new set of predictions from experts at Unisys Corporation.

    “Market forces that to this point have primarily affected other industries are now demonstrating the potential to transform the way life sciences and healthcare companies operate,” said Jeff R Livingstone, PhD, vice president and global head, Life Sciences and Healthcare, Unisys. “For example, if the pharmaceutical industry looks at the processes and best practices being used in other types of manufacturing, they can apply and adapt those technological advancements in how they manufacture, provision and supply therapeutics. Ultimately, there is a lot of interconnectivity between industries that can be taken advantage of.”

    Consequently, Dr Livingstone predicts a fundamental consumer-driven shift based on the “retailisation” of industries such as healthcare, which incorporates expanded roles for security, and which in turn facilitates a shift from on-premise data management to the cloud.

    Prediction: The “retailisation” of healthcare – based on the IoT – will fundamentally alter how life sciences and healthcare organisations conduct business

    As industries such as retail have already started using connected technology like intelligent scanners and e-readers to track and ship their products, so too has this technology demonstrated potential for life sciences and healthcare.

    Unisys predicts that in the coming year, connected technology will take a more prominent role within the supply chain, as sensor-based track-and-trace technology will allow companies to verify product shipping information, monitor temperature issues and adjust routes based on environmental factors affecting drug viability, as well as using cross-platform analytics based on tracking data to help improve route efficiencies and deliver critical medications to people who need them, when they need them.

    Prediction: Continued rise in cyberattacks and shift in how patient data is accessed will require a multi-tiered approach to cybersecurity

    According to a recent report, in the second quarter of 2017 life sciences and healthcare organisations suffered more security incidents than any other industry, surpassing the public sector. Simultaneously, as more providers use personal or hand-held devices to access data, it means extremely valuable patient data is more vulnerable to cyber threats. In the coming years, the industry will see a rapid rise in ransomware and DDoS attacks that threaten patient data, as well as the business reputations of the organisations trusted to protect it.

    These security risks are not lost on consumers; the recent Unisys Security Index found that a large majority of US respondents registered concern about the possibility of hackers or malicious intruders gaining access to internet-connected medical devices such as defibrillators, pacemakers or insulin pumps belonging to them or someone they know.

    As a result, Unisys predicts companies will shift toward a multi-tiered, holistic approach to security. To ensure proper security, all devices will require equally strong protection, including personal devices that interact with multiple networks. While it will require more than one type of protection, those that are best poised to adapt will start with a thorough security assessment to analyse network and devices, which in turn can determine how different aspects of security can work together best for the business.

    Prediction: Compliance and certification move to the cloud

    Historically, legacy hardware and a lack of centralised mandates for certification have hindered migration to the cloud in life sciences and healthcare. This has largely been based upon a general distrust of allowing critical IP and patient information “outside the gates”.

    Unisys predicts that advancements in cloud-based software and security, coupled with proper guidance, will help providers more quickly adapt to ensure up-to-date compliance based regulatory needs and help bridge the gap between compliance, security and privacy.

    “To prepare for what’s to come, first you have to take a step back,” Livingstone said. “Completing a thorough review and assessment of one’s technological and security needs, as well as data and compliance management as it relates to IP, patent and regulatory issues, life sciences and healthcare companies will make one well-positioned to succeed in the digital future.”

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  • SingPost to invest S$16 mil in island-wide Smart Post Office network

    SingPost to invest S$16 mil in island-wide Smart Post Office network

    The redeveloped SingPost Centre in Paya Lebar was officially launched on Monday (Oct 9) with the first “smart” post office and a new FairPrice supermarket that will serve as a testing ground for new initiatives in retail technology.

    Located next to the Paya Lebar MRT station, the centre houses a shopping centre, the country’s largest post office and SingPost’s flagship Philatelic Store.

    The 5,328 sq ft General Post Office is the first of SingPost’s smart post offices, featuring a dedicated self-service area with POPStation lockers, upgraded SAM machines offering remittance and other postal services and a drop box for registered articles, accessible at all hours.

    The new drop box allows customers to skip the queue by weighing their parcels and printing labels at the SAM machines before depositing them, said SingPost head of post office network and digital services Bernard Leong.

    Unmanned smart post offices will be rolled out in estates with young families, such as Punggol and Sengkang, in the next one to two years, he added.

    Mr Mervyn Lim, SingPost’s deputy group chief executive (corporate services), said: “The launch of SingPost Centre underscores SingPost’s transformation for a future where technology is changing how people shop, dine and play.”

    The mall’s committed occupancy rate as at Sept 30 was about 80 per cent, he added.

    The five-storey mall, managed by CapitaLand, has 130 tenants including Golden Village, FairPrice, a Kopitiam foodcourt and a rock-climbing gym.

