Springboard to Asia, Springboard to Asia, Connecting the World through e Connecting the World through e- Commerce Commerce Dr Wolfgang Baier Group Chief Executive Officer Singapore Post Limited 16 October 2013
Springboard to Asia, Springboard to Asia, Connecting the World through eConnecting the World through e--CommerceCommerceDr Wolfgang BaierGroup Chief Executive Officer
C g gC g g CC
Singapore Post Limited
16 October 2013
SingPost Group at a glance
S$2.4Bmarket capitalisationS$2.4Bmarket capitalisation
> 150 yearsof serving Singapore> 150 yearsof serving Singapore
20032003 12 countries12 countriesIPOIPO footprintfootprint
28%regional revenue28%regional revenue
2007postal liberalisation2007postal liberalisation
4,700size of workforce4,700size of workforce
> 3 millionmail items delivered> 3 millionmail items delivered size of workforcesize of workforcemail items delivered each business daymail items delivered each business day
1
Challenges faced by the postal industry
Declining mail volume
Escalating operating costs
Strict regulations
Liberalised marketsLiberalised markets
High service expectations
2
Singapore - efficient gateway to Asia & ASEAN - ideal hub for e-Commerce
Asia
Singapore
ASEAN
Singapore: Asia & ASEAN:Singapore:No. 1 Business environment in the worldNo. 2 Most competitive city in the world17 of 25 Top 3PL providers have regional
Asia & ASEAN: 4.3 billion combined populationUS$10.6 trillion combined nominal GDP8% yearly GDP growthASEAN - 600million combined population &
3
HQ / hub operations in Singapore ASEAN 600million combined population & US$2.3 trillion combined nominal GDP
e-Commerce is growing fast globally,but especially in Asiap y
Otherse-Commerce sales in billion
US31.2%Europe
24.5%
6.3%
US35.8%
Europe28.4%
Others5.5%
100% 100%US$1 9 t illi
Asia Pacific38.0%
Asia Pacific30.3%
US$1.1 trillion US$1.9 trillion
20162012 Asia Pacific e-Commerce sales expected to be more than US$1 trillion by 2020
Source: eMarketer, June 2013
4
Asia e-Commerce costs need to become more competitive to stimulate growthp g
Estimated e-Commerce logistics cost as a % of total e-Commerce market (2012)
20+%
of total e Commerce market (2012)
10% - 15%
US/EU AsiaUS/EU Asia
Source: Transport Intelligence, Asia Pacific e-Commerce Logistics 2013
5
SingPost Group vision and businesses
Regional leader in e Commerce logistics ande-Commerce logistics and trusted communications
Protecting the Core Growing the Wings
Retail & Financial Svcs
Digital Services
Logistics &e-Fulfilment e-CommerceMail
Singapore’s Public Postal
Licensee
Trusted and secured digital mail platform
Strong logistics network in Asia
Pacific
e-Convenience at your
fingertips
Multi-channel network
6
Trusted communications: converging digital and physical channels
Trusted Communications
Letter DeclineLetter Decline
Trusted Communications
Letter DeclineLetter Decline
RisingCostsRisingCosts Strict
RegulationsStrict
Regulations
Digital Mail
Innovative Products
Infrastructure & Processes
Increasing CompetitionIncreasing Competition
7
e-Commerce logistics: delivering end-to-end solutions
e-Commerce Logistics
Transportation Warehousing & Last Mile Delivery Marketing, Content
e-Commerce Logistics
Transportation Fulfilment & Returns Mgmt & Payments
8
Fulfilling full spectrum of e-Commerce transportation needs
Transportation Warehousing & Fulfilment
Last Mile Delivery & Returns
Marketing, Content Mgmt & Payments
Ocean / Air forwarding Postal networks Logistics partners
FamousFamousHoldings
Top 3 Singapore-based sea freight consolidator & forwarder
Global network of own offices in 11 cities in the 6 countries
USAustralia
Japan
China Singapo
reMalaysia
FamousHoldings
forwarder countries
Annual consolidations throughput is about
Able to meet the special demands of chemical and fineAsia Pacific
9
throughput is about 28,800 TEUS
chemical and fine art industry
Satisfying e-Commerce requirements through innovative warehousing & fulfilment capabilitiesg p
Providing effective
Transportation Warehousing & Fulfilment
Last Mile Delivery & Returns
Marketing, Content Mgmt & Payments
e-Commerce fulfilment:
Low order to line ratio
Management of large number of SKUs
Manage “long-tail” slow movers
Throughput maximising design
Space optimising setup
Manage fulfilment cost – Lean Six Sigma, Technology
Short order-to-fulfilment cycle time 12 warehouses
Sustainable low-cost packaging
Innovative solutionsRegional coverageMaximising labour
efficiency
10
Providing choice and control over last mile delivery for e-Commerce customers
SMS/ EmailInteractions
Transportation Warehousing & Fulfilment
Last Mile Delivery & Returns
Marketing, Content Mgmt & Payments
Web-enabled Track & Trace 7 Days/ Week ays/ ee
Post office
Convenience store
touchpointsFlexible Doorstep Delivery
One LoginMulti-channel
24/7 POPStation11
Putting all pieces into one complete solution: Adidas.com.sg powered by SingPost
Southeast Asia coverage
Transportation Warehousing & Fulfilment
Last Mile Delivery & Returns
Marketing, Content Mgmt & Payments
End-to-end e-Commerce solution
Hub and spoke set-up
shop.adidas.co.th
shop.adidas.com.sgshop.adidas.com.my
shop.adidas.com.ph
12
Guiding our organisation to transform, by walking the talk
13
Achieving HighAchieving High
Ranked No 1postal agency in the world Global Service Provider World Mail Award 2013postal agency in the worldtwo years in a row of the Year award for People Management
Thank YouThank You
14