SingPost Singapore Elevates Logistics Strategy
Singapore Post Ltd (SingPost) is rapidly transforming its business model, shifting from traditional mail services to a stronger focus on e-commerce and logistics. This strategic shift comes as the demand for conventional mail continues to decline.
According to Li Yiu, CEO of SingPost’s international business, there has been a significant drop in domestic letters volume. In 2022, domestic letter volumes plunged to 260 million. This is a significant drop from the 490 million letters sent in 2015. “We recognized the need to adapt to market changes. So we pivoted towards logistics to harness emerging trends,” Yu stated in an interview with Singapore Business Review.
Logistics now represents a dominant 69% of SingPost’s revenue. It contributed $1.17 billion out of the total $1.69 billion for the fiscal year ending March 2024. SingPost’s net profit more than doubled to $81.5 million. Despite a revenue drop from $1.87 billion the previous year due to reduced sea freight revenue. This demonstrates the success of its new focus.
Yu emphasized that aligning with the growth of the e-commerce logistics sector is crucial for SingPost’s ambition to achieve market leadership and deliver sustainable growth. Global e-commerce sales have surged from US$3.4 trillion in 2019 to US$5.8 trillion in 2023. Furthermore, projections reach US$8 trillion by 2027, according to Statista. “This growth reflects a shift in consumer behavior, driving the need for adaptable supply chains,” Yu noted.
Logistics partnerships part of SingPost strategy
To support its logistics-centric strategy, SingPost has forged partnerships with international postal services. It has expanded its reach into new markets such as the Baltics and the Middle Corridor. Additionally, its acquisition of Australia’s Border Express bolsters its presence in the region, with overseas operations now contributing over 85% of total revenue.
SingPost has also enhanced its logistics offerings by providing return management and customized delivery options, crucial factors influencing consumer purchasing decisions. The company’s investment in technology, including IoT-enabled tracking and generative AI for optimizing delivery routes, underpins this transformation. Furthermore, SingPost’s “Future of Work” initiative focuses on upskilling employees to align with its technology-driven approach.
With over 4,900 employees and operations in 14 markets, SingPost is positioning itself as a leader in the evolving global logistics landscape.