    Apart from bubble tea chain Gong Cha’s return to Singapore later this year (2017) with its flagship outlet in the mall, other new F&B concepts include a food hall designed to look like the old Tanjong Pagar Railway Station and Taiwanese hotpot chain Upot.

    FairPrice’s 22,000 sq ft supermarket, also launched on Monday, is piloting several new initiatives, including the FairPrice@SingPost mobile app that allows customers to locate products with in-store navigation and check stock availability.

    The app, available for download on Apple and Android app stores, also gathers data on shopping habits to deliver user-specific promotions.

    The store will integrate the Scan2Go system currently in use at its Bukit Timah Plaza outlet, where customers can scan purchases with a personal handheld scanner as they shop and pay at self-checkout counters.

    It is also the first supermarket to feature self-checkout counters that can be converted to cashier-assisted ones in under a minute, to accommodate crowd sizes.

    Refrigerated lockers will be piloted at the SingPost Centre branch for the self-collection of online purchases, while an “experiential corner” in the store will allow brands to engage customers using augmented and virtual reality, digital games and interactive booths.

    Speaking at the launch, FairPrice chief executive Seah Kian Peng said: “This technology-driven supermarket will serve as a “living lab” to pilot new and innovative retail technologies, designed to revolutionise the grocery shopping experience.”

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  • Kerry Logistics receives Listed Enterprises of the Year Award

    Kerry Logistics receives Listed Enterprises of the Year Award

    Kerry Logistics Network Limited was named a winner of the Listed Enterprises of the Year 2017 by Bloomberg Businessweek/Chinese Edition for the second year running in recognition for its outstanding performance. Kerry Logistics is the only logistics company to receive this title.

    Organised by Bloomberg Businessweek/Chinese Edition, the award presentation ceremony was joined and supported by senior representatives of The Chamber of Hong Kong Listed Companies, The Hong Kong Institute of Bankers, The Hong Kong Institute of Chartered Secretaries, and InvestHK. Eighteen winners were selected by an independent panel of judges based on analytics from Bloomberg Terminal and a multitude of criteria in respect of company performance, corporate governance, investor relations, innovative strategies, and community engagement.

    “We are excited to receive this prestigious award for the second year in a row,” said Gary So, deputy managing director of Kerry Logistics.  “The pursuit of excellence and the commitment to offering best-in-class supply chain solutions have always been a promise we squarely adhere to.  We are thankful to the distinguished judges for acknowledging our continuous effort. Going forward, we will continue to further strengthen our unique strategic position as an Asia specialist supported by a global network.”

  • Vietnam Attends Passerelles numériques Graduation Ceremony

    Vietnam Attends Passerelles numériques Graduation Ceremony

    On October 14th, 2017, Bolloré Logistics Vietnam attended the graduation ceremony of Passerelles numériques (PN) Vietnam students.

    The Passerelles numériques Vietnam NGO program was launched in 2010 in Da Nang, a city identified as a high potential area for Information Technology (IT) sector development. Bolloré Logistics Vietnam is supporting the organization through donations since early 2017.

    Earlier this year in April, nine second-hand computers were provided to Passerelles numériques structure in Danang, after which it was decided to provide seven more prior to the graduation ceremony; as well as 10 keyboards and five computer mice.

    Bolloré Logistics Vietnam believes in social and educational development through Passerelles numériques’ actions and will continue to support students in Vietnam, for them to have a chance to gain a solid general knowledge and a better understanding of the world around them; in order to meet the job market skills requirements.

    Marc Moeschlin, Managing Director of Bolloré Logistics Vietnam, adds “With this very concrete CSR action, we not only contribute to give better IT education chances to these underprivileged students, but we are also eager to increase the pool of future tech-savvy talents in Vietnam; which will support Bolloré Logistics in a broader sense, as our industry is more and more driven by technology, algorithm decision making and digitization.”

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  • Yang Kee Logistics to buy second major Oceania logistics company for S$52.1 million

    Yang Kee Logistics to buy second major Oceania logistics company for S$52.1 million

    Yang Kee Logistics Pte Ltd has announced that it has entered into a Scheme Implementation Agreement with New Zealand Exchange Mainboard listed company, Fliway Group Ltd. This will be Yang Kee’s second major Oceania acquisition this year with the support of International Enterprise (IE) Singapore.

    The acquisition value of S$52.1 million for 100 per cent of the shares in Fliway would boost the group’s revenue by another S$81.9 million with a stronger foothold in the Oceania market. This announcement comes on the back of its first Oceania acquisition of Australia logistics company Axima Pty Ltd in March this year. The combined Yang Kee group will have a headcount of over 1050 employees across 12 countries, and an expected revenue of over S$400 million once the acquisition is fully completed.

