SINGAPORE: As global supply chain disruptions, rising fuel prices and manpower shortages continue to pressure businesses, more Singapore companies are turning to automation to improve efficiency and strengthen resilience.
From artificial intelligence-powered warehouse systems to automated storage and retrieval technology, firms in the logistics and manufacturing sectors are rethinking how they manage inventory, labour and deliveries, while transforming workers into higher-skilled roles.
At Singapore PharmaTech, which manufactures and distributes nutraceuticals, automation has dramatically changed warehouse operations.
The company began using an automated storage system that increased usable warehouse capacity from about 30 per cent to nearly 80 per cent. What was once unused vertical storage space – as it would have been too high for workers to climb up – is now almost fully utilised.
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Using sensors and heat maps, the system automatically determines where parcels should be stored, improving inventory accuracy while reducing manual stocktaking and paperwork.
Before automation, inventory checks and audits were labour-intensive and often inaccurate because goods were constantly moving in and out of the warehouse.
“Last time, we counted (our stock) by hand. Basically, it was impossible to get everything accurate,” said the supplement firm’s director Zhang Weijia.
“Now, with the robot, we don't even have to determine where each parcel goes – the robot will automatically do it.”
An automated robot (R) can handle goods from high-rise shelves, helping Singapore PharmaTech maximise warehouse space and raise usable storage capacity.
The system has helped the company scale operations from handling a few hundred parcels daily to as many as 5,000.
“Nowadays, especially with e-commerce, everyone expects (deliveries) instantly,” Ms Zhang said. “We cannot stop; our warehouse operates almost every single day. So, automation has really helped us transform.”
Like many small- and medium-sized enterprises (SMEs), Singapore PharmaTech turned to automation in part due to manpower shortages.
Ms Zhang said attracting workers has become increasingly difficult, especially for smaller firms competing for talent.
“Logistics aside, the number one biggest challenge is really manpower. Local graduates … all want something more glamorous, (bigger) company names,” she told CNA.
“It's very hard to hire for certain jobs, especially those that are viewed as less skilled, such as warehousing and manufacturing. We have to make it up with automation.”
Beyond filling labour gaps, automation has enabled employees to move into higher-skilled positions such as machine operations and systems management.
The company has also created internal training pathways to help junior staff progress into more technical roles.
“We’re able to supercharge our employees and make sure that they have all the best tools to move ahead, produce a lot more and do the more high-skilled jobs,” said Ms Zhang.
Still, the transition was not without challenges. Ms Zhang said it took at least six months to calibrate systems, redesign workflows and train workers before operations stabilised.
Over at Frosts Food and Beverage, the F&B supplier has also invested in automated storage retrieval systems (ASRS) and warehouse management software to improve operational efficiency.
Previously, workers had to manually organise and retrieve stock. Now, automated systems track and handle goods more accurately and seamlessly.
The company’s group managing director Julie Haw said the technology has helped reduce wastage, optimise delivery routes and cut unnecessary mileage.
“When you are a lot more accurate with what you’re doing, your wastage is less,” she said. “With the ASRS and warehouse management system, which comes with auto-routing, it definitely shortens the number of miles a truck needs to take on the road.”
The improvements come as the company faces higher fuel prices, increased air freight costs and shipment delays linked to tensions in the Middle East and broader global supply chain disruptions.
Ms Haw said companies like hers are often unable to immediately pass rising costs on to clients such as supermarkets and retailers.
“There’s a big lag between when they will accept our price increases and when those costs hit us,” she said. “As a result, we are often the ones who have to stomach the fluctuations.”
She said the company’s transformation efforts began long before recent geopolitical tensions emerged.
She added that long-term investments in automation and efficiency improvements have helped cushion the impact of unexpected disruptions, including during the COVID-19 pandemic.
Robots sort parcels by scanning, identifying and directing packages to their designated locations with greater speed and accuracy.
While automation can improve productivity, implementing new systems often requires companies to rethink workflows.
To support businesses in this transition, Republic Polytechnic’s Supply Chain Innovation Lab allows companies to test automation and digital tools before committing to major investments.
