Top Logistics Companies in Singapore

Logistics are a cog in the wheel of the global economy. Its impact, though nothing earth-shattering, can be felt in our everyday life – because almost everything we use has been shipped or delivered from somewhere.

It’s big business for those involved.

What’s a Logistics Company?

A logistics company bridges the gap between production or point of origin and product consumption.

It’s a company dedicated to planning, implementing, and controlling of movement and storage of goods and services within a supply chain.

A logistics company can handle some part or the whole of supply chain functions, depending on the logistical needs of the client involved.

What Does a Logistic Company Do?

A logistics company controls the movement and storage of goods and services within a supply chain. Their work is to control all the functions of a supply chain, including warehousing, inventory management, transportation, purchasing, and customer service. They can handle even more functions depending on your requirements as a client.

Different Types of Logistics Companies in Singapore?

Understanding the different types of logistics companies in Singapore will help you make the right shipping or logistics decision for your business:

Freight Companies

Freight companies specialise in moving freight or cargo from the point of origin or production to the final consumer. While a few of these companies specialise in international shipments, others only ship goods locally.

The mode of transport also matters a great deal in this. Speaking of which, your goods may be moved by sea, air, trucks, or railroad. Keep in mind that some freight companies may have more than one transportation option for you.

Freight Forwarders

Freight forwarders are all about finding the most affordable and efficient ways to move a product. These companies don’t exactly move freights. Instead, they work with different freight companies in arranging and negotiating the transportation of freight.

People use them when moving goods internationally. In which case, they’ll be handling the following:

• Customs paperwork
• Coordination of freight delivery and handling
• Rate negotiation with different freight companies
• Import and export paperwork required for the shipment

A freight forwarder can be your valuable partner if you’re planning to start shipping internationally. Their expertise and relationship will help you save tons of money if you choose to utilise their services.

Carriers

Carriers handle the shipment themselves and directly. Their work is to move products from all around the world. They include tracking companies, air freight, and ocean freight.

In some cases, a shipment may require multiple carriers before it reaches its final destination.

Third-Party Logistics (3PL)

3PLs provide outsourced logistics services for some part or the whole of your logistics functions. The services depth to which a 3PL company may be able to offer to your company will always vary depending on the needs you have.

Some 3PLs will offer storage services and transportation services for your freight. In contrast, others will offer to be your logistics department or to integrate technology products as part of their logistics services.

In other words, 3PLs have to look into your business and figure out how to best fit into your supply chain. Their services are, therefore, more customised and high-end compared to the other types of freight companies.

Why is a Logistic Company Important to Your Business?

Any successful business owes part or much of its success to how organised its supply chain is. So long as your forward plan includes growth and expansion – whether regionally or internationally – you need an experienced logistics company to stimulate that growth by cutting down your cost and ensuring timely or prompt delivery of your goods and services.

Enables Businesses to Focus on the Production Side of their Business

Partnering with a smooth logistics company allows you to focus on the production side of things, instead of approaching the whole thing with undivided attention. Having experts concentrate on one of the most delicate and complex parts of getting your products to the market will leave you with the much-needed time to focus on growing your company.

Positive Business Results

The more your business grows and expands, the more it starts to rely on an effectively organised supply chain. You’re mistaken for thinking that supply chains only matter to big businesses. Any business looking to improve its efficiency and profitability should consider leaving the logistics part to real professionals.

Creates Value

The provision of value doesn’t end with quality products and services. Timely delivery and availability have to be factored in as well. Better logistics means your product and services will be available to an even bigger market segment at their time of convenience or when they truly need it. It increases the chances of your customers appreciating your products even more, which in the end also contributes to the perceived value.

Improves Efficiency and Reduces Cost

With global trade picking steam, logistics are becoming the heart of the supply chain. Businesses have realised that they can significantly cut on costs by partnering with other businesses offering warehousing and transportation services. Also, by outsourcing warehousing and transportation to experts, businesses dramatically become more efficient.

