28 Supply Chain Hubs
ideal conduit into this region. It is well companies in areas such as distribution, players. With this platform in place,
connected, with Changi Airport as a hub process optimization and procurement Singapore’s consolidated IT platform will
and the largest and busiest container has helped Singapore attract further enhance cost-effectiveness, increase
port in the world. As such, it is the perfect attention and investment from major competitiveness and improve overall
bridge for booming economies such as multinational companies. efficiency in the logistics industry —
China or India. enhancing Singapore’s competitiveness
For instance, Motorola announced in June as a world-class port and logistics hub.
In less than 50 years, Singapore has 2006 that Singapore would be its Global
transformed its economy into a global Supply Chain Control Tower (SCCT). This
hub for SCM and logistics, as well as means that Motorola will co-ordinate the Connectivity Counts
the base of operations for companies full value chain of SCM activities for its vast
seeking to enter the Asia-Pacific region. worldwide businesses from Singapore. Whereas the Internet and computer
Already, more than 3000 international and This includes everything from R&D, technology are undoubtedly bringing
local logistics companies from various software development and procurement us closer together into a virtual world,
industries are operating there. There are to logistics management, supply chain tangible products and services are still
five important issues that companies IT and components qualification. Asia- made, delivered and supported in the
should consider when deciding on a Pac plays a key role in Motorola’s global real world. Major transport hubs and
successful SCM programme in Asia, and R&D and manufacturing network with intermodal links are important enablers of
how they can or should be approached. the presence of 37 R&D facilities and commerce, helping get products to market
Companies pondering an international four manufacturing sites in the region. in a quick and cost-effective manner.
expansion can use these as a checklist Singapore already serves as the home
for evaluating potential international bases for many of Motorola’s key SCM functions With its strategically ideal geographical
for supply chain operations and how they and the establishment of the SCCT will location, Singapore is a natural commerce
might leverage the strengths of a country expand these responsibilities to global hub, especially for the world’s top air
to grow their business: proportions. Another example is Philips cargo region — Asia-Pac. This location is
Medical Systems, which set up its Asia accentuated by the confluence of world-
Pacific parts distribution hub in Singapore. class airport and port facilities. Changi
Diversified Industries This centre distributes more than $64 Airport is served by more than 75 airlines
million worth of time-critical spare parts that operate almost 4000 weekly flights to
A critical mass of diversified industries for equipment used in diagnostic imaging 170 cities around the world. Singapore is
is an important consideration when systems per year. also the busiest container port in the world
selecting a supply chain hub. Successful with a throughput of 23.2 million TEUs
businesses do not operate in a vacuum, (Twenty-foot Equivalent Units). At any one
but rely on a value chain of goods and Cutting-Edge Technology time, more than 1000 ships are at port in
services. Singapore is a leading centre for Singapore. This not only offers a variety
a number of industries, such as high-tech State-of-the art technology, which ensures of cost-effective options, but also the
manufacturing, financial and legal services, that goods, cargo and information flow assurance that goods can be shipped to
research and development (R&D), and effectively, are vital for a company’s SCM target destinations easily and efficiently.
other allied industries. Supply chain and strategy. One example of information
logistics is the critical link in many value technology (IT) procedures that has Singapore is continually re-examining
chains, and Singapore hosts many of the afforded Singapore its SCM leadership is and re-investing its infrastructure. In 2000,
world’s leading logistics companies. the TradeNet System. Launched in 1989, for example, the Airport Logistics Park of
it is the world’s first nationwide electronic Singapore (ALPS) was established. Co-
More than 3000 third-party logistics trade documentation system, enabling located with the airport free trade zone,
providers, distributors, air-sea carriers the trading community to submit trade ALPS helps companies optimize their
and supply chain technology companies declarations and permit applications operations regarding quick turnaround,
call Singapore home. In fact, more than electronically to relevant Singapore value-added logistics and regional
half of the world’s top 25 third-party government agencies in a matter distribution. Another factor that contributes
logistics providers have set up significant of minutes. greatly to the high level of connectivity
operations in Singapore. Many of these enjoyed by Singapore is its high number of
companies have, during the years, built The latest IT milestone is the government’s Free Trade Agreements (FTAs), including
up extensive supply chain engineering decision to invest $30.5 million to those with Australia, India, Japan, Korea,
capabilities that allow them to design develop an integrated IT platform for the the US and the European Free Trade
and execute best-of-breed supply trade and logistics industry, including Association (EFTA). In 2003, the World
chain solutions for the Asia-Pac and an enhanced TradeNet system to Bank gauged Singapore’s average tariff
global markets. The leadership of these encompass a wider group of industry rate at 0%. Such trade policies have
Supply Chain Digital Launch 2007
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