Although Singapore Post has served as a postal carrier for more than 150 years, the company always kept an eye on the future.
That’s why SingPost bet big on eCommerce and became the subject of this compelling article in Logistics Viewpoints. A few years ago, not long after massive Chinese online retailer Alibaba invested more than S$300 million in SingPost, it built a S$182 “eCommerce logistics hub.” And it elected to step beyond its usual role as a parcel carrier, instead creating a full-service third-party logistics (3PL) shop. As online sales continue to account for a growing amount of retail revenue, the business saw the door of opportunity swing open.
Choosing a warehouse management system (WMS) was a critical decision for the company – it needed a solution equipped to handle the demands and challenges that come with a large volume of direct-to-consumer orders. SingPost selected HighJump WMS. The ability to tailor the system to unique business needs made it the best fit for the company.
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Specifically, the adaptability of the WMS allowed the logistics provider to meet the needs of different customers for whom it fulfills orders (picking, labeling, etc.). It also became much easier to add new 3PL customers. These features ultimately resulted in a lower total cost of ownership and helped the business move closer to its big-picture goals.
In addition, SingPost saw it as beneficial that upgrades did not touch prior changes to the WMS. Unlike other enterprise systems, HighJump WMS is designed in such a way that the source code is not modified when users adjust the system to their own preferences.
Integrations were another key consideration for SingPost. It invested in warehouse automation equipment at this logistics hub and needed the WMS to communicate with those systems. Automation can be particularly valuable for eCommerce fulfillment due to day-to-day order fluctuation and the number of single-line, single-unit orders. However, that technology is only providing a service when it successfully integrates with the WMS.
And it didn’t end there. SingPost achieved complete supply chain visibility by integrating the solution with the eCommerce platforms operated by customers and the parcel carriers that deliver these products to consumers. From order receipt to delivery, SingPost knows the status of every order at any given moment.
The company now serves as a shining example of how to optimize operations for eCommerce. SingPost has transformed its business to take advantage of today’s most promising opportunities. A company that went from delivering letters in the mid-19th century to supporting eCommerce logistics today shows that any organization has the potential to revamp its supply chain.
It did not take long for SingPost to see results. In the most recent fiscal year, Logistics Viewpoints says the business saw its logistics revenue rise by nearly 35 percent to $626 million. The investment in eCommerce certainly played a role in that tremendous year-over-year growth.
To learn more about Singapore Post’s story, check out the full article in Logistics Viewpoints. It presents a more detailed account of why the parcel carrier invested in online order fulfillment and the steps it took to modernize its operations.