Timely Delivery

Part of a logistics firm maintaining a stellar reputation is ensuring your products are delivered right on time, and at a place that’s convenient for your customers — no excuses whatsoever. Customers are known for impulse shopping, and can equally grow impatient if it takes longer for a product they ordered to be delivered.

The Future of Logistics: Trends to Watch

As technology advances, so is the world of logistics. Change is the only constant in this line of business.

For instance, Amazon has underway plans to start using drones for short-distance deliveries (not more than 15 miles). This is already in the news, but what other developments are we bound to see in the future:

Rea-time Tracking

The monitoring systems within the logistics industry have been improving with time, and now after integrating with Machine Learning and Artificial Intelligence, their tracking abilities have significantly improved. Not only can it track data, but it can also analyse it, identify issues, and in the end, optimise real-time solutions.

Robotics

Robotics sounds like something we should expect in the far-off future, but some bits of it are here with us. This is especially true with large warehouses with their autonomous vehicles and order picking systems. But as AI and Machine learning continues to improve in this field, we’re bound to see robotics being used to an even greater extent.

Autonomous Vehicles

Autonomous or semi-autonomous vehicles are already common with some cargo ports and warehouses. The idea is not exactly new but bound to get better with time. As we speak, some tests for mail deliveries are already underway, with some studies estimating that they’ll be replacing a good chunk of track drives within the next few years.

As you read this, keep in mind that a science-fiction future won’t just happen overnight. Some of these technologies and trends have been in development for many years, while others are still a work-in-progress. As an industry, some of these technologies have been recognised and singled out as what the industry needs to make progress.

Different Levels of Outsourcing Third-Party Logistics

Not all 3PLs are created equal. Nor can they be outsourced the same. That said, here are the different levels to outsource 3PLs:

Transactional Outsourcing

This one is purely based on the transaction, with no real bonding or any long-term contracts between the logistics company and your business.

Tactical Outsourcing

The outsourcing occurs on a long-term basis, with an integrated IT system and negotiated contacts. There’s a lot of supply chain visibility and free flow of information between the parties involved.

Strategic Outsourcing

The outsourcing is based on projected outcomes and long-term relationships. The 3PL becomes your partner in supply chain management and in establishing transactional transparency.

What to Consider When Choosing A Logistic Company in Singapore

A strong performing logistics company will help you control costs, increase efficiency, and improve customer experience. However, not all logistics companies are fashioned the same. So, how do you choose the right logistics company?

Research

Whether you’re looking to hire your first logistic provider or to change them, you want to make sure the company you choose has a proven process, backed by the right resources and the capacity to integrate with your system.

Establish a Partnership

Don’t approach a logistics company as some vendor. If anything, you have to choose a company that’s committed enough to share your dreams. Choose a logistic company that you can trust and whose work culture and values resonate with what you also stand for.

Choose a Company with a Wide Selection of Offerings

You want to eliminate the need to hire more than one logistics company. For this, choose a company with a wide range of capabilities and one that can customise their solutions to match your growing needs.

Aim for Scalability

One of the key advantages of outsourcing logistics services in Singapore is the shared spacing. The provider can juggle the needs of multiple customers while allowing them to share the cost. They’re also easy to scale up with should your business needs increase.

Safety Records

The safety regulation landscape is never constant. For this, you want to choose a carrier with a strong safety record. Scour around for their safety statistics and ratings. You can find more information about them by clicking on this link.

Seek Scalability

When you partner with a logistics company, you’re entrusting them with your brand. To a certain extent, your business’s success depends on them. So, you want to choose a company with a  proven success history. Make sure the company is financially stable to invest in the right facilities, equipment, systems, and human resources.

Company Reputation

You want to find out all about the logistics company you’re about to hire before you jump into bed with them. The relationship you’re about to start must be tested and clearly vetted before it morphs into anything serious. Time will reveal whether the company has a good, ugly, or bad reputation with its customers employees and suppliers, but don’t wait until it’s too late to find out anything.

• Are they good or professional to their employees and clients?
• Are they actively involved in the community?
• How are they reviewed online?
• What theme remains consistent in its marketing materials?