    Under the SIA, it is proposed that Yang Kee acquires all the outstanding shares in Fliway for NZ$1.22 cash per share by way of a scheme of arrangement. The scheme is conditional on the approval of Fliway’s shareholders and the High Court, amongst other things.

    “It is part of our vision to strengthen our presence in Oceania as we go global. New Zealand has a stable currency and economic outlook, a growing middle class, and a demand for integrated freight and logistics solutions. New Zealand also enjoys strong trade relations with Australia, with bilateral trade reaching NZ$24 billion for the year ended March 2017. We hope to yield greater synergies from the network integration of shared international freight volumes between Fliway and Axima and cross selling opportunities in their combined customer bases to Asia,” said Ken Koh, group CEO of Yang Kee Logistics.

    Fliway is one of New Zealand’s largest fully integrated logistics providers. Having over 40 years of operational experience in New Zealand, it has established strong domestic capabilities in transport and warehousing with substantial presence in the electronics and consumer industries.

    Fliway also has an established international division with a freight arm. One of New Zealand’s largest customs brokers, it is consistently ranked amongst the top customs lodgers of entries by volume. This complements Yang Kee’s earlier strategic acquisition of Australian based company, Axima, to facilitate cross Oceania trade between Australia and New Zealand, as well as trade flows between Oceania and Yang Kee’s existing networks in South East Asia and China.

    “This is a significant milestone for Fliway, and reflects our long held view that there are strong growth opportunities that come from leveraging a larger geographic footprint across Oceania and Asia. Being part of the Yang Kee Group delivers on that and provides scale to support Fliway’s customers, both in New Zealand and throughout the Asia Pacific region,” said Duncan Hawkesby, managing director of Fliway Group Ltd.

    IE Singapore partners Yang Kee Logistics in its global growth strategy

    Yang Kee is partnering IE Singapore as it embarks on an acquisition strategy to gain new networks and capabilities to become a global logistics player. IE Singapore worked with Yang Kee to deepen its foothold in these markets and enhance its end-to-end supply chain networks. This included connecting them to business development leads and providing support in feasibility studies, due diligence, financial and legal professional services for the acquisition of both Fliway and Axima.

    Recognising the importance of a robust and global recruitment HR strategy to support its growth, Yang Kee is working with IE Singapore to develop an international manpower strategy to build a global team, with its Singapore headquarters setting the standards and best practices.

    Said Law Chung Ming, group director for Transport & Logistics, IE Singapore, “The combined strengths of Axima and Fliway enhance Yang Kee’s global networks and supply chain capabilities. Furthermore, their logistics solutions will now serve as a resource for other Singapore companies to access the Australia and New Zealand markets. As we work with Yang Kee on its next stage of growth, talent development will be very critical. Specifically, we need to groom talent with specialised logistics skillsets for new business segments, and market ready skillsets for deep understanding of market needs.”

    For example, to help Yang Kee meet its global manpower needs, IE Singapore supported the company in building presence on LinkedIn, working on a digital employer strategy to engage and recruit relevant employees. Yang Kee is also one of the first few companies on board IE’s Professional Conversion Programme (PCP) – South East Asia Ready Talent for logistics, with two candidates taking part in the programme. They will receive on-the-job training and gain exposure to regional logistics projects, building the company’s manpower capabilities in specialised logistics.

    Yang Kee has also worked with SPRING Singapore to develop relevant skills and knowledge among its employees through a career development pathway. With SPRING’s support, Yang Kee also developed new business capabilities such as specialised services for the chemicals and oil & gas sectors with the launch of its Chemical Logistics Hub, enabling it to secure contracts with large global chemical clients.

    Financing of the acquisition

    The acquisition of Fliway was financed by the Australia and New Zealand Banking Group Limited as well as United Orient Capital, a special situation fund sponsored by the United Overseas Bank Limited.

    Yeo Wee Yap, executive director of United Orient Capital said, “Yang Kee’s experienced management team has helped the group successfully broaden its footprint across the region. We are pleased to support Yang Kee’s internationalisation plan and we look forward to working closely with the group as it embarks on the next phase of growth with its expansion into New Zealand.”

    ANZ is the sole mandated lead arranger, underwriter and bookrunner for Yang Kee’s acquisition of Fliway, as well as the earlier acquisition of Axima.

    Chief executive officer Singapore and head of South East Asia, India and Middle East, ANZ, David Green said, “We are pleased to lead the financing for Yang Kee’s acquisition of Fliway, building on the success of their recent acquisition of Axima which we also supported as lead arranger. We have a strong partnership with Yang Kee and are proud to play a role in supporting their growth strategy alongside important partners like IE Singapore, drawing on our cross-border product capability, transport and logistics sector insights and network across Asia, Australia and New Zealand.”

