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Singapore RDC Created FTA Savings and Doubled Storage Efficiency

A leading Southeast Asia retailer and distributor wanted a better regional distribution setup than its existing Hong Kong hub model. A new Singapore RDC improved network economics while creating a faster, more scalable warehouse design.

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Table of contents

Customer Overview

Challenges

Solution

Results

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Customer Overview

Leading retailer and exclusive distributor in Southeast Asia
Vertical: apparel, accessories, and footwear
Annual volume: 3.6 million pieces
Origins included Southeast Asia, China, Jordan, and Latin America

Challenges

Hong Kong hub structure prevented the distributor from realizing FTA savings
Floor-stack warehouse setup limited storage efficiency
Existing network design restricted flexibility for regional distribution

Solution

Conducted network analysis to identify the best hub location
Set up an RDC in Singapore to bypass the Hong Kong hub
Designed a 17,000-square-foot facility using racking, shelving, and a staffing model suited to seasonal demand

Results

Captured FTA savings through the revised distribution model
Improved speed, flexibility, and scalability with a new warehouse design
Increased storage density from 800,000 units in 27,000 square feet to 1.8 million units in 17,400 square feet

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