Brands and retailers should find it easier to move goods across China and the Asia Pacific with the formation of a new global logistics company, SP Commerce.
It is the result of Singapore Post integrating its eCommerce division, SingPost eCommerce, with the US company it recently acquired, Trade Global Holdings, and the Jagged Peak company.
The integration helps Singapore Post expand its eCommerce logistics footprint in the US and provide access to markets in China and the rest of the Asia Pacific.
SP Commerce offers end-to-end services spanning webstore development, global fulfilment, omni-channel order management, cross-border commerce, performance marketing and customer care services. Already, SingPost provides end-to-end eCommerce logistics for more than 100 brands such as Adidas, Calvin Klein, Cole Haan and Muji.
A Forrester study commissioned by Accenture and Hybris Software, an SAP company, has shown that consumer online buying experiences have business suppliers racing to meet buyer demands. The study also noted that 83 per cent of B2B sellers are either upgrading or implementing their eCommerce offerings, or are planning to do so within six months.
With the demand for omni-channel commerce gaining momentum, integrated technology will be needed along with fulfilment capabilities on an international scale. Brands and retailers will need strong localisation to succeed in this arena.
SP Commerce has a scalable logistics infrastructure to serve global customers. With about 1000 eCommerce clients internationally, SingPost has more than 50 distribution centres across at least 18 countries, including the US and Europe.
SingPost saw a 384 per cent spike in domestic eCommerce orders year-on-year in South-east Asia and Australia during the Black Friday and Cyber Monday shopping period last year. It also shipped 4.6 million cross-border packages in November – and increase of about 60 per cent.
Through its eCommerce networks, SingPost processes about US$3 billion in gross merchandise value annually. Related revenue remains robust, says the company, at about 29 per cent of the group’s revenue for the half-year ended September 30.
“The launch of SP Commerce marks a significant milestone in SingPost’s transformation from a domestic postal service provider to a global eCommerce logistics enabler,” says SingPost eCommerce CEO Marcelo Wesseler.
“We are well positioned to provide the gateway for brands and retailers with sights set on international markets to grow their businesses.”
Another focus is to support commerce in the US domestic market.
“We believe that a strong business foundation in the home market makes a solid springboard for global expansion.”