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  • FedEx supports healthcare industry by providing end-to-end visibility for critical shipments

    FedEx supports healthcare industry by providing end-to-end visibility for critical shipments

    FedEx Express has announced the expansion of its SenseAware service in Asia Pacific. The launch in South Korea will help strengthen FedEx healthcare solutions and support the rising logistics demands of the burgeoning healthcare sector in the region.

    Healthcare is one of the world’s largest industry, with a value three times greater than the banking sector, and it is still growing rapidly. Driven by the global expansion, the associated spending on healthcare logistics is expected to rise exponentially. By 2020, clinical trials logistics spending is expected to reach US$3.4 billion and cold chain logistics spending is expected to increase to US$16.7 billion. Asia Pacific, which currently represents 30 per cent of global healthcare revenues, is expected to lead the global growth in 2017 at an eight per cent rate (global projected growth rate is 4.8 per cent).

    “The immense growth of the healthcare industry is driving the demand for highly sophisticated logistics and temperature-controlled transportation across Asia Pacific,” said Karen Reddington, president, FedEx Express Asia Pacific. “FedEx is constantly looking to strengthen the range of specialized solutions for our customers. The launch of SenseAware in Korea rides on the strong growth momentum of healthcare shipments, and aims to fulfil the unique supply chain needs of our healthcare customers.”

    SenseAware will be especially valuable to customers in the healthcare sector where shipments are often environment- and time-sensitive. A multi-sensor device that is deeply integrated with a powerful web-based application, SenseAware makes it possible for customers to stay connected to their high-value shipments. The SenseAware service can monitor current location, precise temperature, relative humidity, barometric pressure readings, light exposure and shock events, and provide real-time updates to customers.

    The SenseAware service is currently available in 43 markets worldwide. In Asia Pacific, the service is available in Australia, Guam, Hong Kong, Malaysia, New Zealand, Singapore and Taiwan. The service is also available on a growing list of air and ground transportation carriers, giving more transportation options to customers in order to better fit their specific needs, while still delivering the peace of mind and quality assurance provided by SenseAware.

  • Unisys wins Payload Asia Customer Choice for IT Service Provider of the Year for excellence in air cargo

    Unisys wins Payload Asia Customer Choice for IT Service Provider of the Year for excellence in air cargo

    Unisys Corporation has won the Customer Choice Award for IT Service Provider of the Year at the Payload Asia Awards, honouring innovation and excellence in the air cargo supply chain. Unisys was recognised for Digistics, a holistic and integrated digital logistics solution that enables air cargo carriers to streamline their freight management and improve operational efficiencies.

    The awards, hosted by leading industry publisher Payload Asia, were presented in Singapore on 12 October 2017. Determined by popular online voting, the awards spotlight air cargo supply chain companies that have excelled despite a challenging global air freight market – demonstrating agility, innovation and superior strategic planning – and having a beneficial impact on market trends.

    Digistics features a modern, cloud-based architecture that greatly improves a carrier’s speed to market, while advanced analytics and machine learning technologies analyse past, present and future data to optimise supply chain operations and route planning. The cloud-based solution allows for seamless integration into existing systems and supports multiple device types – including mobile devices, tablets, touchscreen devices, and PCs – enabling a more agile, digital workspace.

    “This award is a testament to our clients as much as it is to us,” said Tony Windever, vice president and general manager, Unisys Asia Pacific. “We have seen first-hand the commitment and dedication our clients have toward embracing digital transformation to foundationally transform their business operations, and through our partnership and collaboration, have developed software to meet those most critical business needs.”

    This acknowledgement is the latest recognition for Unisys cargo capabilities. In July, Unisys’ predictive freight capability was honoured at the ICMG 2017 Australasian & Asia Pacific Architecture Excellence Awards, and in September, Digistics won the global award for “Best Software Architecture” at the ICMG 2017 USA Architecture Excellence Awards.

    Digistics is the first comprehensive digital air cargo solution that offers catalogue-based disruptive solutions via the cloud, providing end-to-end functionality from operations to route planning. The solution bridges the gap to the digital age of travel and transportation, leveraging advanced analytics – powered by machine learning – to help carriers improve their speed-to-market while also reducing costs.

    “The increasing list of third-party awards and recognition validates and supports our approach to transforming supply chain operations. We are thankful to our clients and business partners in further endorsing Digistics as their choice of product for air cargo operations,” said Dheeraj Kohli, vice president and global head of Travel and Transportation for Unisys.

    Unisys has more than 55 years of experience providing innovative IT solutions to the travel and transportation industry. Unisys cargo solutions are used by many of the world’s leading carriers, who collaborate via the Unisys Cargo User Group (UCUG). Unisys and UCUG members have worked with the International Air Transport Association (IATA) for more than 20 years on initiatives such as e-Freight, Cargo iQ and XML messaging.

