Singapore is the fourth largest cargo airport in Asia, with 4,000 flights connecting 182 cities in 57 countries every week. Singapore Changi Airport handled 654.38+900,000 metric tons of cargo in 2006, an increase of 4.2% over 2005. Singapore is the busiest container entrepot in the world, with 200 shipping companies connecting Singapore with 600 ports in 123 countries. Last year it handled 25 million TEUs, an increase of 6.9% over 2005. Singapore is a leading logistics and supply chain management center in the Asia-Pacific region. The logistics industry has always been one of the important driving forces of Singapore's economy. In 2006, the contribution of transportation and logistics industry to Singapore's economy accounted for 9.6% of GDP, employing more than 1 10000 workers. Zhang Lingling, director of the transportation and logistics department of IESingapore, pointed out that Singapore has a strong air and sea network connecting Asia and the rest of the world. More than 9,000 logistics companies regard Singapore as a regional transshipment and distribution center, including 17 third-party logistics companies (3PL), ranking among the top 25 in the world. Singapore is one of the most developed and advanced logistics and business centers in the Asia-Pacific region. Among the top 25 third-party logistics companies in the world, 65,438+00 have set up their Asian headquarters in Singapore. They are also the Asian headquarters of many multinational companies that are entering the Asian market. According to the research report of Asia-Pacific Logistics Institute (TLIAP), Singapore's supply chain management system is one of the most advanced systems in the world. At present, it focuses on providing integrated logistics solutions in the Asia-Pacific region. In fact, Singapore aims to become a leading integrated logistics hub in Asia by 20 10. The main logistics suppliers in Singapore are CougarExpress, APL Logistics, CWTDistribution, KeppelLogistics, LTHlogistics, PILlogistics, YCH, Richland, PohTiongChoonLogistics and Sea-Shore. Reasons for the outward expansion of the logistics industry Some factors promote the outward development of the logistics industry in Singapore. First of all, economic globalization has led to the eastward movement of production bases. Zhang Lingling pointed out: "The multilateral trade opening, regional trade agreements and bilateral trade agreements of the World Trade Organization are all conducive to the substantial increase of international goods flow. Therefore, the activities of purchasing raw materials, subcontracting manufacturing and finished product distribution are becoming more and more global. This increases the length and complexity of the enterprise supply chain. " Second, business opportunities in mature domestic markets and Asian markets. She pointed out: "In the past few years, logistics-related services have been accounting for about 8% to 9% of Singapore's GDP, which shows the importance of Singapore's logistics industry. However, Singapore's logistics market is mature, so Singapore's logistics industry realizes the need to go out of the domestic market and seek new ways to promote growth. " According to TransportIntelligence's Asia-Pacific Logistics Report 2004, the estimated value of Asia's logistics industry is US$ 65,438+0 trillion, led by China, followed by ASEAN countries and India. By 20 10, the Asia-Pacific region will account for nearly one-fifth of the global third-party logistics service expenditure. According to the data of Datamonitor, driven by emerging markets, the strong growth rate of global GDP of about 4% in the next five years will help to greatly increase global logistics expenditure. Coupled with the eastward movement of the global manufacturing base, it will help promote global trade and the flow of goods. All these factors are beneficial to third-party logistics and freight forwarders. According to PraveenOjha, the logistics analyst of Datamonitor and the author of Global Outlook of Logistics Industry in 2006, the demand for sea, land and air freight and logistics contracting services in all geographical regions will increase greatly. The third-party logistics industry has a huge potential market and has been internally managed or outsourced to local small and scattered service providers. Aaron Thinandakumar, a research analyst at Frost & Sullivan, pointed out that the elimination of trade barriers in this region will help third-party logistics service providers to provide more comprehensive and integrated services and encourage multinational companies to increase their investment in this region. According to the company's new analysis, the third-party logistics market in ASEAN is expected to generate US$ 65.438+0.484 billion in 2006 and US$ 27.85 billion in 2065.438+02. Third, multinational companies increasingly require logistics service providers to have global networks. Faced with the increasing pressure of investment income, enterprises are forced to focus on their core business capabilities and outsource complex logistics business. In addition to saving money, they are also exploring how to build an efficient supply chain to help them maintain their competitive advantage. Fourth, the logistics industry needs economies of scale to achieve higher profits. Zhang Lingling thinks: "Logistics is mainly a network game, and each node plays an important role in the network, which determines the strength, practicability and expansibility of the whole supply chain." Singaporeans have always been logistics service providers of regional multinational