The lab showcases technologies ranging from inventory management and packing systems to AI tools that identify process improvement and safety opportunities.
"Companies can first experience and try out different solutions before investing. This allows (them) to weed out solutions that are not practical for them,” said Mr Edmund Chan, director of the school’s Centre of Innovation for Supply Chain Management.
The lab also helps workers understand how automation may change their job scopes and workflows before implementation.
According to Mr Chan, the centre has worked with about 260 companies so far, helping some cut workloads by as much as half through digitalisation and process improvements.
He added that greater supply chain visibility also enables firms to respond more quickly to disruptions and unforeseen events.
Industry players say automation technology has advanced rapidly and is now more accessible than ever, even for smaller businesses.
“We are quite convinced that automation is now available at scale. If you're a small company, it's also available in modular fashion. In many cases, there's a positive return on investment,” said Enterprise Singapore’s (EnterpriseSG) Mr Jesse Satria Oeni.
The statutory board’s director for logistics and mobility added that some companies have already achieved two to three times productivity gains through automation.
But at the same time, Mr Oeni acknowledged that upfront investment costs can still be a barrier for some firms.
“Usually, people adopt these solutions because they’re sustainable on a longer-term basis,” he said. “Where companies may need a bit of initial push is at the start of the investment, as they may not have the cashflow to undertake the capital expenditure. But there are a lot of solutions (and) financing options available.”
Still, he stressed that businesses should not wait for major disruptions before transforming their operations. For instance, he noted that fleet operators who transitioned early to electric vehicles are now less affected by high diesel prices.
“We (don’t) need to wait for crises to act. It’s important to focus on longer-term transformation so that we're not caught up by the next crisis,” he said.
For many firms, automation is increasingly seen as essential to staying competitive.
“Automation is a tool that we have to use. If we don't, we will die out,” said Singapore PharmaTech’s Ms Zhang. “It's already a (competition) to see who uses automation the best … out there. The gap (is now) wider between those who can use automation and those who cannot.”
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From artificial intelligence-powered warehouse systems to automated storage and retrieval technology, firms in the logistics and manufacturing sectors are rethinking how they manage inventory, labour and deliveries, while transforming workers into higher-skilled roles.
At Singapore PharmaTech, which manufactures and distributes nutraceuticals, automation has dramatically changed warehouse operations.
The company began using an automated storage system that increased usable warehouse capacity from about 30 per cent to nearly 80 per cent. What was once unused vertical storage space – as it would have been too high for workers to climb up – is now almost fully utilised.
CNA Games
Show More Show Less
Using sensors and heat maps, the system automatically determines where parcels should be stored, improving inventory accuracy while reducing manual stocktaking and paperwork.
Before automation, inventory checks and audits were labour-intensive and often inaccurate because goods were constantly moving in and out of the warehouse.
“Last time, we counted (our stock) by hand. Basically, it was impossible to get everything accurate,” said the supplement firm’s director Zhang Weijia.
“Now, with the robot, we don't even have to determine where each parcel goes – the robot will automatically do it.”
An automated robot (R) can handle goods from high-rise shelves, helping Singapore PharmaTech maximise warehouse space and raise usable storage capacity.
The system has helped the company scale operations from handling a few hundred parcels daily to as many as 5,000.
“Nowadays, especially with e-commerce, everyone expects (deliveries) instantly,” Ms Zhang said. “We cannot stop; our warehouse operates almost every single day. So, automation has really helped us transform.”
MANPOWER CHALLENGES
Like many small- and medium-sized enterprises (SMEs), Singapore PharmaTech turned to automation in part due to manpower shortages.
Ms Zhang said attracting workers has become increasingly difficult, especially for smaller firms competing for talent.
“Logistics aside, the number one biggest challenge is really manpower. Local graduates … all want something more glamorous, (bigger) company names,” she told CNA.
“It's very hard to hire for certain jobs, especially those that are viewed as less skilled, such as warehousing and manufacturing. We have to make it up with automation.”
Beyond filling labour gaps, automation has enabled employees to move into higher-skilled positions such as machine operations and systems management.
