SingPost has teamed up with Y Ventures to develop an e-commerce solution that would also include technology to facilitate the associated logistics. The memorandum of understanding was signed on the 2nd of March in 2018. The nonbinding agreement between SingPost and Y Ventures would facilitate collaborations to facilitate cross border purchases and consolidated supply chain management, including the procurement of goods on behalf of the end consumers and delivering the goods by handling the entire logistics chain. The purpose is not confined to setting up a robust ecommerce platform but also to ensure it is an efficient apparatus with no loopholes in the vertical supply chain.
Y Ventures is an ecommerce company specializing distribution and retail with an unwavering focus on data analytics. The company steers almost its entire operation after analyzing relevant big data. The agreement is in place but there are many terms that are still being negotiated. The exact scope of the collaboration is yet to be finalized. SingPost has generated some traction in recent years, especially in South East Asian territories. Alibaba has fueled its international mail accounting and there has been a substantial growth in mail volumes over the last two years. SingPost has, as a result, set up a new Ecommerce Logistics Hub for the region. The hub caters to large cross border mails.
DBS Equity Research has been reporting on the developments. An analyst with the firm, Sachin Mittal has remarked on the US entities of SingPost, TradeGlobal and Jagged Peak, both of which are presently catering to different ecommerce solutions for their clients. Jagged Peak draws its strength from the software technology that can provide end to end solutions, be it in content management or order management, warehouse management or transportation management. All such departments can be integrated with the internal systems of a client. Such ecommerce platforms usher in a new age of logistics for the existing operating areas of SingPost.
Sachin Mittal has also said that despite the prevalence of ecommerce platforms facilitating purchases on behalf of the end consumers in Singapore with companies such as Ezbuy commanding a dominating position in the niche, there is enough scope for natural expansion of the present services offered by SingPost. It can clearly carve out a market leading niche for itself with the current logistics networks and the hardware that’s already available. SingPost will enjoy operational efficiency, courtesy of the existing logistics networks and the numerous regional partnerships that have stood the test of time, which can propel it to pole position in this highly competitive race.
Eventually, it would be the exact terms of the engagement between SingPost and Y Ventures. The synergies must be mutually rewarding and more importantly both parties need to play to their strengths while countering similar developments of major regional and global players in the same niche. While SingPost has never lagged behind in hardware or software, it does need to strengthen its presence in the region beyond the city state so other players from South East Asia and rest of the world do not trample the scope of growth.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like $48 Million spent upgrading six major shopping complexes in Singaporeand all topics related to Business and Tech in Singapore. Want to know more about Setting up a business in Singapore? visit our website for more information.
Company: Singapore Company Incorporation Consultants Pte Ltd
Address: 10 Anson Road International Plaza #27-15, Singapore 079903
Telephone: +65 66531211