Speech by Guest-of-Honour Mr Teo Ser Luck, Minister of State for Trade and Industry, at the Supply Chain Asia Logistics Awards on Thursday, 6 December 2012 at 8pm, at the Roselle Room, Marina Bay Sands
Dr Robert Yap, Chairman of Supply Chain Asia
Mr Frank Paul, Organising Chairman of Supply Chain Asia Logistics Awards 2012
Distinguished Guests,
Ladies & Gentlemen,
Good Evening.
1 I am delighted to join you tonight for the Supply Chain Asia Logistics Awards 2012.
Supply Chain Management in Asia
2 There has been increased volatility in supply chains around the world caused by challenges such as the fiscal uncertainties in Europe and the US, and by disruptions such as natural disasters and acts of terrorism. However, there are also major trends that are pointing to many opportunities. These include rapid urbanisation and the need to ensure sustainability; the prevalent use of social media as well as technological advances in e-commerce.
3 For many of us here, a key focus must be the rise of Asia. The Asian Development Bank (ADB) projects that by 2050[1], Asia alone, will account for more than half of global GDP. However, unlocking the market potential in Asia is not without its challenges. Global companies and their supply chains have to deal with the evolving and complex trade and regulatory landscape across Asia. Many global companies are also seeing the need to re-design their supply chains and replicate new best practices faster in order to be more responsive to markets. This, despite having established extensive supply chain assets throughout Asia over the years.
Knowledge Development & Innovation in the Industry
4 Here in Singapore, we believe that we have the key ingredients to help companies innovate and build successful supply chains in Asia. Firstly, many global and Asian companies are increasingly choosing to base their global decision-making functions in Singapore to better respond to Asia. Companies which have already done so include Unilever, GlaxoSmithKline, Kulicke & Soffa (pronounce as “koo-lick and so-far”) and Panasonic.
5 Singapore is also home to many cutting-edge global manufacturing facilities. They include large-scale systems such as aeroengines, offshore oil rigs and front-end semiconductor equipment to much smaller products such as heart devices and semiconductors. The growing presence of these global decision-making functions and sophisticated manufacturing — all located in an efficient business hub like Singapore — will translate into more opportunities here for knowledge development and innovation in global supply chains. For example, Infineon set up its Supply Chain Science Centre in Singapore last year. This centre aims to deliver innovative improvements to the supply chain processes which involve multiple production partners across the region.
6 This brings me to the second ingredient which is the presence of many world-class supply chain and logistics service providers here. Singapore is today recognised as the leading global logistics hub[2], and is the home base in Asia for many leading global logistics companies. Increasingly, they are also joined by the supply chain practice leaders from leading consulting firms such as McKinsey, Accenture and PwC. The capabilities that we are building here cut across the entire value chain from supply chain strategy, design and planning to execution and optimisation.
7 For example, DB Schenker recently established its global Solutions Competence Centre in Singapore to focus on developing Production Vendor Managed Inventory solutions for the Electronics and Industrial Manufacturing sectors. This centre is DB Schenker’s first global competence centre outside of Europe. I also understand that our very own YCH will also be celebrating a key milestone[3] tomorrow that will bring more innovation in the future to the supply chains in Asia and globally.
Singapore – Strong Supply of SCM Talents
8 Finally, I think we will all agree that in this business, talent is certainly one key ingredient for success. As a leading business and logistics hub, we have groomed and attracted many talents to feed the growth of the supply chain business. Most recently, the Singapore University of Technology and Design (SUTD), in collaboration with Massachusetts Institute of Technology (MIT), started to offer a Dual Masters program in Supply Chain Management. I also understand that EDB has worked with companies such as DHL and Infineon to launch their own management graduate programmes for logistics and supply chain to attract top talent.
9 I am glad to see Supply Chain Asia (SCA) playing an active role to reach out to the young through its Young Professionals sub-community. SCA’s upcoming Knowledge Centres and traineeship programmes will provide the much-needed practitioner-based training that will enable more well-trained individuals to support the industry. Coupled with engagements and direct mentorships from senior professionals and veterans of the industry, I am confident that SCA will be successful in developing supply chain management talent equipped with the industry-relevant skills.
10 Since my last involvement in an SCA event in 2009, the community has grown significantly in both size and reputation. SCA has since transformed itself to become a not-for-profit, professional body which aims to groom talent and promote innovation for the logistics and supply chain industry. The transformed-SCA, with its focus on knowledge expansion and talent development, is a timely response to the growing needs of the logistics and supply chain industry. I would thus like to commend the Board of Advisors and Executive Committee members of SCA for their dedication and hard work in making SCA the region’s leading authority for logistics and supply chain management.
Conclusion
11 Finally, I would like to take this opportunity to congratulate all winners and finalists of the Awards. All of you are the industry champions that have demonstrated leadership in knowledge, innovation and talent development. I am confident that the supply chain community here in Singapore will continue to grow and lead with best-in-class capabilities and operations for Asia. I wish you every success.
12 Thank you.
[1] Source: Asia 2050 – Realising the Asian Century, ADB, 2011
[2] World Bank 2012 Logistics Performance Index ranked Singapore as the no. 1 Logistics hub amongst 155 nations globally.
[3] YCH will be having the groundbreaking ceremony for its new state-of-the-art headquarters called Supply Chain City at Wenya on the following day (7 Dec). The Guest of Honour for the groundbreaking is DPM Tharman Shanmugaratnam.