If you are a seller in Singapore looking to tap into the booming APAC cross-border trade market, you might already have the best launchpad possible. This island nation is a leader in the e-commerce space, with a staggering 60% of its total e-commerce sales stemming from cross-border transactions in 2022.
However, the rest of the APAC region also boasts the potential for similarly spectacular sales numbers, given the commonality in the cultural backgrounds, marketplaces, and, most importantly, trade regulations across the ASEAN countries. Nevertheless, cross-border trade is more than just listing and selling. Fulfillment makes up a big part of the cross-border process and requires expertise that only comes with experience. From adhering to trade and customs regulations to last-mile shipping, it is a vast and detailed process that might require you to employ many different brokers across the different steps involved. That is why opting for a cross-border logistics facility is extremely vital since it eliminates the need to involve too many middlemen.
This blog post dives deep into the world of cross-border logistics in Singapore. We’ll explore the services offered by cross-border logistics companies, identify the top players in the Singaporean market, and equip you with the knowledge to choose the right partner for your cross-border e-commerce endeavors.
Services Offered by Cross-Border Logistics Companies in Singapore
Expansion is critical, but making a mark in the market depends on how well your cross-border logistics company aligns with your business goals. So, let’s explore the essential services offered by cross-border logistics companies. These services are designed to streamline your operations, minimize hassle, and ensure your products reach your international customers efficiently.
- Warehousing and Fulfillment: Imagine a dedicated storage space managed by experts globally with a strong presence in the SEA region. Cross-border logistics companies provide just that! They offer secure warehousing facilities to store your inventory, manage stock levels, and handle all the picking, packing, and shipping for your orders. This frees you to focus on growing your business.
- Customs Clearance Made Easy: Navigating customs regulations can be daunting. Cross-border logistics companies take the burden off your shoulders. They possess the expertise to handle all the necessary paperwork and ensure your shipments comply with the import country’s regulations. This streamlines the clearance process, minimizing delays and getting your products to your customers faster.
- Freight Solutions: From land to air and sea, cross-border logistics companies offer a comprehensive range of transportation options to move your inventory across borders. Whether it’s cost-effective trucks or speedy airplanes, they help you choose the most suitable mode of transport based on your needs, considering factors like urgency, cargo size, and budget.
- Order Fulfillment with Efficiency: Processing orders, securely packaging products, and ensuring timely last-mile delivery are crucial steps in e-commerce. Cross-border logistics companies can handle the entire order fulfillment process for you, freeing you to focus on other aspects of your business. This allows you to scale your operations efficiently and provide a seamless experience for your international customers.
- Inventory Management Expertise: Maintaining optimal stock levels is key to success in e-commerce. Cross-border logistics companies offer inventory management services through a unified dashboard to ensure you have the right amount of stock on hand to meet customer demand without incurring unnecessary storage costs for excess inventory. Moreover, they provide real-time data and insights to optimize your inventory control strategy and minimize stockouts.
Top 8 Cross-Border Logistics Companies in Singapore
Locad
Locad simplifies the complexities of cross-border e-commerce, transforming the fulfillment landscape for businesses in the SEA region and Australia. They serve as a comprehensive 3PL (Third-Party Logistics) and Cross-Border solution, seamlessly connecting you to the vast APAC market. Here’s how Locad empowers your cross-border journey:
- Global Expansion: Locad Borderless simplifies your international expansion into APAC markets. They handle freight forwarding and customs clearance and can even act as the Seller on Record or Importer on Record, reducing the complexities associated with cross-border sales.
- Unmatched Order Management: Locad’s robust Order Management System (OMS) offers exceptional visibility into your inventory, minimizing stockouts. Streamlined processes with advanced technology, including order cloning and editing, guarantee exceptional order fulfillment accuracy, fostering customer trust and brand loyalty.
- Customized Packaging: Locad offers customized packaging solutions to cater to your specific needs. Whether it’s ensuring the perfect fit for various product sizes or optimizing packaging to minimize shipping costs, Locad helps you establish brand identity and elevate the customer experience through customized packaging.
- Effortless Multichannel Selling: Locad’s OMS empowers you to centrally manage orders across diverse online platforms like Lazada, Zalora, Shopee, TikTok Shop, Shopify or your own website. This eliminates the need to juggle multiple platforms, saving you valuable time and resources to focus on business growth.
- Flexible Last-Mile Delivery: Locad offers a variety of affordable and reliable last-mile delivery options to cater to your customers’ needs. Additionally, their OMS automatically assigns the most cost-effective carrier at the time of fulfillment, ensuring a convenient delivery experience for your customers and cost-efficiency for your business.
- Real-Time Inventory Tracking and Replenishment: Gain complete transparency with Locad’s real-time inventory visibility across all sales channels and warehouses on a unified dashboard. Low stock alerts notify you when it’s time to replenish, empowering informed decisions on inventory management and optimal cash flow. Locad even offers smart inventory allocation, tailoring inventory levels to specific marketplace demands.