The company has also created internal training pathways to help junior staff progress into more technical roles.
“We’re able to supercharge our employees and make sure that they have all the best tools to move ahead, produce a lot more and do the more high-skilled jobs,” said Ms Zhang.
Still, the transition was not without challenges. Ms Zhang said it took at least six months to calibrate systems, redesign workflows and train workers before operations stabilised.
IMPROVING EFFICIENCY AMID RISING COSTS
Over at Frosts Food and Beverage, the F&B supplier has also invested in automated storage retrieval systems (ASRS) and warehouse management software to improve operational efficiency.
Previously, workers had to manually organise and retrieve stock. Now, automated systems track and handle goods more accurately and seamlessly.
The company’s group managing director Julie Haw said the technology has helped reduce wastage, optimise delivery routes and cut unnecessary mileage.
“When you are a lot more accurate with what you’re doing, your wastage is less,” she said. “With the ASRS and warehouse management system, which comes with auto-routing, it definitely shortens the number of miles a truck needs to take on the road.”
The improvements come as the company faces higher fuel prices, increased air freight costs and shipment delays linked to tensions in the Middle East and broader global supply chain disruptions.
Ms Haw said companies like hers are often unable to immediately pass rising costs on to clients such as supermarkets and retailers.
“There’s a big lag between when they will accept our price increases and when those costs hit us,” she said. “As a result, we are often the ones who have to stomach the fluctuations.”
She said the company’s transformation efforts began long before recent geopolitical tensions emerged.
She added that long-term investments in automation and efficiency improvements have helped cushion the impact of unexpected disruptions, including during the COVID-19 pandemic.
Robots sort parcels by scanning, identifying and directing packages to their designated locations with greater speed and accuracy.
TRYING SOLUTIONS BEFORE INVESTING
While automation can improve productivity, implementing new systems often requires companies to rethink workflows.
To support businesses in this transition, Republic Polytechnic’s Supply Chain Innovation Lab allows companies to test automation and digital tools before committing to major investments.
The lab showcases technologies ranging from inventory management and packing systems to AI tools that identify process improvement and safety opportunities.
"Companies can first experience and try out different solutions before investing. This allows (them) to weed out solutions that are not practical for them,” said Mr Edmund Chan, director of the school’s Centre of Innovation for Supply Chain Management.
The lab also helps workers understand how automation may change their job scopes and workflows before implementation.
According to Mr Chan, the centre has worked with about 260 companies so far, helping some cut workloads by as much as half through digitalisation and process improvements.
He added that greater supply chain visibility also enables firms to respond more quickly to disruptions and unforeseen events.
AUTOMATION BECOMING MORE ACCESSIBLE
Industry players say automation technology has advanced rapidly and is now more accessible than ever, even for smaller businesses.
“We are quite convinced that automation is now available at scale. If you're a small company, it's also available in modular fashion. In many cases, there's a positive return on investment,” said Enterprise Singapore’s (EnterpriseSG) Mr Jesse Satria Oeni.
The statutory board’s director for logistics and mobility added that some companies have already achieved two to three times productivity gains through automation.
But at the same time, Mr Oeni acknowledged that upfront investment costs can still be a barrier for some firms.
“Usually, people adopt these solutions because they’re sustainable on a longer-term basis,” he said. “Where companies may need a bit of initial push is at the start of the investment, as they may not have the cashflow to undertake the capital expenditure. But there are a lot of solutions (and) financing options available.”
Still, he stressed that businesses should not wait for major disruptions before transforming their operations. For instance, he noted that fleet operators who transitioned early to electric vehicles are now less affected by high diesel prices.
“We (don’t) need to wait for crises to act. It’s important to focus on longer-term transformation so that we're not caught up by the next crisis,” he said.
For many firms, automation is increasingly seen as essential to staying competitive.
“Automation is a tool that we have to use. If we don't, we will die out,” said Singapore PharmaTech’s Ms Zhang. “It's already a (competition) to see who uses automation the best … out there. The gap (is now) wider between those who can use automation and those who cannot.”
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