DBS is pressing ahead with its efforts to support the digital transformation of Singapore’s logistics sector amid the COVID-19 situation, launching in early May the DBS Logistics Purchasing Card (“DBS P-Card”) – Singapore’s first cashless purchasing card for the logistics sector.
The DBS P-Card provides logistics SMEs with a digital, near contact-free solution to settle payments and collections at container depots, removing the hassle of the current manual, cash-based process.
It is estimated that each driver can save around 30 minutes each day on payment matters if the DBS P-Card is made available across all container depots in Singapore. Beyond the benefit of convenience, the DBS P-Card reduces drivers’ and cashiers’ exposure to bacteria and viruses from handling cash, providing added health and safety assurance especially during the ongoing COVID-19 situation.
The DBS P-Card is part of DBS’ Digital Logistics Solutions Package which was launched at Logistics Disrupt in October 2019 to help address pain points experienced in Singapore’s logistics and supply chain ecosystem.
Joyce Tee, Group Head of SME Banking, DBS, noted that operational inefficiencies from paper-based, manual payment and collection processes could hamper the growth ambitions of logistics SMEs once the COVID-19 situation stabilises.
“These manual and paper-based processes are longstanding pain points in Singapore’s logistics and supply chain sector, and DBS has been working closely with industry partners to find workable solutions,” she explained.
“The current economic lull due to the COVID-19 situation presents an opportunity for us to test and implement some of these solutions so that our logistics SMEs, which form the bedrock of Singapore as a global logistics hub, are in a better position to capture the uptick in business activity when the crisis passes,” she concluded.
Singapore has been ranked by the World Bank as Asia’s top logistics hub for 10 years in a row, and the logistics sector accounts for about 7% of Singapore’s Gross Domestic Product. This places Singapore favourably to ride on the projected growth of e-commerce in the region in the coming years. SMEs in the logistics sector are looking to capture a slice of this growth by capitalising on the increasing need for transport and storage solutions.
Yang Kee Logistics has signed on as the first customer to adopt this solution. The DBS P-Card will enable drivers and hauliers to completely digitise payments and collections at Yang Kee’s two container depots in Tuas – Pacific Trans and Container Connections.
On average, Yang Kee processes over 25,000 payments each month at its two container depots. These payments are currently done manually and out of pocket with the use of physical cash.
An estimated 1,000 drivers are expected to eventually benefit from using the DBS P-Card as DBS and Yang Kee engage haulage companies who use Yang Kee’s container depots.
Koh Yang Kee, Executive Chairman and Founder of Yang Kee Logistics Pte Ltd, said, “As the largest locally owned logistics company in Singapore, Yang Kee is delighted to partner with DBS to introduce this much-needed innovation for Singapore’s logistics sector. “The DBS P-Card is just one step in Yang Kee’s digital roadmap, and we look forward to working closely with DBS and our partners to further drive our digital transformation,” he concluded.