- Scalable Storage Solutions: Locad lets you pay only for the warehouse space you utilize. This, combined with their premium yet affordable warehousing, helps you avoid unnecessary overhead costs associated with staffing, packaging, pick-and-pack services, and other warehouse operations. Locad’s scalable solutions keep storage costs under control, allowing you to optimize your budget for growth.
Flex
Flex is a global leader offering a comprehensive suite of supply chain solutions ideal for e-commerce businesses with complex needs. Here’s what Flex excels in:
- Manufacturing Expertise: Flex offers extensive manufacturing capabilities. You can leverage their design and engineering expertise to optimize product performance and manufacturability.
- Streamlined Supply Chains: Flex manages complex supply chains to ensure efficient sourcing, production, and distribution.
- Value-Added Fulfillment: They offer services beyond basic fulfillment, such as kitting, assembly, and packaging customisation.
While Flex caters to the medical supply chain – an offering removed from a typical 3PL – it might be ideal to look for a different provider on this list:
- You require advanced manufacturing or product development alongside fulfillment.
- Your supply chain involves cross-border assistance. The team still lacks robust customs and freight forwarding infrastructure.
Ceva Logistics
CEVA Logistics is a powerhouse in the logistics world, offering a vast array of services, including air, land, and sea transportation across the globe. They cater to diverse industries and boast strengths in:
- Customized Solutions: CEVA tailors logistics solutions to meet specific industry needs, potentially addressing complex requirements.
- Real-Time Visibility: Advanced tools provide real-time shipment tracking, tracing, and booking capabilities.
- Dedicated Transport Teams: Their specialized transport teams offer expertise in air, ocean, and road freight.
However, Singaporean e-commerce businesses should consider these potential limitations:
- Global Focus: As prior customers have expressed, CEVA’s extensive network may translate to higher costs and potentially longer fulfillment times.
- Customisation Challenges: While customisation is offered, some users report difficulty in obtaining solutions specifically designed for e-commerce fulfillment.
- Delivery Concerns: Customer reviews mention instances of late deliveries, lost packages, damaged goods, and inconsistent delivery times.
- Customer Service Issues: A number of reviews also highlight unprofessional driver behavior and difficulty reaching helpful customer support.
DB Schenker
DB Schenker is a global leader in logistics, offering a comprehensive suite of services for complex supply chain needs. Here’s what they can offer e-commerce businesses in Singapore looking for cross-border expansion:
- Extensive Network: DB Schenker boasts a robust network covering land, air, and ocean freight, ensuring transportation across various locations.
- Contract Logistics Expertise: They offer 4PL solutions for deep supply chain integration, potentially optimizing your overall logistics operations.
- Industry Specialization: Benefit from tailored solutions designed to optimize efficiency within your specific industry.
However, Singaporean businesses should consider these potential limitations:
- Comprehensiveness: While DB Schenker offers a variety of services, some users report that its offerings may be less comprehensive than those of other cross-border providers.
- Transparency Concerns: The complex nature of contract logistics or 4PL with DB Schenker can make it challenging to maintain clear visibility of your products throughout the supply chain.
- Delivery and Customer Service Issues: Customer reviews mention instances of missed deliveries, incorrect addresses, lost or delayed packages, and mishandled shipments.
- Communication Challenges: Difficulties reaching customer service and a lack of responsiveness to inquiries have been reported.
- Unexpected Costs and Delays: Customers have reported encountering unexpected charges and experiencing delays, particularly during customs clearance.
ShipBob
ShipBob has established itself as a leader in technology-driven 3PL services, offering a comprehensive solution for businesses looking to scale their e-commerce operations globally. Here’s what sets them apart:
- Integrated Order Management: ShipBob’s fulfillment technology integrates with your order management system.
- Global Distribution Network: The team has strategically located fulfillment centers around the world.
- Real-Time Inventory Control: ShipBob boasts a proprietary warehouse management system (WMS) that offers complete visibility and control over inventory levels.
- Outsourced Fulfillment Expertise: You can offload your fulfillment and logistics operations to ShipBob and its team.
While ShipBob offers a compelling solution, here are some factors to consider:
- Pricing Structure: ShipBob’s pricing model is based on factors like storage space, order volume, and fulfillment complexity. Hence, it might not be the most cost-effective option for smaller businesses. In addition, many patrons mention that it often posts inaccurate and inflated pricing and is consistently overcharged, requiring extensive audits and disputes.
- Poor service and lack of features: ShipBob’s support team is unresponsive, unhelpful, and unable to resolve issues in a timely manner. Customers felt their concerns were ignored. While the initial onboarding process was good, many customers experienced significant problems after the initial setup. Furthermore, the ShipBob software was described as unintuitive and missing key functionality that customers expected.
- Delayed and faulty order fulfillment: ShipBob frequently failed to ship orders on time, resulting in lost customers and damaged reputations. Their technology and processes were unreliable. Moreover, there are reports of intentionally over-reporting storage space.
