On January 9th, 2024, Boomi, the intelligent connectivity & automation leader announced that in order to meet its digital transformation goals, Singapore Post Limited has incorporated the Boomi platform for enhancing operational efficiency & speed customer onboarding.
According to a recent report, Asia’s e-commerce revenues alone are predicted to reach USD 1.92 trillion by 2024. SingPost - as one of Asia Pacific’s leading postal & e-commerce logistics providers, serves thirteen markets across two hundred and twenty global destinations.
SingPost embarked on a digital transformation project by focusing on e-commerce parcel delivery domestically as well as internationally. It has adopted advanced technology including a customizable data integration platform & generative AI. With an aim to modernize its business, the company needed a scalable & effective solution for data transformation & mapping, coupled with integration & API management, in the face of a complex supply chain landscape & improve customer satisfaction.
“We needed a strategic integration platform for electronic data interchange (EDI) and API integration to provide agility and scalability for our businesses and seasonal demands,” said Noel Singgih, Group CIO, SingPost.
“With the Boomi platform, we can now onboard our customers 75 percent quicker, from five to six weeks to under two weeks. Our partnership with Boomi helps us improve visibility over our delivery and order fulfillment, making us more nimble & competitive to meet the needs of marketplaces and ecommerce retailers,” he adds.
“In a digitally connected world, staying ahead of the curve is key. Boomi enables companies to innovate quickly and at scale to meet their digital transformation and business goals. We are honored to partner with SingPost as it transforms into a digital-first company, focusing on real-time data-driven insights,” said Thomas Lai, Vice President and General Manager for Asia Pacific and Japan, Boomi.
Global Market Access and International Trade
The global e-commerce market size was estimated at USD 25.93 trillion in 2023 and is projected to grow at a CAGR of 18.9% from 2024 to 2030. Ecommerce has demolished geographical barriers. It has enabled manufacturers to easily access global markets with ease. Conventional manufacturing in the early 21st century most of the time relied highly on a network of distributors as well as intermediaries for reaching international customers. However, international e-commerce platforms that include Amazon & Alibaba have empowered manufacturers for showcasing their products to a worldwide audience directly.
Therefore, this has democratized global/international trade, which has allowed even petty manufacturers for competing on a large scale - in international scale without the requirement for an extensive physical presence in every market. The result is even more interconnected as well as accessible by the players in the global market place and here manufacturers can navigate seamlessly the diverse regulatory environments & tap into new customer bases. Some of the top ecommerce companies include Shopify, Amazon, Ebay, Etsy and others.
Supply Chain Efficiency and Integration
The impact of ecommerce on the manufacturing industry extends to supply chain dynamics. This fosters unprecedented levels of efficiency as well as integration. What has transformed supply chains is the real-time communication, automation technologies & data exchange where it has helped supply chains in minimizing lead times & optimizing inventory management.
Manufacturers today possess the capability of collaborating seamlessly with suppliers as well as distributors via digital platforms. This has helped in enhancing transparency & reducing disruption risks. This interconnectedness facilitates in agile response to the surge in market demands as well as changes, since manufacturers can adjust the manufacturing schedules as well as inventory levels in real-time. Furthermore, technologies like RFID & IoT devices that contribute to improved visibility throughout the supply chain, not only enabling smoother logistics but also reducing operational costs. Some of the top supply chain solution providers include DHL, FedEx, CEVA Logistics, and others.
Direct-to-Consumer Sales & Customer Relationships and Marketplace Integration & Increased Visibility
E-commerce has facilitated manufacturers in establishing direct relationships with end consumers via DTC sales and this has disrupted the conventional retail model. This shift is transformative since manufacturers can now gather direct feedback, provide a personalized shopping experience and control their brand narrative. Manufacturers can sell directly to consumers by using their online platforms, which bypasses intermediaries & helps gain insights into consumer behavior. Customization & personalization options also improve customer satisfaction, since consumers can customize products for meeting their specific preferences. Thus, this direct engagement helps in both fostering brand loyalty and allows manufacturers to gain valuable data on consumer trends, which enables them for adapting their offerings to changing market demands.
Participation in online marketplaces represents another facet of e-commerce’s impact on manufacturing. Platforms like Alibaba, eBay, and Amazon, offer manufacturers with numerous channels for showcasing & selling their products. Although these marketplaces render increased visibility, they also come up with challenges like increased competition as well as reliance on third-party platforms. However, strategic integration with online marketplaces helps manufacturers to test new markets, tap into a broader customer base, & benefit from the existing infrastructure of the marketplace for transactions & logistics.
Data driven decision making & Business Intelligence
Ecommerce platforms help in generating a wealth of data on customer behavior, preferences, as well as market trends. Manufacturers can use this data for making informed decisions, improve the overall customer experiences, and refine their product offerings. Manufactures gain insights into customer purchasing patterns through analytics & BI tools, by allowing for targeted marketing strategies & more effective inventory management. Since manufacturers can find out inefficiencies, demand fluctuations and use proactive measures, data-driven decision-making also extends to optimization of supply chain.
Synder – a cloud-based ecommerce accounting and analytics software offers 360-degree business overview via a BI dashboard. It connects with more than twenty five different data sources which includes ecommerce platforms, payment systems etc.
In conclusion, the transformative impact of e-commerce on the manufacturing sector is multi-faceted and this also touches upon all aspects of the value chain. Right from global market access to technology adoption, manufacturers today are navigating the digital aspect that demands a customer-centric approach agility, & innovation. For manufacturers who are looking to thrive in the evolving landscape of the 21st century embracing these changes is not just a necessity for survival but also a strategic imperative.