Ms Neo Su Yin, CEO of SingPost
Mr Loh Wee Lee, CEO of Lazada Singapore
Distinguished Guests
Ladies and Gentlemen
1. It is my pleasure to join you this morning to witness the signing of the Memorandum of Understanding (MOU) between Singapore Post (or SingPost) and the Lazada Group.
2. Both SingPost and Lazada have a strong presence not just in Singapore, but also in the region.
a. The Post Office became an independent department from the British Marine Office in 1858, and since then, SingPost has been providing trusted and reliable delivery services to homes and businesses in Singapore.
i. In the last one and a half centuries, SingPost has constantly transformed and evolved with the times to meet the needs of Singapore and Singaporeans.
ii. As communications and logistics networks became increasingly more interconnected, SingPost expanded beyond our shores to set up operations in 15 other countries.
b. Lazada, which was founded in 2012, has quickly established itself as one of the leading e-commerce platforms in Southeast Asia. As the Alibaba Group’s flagship platform, it offers fulfillment solutions that meet the needs of today’s digitally savvy shoppers. Headquartered in Singapore, Lazada achieved US$21 billion in gross merchandise value in 2021 with around 130 million active consumers annually.
i. The COVID-19 pandemic in 2020 led to a worldwide surge in e-commerce, as pandemic restrictions and safety concerns drove consumers to make online purchases from the security and comfort of their homes.
ii. While internet sales have normalised since the peak of the pandemic, they continue to strengthen. Internet sales in May 2022 more than doubled from May 2019 and accounted for 12 per cent of all retail sales.
iii. As consumers’ buying norms continue to shift from brick and mortar stores to online shops, e-commerce platforms like Lazada are well- placed to tap into the region’s digital economy which is on course to exceed US$360 billion by 2025.[1]
3. As demand for delivery services increases, it is imperative to level-up our supporting infrastructure in a sustainable manner. Therefore, I’m excited that today’s MOU will pave the way for more sustainable operations in first mile and last mile deliveries.
a. The MOU will bring together innovations in the e-commerce and logistics space and anchor this in the existing SingPost network familiar to many Singaporeans, including post offices and POPStations.
b. This comprehensive and eco-friendly network will bolster the trust and confidence of consumers in e-commerce in a more sustainable way.
c. It will also unlock new possibilities for businesses to drive their growth in the green economy and position our e-commerce and logistics industries to grow domestically, regionally, and globally.
4. As we look forward to the exciting opportunities ahead, allow me to share two important factors that can enhance the e-commerce customer journey. They are (i) Innovations in Delivery Options, and (ii) Choices for Future Sustainability.
The two partners, SingPost and Lazada, are strengthening these two features to enhance their value proposition and customers’ user experience.
Innovations in Delivery Options
5. Innovations to ensure a smooth and efficient fulfillment journey from first to last mile benefit both sellers and customers.
6. The upcoming launch of POPDrop by Lazada and SingPost is an exciting development in first mile delivery.
a. POPDrop is an automated machine that Lazada sellers can use to drop off their e-commerce items at any time.
b. Unlike the present POPStations which require packages to be stored in individual compartments., POPDrops consolidate packages in mailbags for greater efficiency.
c. With the use of barcodes and Radio Frequency Identification (RFID), deposited items are automatically registered and tracked, so that the whereabouts of the parcel can be traced at every stage of the delivery journey by both sellers and buyers.
d. In addition to enhancing accountability and making processes more user-friendly for sellers, POPDrop will also reduce the cost of individual courier pick-ups.
7. At the same time, buyers will also benefit from customer-centric enhancements.
a. A key challenge with door-to-door deliveries is the need for buyers to be physically present to receive their parcels and verify that they have been handed over. If there is no one to receive the parcel, arrangements will have to be made for re-deliveries.
b. This inevitably increases the number of delivery trips and the amount of vehicle carbon emissions each parcel generates.
c. With technology and innovation improving the tracking of parcels, better arrangements can be made to ensure smoother last mile delivery.
8. The continued growth of e-commerce means there can be no let-up on efforts to constantly innovate and develop creative solutions that enhance our delivery and postal infrastructure - from first mile to last mile. I’m therefore delighted that SingPost will be opening up POPStops at accessible locations to benefit Lazada sellers and customers.
a. Unlike the conventional post office, POPStop is a dedicated service facility manned by SingPost staff for e-commerce parcel-related transactions. It complements the POPDrop smart drop-off box by enabling both Lazada sellers and buyers to process items for shipment or return at any time of the day.
b. There are also plans to progressively allow buyers to collect their parcels from designated POPStops. As the network of POPStops grows, Lazada sellers and buyers will enjoy never-before convenience and accessibility of a delivery facility near them.
c. These integrated solutions will help bridge both the first and last mile challenges that have plagued the logistics chain.
9. With consumers becoming increasingly accustomed to the speed and convenience of online shopping, these innovations will enable customers to receive their orders conveniently and at the same time, reduce the environmental and resource cost of individual delivery.
10. While POPDrops and POPStops will be exclusive to Lazada sellers and buyers at this stage, they will benefit our overall e-commerce and logistics ecosystem in the longer run. I hope that the successful collaboration between SingPost and Lazada will inspire more innovations in delivery options in the future.
Choices for Future Sustainability
11. As the global and national push for sustainability gains greater urgency, companies and consumers are increasingly making changes in their business models and behavior to favour green choices.
12. I am glad to learn that the partnership between Lazada and SingPost will pursue and promote sustainable solutions for a better world.
a. For instance, Lazada will promote the use of letterboxes and locker deliveries to their buyers.
b. It will position SingPost as the most environmentally-friendly delivery option for buyers, and encourage them to opt for this delivery option in their online purchases. This can potentially reduce carbon emission significantly.
13. In addition, SingPost’s switch to using electric vehicles will boost the sustainable quotient as more eco-friendly deliveries cut down greenhouse gas emissions.
Sustainable Returns
14. I am glad to know that as part of its collaboration with Lazada, SingPost will be enhancing its Smartpac packaging so that buyers on Lazada can use the same packaging for returns. This will not only make it more convenient for buyers, but also cut down waste.
a. When buyers can easily and conveniently return unsuitable purchases, it is less likely that the unwanted items will go into the waste bin and end up choking landfills.
15. Solutions that enhance delivery efficiency and reduce packaging waste are well-aligned with our green plan to transit to a low-carbon economy. I trust that these solutions will also enable us to create value in the emerging green economy, including the potential to export proven solutions to the world.
16. Beyond first and last mile transactions, SingPost and Lazada will also collaborate on other community initiatives under the MOU which will be rolled out next year, including corporate social responsibility collaborations.
a. It is viable for companies to demonstrate responsible environmental stewardship. We look forward to the ideas and innovations that will emerge as Lazada and SingPost work together to conceptualize and implement these initiatives.
Conclusion
17. In closing, I’d like to convey my heartiest congratulations to SingPost and Lazada on this exciting collaboration.
18. I encourage like-minded partners across the ecosystem to join hands in driving green initiatives which will empower brands, partners, and consumers to adopt responsible and sustainable shopping habits that are in line with our sustainability goals. Thank you.
[1] Source: Bain, Google, Temasek “e-Conomy Southeast Asia 2021”