FOR many decades, Singapore's open market strategy has developed it into the hub for South-East Asia. Propelled by a free market economy and excellent international trading links, Singapore is ranked as the country with the second highest gross domestic product (GDP) per capita in the Asia-Pacific region by the Asian Development Bank.

The island-state is also home to a major logistics hub in the region, having handled an astonishing $845 billion in trade in 2007, equivalent to 13 per cent of its annual GDP. This is an example of globalisation at its best.

Globalisation is a major driver that has impacted nearly every business today. Many small and medium-sized enterprises (SMEs), which account for over 90 per cent of businesses and employ nearly 50 per cent of the workforce in Singapore, are now recognising the opportunities that this process offers, and gaining access to global markets is strategic for them.

But SMEs typically do not have the resources or size to facilitate their export activities in overseas ventures.

Trading extends beyond the local realm, happening 24 hours a day, across different time zones around the world. It is difficult to keep track of the overall situation, especially for SMEs with resource constraints. It can be a tough challenge for SMEs to achieve and retain a competitive edge in such a fast-paced trading environment, where competitiveness is the key to success and sustained growth in global operations.

In order for SMEs to hone their international competitive edge, they need to overcome these challenges when considering their overseas expansion into new markets.

Speed: Speed of delivery is extremely important and for many companies, it is even more important than cost in determining their competitiveness.

Reliability: Ability to deliver is vital as the reputation of a business is undermined, at the very least, when deliveries fail to arrive on time or are lost in transit.

Expertise in trade regulations: Foreign customs clearance procedures as well as other provisions of free trade agreements can be tricky to manage, especially for SMEs exploring new markets.

Dynamically linked networks: With trade growing most rapidly in the emerging economies, particularly China and India, enhanced connectivity between markets is a must for businesses

Real-time tracking and tracing: The ability to track the location of products en-route will be particularly valuable for businesses, to enable them to react proactively during unexpected delivery hitches.

Bearing these challenges in mind, it is therefore crucial for SMEs to engage a strong global supply chain partner like DHL to assist them in successfully penetrating overseas markets.

With an array of cost-effective solutions provided by these logistics experts, SMEs can easily outsource their inventory management and logistics requirements while enjoying the same advantages as big companies with a well-developed internal supply chain system.

Such a partnership would allow SMEs to keep leaner inventories and be even more cost efficient.

The services offered by global supply chain operators will play an important role in influencing the competitiveness of businesses - without the speed of delivery and global reach provided by these companies, many SMEs would be limited to only effectively serving their local markets.

Another challenge for SMEs is access to information, especially those that are trade-related. To mitigate the issue of complex trade regulations and procedures, a suite of Web-based trade information tools that covers trade-related data will be helpful in keeping SMEs abreast of changing export and import regulations.

DHL anticipates this need with the introduction of our Trade Automation Services (TAS), which assists businesses with the preparation and management of international shipment procedures.

This supports our diverse customer base, especially SMEs with trade solutions above and beyond our core transportation offerings, and enables them to trade internationally with great control, increased transparency and improved efficiency. In doing so, this frees up their time and resources so that they can focus on their core business competencies.

Above all, it is important to recognise that each customer is different. Supply chain operators ought to identify the individual customer's needs and offer the best solutions for them.

With this view in mind, DHL is focused on continuous product innovation and enhancement through a series of SME-targeted integrated solutions to help our SME customers anticipate and respond to the evolving needs of their supply chain.

One of our breakthrough products is the SME Plus suite of one-stop solutions, offering access to our extensive network that is designed to provide all inclusive customised products at an affordable price.

As in any partnership, SMEs will look towards working with solutions providers that offer an unwavering commitment to provide not only best-in-class product and service offerings, but also a customer service that goes beyond excellence.

In today's competitive landscape, service excellence has to be 24/7, managed by a highly trained and knowledgeable team that understands the nuts and bolts of the customers' businesses to ensure the seamless and effective delivery of their needs.

According to a recent study, more than 70 per cent of the SMEs in Singapore manage operations outside the country. It is essential that SMEs leverage time-definite services in regional and global markets. This will ensure that they are equipped with the best tools to compete in today's global marketplace.

Ultimately, an SME that aspires to effectively 'internationalise' and become a global player needs to partner a strong global supply chain facilitator for the movement of its goods and services. DHL supports that aspiration because at one point in time, we were also an aspiring small business. But we changed drastically from our package delivery origins; the company is part of Deutsche Post World Net, one of the world's largest global logistics groups. This is because we believe it is in venturing beyond a home country, like we did in 1969, that one can realise the potential in building a global brand.

The writer is the general manager of DHL Express Singapore

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