SingPost new partnership to “unlock seamless e-commerce flows into, within and out of Asia”

SingPost new partnership to “unlock seamless e-commerce flows into, within and out of Asia”

 Singapore Post and   SATS  recently signed a Memorandum of Understanding (MOU) to explore a strategic partnership in the potential establishment of an ecommerce transshipment hub in Singapore.

 SATS and SingPost are poised to collaborate closely and leverage their combined expertise to address the evolving needs of ecommerce players. The MOU signifies the intent of both companies to jointly operate a state-of-the-art transhipment hub facility that aims to shorten delivery times and reduce operating costs and manpower.

Under the MOU, SATS and SingPost have committed to providing equal shares of resources to engage operational and commercial consultants for business case formulation, explore synergies and facilitate trial runs to capture essential data for a feasibility study. The study will assess the operational viability and potential synergies for both entities, enabling the parties to leverage their respective strengths and resources effectively.

The first joint operations trial which took place in February 2023, saw promising results with the potential to shorten cargo turnaround time by over 60%. This would allow for delivery periods between 1-3 days for items within Asia. The proposed transshipment hub aims to streamline cargo logistics workflows by eliminating the need for transport between SATS and SingPost facilities, minimising the reliance on traditional cargo vehicles and further optimising warehouse space. By combining their expertise and capabilities, the companies aim to create a seamless and efficient hub that will redefine the ecommerce industry in Singapore and the region.

The MOU signing ceremony took place at SATS Inflight Catering Centre, symbolising the beginning of an exciting journey for both SATS and SingPost. Present at the ceremony were Bob Chi, CEO of SATS’ Gateway Services division, and Li Yu, CEO of International Business, representing SingPost.

Bob Chi, CEO of Gateway Services, SATS Ltd. said: “This partnership marks a significant milestone for both companies, representing an innovative approach that combines our strengths and expertise. Together, we aim to drive operational excellence, achieve cost reductions, and elevate the overall customer and partner experience. Moreover, this collaborative effort will not only benefit ecommerce players but also reinforce Singapore’s position as a prominent regional hub for ecommerce logistics.”

Li Yu, CEO of International, SingPost, said: “At SingPost, we constantly look at forging deeper industry partnerships to expand our eCommerce supply chains across Asia Pacific. The combined scale of SATS and SingPost will unlock seamless eCommerce flows into, within and out of Asia, building on strategically located hubs in Singapore, and in time to come, Hong Kong and Europe. We are poised to shorten delivery times and advance our logistics solutions, providing enhanced customer experience across the region.”

According to McKinsey’s projections between 2023 and 2026, the Southeast Asian market is expected to triple, boasting a compound growth rate of 22 percent. It is estimated that the market will reach approximately US$230 billion in gross merchandise volume. In a separate report from June 2022, Statista’s forecasts emphasised significant growth in the ecommerce market across Asia, Australia, and the Americas. Notably, Singapore and Indonesia were highlighted as key players with projected increases of 36 and 34 percent, respectively, in their online sales.

SATS is Asia’s leading provider of food solutions and gateway services.

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