Internal Analysis of Keppel Logistics

Topics: Logistics, Supply chain management, Supply chain Pages: 5 (1242 words) Published: September 23, 2008
Brief History on Keppel Logistics

Keppel Logistics, is one of Singapore’s leading third-party logistics company, providing supply chain management for the business-to-business market. Its diversified portfolio covers a wide spectrum of supply chain activities from warehousing, inventory control, distribution and shipping documentation to inland container depot operations. In Singapore, Keppel operates from three facilities. Overseas, through joint ventures, it operates a port cum logistics operations at Foshan, China and an inland container depot at Colombo, Sri Lanka. It was first formed in 1965 at Pasir Panjang with just a warehouse of 1,400 sqm (15,000 sq ft). Today, it boasts facilities such as its 24,300 sqm (261,600 sq ft) warehouse cum 4,000 TEUs container yard site at its Keppel Logistics' Benoi Sector Districentre, and a 54,000 sqm (581,300 sq ft) warehouse cum Automated Storage and Retrieval Warehouse (ASRS) complex consisting of 19,000 pallet slots at its location at Gul Circle Districentre. Keppel was the first company in South East Asia to be conferred ISO 9002 certification for its warehousing and transportation and container services operations all at the same time in 1993.

Business Structure & Model

Keppel Logistics Pte Ltd is the logistics arm of Keppel Telecommunications & Transportation Ltd (Keppel T&T), which in turn is a subsidiary of Keppel Corporation Ltd, a Singapore-headquartered multinational company with core businesses in Offshore & Marine, Property and Infrastructure.

Keppel Logistics has three broad business areas: Third-Party Logistics, Supply Chain Solutions and Logistics Infrastructure.

Strategic Directions

Keppel Logistics has been able to identify opportunities and new growth areas in its business areas. The three acquisitions that it made in 2006 and early 2007, Premier Data Centres Limited, iCELL Networks Pte Ltd and Wuhu Annto Logistics Company Limited, represent Keppels insight into growing trends around the world and the opportunities that they present, whether it is increasing demand for high quality off-site data storage in Europe, a burgeoning WiFi market, or an expanding in-country logistics market driven by growing consumerism. With a keen eye around the world, Keppel is poised to leverage trend and seize opportunities to grow and extend service offerings in new markets. It is always aiming to build on its excellent track record and reputation as an international logistics service provider delivering timely, efficient, quality and reliable services to customers. Leveraging the experience from past records, the company transfers skillsets, competencies and best practices to companies in emerging markets, enabling them to offer higher value services. Keppel is also incisive to identify opportunities along the value chains of their existing key businesses and to spot new emerging trends.

Strategic Directions
Strategy in action
• Broaden existing businesses along and across value chain

• Ride growth in emerging markets
• Leverage Wuhu Annto Logistics
Company Limited’s strategic distribution
network of more than 100 points across

• Capitalise strong demand of high-quality
offsite data storage facilities in Europe
through Premier Data Centres Limited
Maximising returns from Logistics core business
• Grow non-warehousing income

• Expand into high-value goods segment

• Grow non-port related income

• Unlock Shareholder value in existing
• Develop distribution management services

• Obtain grant to operate a Type III
Zero-GST warehouse for the regional
distribution needs of companies in the
high-value goods segment

• Expand into freight forwarding in
Shenzhen and Nansha

• Leverage 3PL experience of Singapore
operation to expand into provision of
3PL services overseas

• Explore opportunities to improve return
on investment in logistics assets

In June 2006, Keppel...
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