Singapore logistics companies claim growth is limited.
April 10, 2006 by SwizStick
Filed under Uncategorized
3PLs in Singapore say that growth in their industry is limited by price competition (what? 3PLs competing on price? No way!) and a lack of IT infrastructure:
Said Kevin Cheong, COO, RichLand Group, “Price is very important. The market is very competitive. A lot of these companies, especially larger companies, what they do is they very often do not look at 3PLs as partners. They look at them as a supplier, someone who can be switched very easily based on numbers.”
For outsourcing to work, industry players say it is necessary to have a solid technology infrastructure connecting the various partners or vendors.
But they say Asian manufacturers generally lack the know-how or the interest for such a link-up.
Said Mr Cheong, “One thing is that 3PL may be ready to build on this IT infrastructure to support the supply-chain initiatives but it is also equally important that Asian manufacturers are ready to do this. Unfortunately, they themselves are also struggling in trying to manage the information well internally.”
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