UPS Expanding Logistics Options for Intra-Asia Customers

Opening distribution hub at Airport Logistics Park Singapore to serve as key operations center for South Asia

Opening distribution hub at Airport Logistics Park Singapore to serve as key operations center for South Asia

Changi Airport, Singapore — April 11, 2005 — While trade to and from Asia, particularly China, has attracted much attention in recent months, demand also is steadily rising for improved air freight and logistical options for goods moving within Asia, and UPS has responded to this increased need by launching an effort to extend new freight and logistics options to customers doing business within that region.

The business demands and lengthy trade lanes within Asia are underscoring the need for fast and flexible supply chains, according to UPS. "The need for regional distribution, replenishment and logistics services continues to grow, particularly in the South Asia region," said John Hafferty, UPS Supply Chain Solutions vice president for Asia operations. "We're expanding to provide more regional distribution services."

As part of the effort, UPS Supply Chain Solutions is building a distribution and logistics hub in Singapore within the Airport Logistics Park Singapore, or ALPS. The 425,000-square-foot facility, scheduled to open in early 2006, will serve as one of the company's key operations centers for South Asia.

Air, Ocean Freight at Single Hub

UPS has had a presence in Singapore since 1988. The new facility, which also is close to the ocean port, will allow UPS to provide both air and ocean freight as well as logistics activities in a single hub. That means large shipments can be shipped to Singapore and then quickly broken down into smaller shipments for rapid redistribution to their final destinations. Moreover, the facility will be capable of providing specialty services such as kitting, critical parts distribution, returns and repair, and warranty management., UPS said

ALPS is Singapore's first logistics free trade zone (FTZ) and opened in March 2003. It is located adjacent to the Changi Airport.

UPS said that because its Supply Chain Solutions facility is located within the FTZ, customers can save time and money on documentation, customs clearance and transportation. "For example, the goods and services tax is suspended within the FTZ until the cargo is redistributed, and since ALPS has a dedicated customs checkpoint, the process of customs clearance averages eight minutes or less," UPS said in announcing its new capabilities.

Greater Speed, Flexibility Seen

"This ALPS location provides the flexibility that we need for greater speed and efficiency in transportation and documentation, and allows UPS to expand freight capabilities and provide the distribution services this region needs," Hafferty added.

"We are excited about UPS's latest expansion," said Manohar Khiatani, director for logistics and transport engineering with the Singapore Economic Development Board. "This is a clear vote of confidence that Singapore is an attractive and competitive location for UPS to serve its global customers. We are committed to strengthening our capabilities and infrastructure to address the changing needs of businesses."

The logistics and distribution facility will increase by 50 percent the company's logistics and distribution operations in Singapore. In addition to the logistics and distribution business, the UPS package operation's Asia headquarters is located in Singapore.

Elsewhere in Asia, UPS Supply Chain Solutions recently announced a building program in China that will add 20 additional facilities through 2006.

Additional Articles of Interest

— Imminent terrorist attacks or no, your competitive advantage demands that you secure your company's supply chain. Read more in "Supply Chain Security: Is Your Company Complacent or Engaged?," in the February/March 2005 issue of Supply & Demand Chain Executive.

— For a look at how Tyco Fire & Security is tackling trade compliance issues in its global supply chain, see "Turning Global Trade Compliance Into a Competitive Advantage," in the August/September 2004 issue of Supply & Demand Chain Executive.

— For more information on the challenges and opportunities presented by increasingly global supply chains, see the special in-depth report in the August/September 2004 issue of Supply & Demand Chain Executive, which includes the following articles:

— For more information on the global supply chain, with a focus on security issues, see "Building the Secure Supply Chain," the Net Best Thing article in the June/July 2003 issue of iSource Business (now Supply & Demand Chain Executive) magazine.

— For more information on the latest trends in the logistics space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.