Introduction
The logistics industry in Singapore is one of the industries that started the industry transformation Programme (ITP). This Programme is nationwide as it enhances the strengthening of enterprises and various industries bringing growth through innovative ways. Singapore is the heart of southeast of Asia, which makes it’s to be a heart that connects customers from all over the globe to the manufacturers.
The logistics industry in Singapore performs these various roles; involved in the supply chain management for global sectors by enhancing the industrial supply chain management abilities to work to achieve productivity that is high at a cheaper operating fee. Logistics companies in Singapore have been given a chance to improve specialized skills and ideas for the industries. Examples of such industries that can be developed by the logistics industries include perishables, biomedical sciences, aerospace and oil and gas. The other role of logistics industries is innovation and enhancing efficiency at the sectors, this is by developing expertise through training the workers. Training will improve efficiency and increase productivity-enhancing business proficiencies and enhancing marketability.
The importance of the logistics industry in Singapore are; creating job opportunities by trade, in the year 2014, the Logistics and Supply Chain sector created 188,900 jobs ( Singapore in Figures, 2015). When it comes to the air cargo, have attracted many foreign companies to operate their companies and carry out business within Singapore. The shipping port and the air have been the best globally and earned many awards (Phang, 2003). There are more than 5000 foreign companies in Singapore, allowing the country to achieve more employments.
Generation of income and wealth it’s another importance of the logistics industry in Singapore. Logistics in 2013 promoted growth in Singapore. The sector of transport and storage backed 7% of the country’s Gross Domestic Product (GDP) and offered to support the industries involved in manufacturing (Siva et al., 2017).
Contributions
The inventory management involves supervision of goods from the manufacturing to where they are stored, which later assists in the sale. These stocks in the warehouses play a vital role in the economy of Singapore as they ensure the continuity of economic processes maintaining production and auctions. Each type of stock in a company plays a different purpose. The main reason for stocking of goods is to regulate the influx and discharge streams. Inventory management makes it possible to implement measures to prevent unplanned obstacles. Inventory management also ensures full customer service to avoid the loss of company’s reputation, supply uncertainty and delays, ensure proper supply at different seasons, ensure adequate flow of production of goods and maintain the demand seasonality.
Purchasing involves products to be purchased, source of the product and the cost of the products. The goods to be bought may be raw products, supplies or the goods that are processed.
Warehousing involves the storage and as sortation of goods to create the time utility. The fundamental reason for warehousing is to allow goods placement, store goods, combine them with other similar products, convert them into smaller goods and assort the goods. Companies with large warehouses take less time serving their customers, striking a balance between the rates at which customer services offered and warehousing cost.
Transportation involves the movement of goods from the production areas and sale points to the consumption areas in required amounts at needed times at individual costs. The system of transportation influences time utility and place utility to the products handled, improving economic value. For these achievements to be acquired, the resources for transportation are required to be adequate, can be depended on, must be regular, and the facilities costs and benefits and services must be equitable.
The logistics consultant does consultation. He helps the company by improving operations of customer services and improving efficient solutions for warehousing, products handling, distribution of products and supply chain management. Consultation provides advice on production, management of products, goods transportation, processing of orders, products package and the control of the quality of products to ensure there is no economic crisis.
Organizing and planning involve the systematic, logical utilization of available resources and procedures to achieve specific objectives. The plan requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be right decision-makers—proper planning results in positive outcomes. In Singapore, they have a developed economy because the managers involved in planning obtained positive outcomes which include increased job satisfaction and commitment to the organization among workers.
Challenges
Singapore has no natural resources, and it relies on international trade and trading with other countries, primarily regional nations. The trade accounts for 47% of its total exports (Economy Watch, 2010).
Fewer foreign workers have been arriving in Singapore over the years. The Singapore Government reduces the number of foreign workers coming into Singapore (International Monetary Fund, 2014). Government regulations affect the industries Singapore maritime faces competition from Shanghai’s Free Trade Zone as it has more trading capability and has a petite shipping path as it by-pass the Straits of Malacca (Lafforgue & Lenouvel, 2015).
Shortage of skilled and unskilled talents among the citizens is common. Even in Singapore, where personnel are receiving enough training in technical skills, they lack capability in soft skills. Inadequate supply of skilled workforce necessary to lift the nation to the value chain.
Minister for Foreign Affairs and Minister-in-Charge of Smart Nation Vivian Balakrishnan. He said that the Singapore government’s CIO agency GovTech signed a treaty with the National University of Singapore (NUS) to develop ways to boost cybersecurity in the public segment. Jobs for middle-class workers will be affected.
Strategic Planning
Tran’s pacific partnership permits corporations in Singapore and the Asia area to rise the import & export doings within the globe, which improves productions in Singapore and the income of the companies. Singapore depends on the trading system globally. Singapore Government signed the TPP agreement in October 2015. developing the region’s supply chain methods and providing opportunities for industries that are investing in the area (Ministry of Trade And Industry Singapore, 2015. growing the regional supplies brings about global innovation.The government of Singapore have invested in green technology to improve efficiency. The Nanyang Technological University and MPA modified a Test institution for Maritime Energy to improve eco-friendly maritime technological resolutions to reduce costs, bring competitive benefits and increase the reputation of maritime companies for encouraging sustainable technology (Nanyang Technological University)
These are the three incentive schemes by MPA (Maritime and Port Authority of Singapore, 2009) to ensure international shipping corporations to carry out businesses in Singapore so as the government would earn taxes. Shipping support services brought about the growth of ancillary shipping service companies & shipping companies to begin their corporate functions in Singapore. International shipping to influence foreign ship holders to make their commercial shipping operations in Singapore. Another award was the maritime leasing that changed companies to use Singapore as their capital & funding base to finance their ship operations
On security, the Singapore government’s carrying out of International Ship and Port Facility Security was to evaluate risks, enlightening workers and generating a plan to protect critical goals (Rodan, 2015). Labour strikes are illegal with regulations documented to prosecute such activities in the courts (Chib et al., 2013).
Conclusion
The global economic performance seems to be weakening affecting Singapore’s
Logistics sector, as it is slightly shrinking. Singapore’s logistics sector reduced by 0.9% year-on-year due to a reduction in sea cargo handled (Lim, 2015).
Singapore has limited factors of production that is both human and land, and it also has competition from other regions. It’s also affected by the threat of terrorism and disasters that occur naturally. The government have implemented incentives to cope up with these disasters; This is to increase the foreign people confidence to make them feel safe while conducting the businesses.
On security, the government’s implementation of International Ship and Port Facility Security
Was to assess risks, educating personnel and creating a plan to protect critical targets (Go,
2009).
Besides, labour strikes are illegal with laws established to prosecute such actions in the
Courts (Singapore Legal Advice, 2013).
5) Conclusion
Currently, global economic performance appears to be weakening which affects Singapore’s
The logistics sector, as it shrinks slightly. Singapore’s logistics sector decreased by 0.9% year-on-
Year, due to a decrease in sea cargo handled (Channel News Asia, 2015).
Export & Import Progress – Marginal Decrease in Trade
From August to September 2015, S
References
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Lim, A. C.-H. (2015). The 2015 Refugee Boat Crisis In Southeast Asia: Humanitarian And Security Implications–Analysis.
Phang, S. Y. (2003). Strategic development of airport and rail infrastructure: The case of Singapore. Transport Policy, 10(1), 27–33. https://doi.org/10.1016/S0967-070X(02)00027-6
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