Top 3PL fulfilment companies in Singapore

A tech-savvy population, high internet penetration of over 95%, and a growing young demographic in Singapore are fueling a surge in online shopping. This translates to a significant opportunity for e-commerce businesses to delight shoppers and win the market. But managing the logistics of order fulfillment can be a challenge that could cause customers to drop off or worse, go with competitors  In fact, most businesses end up crashing due to weak logistics and unforeseen challenges around fulfilment.

That’s where 3PL or Third-Party Logistics companies step in. By outsourcing inventory storage, picking and packing, and order fulfilment to a 3PL provider, businesses can gain access to expertise, infrastructure, and scalability to streamline their e-commerce operations, maximize sales and reach new customers. 

Business owners can free up time to focus on action items and priorities that can help move the business forward and feed the innovation required for a company to thrive in a rapidly growing market such as e-commerce.

But what are the features of a 3PL and how can it compliment your business? What do you need to look for as an e-commerce business looking to outsource fulfilment? And who are the top fulfilment companies in Singapore that should be on your radar? 

This article answers all of these questions and offers a look at the eight best 3PLs in Singapore to help you make a sound business decision. 

What does a 3PL do for your business?

Managing an e-commerce business involves a complex web of tasks. But it may not be too clear yet, how impactful opting for a top 3PL company in Singapore may be for an e-commerce business. Here’s how a 3PL can streamline your operations:

• Order Management: From receiving customer orders to managing returns, a 3PL takes care of the entire order lifecycle. They utilize robust systems to track orders, ensure accuracy, and keep you informed throughout the process.

• Storage: 3PLs provide secure and strategically located warehouses to store your inventory. This allows you to optimize storage costs based on demand and ensures faster delivery times for your customers.

• Pick and Pack:  Once an order is placed, the 3PL along with the warehouse team efficiently picks the items from your inventory, carefully packages them according to your specifications, and prepares them for shipment.

• Last-Mile Shipping:  The 3PL handles the final leg of the journey, ensuring your products are delivered to your customers swiftly and securely. They often have established relationships with reliable carriers, offering you competitive shipping rates and efficient delivery options.

What should you look for while choosing a 3PL for your business?

With a wide range of 3PL providers in Singapore, choosing the right partner requires careful consideration. Here are some crucial factors to evaluate to ensure your chosen 3PL aligns with your specific business needs:

• Multichannel Selling: Ensure your 3PL can seamlessly integrate with your existing sales channels and efficiently manage orders from various sources.

• Batch Management:  Do you offer products in bulk quantities or require special handling for large orders?  Look for a 3PL with expertise in batch management to optimize order fulfilment for your specific needs.

• Cross-Border Expansion:  Do you have plans to expand your reach beyond Singapore’s borders? Choose a 3PL partner with experience and expertise in handling international shipping and customs regulations.

• Robust OMS (Order Management System):  A modern and efficient Order Management System (OMS) is crucial for order tracking, inventory control, and real-time data visibility.  Select a 3PL that utilizes a robust OMS that integrates seamlessly with your existing systems.

• Customized Packaging:  Does your brand require unique packaging solutions?  Look for a 3PL that offers customizable packaging options to enhance your brand image and ensure product protection during shipping.

• Last-Mile Options:  Offering a variety of last-mile delivery options is key to customer satisfaction.  Choose a 3PL partner that provides flexible delivery options, including same-day or express delivery services, to cater to diverse customer needs.

E-commerce trends in Singapore

Singapore’s e-commerce market is experiencing explosive growth, solidifying its position as a regional powerhouse.  Current estimates from eCommerce Market Singapore predict the market will reach a staggering US$9,901.5 million by 2024, placing it ahead of established markets like Norway.

Looking ahead, the future appears even brighter. Market analysts anticipate a compound annual growth rate (CAGR) of 12.0% between 2  and 2028, with a projected market volume exceeding US$15.5 billion. This translates to a significant and rapidly growing online consumer base in Singapore, presenting a lucrative opportunity for businesses to tap into.

