DPM Tharman Shanmugaratnam at the Opening Ceremony of the DHL Advanced Regional Centre on 19 April 2016

Dr Frank Appel, Chief Executive Officer, Deutsche Post DHL 
Distinguished guests,
Ladies and Gentlemen,

Introduction

It is my pleasure to join you here this afternoon to celebrate the opening ceremony of DHL Advanced Regional Centre (ARC). 

The ARC signifies yet another milestone in the strong partnership between DHL and Singapore: it is one of DHL’s most technologically advanced facilities globally, and home to both the Asia Pacific Innovation Centre (APIC) and the Global Centre of Competence for Automation. 

Logistics as one of the first sectors in the Industry Transformation Programme

These developments also illustrate the strong partnerships we are creating between government and industry, to transform Singapore logistics. Logistics is in fact one of the first sectors in the implementation of the Industry Transformation Programme that we announced recently in Budget 2016. The programme will involve partnerships to develop and embrace new technologies and innovations, to deepen skills and ultimately to capture new growth. 

The ARC is a good example of this joint government-business commitment to develop best-in-class supply chain practices and innovations. 

At the forefront of changing trade and technology

The world of logistics is indeed changing rapidly. Global megatrends such as urbanisation and technological advancements are opening up major new growth opportunities for the industry.

Maturing technologies such as automation and sensors can offer significant improvements in both efficiency and service, as well as create new value for specialized customers. For example in cold chains and pharmaceuticals, sensors allow product traceability and remote monitoring of quality.  Such technologies are set to become the industry standard as adoption levels are projected to reach 80 to 90% by 2019¹.

Emerging technologies such as 3D Printing and autonomous vehicles also have the potential to disrupt supply chain². With the advancement in 3D printing technologies businesses, especially niche and high-tech companies, can add new value through better customization, and focus on after-sales service. This also presents new opportunities for logistics companies to develop new business and service models such as in on-demand and predictive replenishment of spare parts.

The Asia Pacific Innovation Centre (APIC) will pilot and develop many new solutions using these emerging technologies. The multi-shuttle automation system in DHL’s regional centre is an excellent case of an automation solution that is adaptable for multiple clients and business models.

I understand that this is DHL’s first innovation centre outside of Germany. It will leverage DHL’s best-in-class operations, the tremendous growth of Asia logistics and an ecosystem of companies, institutes and agencies eager to develop partnerships.  This includes start-ups, suppliers and customers which DHL will co-innovate and co-develop new solutions with.  Equally, it will tap unto a skilled and future-ready logistics workforce that we are investing in.

Deepening Logistics Skills and Leadership

The growth and transformation journey in the logistics and supply chain industry will also create new and exciting opportunities at work for Singaporeans.

Through SkillsFuture, we are working with the logistics industry and schools on enterprise-level and industry-level programmes to equip Singaporeans with the skills and exposure to make the most of these opportunities.

The ARC is a good example of what future jobs might look like.

Through the deployment of large-scaled warehouse automation machines will increasingly take over the more laborious and mundane tasks. Jobs in the warehouse will shift towards more complex and control tower functions, and present attractive career opportunities in logistics.

Automation will also create demand for jobs such as solution designers, automation specialists and Information System Specialists. An example is the Global Centre of Excellence for Automation housed in the ARC. Working closely with customers, the team was instrumental in the design and implementation of the state-of-the-art automation in this facility. 

Pre-Employment

Aside from the Earn and Learn programme, I previously announced the Enhanced Internships for Logistics. The pilot batch consists of 48 students across 8 participating companies. Of these 48 students, I am happy to note that 11 are with DHL Supply Chain.

In-Employment Skills Development 

However, the development of new skills and competencies in the course of everyone’s careers will be critical. The SkillsFuture Study Award encourages Singaporeans to develop the deep skills needed in future areas of demand. We target to award 50 of these special awards for the logistics sector this year.

We are also working on the development of a ladder of skills in each industry, together with certification of skill levels attained. DHL itself is a leader in developing skills in employment. It has developed its own Certified Supply Chain Specialist (CSCS) programme, which is now in the midst of being rolled out globally across all DHL Supply Chain’s operations. The programme will also cover knowledge and appreciation of working with new technologies.  I hear that all senior management in DHL, including CEO Dr Appel himself attends the CSCS training. In Singapore, more than 1,800 employees have attended the foundation course since August 2014 to deepen their understanding of the fundamentals of supply chain.

Strengthening leadership

Apart from building deep capabilities in our workforce, we are keen to work closely with companies to create leadership development opportunities for Singaporeans.

The SkillsFuture Leadership Development Initiative (LDI), spearheaded by EDB, seeks to groom the next generation of business leaders by helping aspiring Singaporeans to acquire leadership competencies and critical experiences.

I am pleased to learn that DHL Supply Chain will launch in Singapore, its first regional management associate programme - AGILE  - which I understand stands for Accelerated, Growth, International, Leadership, Excellence. It will offer attractive opportunities for aspiring Singaporeans to gain exposure across different markets and functions, preparing them for regional and management responsibilities in the company. Our partnership with DHL in leadership development is the first for the logistics sector and we look forward to more of such meaningful partnerships to strengthen opportunities for Singaporeans.

Conclusion

This is both a challenging and exciting time in our logistics and supply chain industry. The ARC is an important milestone in this journey to level up the industry, deepen collaboration in the co-innovation of future supply chain solutions, and create exciting opportunities for Singaporeans.

Once again, my heartiest congratulations to DHL and I look forward to your continued partnership and support.

Thank you.

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¹ According to Deloitte and the Material Handling Institute (in the US) -  https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-rele...
² 2015 UPS survey of high-tech companies found that 35% of them companies are planning on near-shoring.