Speech by SMS Lee Yi Shyan at the Opening Ceremony of Supply Chain Challenge 2015 at SIM University, Block A, LTI.09A

Professor Cheong Hee Kiat, President, SIM University,

Mr Stanley Lim, Chairman, Singapore Logistics Association,

Distinguished Guests,

Ladies and Gentlemen,

Good afternoon.

Introduction

It is my pleasure to join you for the opening ceremony of the Supply Chain Challenge (SCC) 2015.

Outlook for the Logistics Sector

Logistics and supply chain management is going through an exciting period of growth. The increasing affluence from the rise of the middle class in Asia has led to greater demand for logistics services in the region. Reflecting this trend, intra-Asian trade has increased significantly, and is projected to reach US$33 trillion by 2030, compared to US$5 trillion in 2012. The growth of regional economic integration with the formation of the ASEAN Economic Community will further spur demand for logistics services.

The logistics sector is a key pillar of the Singapore economy, making up 6.5% of our GDP and employing 189,000 people. The sector as a whole has done well, growing at 4.4% per year over the past three years. Our world-class infrastructure, excellent connectivity and pro-business environment puts us in a strong position to grow our logistics sector further.

Transformation of the Logistics Sector

Logistics is increasingly becoming a technology-intensive sector. Technology has the potential to transform the sector, by driving productivity improvement and enabling significant benefits to be reaped through process streamlining and integration. For instance, more companies are looking into government support to install heavy automation such as the Automated Storage and Retrieval System (ASRS). The ASRS enables companies to improve their space efficiency, reduce the amount of manpower required to operate a warehouse, and operate at higher levels of responsiveness. Pan Asia Logistics, a fully integrated logistics services and supply chain solutions provider, adopted an ASRS for its mini-load system, and expects to achieve land savings of 30%. It also expects to greatly reduce the amount of manpower required to operate the warehouse, allowing it to reassign its workers to higher-skilled roles.

Going forward, technologies such as robotics, big data analytics and the Internet of Things have the potential to radically change the logistics sector. The use of big data analytics can allow firms to do real-time optimisation of transportation routes, resulting in significant cost and time savings

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Talent Development for our Logistics Sector

In such a dynamic landscape, skilled talent is crucial for the long-term success of a company in the sector. Recognising this, government agencies have put in place programmes to support talent development for the logistics sector.

Under the umbrella of the SkillsFuture initiative, we are putting in place a set of initiatives to support Singaporeans for continual learning and skills deepening throughout their careers. This includes efforts in schools to help students be better prepared for the workplace, and the provision of more structured company internships which are integrated with learning in the classroom. For instance, the SkillsFuture Earn and Learn programme for the logistics sector provides students with the opportunity to undergo 12-months of structured training, including on-the-job training and company-based projects, leading to a Specialist Diploma in Supply Chain Management.

Many of our students naturally think of MNCs as employers of choice when considering their careers after completing their studies. However, our SMEs can often offer very rewarding and diverse career opportunities. SPRING’s SME Talent Programme matches good students from the Polytechnics and ITEs to SMEs which offer good jobs. Participating SMEs sponsor the studies of the students they are matched to, and employ the students upon graduation.

Supply Chain Challenge 2015

The Supply Chain Challenge, which has been organised by the Singapore Logistics Association (SLA), SPRING Singapore and SIM University since 2012, plays an important role in attracting talent to the logistics industry, as it connects young talent with industry players, and helps to encourage students to join the sector. As such, I am heartened to see that the Supply Chain Challenge has grown significantly since 2012. Last year, we had a record of 330 students participating in this challenge, and I believe that with the strong and enthusiastic turnout that we have here this afternoon, we can surpass last year’s figures.

To the students here, I would like to encourage you to go beyond the case competition. Take advantage of this event to talk to companies present here today, and find out more about the exciting and rewarding opportunities that a career in the logistics industry can offer you. I was also told that there will be a sharing by Logistics Express, the winner of last year’s SCC, about their past experiences working with a SME, Mandailink Logistics. Their winning experiences will surely provide SCC participants with meaningful insights about a career in the logistics sector.

Conclusion

Let me close by wishing all of you a fun and fruitful experience at the Supply Chain Challenge 2015.

Thank you.

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Big Data in Logistics – A DHL perspective on how to move beyond the hype. Dec 2013.