DBS offers SMEs in logistics sector a digital solutions package

DBS Bank's Ms Tan Su Shan with Mr Ken Koh, group CEO of Yang Kee Logistics, the first company to sign up for the bank's digital logistics solutions package. PHOTO: DBS
DBS Bank's Ms Tan Su Shan with Mr Ken Koh, group CEO of Yang Kee Logistics, the first company to sign up for the bank's digital logistics solutions package. PHOTO: DBS

DBS Bank has rolled out a digital solutions package for small and medium-sized enterprises (SMEs) in the logistics sector, with the aim of helping them tackle challenges in regional expansion and keeping up with evolving consumer needs and emerging business trends.

Launched at the Logistics Disrupt by DBS BusinessClass event yesterday, the package includes solutions for supply-chain financing and traceability, real-time trade financing applications and funds settlement through the SME's enterprise resource planning or internal systems.

Other features include instant payment collections and refunds via the clients' online portals, mobile apps or DBS MAX.

The logistics sector contributes about 7 per cent to Singapore's gross domestic product, and companies in the sector are looking to tap the growth of South-east Asia's e-commerce industry, which is projected to grow to US$100 billion (S$138 billion) by 2025.

But SMEs in the logistics sector face challenges, including lack of access to trade financing solutions, operational inefficiencies from paper-based and manual processes, lack of supply-chain traceability, and payment and collection inefficiencies, said DBS.

"Customers looking to expand overseas need more advisory services and solutions and we are here to help them take the first step," said Ms Tan Su Shan, group head of institutional banking at DBS Bank.

"We hope to make banking simpler and more seamless for our customers, so they have a more structured approach to their regionalisation plans."

Added Ms Joyce Tee, group head of DBS Bank's SME banking arm: "The needs of SMEs in the logistics sector are diverse as they have to keep their eye on everything from inventory, timing of goods shipped and received, cash flow and expansion needs.

"As a responsible banking partner, we want to provide a greater selection of solutions that will help them grow their footprint."

The first SME to sign up for the package was Yang Kee Logistics, a Singapore-based company that has a presence in 12 markets and is looking to grow its regional footprint.

Said its group CEO, Mr Ken Koh: "Expanding into new markets is always challenging, as we lack market knowledge and understanding of regulatory requirements. Partnering DBS gives me the confidence to take our regionalisation plans to the next phase."

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on October 10, 2019, with the headline DBS offers SMEs in logistics sector a digital solutions package. Subscribe