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  • Tigers to pioneer same day bicycle deliveries for online fashion brand holymesh

    Tigers to pioneer same day bicycle deliveries for online fashion brand holymesh

    Tigers Germany has won the exclusive contract for online start-up fashion brand HOLYMESH in Germany, Austria, and Switzerland.

    The Hong Kong-headquartered supply chain specialist has doubled its Cologne e-commerce fulfilment complex to support HOLYMESH, a favourite with German YouTube influencers.

    Tigers Germany will pioneer a new same day delivery service, initially in Cologne, in order to introduce an efficient, green final mile solution.

    “We are supporting HOLYMESH with both B2B and B2C solutions, including shipping from their production centres in Italy and China, as well as developing bespoke packaging solutions and fulfiling quality controls both at shipping and on arrival at our facility,” said Andreas Niklasch, Managing Director, Germany and Switzerland, Tigers Germany.

    “Each B2C package is a bespoke undertaking, from cardboard packing and label taping, to adding the respective documents, such as autographs from YouTube influencers, and other promotional material.”

    Tigers handles sorting and checking into stock for HOLYMESH, storage, Electronic Data Interchange (EDI) order transfers, in addition to processing returns, quality check Web Map Service (WMS) data maintenance, repacking and relabelling.

    HOLYMESH famously partners with YouTube influencers in Germany to exclusively develop, produce, and distribute clothing and accessories collections.

    “Tigers is a flexible and innovative logistics partner, providing us with the support we need to optimise processes, as our company continues to grow, and the influencer business continues to change rapidly,” said Jasmina Borgard, Managing Director, HOLYMESH.

    Tigers Cologne’s team of 20 has over 100 years’ industry experience, including expertise in e-commerce for fashion brands.

    “Our Cologne e-commerce fulfilment center has doubled in space in less than a year due to increasing demand,” added Niklasch.

    “We offer high flexibility, processing between 200 and 1,500 orders daily, in addition to a dedicated customer service to provide solutions further tailored to each of our customers.”

    “We are planning to launch a same day bicycle delivery service in Cologne, further boosting our offerings.”

    Tigers Germany works with a wide range of industries, including fashion, automotive, industrial goods, pharmaceuticals, and chemicals.

    Tigers recently launched a new rail freight service, Tiger Rail, on the new Silk Road, offering customers a 16-day transit time both east and westbound, between Duisburg, Germany, and Hefei, Chongqing, and Chengdu, China.

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  • Phee Group brings logistics solutions to Myanmar’s shores

    Phee Group brings logistics solutions to Myanmar’s shores

    Singapore-based, multinational shipping and logistics pioneer, Phee Group, has established Phee Central, a 60,000 square feet logistics centre in Myanmar to cater to a diverse array of logistics needs from businesses in the growing market. It is breaking into this new business segment after having specialised in freight forwarding for over 24 years in Myanmar. This was done with the support of International Enterprise (IE) Singapore, government agency promoting international trade and partnering Singapore companies to go global.

    An investment of US$5 million, the ISO 9001: 2015 and HACCP and GMP certified Phee Central, a multi-temperature storage facility, is situated a mere 25 kilometres from the BSW, MIP and AWP ports and less than 25 kilometres from Yangon International Airport.

    The facility serves a valuable logistics function with the potential to greatly optimise supply chains. Built on 3.2 acres of elevated ground with an around-the-clock security system, Phee Central is equipped with high capacity backup generators to provide an uninterrupted power supply. It is the first of its kind to support a state-of-the-art column-free design that maximises capacity and improves efficiency.

    Phee Central distinguishes itself through delivering a higher standard of reliability matched by advanced technologies. Its Warehouse Management System (WMS) relays live updates of inventory statuses for each client’s warehouse activities. This data is accessible in real-time via web-enabled storage technology, ensuring both reliability and accuracy. Other value-added services include contract logistics, freight consolidation, carrier management, customs brokerage and trade compliance management.

    Ben Phee, group managing director of OV Logistics and Phee Group, said, “It has always been our aspiration to provide a more extensive array of services that offer a peace-of-mind to our clients. With Phee Central, we are not only able to achieve this, we are also able to reduce the wastage of resources and materials due to inadequate storage. Coupled with our temperature-controlled delivery system, we are confident in delivering highly reliable all-rounded logistics solutions for our clients.

    Above all, Phee Central illustrates our commitment to serve the Singapore and Myanmar community. On this note, we are honoured to be recognised by the respective Myanmar authorities for our professional experience and contribution to this country and supported by IE Singapore to realise our commitment of investing and expanding in Myanmar possible more rapidly.”