What Makes a Great Logistic Company?

• Can handle large volumes
• Their delivery services cover a wide geographical region
• Has lots of positive feedback and reviews from clients, especially those touching on quick deliveries
• Has an impressive track record

How Much Does Hiring Logistic Services Cost in Singapore

Main Price Factors

• Volume products
• The distance of freight delivery
• Type of products: Perishable or frozen products may require a refrigeration unit, which makes them more costly

Freight and logistic solutions in Singapore tend to range from S$4000 for simple shipping to about S$40000 for warehousing.

Tricks, Tips, and Challenges

Freight companies charge by volume. That’s to say, any wasted space will still be converted to weightage and billed to you. You can, however, minimise the amount you pay by ensuring the volume you use is in cubic and that your items are densely packed to minimize wastage, especially when dealing with oddly shaped items.

Advice from Other Buyers

If you must choose, go with a bigger brand such as T&T or FedEx. You can visit their sites and ask for quotations. Next, compare these quotes and go with the biggest bang for value.

A good vendor should ensure your products arrive at the destination on time. They’re also to update you every step of the way, and most importantly, be able to accommodate your timeslot when you decide to send your products out.

Choose a credible vendor and run a quotation comparison.

How to Set Up a Shipping or Logistics Company in Singapore

Here are the steps to follow to get your logistic company up and running in Singapore:

Raise the Required Amount of Capital

You need money to start any business. It’s the same thing with a logistics company. The good thing is that finding an investor to fund your business at the start-up phase isn’t hard. The amount of money you’ll need also varies depending on the services that you intend to provide.

For instance, if you plan to operate as a freight forwarder or broker, then you won’t be needing much funding compared to someone that’s setting up a full-service 3PL company. For this, you want to make sure that you have a solid plan to convince investors to fund your project.

Obtain Proper Licenses

Your business needs to be properly licensed to operate legally in Singapore. You can start by incorporating your company. To operate a freight, shipping or transportation company in Singapore, you must apply for several licenses with different authorities.

Here are a few examples of the licenses you might need:

• Harbour Craft license – you need this license to operate your vessels within the Port of Singapore
• Post Clearance Certificate – you must apply for this license if you’re planning to operate your vessels beyond the Port of Singapore
• Ship registration certificate – you need this license to transport goods and passengers in Singapore
• Port Limit Manning License – for your crew members to operate onboard your vessels and ships
• Launch-a-New-Vessel Permit – if you’re planning to launch a new vessel, over 15 meters long
• Ship Station License – you cannot operate radio communication equipment on your ship without this license
• Ship Sanitation Control – to certify the sanitary condition of your vessel before it starts to transport goods
• Permit to discharge/transit/load dangerous goods

These are the basic licenses that you might be required to apply for your logistics business in Singapore

Prepare to File Your Taxes

Taxes are one of the primary considerations in this line of business. Your business needs a tax identification number. So, be prepared to register your business for annual tonnage and sale tax.

Study Your Competition

Don’t just run into doing business. You have to study your competitors and know what you’re up against. You need this to adjust your marketing strategy and curve your own niche.

Create a Business Plan

Putting down a business plan will force you to visualise your business from every possible angle. The process of writing a business plan will also help you address the issue of financing your business. You can finance your business on your own, but you have a better chance of growing really quickly by inviting outside investors.

Choose a Physical Location

Setting up a physical office where clients can come and meet you will enhance your credibility. Additionally, this space may also help you with warehousing, storage, and other business aspects. It’s even better when the rental property you choose is located close to a shipping hub.

Insure Your Business

Logistic companies carry great risk. For instance, you truck may get involved in an accident and end up damaging your clients’ products. It’s crucial that you have a compensation plan for the client. For this, you have to work closely with a reputable insurance agency to ensure your business is covered from all the potential risks it’s exposed to.

Hire the Right Staff

At this point, you want to identify the people that you’ll be working with. In other words, you need staff to facilitate the different aspects of running your business. You may also be required to take them through individualised training to equip them with the necessary skills needed to perform their jobs better.