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Extra data server and split-team setup: How foresight helped logistics firm thrive during the pandemic

Having planned ahead, CBG Logistics worked through Covid-19 successfully and managed to boost its revenue by nearly 50 per cent

CBG Logistics aims to replace the older trucks in its fleet with electric ones in the next five years. PHOTO: CBG LOGISTICS

When the Covid-19 pandemic hit Singapore in 2020, CBG Logistics was better prepared than many other firms. 

As one of the requirements needed in the process of attaining the ISO 22301 certification for business continuity management systems, the company set up data servers in two places, trained staff to adjust to split-team arrangements, and even role-played scenarios before the pandemic. 

“All this became very handy, especially during the circuit breaker, when we were allowed to keep operating as a vendor for essential businesses,” says managing director Martin Koh, 49.

Even as some competitors fared poorly during the crisis, CBG Logistics continued operating and managed to attract more clients. From 2019 to 2022, it increased its revenue by 49 per cent and headcount from 34 to 55, earning it a spot in the list of Singapore’s Fastest Growing Companies 2024, which is compiled by The Straits Times and Statista.

“We are very happy to be included in this year’s list as it is a recognition of our efforts over the years,” Mr Koh says. 

Since CBG Logistics was founded in 2005, it has invested in its own trucks and warehouses, spending $3 million in the past five years to offer comprehensive and customisable logistics. It currently has a staff strength of 61, as well as 15 trucks and four warehouses, including one in Keppel Distripark’s Free Trade Zone for transshipment cargo.

In 2020, it attained the accreditation of Secure Trade Partnership (STP) by the Singapore Customs consistent with the World Customs Organisation (WCO) SAFE Framework of Standards to secure and facilitate global trade.

 

Its services include preparation of import and export documents, customs clearance, general and hazardous goods transport, warehousing, management of inventory, air and sea freight forwarding. It also has a petroleum and flammable material transport licence from the Singapore Civil Defence Force so it can transport dangerous goods by road in Singapore. 

In the early years, CBG Logistics relied on external vendors for goods transport and warehousing, which limited its growth. 

“By having our own infrastructure, we can cater to prospective clients’ needs and adjust our service to their requirements. We can also train downline staff, such as those who work in the warehouses we rent, to follow our customer operating procedures, which was not always possible when we outsourced to vendors.”

Nurturing a strong workforce

To sustain its growth over the long term, CBG Logistics has also put in place policies to motivate staff to stay and accumulate experience. 

It has created senior positions within its divisions, which include global freight, transport and warehousing, so that staff can climb the professional ladder. At least half of its employees have been with the firm for five years or more. 

“We also embrace diversity. We treat all our staff the same way, regardless of whether they are Singaporean citizens or work pass holders. Everyone gets an equal opportunity at promotion, regardless of their age and gender, as long as they perform well,” says Mr Koh.

He adds that CBG does not mete out punishments for mistakes, but instead analyses the incidents and makes improvement in the work processes. He explains: “This encourages our employees to own their mistakes and be accountable for them.”

The company continues to find ways to stay ahead of the curve. With demand for sustainability on the rise, its latest and fourth warehouse uses only electric forklifts and reach trucks. It is also looking at replacing the older trucks in its fleet with electric ones in the next five years. 

“Together with a greener warehouse, we plan to get the Singapore Accreditation Council’s certification for Good Distribution Practice For Medical Devices by this year, to tap the growing market for medical logistics in Singapore,” Mr Koh shares. 

With these initiatives, he believes CBG will grow even more in the future. “Our vision is to be the leading logistics solutions provider for businesses in South-east Asia, by leveraging Singapore’s strategic location as a global hub.”
 

Click here to read more stories on Singapore’s Fastest Growing Companies 2024. 

 

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