Beehive Fulfillment
Beehive Fulfillment in Singapore caters specifically to e-commerce businesses seeking a flexible and scalable 3PL solution. Here’s what makes them a strong partner for growth:
- Core Fulfillment Services: Beehive offers a comprehensive suite of services, including warehousing, order fulfillment, fast order processing, accurate picking and packing, and secure storage facilities.
- Scalability: You only pay for the services you utilize, eliminating unnecessary overhead costs as you scale your operations.
- Transparent Pricing: Beehive has no minimum contract periods, setup fees, or hidden charges. You only pay for the services you use.
While Beehive offers a compelling solution, here are some factors to consider:
- Core Service Focus: Beehive focuses on core fulfillment services. Compared to some providers on this list, their service range may be more limited.
- Limited Advanced Features: Businesses requiring advanced features like multi-channel fulfillment, in-depth cross-border expertise, or value-added services like kitting or assembly might need to explore alternative options.
RAK Logistics
Singapore-headquartered RAK Logistics emerges as a strong contender for businesses seeking a comprehensive global logistics partner. Here’s what positions them for success:
- Tailored Solutions: RAK Logistics offers customized logistics services, including strategically located warehousing and storage facilities in the USA, Netherlands, and UAE, catering to your specific needs and geographical reach.
- Global Reach: They offer an extensive network that encompasses air, ocean, and land freight transportation worldwide, ensuring seamless product delivery no matter your destination.
- Industry Expertise: They possess deep industry knowledge in various sectors, including fast-moving consumer goods, cold chain logistics, food and beverage, retail, energy, and, of course, e-commerce. This industry-specific understanding allows them to tailor solutions that perfectly align with your business needs.
While RAK Logistics boasts a global presence, it has its own range of issues. Evaluate these things before opting for them:
- Limited global presence: Its current warehousing facilities are situated in the USA, Netherlands, and UAE. If your primary focus is on other regions around the world, other providers on this list with a stronger regional presence might be a better fit.
- Lack of cross-border expertise: While the company offers international fulfillment in certain countries, it still lacks certain other cross-border requirements, such as customs clearance expertise.
Considerations When Choosing a Cross-Border Logistics Company in Singapore
Having explored the valuable services offered by cross-border logistics companies, it’s crucial to choose the right partner for your specific needs. Here are some key factors to consider for Singaporean businesses when looking for a cross-border service to expand into the APAC region:
- Customs Clearance Expertise: Navigating the intricacies of customs regulations across different countries can be challenging. Choose a logistics company with a proven track record and an in-depth understanding of import and export regulations for your target markets. Their expertise will ensure smooth customs clearance, minimizing delays and potential disruptions to your supply chain.
- Packaging and On-Time Delivery: The condition of your products upon arrival and timely delivery is paramount to customer satisfaction. Evaluate the company’s packaging practices and their ability to meet your delivery deadlines consistently. Opt for a partner who utilizes high-quality packaging materials and boasts a reliable transportation network to ensure your products reach their international destinations safely and on time.
- Customer Focus: Excellent customer service is a hallmark of any successful partnership. Choose a logistics company that prioritizes customer satisfaction and provides excellent communication throughout the shipping process. Look for companies that offer transparent tracking options and readily address any questions or concerns you may have.
- Returns Management: A seamless returns process is crucial for customer satisfaction, particularly in cross-border e-commerce. Look for a provider with a clear returns policy and established procedures for handling international returns. This might include options for local returns within Singapore, streamlined processes for reverse logistics back to your origin country, and potential value-added services like repackaging or product inspection upon return.
To Wrap Up
The booming landscape of cross-border e-commerce within the APAC region presents exciting opportunities for businesses to expand their reach. However, navigating the complexities of international shipping can be daunting. This is where cross-border logistics companies in Singapore play a crucial role.
By partnering with a reliable cross-border logistics company, you can gain access to a suite of valuable services that streamline your operations, minimize hassle, and ensure efficient delivery of your products to international customers in the SEA region and Australia. These services include warehousing and fulfillment solutions, expert customs clearance assistance, a comprehensive range of freight options, efficient order fulfillment processes, and insightful inventory management strategies.
Choosing the right cross-border logistics partner is critical for the success of your e-commerce endeavors. At Locad, we understand your needs and are committed to providing exceptional service. We offer a robust network, extensive customs clearance expertise, a focus on customer satisfaction, industry-specific packaging solutions, and an unwavering commitment to safety.
Partner with Locad and unlock the full potential of your cross-border e-commerce business. Contact us today to learn more about our comprehensive logistics solutions and how we can help you navigate the exciting world of cross-border trade!
FAQs
What is cross-border logistics?
Cross-border logistics is the management of international goods movement, including transport, customs, and documentation.
How many shipping lines are there in Singapore?
It’s difficult to pinpoint the exact number of shipping lines in Singapore, but it’s a major hub with numerous lines.
What is Singapore’s largest shipping company?
Determining Singapore’s largest shipping company depends on specific criteria, as there are several prominent ones.
Is logistics in demand in Singapore?
Yes, logistics is a crucial sector for Singapore’s economy due to its high trade volume and high demand.