DBS launched a digital logistics solutions package for SME customers in the space in October 2019. 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.
Currently, the logistics sector in Singapore contributes around 7% to Singapore’s GDP. Many SMEs in this sector are looking to expand regionally as the Singapore market becomes more saturated and profit margins get tighter. 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). These include 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.
According to Tan Su Shan, Group Head of Institutional Banking at DBS Bank, this move is in line with DBS efforts to provide advisory services and solutions to their customers looking to expand overseas. They hope to simplify and streamline banking for their customers to allow “a more structured approach to their regionalization plans”.
Added Joyce Tee, Group Head of SME Banking, DBS Bank, the bank hopes to provide a greater selection of solutions to address the diverse needs of SMES in the logistics sector.
Yang Kee Logistics, a Singapore based company that has grown to a presence in 12 markets was the first to sign up for the new package.
Ken Koh, Group CEO of Yang Kee Logistics, shared that expanding into new markets is always challenging, and required market knowledge and understanding of regulatory requirements. “Partnering with DBS gives me the confidence to take our regionalization plans to the next phase,” he added.