Singapore Post (SingPost) has inked a five-year deal with Google to transition its IT workload to the cloud, a move aimed at enhancing operational efficiency, reducing costs, and positioning the company for future expansion. As part of this strategic collaboration, SingPost gains access to Google Cloud’s suite of artificial intelligence (AI) tools, anticipating that these advanced capabilities will propel its business growth. SingPost’s Chief Information Officer, Noel Singgih, highlighted the company’s commitment to digitalization, starting with the migration of in-house managed technological systems to the cloud. This shift is part of SingPost’s broader efforts to embrace digital technologies, including AI, to stay ahead in the rapidly evolving logistics landscape.
By the conclusion of 2023, SingPost plans to migrate more than one-third of its total workload to Google Cloud, adhering to the company’s multi-cloud strategy. The move is expected to yield substantial cost savings, estimated at around 30% for its IT operations, while also leveraging Google Cloud’s robust infrastructure capable of handling complex AI workloads. The strategic partnership also enables SingPost to explore innovative solutions, with prototypes of AI applications already in development and undergoing testing.
One notable application involves streamlining eCommerce logistics operations through AI-enabled automation. This involves eliminating manual data entry tasks, such as keying in partner and supplier information from trade documents, improving efficiency, and freeing up employees to focus on more strategic and value-added responsibilities. This marks a significant step towards fostering a digital-first mindset across the organization, utilizing data for smarter decision-making and incorporating AI into various operational aspects.
Singgih emphasized that SingPost’s digital objectives extend beyond implementing AI solutions; the company aspires to instill a culture of digital-first thinking across its operations. This includes incorporating data-driven decision-making, automation, and embedding AI into every facet of the business, from customer-facing interactions to internal functions like route optimization, finance, human resources, procurement, and legal, among others.
SingPost has a track record of embracing innovative digital technologies, from data analytics to warehouse automation, as part of its commitment to meeting the evolving needs of its customers. The company’s strategic investments in high-growth markets have transformed it from a Singapore-focused postal service into a globally competitive, technology-driven logistics enterprise. With international logistics now constituting 86% of its revenue, SingPost is expanding its footprint from Australia to South China’s Greater Bay Area, encompassing Guangdong, Hong Kong, and Macao, as it strategically positions itself for further growth in the global logistics landscape.
