SnT Global to provide integrated logistics solution in Iskandar Malaysia, Johor Bahru, the gateway to ASEAN markets.
JOHOR BAHRU: Higher productivity, a reliable supply chain and lower operating cost is what SnT Global offers businesses operating in Iskandar Malaysia (IM), a statement backed completely by its upcoming state-of-the-art logistics facility in Johor Bahru, scheduled to be completed by the end of 2017.
The completion of the 120,000 ft² state-of-the-art warehouse facility on a 10 acre land bank in SILC, Johor Bahru and the stationing of a large land transport fleet comprising trained personnel and new vehicles will serve a key role in supporting business operations in the region, driving costs down and supporting rapidly growing e-commerce, FMCG, apparel and bio pharma industries.
The Gateway to the ASEAN market.
Modelled after the Pearl River Delta Economic Zone, Iskandar Malaysia is located on a strategic sea trade route that connects South East Asia, China and the rest of Asia.
Its proximity to the economic and financial hub of Singapore is another factor encouraging its growth, drawing huge investments into the area from the international space as well as Singapore itself.
With rising land prices putting a strain on physical retail stores, driving many out of business, e-commerce platforms are transforming the retail landscape, with more than 47% of consumers now making their purchases online on their smartphones.
To date, the IM contributes RM62 billion (USD20 billion) of the national GDP and a population of about 1.3 million workers, immigrants, residents and tourists. SnT’s entry into the economic zone comes at a strategic time, providing businesses and start-ups in the area a reliable yet low-cost supply chain and logistics capability crucial to their operations.
The establishment of SNT’s warehouse facility in Iskandar is part of Digital Malaysia’s initiative, driven by the MDEC in positioning Malaysia as the preferred location for the setup of regional logistic centers.
High tech equipment, trained workforce and low labour costs.
Currently, SnT Global operates a fleet of over a hundred vehicles and a workforce of 200 employees across the country. The completion of the Iskandar Malaysia facility will extend its reach to the Singapore-Johor Bahru Ring Road.
SnT Global leverages on the lower labour cost in Johor Bahru in addition to maintaining highly trained drivers whose understanding of traffic peak hours and good work ethic will avoid incurring unnecessary cost and, more importantly, meet delivery timelines and avoiding delaying shipments – an issue that could cut profit margins and damage a businesses’ reputation.
A fully hosted E-Logistics platform also facilitates efficient management of its fleet, diverting it away from traffic jams or to shorter and faster routes, and monitoring the location and heading of its fleet to ensure that it is adhering to their plan and not veering off course for any reason.
The availability of skilled labour at a lower cost in the ASEAN region is a primary factor propelling Malaysia and South East Asia forward as a major international logistics hub. Taking advantage of the lower labour cost, additional tasks can be outsourced to SnT facilities, including packing, stuffing and un-stuffing, labelling and product return management.
This also includes first and last mile delivery (referring to the last phase of delivery of a package to its final destination) that provides strong support for domestic and e-commerce related shipping and delivery.
A multilingual and multi-skilled local workforce also contributes significantly to its attractiveness to the international market.
Strategic partnerships, government support.
SnT Global works closely with its partners across the region, including other logistics companies to improve its flexibility, allowing for otherwise unassigned resources to be allocated in a more efficient manner.
It has also formed strategic partnerships with major technology developers Microsoft, Hewlett Packard Malaysia and Peering One Sdn Bhd.
This collaboration has supported the development of its software, equipment and infrastructure which have been key to improving its overall efficiency and capabilities, including its automated warehouses, computerized E-Logistics platform and e-fulfilment system.
The company is also recognized as a pioneer by the Malaysian government and is supported by incentives by its various organizations, including the Malaysian Investment Development Authority (MIDA), Multimedia Development Corporation Sdn Bhd (MDeC), The Performance Management & Delivery Unit (PEMANDU), Outsourcing Malaysia (OM) and PIKOM.