    Phee Group has been working with IE Singapore on its expansion strategy in Myanmar. Its entry into specialised logistics solutions is timely as Myanmar’s economic reforms and rising middle class have attracted many foreign investments in various sectors of the economy, including food and beverage, hospitality and pharmaceutical equipment and medicines. This brings demand for specialised supply chain solutions such as temperature controlled logistics facilities. As the local logistics infrastructure is still in nascent stage, demand for such services presents opportunities for Singapore logistics companies. Phee Group has risen to bridge the market gaps with its new warehouse, Phee Central.

    Said Law Chung Ming, group director of Transport & Logistics Group for IE Singapore, “It is important for Singapore companies to constantly transform themselves to capture opportunities in fast-growing regional markets such as Myanmar. Having established in Myanmar for over 20 years, Phee has built a firm understanding of the market needs, putting it in a good position to provide specialised cold chain logistics solutions. To build their business in Myanmar, we worked with the company to develop Singaporean talents with specific, customised skill sets in specialised logistics and market-readiness.”

    IE Singapore supported Phee Group by developing a manpower strategy to improving its recruitment, training and retention processes for its operations at Phee Central warehouse. This included market attachments to help their new employees better understand the environment and the cold chain business landscape in Myanmar. Through IE’s support, Phee Group is able to achieve greater regional growth and expansion.

    Headquartered in Singapore, Phee Group crafts unique integrated logistics solutions and practices that are thorough and reliable. Benchmarked to meet the conditions of the Myanmar marketplace, they also effectively resolve complex operations in a simple manner.

    Phee is also looking to partner Singaporean companies to tap onto its logistics solutions, as well as share its insights and networks in the ASEAN market which it has operated in for over two decades.

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  • Lazada’s logistics battle to win Southeast Asia

    Lazada’s logistics battle to win Southeast Asia

    Southeast Asia is on the verge of a logistics “boom” thanks to e-commerce, but will require huge investment in cities and last-mile networks to cope, says Pierre Poignant, the man behind the systems that keep Alibaba-owned Lazada moving.

    Mr Poignant, chief operating officer, said the Singapore-based marketplace, for its part, would continue to bet on delivery and other partnerships as demand grows. It already works with more than 100 companies in delivery and cross-border logistics, from Ninjavan in Singapore to ride-hailing start-up Go-Jek in Jakarta.

    But it will expand its footprint to cut costs and improve services, with smaller local hubs closer to customers, as well as a major warehouse it can use in Malaysia for goods that move less often. Lazada, with 130,000 merchants on its platform, has 14 warehouses and over 2 million square feet of space — and plans to open another five to six warehouses next year. It also has 130 smaller distribution centres.

    “Logistics in Southeast Asia is going to look very different from the rest of the world. It is hard to believe one player can do everything,” Mr Poignant said in an interview.

    “The distance from Aceh to Papua [in Indonesia] is bigger than the distance from Miami to Seattle. People don’t realise.”

    Already the world’s fourth-largest internet market, Southeast Asia is expanding at a rate of almost 4 million users a month, making it the fastest-growing e-commerce market globally, according to a 2016 report co-authored by Google.

    But while there are key growth engines — a young population of active mobile users and a patchy local retail network — there are also major challenges, as companies like Lazada try to conquer a region made up of thousands of islands, with poor roads and traffic-clogged cities.

    Some regions have no formal system for home addresses, Mr Poignant said, complicating deliveries, returns and even payment — more than half of transactions are still settled in cash.

    That leads to experiments, combining online purchases with offline pick-up in malls, as in Singapore — or in Indonesia, where Lazada handles a bulk of the last-mile delivery itself, using three-wheeled electric vehicles for bigger parcels. Cars and vans are too slow in traffic, Mr Poignant said.

    Taking the lead

    Amazon and others, including local players, have not failed to notice the region’s potential: Amazon is using Singapore as its beachhead, while China’s second largest e-commerce company JD.com is making Thailand its point of departure, partnering with the country’s largest retailer, Central Group.

    But Mr Poignant argues Lazada’s experience is hard to beat.

    “When it comes to logistics we are developing a distinct competitive advantage. We are the only ones to have this open network approach — combining our own infrastructure and partners,” Mr Poignant said.

    “Setting up a logistics network is a complex, long process.”

    Critical to keeping the advantage is also data, and Lazada is linking up with fast-moving goods producers like Unilever, to turn knowledge into target sales.

    Alibaba bought into Lazada last year in an effort to seek growth outside China. The $1-billion deal in April 2016 was Alibaba’s largest overseas deal and it raised its stake to over 80% this year.

    Last November, Lazada bought Singapore online grocer Redmart, a purchase that it hopes will help it crack cold storage and expand groceries into the rest of the region, though there is no concrete plan yet, Mr Poignant said.