The statistics speak volumes: with an online retail share of 16.8% that’s projected to surge to 25.6% by 2028, Singaporean consumers are increasingly turning to online channels for their shopping needs. This trend signifies a massive shift in consumer behaviour and a compelling reason for businesses to embrace a robust e-commerce strategy.

Top 8 3PLs in Singapore

1. Locad

The landscape of e-commerce fulfilment can be fragmented, especially across diverse regions like Southeast Asia. Locad stands out as a comprehensive 3PL solution that seamlessly connects your business to the entire APAC (Asia-Pacific) market.

Renowned for its extensive service portfolio in the APAC countries, Locad empowers businesses of all sizes to thrive in the dynamic Southeast Asian and Australian markets. Their offerings go beyond standard fulfilment, encompassing:

• Cross-Border Expertise: Navigate the complexities of international shipping with Locad’s experience and support.
• Mid-Mile Fulfillment: Optimize your supply chain with strategically located warehouses for efficient product distribution.
• Unmatched Technology: Locad’s cutting-edge technology platform is constantly evolving to ensure seamless integration and data visibility.

Dashboard Overview on Locad

Here’s how Locad can elevate your e-commerce business in Singapore and beyond:

• Faster Deliveries: Locad’s strategically located warehouses across the region ensure rapid order fulfilment and shorter delivery times for your customers.
• Enhanced Accuracy: Streamlined processes and advanced technology minimize errors, guaranteeing exceptional order fulfilment accuracy.
• Branded Packaging Solutions: Make a lasting impression with customized packaging options that reinforce your brand identity.
• Value-Added Services: Locad’s warehousing partners have a workforce that specialises in kitting, assembly, picking and packing, reducing the time and effort it might take to create curated order bundles before dispatching the products to the warehouses.
• Multichannel Fulfillment: Centrally manage orders across various online platforms such as Lazada, Shopee, Shopify and TikTok Shop, streamlining your e-commerce operations.
• Flexible Last-Mile Delivery: Offer a variety of affordable and reliable delivery options to compensate for the off-chance that your usual last-mile vendor is unserviceable or is applying a surcharge due to high demands.
• Real-Time Inventory Tracking: With real-time inventory visibility across all sales channels, you can gain complete transparency, and receive alerts for timely inventory replenishment to avoid stockouts.

Order Management on Locad

• Global Expansion Made Easy: Access international shipping services to expand your customer reach beyond Singapore’s borders.
• Scalable Storage Solutions: Pay only for the warehouse space you utilize, keeping storage costs under control.
• Super-Fast Fulfillment: Enjoy the convenience of same-day order fulfilment and packing services for exceptional responsiveness.

2. EasyParcel

EasyParcel Singapore has carved a niche for itself by offering user-friendly features designed to help online businesses save money and streamline their shipping operations. Here’s a glimpse into some of the benefits they provide to Singaporean e-commerce sellers:

• Seamless Integrations: Effortlessly import orders from your e-commerce store and even social selling platforms, eliminating manual data entry.
• Enhanced Brand Experience: Build brand recognition with customizable branding options for airway bills and SMS notifications.
• Peace of Mind Protection: Protect your valuable parcels with optional insurance, ensuring financial security in case of unforeseen circumstances.
• Rewarding Loyalty: Earn reward points with every top-up, which you can redeem for gifts or shipping credits for future use.
• EasyParcel’s platform empowers you to compare courier rates, book deliveries, and manage both domestic and international shipping, all from a centralized location. This simplifies your workflow and allows you to focus on growing your business.

It’s important to consider the following when evaluating EasyParcel:

• Limited Service Focus: EasyParcel primarily excels in the core shipping process. Businesses requiring additional services like warehousing, multi-channel fulfilment, or on-demand fulfilment across Southeast Asia may need to explore alternative 3PL providers.
• Lack of Customization Options: While EasyParcel offers some branding customization, some users report limitations compared to other platforms.

