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Regional Distribution in Singapore

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Synopsis

APL Logistics setup a Regional Distribution Center (RDC) in Singapore and bypassed the Hong Kong hub, helping to achieve FTA savings, and incorporated a new warehouse design which provided speed, flexibility, and scalability for operations.

Customer Overview
  • Company: A leading retailer and exclusive distributor in South East Asia
  • Vertical: Apparel, accessories, and footwear
  • Volume: 3,600,000 pieces
  • Storage capacity: 1,200 cbm
  • Origins: South East Asia, China, Jordan, Latin America
  • Destinations: South East Asia
Challenges
  • Customer operates Hong Kong hub as consolidation center for South East Asia origins
  • Distributor currently buys from Hong Kong hub thus does not receive FTA savings for shipments to South East Asia destinations
  • Current warehouse configuration is floor stack with multiple SKU stored in one pallet
Apl Logistics Solutions
  • Initial network analysis was done to determine the best hub location for distributor
  • Proposed solution is to set up an RDC in Singapore and bypass Hong Kong hub
  • Proposed facility layout of 17,000 square feet with a combination of pallet racking for palletized cargoes and shelving for pick face
  • Proposed operation includes permanent staff and temporary staff to cope with seasonal volume fluctuation
Benefits
  • FTA savings through APLL supply chain solutions
  • New warehouse design provides speed, flexibility & scalability
  • Space optimization: 27,000 square feet for 800,000 units to 17,400 sqft for 1,800,000 units

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