    “One of the reasons why we acquired RedMart is that groceries is a very specific set of skills that you need to develop,” Mr Poignant said. “We have the ambition to develop this category across the region.”

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  • Panalpina airfreight profits and volumes continue to rise

    Panalpina airfreight profits and volumes continue to rise

    During the first nine months of 2017, Panalpina grew volumes in air freight and ocean freight compared to the same period last year. As the year progressed, group gross profit as well as EBIT increased with every quarter. Year-on-year, Panalpina’s reported EBIT increased from CHF 67.5 million (adjusted YTD 2016: CHF 93.6 million) to CHF 72.1 million and the reported consolidated profit increased from CHF 46.5 million (adjusted YTD 2016: CHF 72.6 million) to CHF 48.4 million.

    Panalpina’s air freight volumes increased 8% in the first nine months of 2017. From January to September, gross profit, unit profitability and EBIT in air freight increased with every quarter. Compared to the same period last year, gross profit per ton decreased 7% to CHF 632 (YTD 2016: CHF 678), resulting in a gross profit of CHF 456.0 million (YTD 2016: CHF 453.4 million). Reported EBIT in Air Freight increased from CHF 60.0 million (adjusted YTD 2016: CHF 72.6 million) to CHF 69.4 million. The EBIT-to-gross-profit margin for the first nine months of 2017 came in at 15.2% compared to 13.2% (adjusted YTD 2016: 16.0%) a year before.

    “Nine months into the year, Air Freight and Logistics are well under way and showing continued solid performance,” says Panalpina CEO Stefan Karlen. “We are well-prepared for another strong peak season in Air Freight, however it remains to be seen how dynamic the carrier market will be this year.”

    In Logistics, gross profit decreased 16% to CHF 245.4 million year-on-year (YTD 2016: CHF 293.3 million), but has stabilized throughout 2017. Logistics is now sustainably profitable,  posting an EBIT of CHF 8.1 million for the first nine months of 2017, compared to CHF 1.2 million (adjusted YTD 2016: CHF 5.0 million) for the same period last year.

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  • Vetter to expand secondary packaging service capacity

    Vetter to expand secondary packaging service capacity

    Vetter has announced a major expansion of its secondary packaging capacities as a response to rising customer needs and market demands for complex packaging solutions. The need for expansion is also a result of Vetter’s continuous growth in new filling lines and new lyophilisers, which is driving the need for increased downstream secondary packaging capacity. The project, already underway, is occurring within the second floor of Vetter’s existing Secondary Packaging (VSP) facility and will result in an increase of approximately 32,000 square feet of new packaging capacity.

    The planned undertaking, which is expected to be completed over the next several years, will include new fully-automated packaging lines, space for manual and semi-automated packaging processes and assembly equipment for a wide variety of formats. The Vetter serialisation and aggregation service, which fulfils current requirements and is prepared for future requirements of regulatory authorities, will also be expanded. A highly flexible, state-of-the-art syringe blister line will include safety device assembly and equipment for packaging Japan quality. The addition of new state-of-the-art assembly machines for pens and autoinjectors will allow Vetter to meet a majority of the growing market need for these systems. Because Vetter suppliers for the platform technologies are market leaders with a strong reputation in the market, a large selection of diverse pen and autoinjector types are offered.
    The Vetter VSP facility in Ravensburg is being expanded to include state-of-the-art packaging and assembly equipment to meet the growing need for complex secondary packaging services.

    “Often we hear from customers that a high level of expertise in the assembly and packaging of pens, autoinjectors and safety devices is critical for their success,” said Bernd Stauss, senior vice president production/engineering for Vetter. “Vetter has this experience and can offer a one-stop solution, from development to filling to secondary packaging including serialisation of products; a service that is greatly appreciated by our customers.” The demand for integrated solutions is steadily growing. In the future, the pharmaceutical service provider will continue to expand its offering for one-stop-shop solutions – especially in complex areas such as the secondary packaging of end-user friendly devices which support patient safety, convenience and compliance. As a result, Vetter has an eye on the entire product life cycle of its customers with the usual high quality standards.

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  • U-Freight gains further accreditation for e-commerce capabilities

    U-Freight gains further accreditation for e-commerce capabilities

    The U-Freight Group (UFL) has seen its North American E-commerce Fulfillment Centre (EFC) being named as one of the most valuable by the China Cross Border Electronic Commerce Professional Committee. Diana Peng, vice president of the Hong Kong-based freight forwarding and logistics company UFL received the award at the recent Global E-Commerce Conference held during the China International Fair for Investment and Trade in Xiamen.