Whether EasyParcel is the perfect fit depends on your specific needs. If you’re a Singapore-based e-commerce business seeking a user-friendly platform to streamline your shipping processes and save on costs, EasyParcel is definitely worth considering.

3. Flex

Flex is a global leader in manufacturing, design, and engineering solutions. While not solely focused on 3PL services, they offer a comprehensive suite of supply chain solutions that can be highly beneficial for specific e-commerce businesses.

Here’s what Flex brings to the table:

• Manufacturing Expertise: Leverage Flex’s extensive manufacturing capabilities to bring your product ideas to life.
• Design and Engineering Powerhouse: Benefit from their design and engineering expertise to optimize your product for manufacturability and performance.
• Streamlined Supply Chains: Flex excels at managing complex supply chains, ensuring efficient sourcing, production, and distribution of your products.
• Value-Added Fulfillment: Flex offers a range of value-added services, such as kitting, assembly, and packaging customization.

Flex caters to a broader range of supply chain needs than a typical 3PL provider.  However, if your primary focus is on standard e-commerce fulfilment services like warehousing, pick and pack, and last-mile delivery, other providers on this list may be a better fit.

4. Ceva Logistics

Ceva Logistics is a renowned global logistics provider offering a wide range of services, including air, land, and sea transportation across the world. They cater to various industries and boast strengths in:

• Customized Solutions: Ceva offers the potential for tailored logistics solutions to meet specific industry needs.
• Real-Time Tracking and Booking: Their advanced tools provide real-time shipment tracking, tracing, and booking capabilities.
• Dedicated Transport Teams: Benefit from expertise across air, ocean, and road freight with Ceva’s specialized transport teams.

However, some limitations might be relevant for Singaporean e-commerce businesses considering Ceva:

• Global Focus: Ceva’s extensive global network may translate to higher costs and potentially longer fulfillment times for Singapore-based e-commerce businesses compared to providers with a more regional focus.
• Customization Challenges: Despite offering customization, some users report difficulty in obtaining solutions specifically tailored to e-commerce fulfillment needs.
• Delivery Concerns: Customer reviews mention instances of late deliveries exceeding estimated timelines, lost packages, and damaged goods during shipping.
• Customer Service Issues: A limited number of reviews highlight unprofessional driver behavior and difficulty reaching helpful customer support.

It’s crucial to weigh both Ceva’s strengths and potential drawbacks when making your decision.   For businesses requiring a global logistics partner with a broad range of services, Ceva may be a good fit. However, e-commerce businesses in Singapore might benefit from providers with a stronger focus on regional fulfilment, e-commerce expertise, and a proven track record of reliable customer service.

5. 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 bring to the table for businesses in Singapore:

• Extensive Network: DB Schenker boasts a robust network covering land, air, and ocean freight, ensuring seamless transportation across various locations.
• Contract Logistics Expertise: They offer contract logistics and 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, some limitations have been noted by users, which are crucial to consider for Singaporean businesses:

• Comprehensiveness: While DB Schenker offers a variety of services, some users report that their offerings may not be as comprehensive as those of other 3PL providers.
• Transparency Concerns: The complexities of contract logistics can make it challenging to maintain clear visibility of your products throughout the supply chain with DB Schenker.
• Delivery and Customer Service Issues: Customer reviews mention issues like missed deliveries, incorrect addresses, lost or delayed packages, and mishandled shipments.
• Communication Challenges: Difficulties reaching customer service via phone or email, and a lack of responsiveness to inquiries, are concerns raised by some users.
• Unexpected Costs and Delays: Customers have reported encountering unexpected charges and experiencing delays, particularly during customs clearance.

DB Schenker’s global network and contract logistics expertise can be valuable assets for certain businesses. However, concerns around transparency, customer service, and potential delays might be deal-breakers for some Singaporean e-commerce businesses. Carefully evaluate your needs and prioritize providers with a strong e-commerce focus and a proven track record of reliable service in the region.

6. ShipBob

ShipBob has carved a niche as a technology-driven 3PL provider, offering a comprehensive solution for businesses looking to scale their e-commerce operations globally.

