FOR companies both big and small, cutting costs is ranking high on the list of priorities right now.
An initiative by Republic Polytechnic (RP) aims to help local logistics companies both trim the fat as well as improve operational efficiencies.
In June last year, RP set up the $500,000 i-SAIL integrated supply chain laboratory to offer R&D services to the logistics sector. The sector accounts for close to 10 per cent of Singapore's GDP and employs about 180,000 workers.
Companies are able to test the technology before investing in it, while the lab also serves as a learning ground for the polytechnic's students, points out Edmund Chan, manager of the technology development centre at RP.
Improving logistics capabilities among SMEs here may also help Singapore strengthen its position as a logistics hub. Ten companies have used the lab so far, including land transport company Evermarch.
Generally, there are instances where cargo contents are damaged from the journey, although they may not appear damaged at first glance, said CEO James Peh.
In conjunction with i-SAIL, Evermarch put sensors on its trucks to profile vibration levels during the journey. The levels are then replicated in the laboratory's vibration test system to ascertain the durability of the packaged product.
As such, 'we can offer value-add in terms of packaging so it will withstand the journey. In times like this, customers look out for little details', Mr Peh said.
Ensuring that the cargo arrives in mint condition also helps the company build a strong reputation as well as long-term relationships with its clients.
Companies may also be able to downgrade to a cheaper form of packaging without compromising on quality, if the testing proves as much.
Boon Software, which supplies software for warehouse management systems, recently brought a group of potential customers from Indonesia to the i-SAIL lab, which uses some of its products.
'Normally we have to coordinate with existing customers to bring potential customers to their facilities. With i-SAIL, we easily save $50,000 in coordination costs. And it helps shorten the decision making process,' said managing director Boon Suan Chew.
i-SAIL also conducts temperature tests on boxes used for temperature sensitive goods. This allows companies to cater to new market segments, without having to outlay capital on temperature controlled trucks, translating to significant cost savings.
Other equipment at i-SAIL include an automated storage/retrieval system, a drop-test system, as well as an environmental chamber.
