The logistics industry in Singapore is considered matured by the world’s standards. Industry growth is maintained at a steady pace. There is a broad range of logistics services established in the market. Demand for the logistics services is continuously huge.
Within the matured Singapore logistics industry, there are a lot of different niches – freight forwarding niche, dangerous goods logistics niche, courier logistics niche, and commercial cargo goods logistics niche. Together, the broad logistics industry in Singapore generates billions of dollars every year.
The most notable difference across the various logistics niche is the different items transported by the logistics companies. Each of them have specialized equipment to handle the transportation of the various types of goods. The similarity lies in their delivery standards. Every logistics industry have a pricing model which charges customers higher price for faster delivery. It makes sense to do so anyway as the companies have to prioritize these customers’ deliveries over the others and fulfill the delivery deadline.
Various delivery speeds include same day delivery, next day delivery, same week delivery, next week delivery, and the urgent delivery (which will normally be completed within 2 hours). Different customers have different requirements which result in the development of this delivery standards in the logistics industry. For customers with time-sensitive goods such as perishable goods or urgent documents to be sent to clients, it will make sense to get same day delivery or urgent class delivery service. For those people who have a lower budget and do not mind the longer delivery time, they will pick the next day delivery, same week delivery, or next week delivery instead.
In order to do well in the logistics industry, your business operations must be optimized effectively. It will greater reduce business cost which will then allow you to lower your price for customers or enjoy a higher profit margin. Many logistics companies in Singapore have highly efficient business processes and operations. Hence, the market rates for logistics services in Singapore are quite low as compared to other countries. In another words, the logistics industry in Singapore is competitive. This is natural as the industry is very matured.
Many logistics companies in Singapore continue to improve their business operations continuously in a bid to survive and last for the longer term. As a developed nation, the companies in Singapore are very receptive to technology. New technologies are tested and researched to help improve business operations and even the business models. As the demand for logistics services is projected to grow at a steady pace over the years, many players want a piece of the pie.