Here’s a glimpse into what ShipBob brings to the table:

• Integrated Order Management: ShipBob’s fulfilment technology can be seamlessly integrated with your order management system to streamline your workflow.
• Global Distribution Network: Benefit from strategically located fulfilment centres around the world, ensuring faster delivery times for your international customers.
• Real-Time Inventory Control: ShipBob’s proprietary warehouse management system (WMS) gives you complete visibility and control over your inventory.
• Outsourced Fulfillment Expertise: Offload your fulfilment and logistics operations to ShipBob’s team of experts, allowing you to focus on core business activities.
• Data-Driven Insights: Make informed decisions with ShipBob’s robust analytics and reporting dashboard that provides valuable insights into your fulfilment performance.

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 fulfilment complexity. Carefully evaluate your needs to ensure it aligns with your budget.
• Focus on Established Businesses: ShipBob’s services may be more suitable for businesses with a larger existing customer base and higher order volume.

ShipBob excels at providing technology-driven, global fulfilment solutions. If you’re a growing e-commerce business in Singapore with aspirations for international expansion, ShipBob could be a strong contender. However, if you’re a startup or a smaller business with a primarily local customer base, exploring providers with more flexible pricing structures and a regional focus might be more suitable.

7. Beehive Fulfillment

Beehive Fulfillment in Singapore caters to e-commerce businesses seeking a flexible and scalable 3PL solution. Here’s what makes them stand out:

• Core Fulfillment Services: Beehive offers a comprehensive range of services, including storage, order fulfilment, fast order processing, accurate picking and packing, and secure storage facilities.
• Scalability: Their services are designed to adapt as your business grows. You only pay for the services you utilize, eliminating unnecessary overhead costs.
• No Hidden Costs: Beehive boasts no minimum contract periods, no setup fees, and a transparent pricing structure where you only pay for the services you use.

While Beehive offers a compelling solution for growing businesses, its core services may not cater to the specific needs of all e-commerce businesses. Compared to some providers on this list, Beehive’s service range may be more limited. Businesses requiring advanced features like multi-channel fulfilment, cross-border expertise, or value-added services like kitting or assembly might need to explore alternative options.

8. RAK Logistics

RAK Logistics, headquartered in Singapore, is a strong contender for businesses seeking a comprehensive global logistics partner. Here’s what sets them apart:

• Tailored Solutions: They offer customized logistics services, including warehousing and storage facilities strategically located in the USA, Netherlands, and UAE, catering to your specific needs.
• Global Reach: They have an extensive network covering air, ocean, and land freight transportation across the world.
• Industry Specialization: They possess deep industry expertise in various sectors, including fast-moving consumer goods, cold chain logistics, food and beverage, retail, energy, and, of course, e-commerce.

While RAK Logistics boasts a global presence, its warehousing facilities are currently located in the USA, Netherlands, and UAE.  If your primary focus is on regional fulfilment within Southeast Asia, other providers on this list with a stronger regional presence might be worth considering.

RAK Logistics is a strong choice for businesses in Singapore that require a global logistics partner with a proven track record and expertise in various industries. Their tailored solutions, project management skills, and e-commerce fulfilment capabilities make them a compelling option. However, if your primary focus is on e-commerce fulfilment within Southeast Asia, exploring providers with a more regional warehouse network might be beneficial.

Conclusion

Singapore’s thriving e-commerce landscape presents a golden opportunity for businesses. But navigating the complexities of fulfilment can be daunting. That’s where 3PL providers step in, offering a range of services to streamline your operations and ensure exceptional customer satisfaction.

This list has explored some of the top 3PL providers in Singapore, each with unique strengths and offerings.  From comprehensive solutions like Locad to flexible options for growing businesses like Beehive Fulfillment, there’s a perfect partner to propel your e-commerce success.

Remember, the ideal choice depends on your specific needs. Consider factors like your business size, target markets, budget, and required services. By carefully evaluating your requirements and the 3PL providers you shortlist, you can forge a strategic partnership that fuels your e-commerce growth in Singapore and beyond.