WITH e-commerce on the rise, DBS will launch a digital logistics solutions package for SME customers in the space. The package will help Singapore-based SMEs in the logistics sector overcome expansion challenges and stay ahead of evolving consumer consumption patterns and emerging business trends across Asia.
The logistics sector in Singapore contributes around 7% to Singapore’s GDP. As the Singapore market becomes more saturated and profit margins get tighter, SMEs in the logistics sector are looking to expand overseas. By growing their footprint regionally, they will be able to broaden their customer base and grow their revenue. However, they often face challenges such as access to trade financing solutions, operational inefficiencies from paper-based and manual processes, lack of supply chain traceability, as well as payments and collection inefficiencies.
Launched at the Logistics Disrupt by DBS BusinessClass event, the DBS digital logistics solutions package will have digital solutions powered by DBS RAPID (Real-time APIs with DBS), such as supply chain financing and traceability, real-time trade financing application and funds settlement directly through their ERP or internal systems. It also includes instant payment collections and refund via the customers’ online portal, mobile app or DBS MAX.
“Customers looking to expand overseas need more advisory services and solutions and we are here to help them make the first step. We hope to make banking simpler and more seamless for our customers, so they have a more structured approach to their regionalization plans,” says Tan Su Shan, group head of institutional banking, DBS Bank.
“The needs of SMEs in the logistics sector are diverse as they have to keep their eye on everything from inventory, timing of goods shipped and received, cash flow and expansion needs. As a responsible banking partner, we want to provide a greater selection of solutions that will help them grow their footprint,” says Joyce Tee, group head of SME banking, DBS Bank.
Yang Kee Logistics, a Singapore-based company set up in 1990 and a DBS customer since 2002 is the first to sign up for the package. The company is currently present in 12 markets and is looking to grow its footprint in the region.
Ken Koh, group CEO of Yang Kee Logistics, says, “Expanding into new markets is always challenging, we lack market knowledge and understanding of regulatory requirements. Partnering with DBS gives me the confidence to take our regionalization plans to the next phase.”