    CEO, Simon Wong, commented, “U-Freight has been a pioneer in developing logistics services for the e-commerce market, which resulted in us being early-qualified by China Customs and CIQ as a licensed Cross-border E-Commerce Enterprise, as well as a Cross-border E-Commerce Logistics Service Provider. With an extremely strong e-commerce logistics set-up in China, U-Freight has committed to investing in redevelopments at a number of its warehouses around the world to better equip them to handle the logistics associated with the ever-growing global e-commerce business.”

    Wong added, “As part of that we have invested in developing enhanced facilities at our EFC in USA, which has been rewarded by our being named as one of the most valuable North America EFC by the China Cross Border Electronic Commerce Professional Committee. We have a system that can connect e-commerce/e-shop platforms with relevant customs authorities and, which delivers data transparency. This is something that is on offer at all of our facilities around the world that offer e-commerce logistics services.

    “The e-commerce industry, led by China, is a new engine of growth for the global economy, and the value of global e-commerce transactions will only rise with increasing internet penetration and recognition. China is leading the way and e-commerce trading in China reached 26.1 trillion yuan (USD3.8 trillion) in 2016. Cross-border e-commerce surpassed five trillion yuan, up 28.2 per cent, statistics from the 2016-17 Chinese E-commerce Development Report show. The report also said that by June this year, the number of online shopping customers in China reached 514 million, 10.2 per cent higher than in December 2016.”

    According to Wong, in the future, cross-border e-commerce will become a new growth point, thanks to the business environment fostered by China’s Belt and Road Initiative and structural supply side reform in the country. The coming years will also see the integration of online and offline services, as well as more intelligent and innovative online retail sales models.

    “IT technology, including cloud computing, big data, internet of things, artificial intelligence and virtual reality, will play a more important part in the whole e-commerce industry and U-Freight is positioning itself to play its part by developing e-commerce fulfilment centres that deliver cost-effective and efficient logistics services,” said Wong.

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  • Jetpack Aviation appoints B&H worldwide as global logistics partner

    Jetpack Aviation appoints B&H worldwide as global logistics partner

    B&H Worldwide has been appointed as the Global Logistics Partner for JetPack Aviation, creator of the turbine powered, backpack style JetPack . JetPack Aviation (JPA), a leader in micro VTOL (Vertical Take Off and Landing) design, made aviation history in late 2015 when CEO David Mayman flew around the Statue of Liberty to demonstrate the company’s design and engineering capabilities. Nelson Tyler, JetPack Aviation’s principal designer built the civilian RocketBelt which was flown at the opening ceremony of the Los Angeles Olympics in 1984.

    The current JetPack model JB-10 is small enough to fit in the back of a standard SUV, and light enough to be carried by the pilot for easy transport and deployment. The aircraft can be powered by common kerosene or diesel car fuel, achieve flight speed upwards of 100mph and an altitude in excess of 10,000 feet. Proprietary on-board computer systems designed in-house by JPA engineers control the engines, manage fuel flow and transfer real-time system data to the pilot for safe and reliable flights. JetPacks are available for military, first responder, industrial and entertainment applications.

    B&H CEO, Stuart Allen, said, “We have always prided ourselves on being at the cutting edge of aviation logistics and this exciting announcement opens up a whole new world of specialist logistics. We are delighted to have been chosen by the JetPack Aviation team to manage and deliver logistics services for these unique vehicles.”

    JetPack’s David Mayman, added, “Whether we are enabling the extraction of Special Forces soldiers, moving emergency medics from hospital to disaster site, or commuters from home to office – JPA is focused on a wide range of vertical takeoff and landing transportation solutions. We are excited to have the B&H team help us achieve these goals.”

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  • FedEx recognised for global leadership, operational strength and services

    FedEx recognised for global leadership, operational strength and services

    FedEx Express (FedEx), a subsidiary of FedEx Corp, received the ‘Global Express Provider of the Year’ award at the Payload Asia Awards Ceremony held in Singapore on October 12. This award reaffirms FedEx global market leadership, operational strength and exceptional solutions and services.

    Mark Shorney, vice president, South Pacific, FedEx Express (L) receives the ‘Global Express Provider of the Year’ Award at the Payload Asia Awards 2017.

    “At FedEx, we are committed to providing best-in-class express services and a comprehensive solution portfolio to meet the diverse needs of our customers of all sizes,” said Karen Reddington, president, FedEx Express Asia Pacific. “This award serves as a testament to our strong and agile operations across the globe and an even greater incentive to all team members to continue to deliver on the Purple Promise of making every FedEx experience outstanding.”

    In its fourth year, the annual Payload Asia Awards is organised by Payload Asia and Logistics Insight Asia. The award winners are selected through a dual track programme comprising Customer Choice Awards and Industry Choice Awards – the former determined by public online voting and the latter through ranking by an esteemed industry panel including the International Air Transport Association (IATA), Airbus and Accenture Consulting.

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