Many trends these days are propelling logistics providers to make the change towards providing end-to-end logistics services. The most prominent of all include the sky-rocketing e-commerce volume and popularity in new business models such as drop shipping where companies do not keep inventory and products are sent directly by logistics companies from the suppliers to customers. In the race to expand their service offerings, some companies did well and captured new business opportunities whereas others were hit by balance-sheet issues and did not become successful.
“A total logistics service provider is one that provides total supply chain support. Simply put, the logistics company is equipped to assist traders, manufacturers, factories, importers and exporters to transport their products in and out of Singapore by both intermodal and multimodal transportation via a combination of road, sea, and air.
SRS Global Reach has been a longstanding player in the logistics industry, and one of the first movers to offer total logistics/end-to-end services. This entails that the company has been providing services such as last-mile delivery even before the rise in popularity of ad hoc delivery service providers. When asked if the company faced disruption by these competitors, the manager, Mr Corey Kng admitted yes but was also confident that their continuous development and commitment in offering a full suite of services could smoothen out the threats posed by these competitors.
Weathering through the challenges
The company, however, is not without its challenges. SRS Global Reach faced unprecedented challenges brought on by COVID-19, a global pandemic that was largely unforeseen. Many of the company’s clients experienced a reduction in business activities and transaction volume in the face of a pandemic-induced economic downturn. Rather than keeping inventory and producing more in advance, clients have made a switch to working on a Just-In-Time (JIT) model where they engage SRS Global Services to transport finished goods only upon the request of their customers. This reduction in transportation volume has inevitably affected SRS Global Reach’s business but thankfully, in the lead-up to this pandemic, the company has already been exploring methods to keep operations lean while achieving operational effectiveness. For example, the company has shifted away from owning in-house transport vehicles such as trucks to renting them from a vehicle specialist. This strategic move has helped the company cut cost from maintaining a fleet of underutilised vehicles.
At the same time, the company looked to new areas to turn their cost savings into new opportunities. One of which is the owning and management of their in-house warehouses. SRS Global Reach has a warehouse spanning 25,000 sq ft catering to inventories of different nature and dimensions. They also own an air-conditioned, halal-certified food-grade warehouse for perishable food products such as chocolates. This warehouse is fully certified by AVA, giving clients peace of mind. Apart from local clients, SRS Global Reach is often engaged by companies in Malaysia to provide warehousing, fulfilment and last-mile delivery services for them – these companies have no physical office or warehouse in Singapore and yet their business can proceed as per usual. What makes the difference between SRS Global Reach’s warehousing services and those provided by competitors? Part of the secret is that clients can simply correspond with SRS Global Reach via phone calls or emails and the company would be ready to do the picking from warehousing and delivery whenever an order is placed.
At the peak of COVID-19, when there was a global lockdown and many flights were grounded or cancelled, logistics companies like SRS Global Reach also had to be very swift in booking shipment or flight slots for clients who had urgent needs to transport their goods. Given the limited space and frequency across all modes of transport, the team at SRS Global Reach had to be on the lookout for available transportation slots, even while working from home. As a member of the World Freight Organisation (WFO) and Elite Global Logistics Network (EGLN), the company also collaborated with logistics partners across the globe and continued to deliver on time, exceeding expectations.
Delivering the most efficient, time-saving options
The logistics industry is no doubt one of the most time-pressed industries. Clients are anxious to have their goods safely delivered to customers while customers are excited to obtain their goods as soon as possible.
Logistics companies that can help clients deliver punctually, in the most cost-effective manners are scarce and highly-valued – and SRS Global Reach is one of them. Mr Corey Kng, the manager, recalled that there was an instance where a client urgently required his goods to be transported from India to Jakarta but had been stuck in a difficult situation where the planned method of transportation was sea freight and the transit time was expected to take at least two weeks. Out of desperation, the client engaged SRS Global Reach and the company swiftly arranged for multimodal transportation where the goods were transferred and shipped to Singapore before an air freight was arranged to send it to Jakarta.
With a deep understanding of the logistics and transport infrastructure, SRS Global Reach also has the expertise to offer ‘cross-trade’ shipments, helping clients and traders save more time and money than conventional transport arrangements where the shipment usually has to enter the country where the shipper company is registered. The savings obtained from lesser port charges etc. are passed back to clients.
While the post-COVID-19 scene remains uncertain, SRS Global Reach is certain that they will look towards harnessing more technology and new operations strategies to offer reliable and top-notch logistics services for their clients.