enterprises, so they already have extensive networks. They need to further expand their business and reach a sufficient scale to obtain greater profits. "Logistics service providers have a wide geographical coverage network, which can serve larger customers, increase product lines and provide more comprehensive services. This will create more supply chain management (SCM) service income and higher profits. She said: "With sufficient business and network scale, the logistics industry can invest in information technology systems and market intelligence analysis to meet the higher needs of customers and launch new products and services as a' one-stop solution' to customer needs. Zhang Lingling, director of the Transport and Logistics Department of the Singapore International Enterprise Development Agency, said that the rapid growth of world trade is of great significance to multinational enterprises. In order to stay ahead, they must constantly adopt new business models and strategies to reduce costs. Outsourcing has been recognized as an effective strategy to streamline business and focus on business. Manufacturers focus on key capabilities and outsource part of the supply chain to logistics partners, so value-added services will be more important. Logistics service providers must follow their customers to the international market. Singapore's logistics industry has advantages in attracting multinational enterprises. She said: "Multinational enterprises are increasingly hoping to establish cooperative relations with logistics suppliers in Singapore. Singapore's superior geographical position gives us a competitive advantage and has become a key distribution center and strategic springboard for Universal Pictures to enter the Asian market. In order to enter high-growth markets, such as India and China, multinational companies need reliable, experienced and knowledgeable logistics partners in this region. This has commercial significance. They can use the advantages of Singapore logistics providers to assist their regional development center in Singapore. This is because the logistics companies in Singapore have established a comprehensive distribution network, have an excellent record in quality, speed and flexibility, and have advanced information technology capabilities to support their growth and expand their business in Asia. "Another trend for companies outside the logistics industry to compete in the logistics market is that the logistics industry in Singapore has met many new competitors in recent years. Companies outside the traditional logistics industry are entering the logistics market and competing with existing operators in the same space. Shipping companies are an example. They try to sell shipping space directly to shippers. The logistics department of manufacturing enterprises is becoming an independent unit, providing its own professional knowledge to customers. The integration of logistics suppliers "meets the challenge" with economies of scale. In addition, logistics service providers are integrating. Faced with this competition, logistics companies are merging to increase their bargaining power and economies of scale. In order to win new business, they tried to become a one-stop shop. The merger between logistics service providers will accelerate. June 5438 +2006 10, Kuehne &；; Nagel acquired ACR Logistics Company for 440 million pounds, which doubled its network in Eastern Europe and Asia. This is the latest wave of acquisitions and mergers in the logistics industry. Other examples include DHL's acquisition of Exel；; Schenk acquired BaxGlobal. She believes: "The emergence of this new global network and a giant logistics company with one-stop comprehensive service shows the increasingly fierce competition in the global market. Small businesses will find it difficult to compete without a unique sales plan. "AsiaGateway provides Asian-American logistics contact services. This is a joint venture established by three transport and logistics companies in Singapore. The three shareholders are Pacific International Logistics, Skylite Logistics and PinnacleWorldTransport. Together, these three companies have a business history of more than 80 years, with an annual income of 2.8 billion US dollars. Therefore, AsiaGateway integrates the best logistics, air and sea transportation capabilities in Asia, providing unparalleled services for companies that need to establish comprehensive logistics links between the United States and Asia. Zhang, director of AsiaGateway (he is also the director and manager of PILLogistics), revealed that the company was established this year, which provides warehousing and other value-added services in addition to sea, land and air transportation. The company currently operates in the United States, providing logistics services between the United States and Asia. In the United States, you can sell services to American customers more effectively. Zhang said: "Our advantage is that we can provide good service to our customers. It is difficult for large-scale logistics companies to take care of customers' needs in flexibility, response and detail implementation. We usually compete with them. Another advantage of ours is our China ability. Our partner, PIL Company, has been established in China for many years, and has established a fairly strong logistics capability in China. But our weaknesses are brand awareness and limited business history in the United States. Establishing brand awareness is a huge challenge. " Therefore, he plans to strengthen the company's sales team in the United States.