Young logistics company shows impressive growth

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  • Monday, 17 Nov 2014

JUST two years after logistics company SnT Global Sdn Bhd was set up in 2000, chief executive officer David Wong introduced the company’s first garment-on-rack (GOH) system.

According to Wong, SnT was among the first logistics companies to implement the system used in supply-chain services in Malaysia.

The system occupies the company’s warehouse in Subang where it incorporates space-saving and labour reduction ideas designed specifically to address the requirements of retailers that are SnT’s customers.

These include the likes of regional retail companies such as Robinsons, Anakku, Marks & Spencer and Cotton On.

The GOH system involves the storage, transportation and distribution of apparel in warehouses.

Wong said the system took the complexity of storing and distributing goods out of the hands of the retail chains, who instead relied on SnT to manage these services.

The company handles the logistics for companies such as Robinsons, Marks & Spencer, Anakku and Cotton On.
The company handles the logistics for companies such as Robinsons, Marks & Spencer, Anakku and Cotton On.

The company’s Subang location plays host to a three-tier warehouse with racks of apparel on each level.

“This helps us to optimise space and make stock checks possible at all levels,” Wong said.

The garment rack system allows for easier warehousing and distribution of apparel from the supplier to the warehouse and later to retail outlets around the Klang Valley and around the region.

Wong said the company was set to introduce newer innovations in the warehouse soon.

“We are currently piloting a new system which will make stock count easier. It is currently used by US retailing giant Walmart and makes it easier for us to identify the products placed on racks without having to go through them one by one,” Wong said.

Each product in the warehouse will have a unique identity and will be tracked via a radio frequency identification (RFID) system, which will make stock counts much faster.

“With the new system, all we will need is to scan the products from a distance to obtain information such as the colour, size and amount of each product in a box or a rack,” he said.

The system will be introduced next year.

As a logistics-services provider, SnT Global does more than just provide a location to house goods. It also provides supply chain solutions.

The company focuses on all elements of supply chain management by being a single point of contact for warehousing, transportation and distribution, freight and forwarding.

Beyond this, the company reviews and analyses its clients’ supply chains and helps them to save costs where possible.

“We’re not just about providing services, but also about driving efficiency and making sure the whole supply chain is cost-effective runs smoothly,” he said.

The company provides these services and solutions for fast-moving consumer goods, electronic equipment, and certain types of food.

Each item that has been tagged will be sorted according to the retail store it will be sent to.
Each item that has been tagged will be sorted according to the retail store it will be sent to.

Currently, SnT Global Sdn Bhd is focusing its efforts on making Malaysia the ideal location to set up a logistics hub by working together with its partner, WH Distripark, a newly developed logistics distribution hub located in the Iskandar Development Corridor in Johor to enable manufacturers, distributors and online retailers to penetrate the Asean market via a single point for fulfilment services.

“Malaysia is a promising market and has some of the largest ports in the region and this hub will enable us to position Malaysia as the e-fulfilment hub for e-commerce and create a conducive environment for Singapore to re-locate their logistics activities to Malaysia,” he said.

The new hub falls under the Digital Malaysia project, the last block of the Economic Transformation Plan, and is intended to highlight how the nation can leverage technology.

The logistics hub will have three warehouses and facilities for pharmaceutical research, production and distribution.

The main focus of the logistics hub is biopharma, fast moving consumer goods, e-commerce goods like apparel and books.

The hub will provide value-added services such as packaging and end-to-end tracking, including last-mile delivery.

Its logistic systems will support retailers by providing fulfilment solutions after an order is made.

Wong said there was much to gain from relocation of Singapore logistics activities to Malaysia.

“The relocation is expected to result in 30% to 40% savings in operating cost, while maintaining the same service levels. This hub will enable retailers to deliver further and cheaper which is good for the end-users, the customers,” he said.

The hub, strategically located between Singapore and Kuala Lumpur, will benefit from the lower costs for things such as utilities, haulage and manpower in Malaysia.

The hub aims to significantly lower both regional and international freight charges as well as logistics costs, provide efficient services and solution and effective e-fulfilment operations and coordination.

Apart from attracting Singapore companies, the hub will also enable overseas online merchants to penetrate into the Asean market.

WH Distripark, SnT Global’s partner for the logistics hub, develops logistics distribution hubs that meet specific customers’ requirements.

It provides flexible multi-tenant, built-to-suit, and sale-and leaseback solutions, dedicated to improving supply chain efficiency for the most dynamic biopharma manufacturers, e-commerce, e-tailers and third-party logistics companies in the world.

Among the advantages of the new logistic hub in Johor is its close proximity to Singapore and its high-value pharmaceutical and medical centres.

SnT Global has already engaged consultants and research companies to help seek customers to outsource, purchase or lease a warehouse in the new logistics hub.

As the hub in Johor is in its design phase, a temporary hub in Tampoi has been set up to serve customers.

The logistics hub in the Iskandar region in Johor is expected to be completed in 2016.

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