Investing in tech and relationships: How S’pore logistics firm grew … – The Straits Times
Ever wondered how your online overseas orders reach you so quickly?
Logistics is the industry that takes care of transport, storage, shipping, Customs clearance, tracking and delivery of your orders, overcoming unprecedented disruptions like a global pandemic.
Singapore is a renowned logistics hub that has been ranked the top in Asia since 2007 by the World Bank. One of the companies behind this achievement is JGL Worldwide.
The company that has network offices in Asean ships footwear, garments, canned food, furniture, electronics, automotive-related parts, chemicals, solar panels, industrial-related items and other general cargo.
Revenue soared 366 per cent from $12.8 million in 2018 to $59.6 million in 2021 for its Singapore office alone amid a surge in demand during the Covid-19 pandemic. This has brought JGL Worldwide to rank 33rd in Singapore’s Fastest Growing Companies 2023 list by global research firm Statista and The Straits Times.
JGL Worldwide’s cargo transaction volume was rising 5 to 10 per cent from 2018 to 2020, driven by existing business.
In 2021, the company retained not only existing customers but also drew new clients that contributed a “significant volume” of cargo transaction, says chief executive Daniel Lim.
“The company enjoyed a surge in the second half of 2021 when the demand for container space was critical in the market,” he adds.
The exceptional rush in volume had to be met by necessary price increases, a factor that also contributed to the boost in revenue, says Mr Lim.
Strong relationships and bespoke solutions
JGL Worldwide could meet the surge in container demand amid global supply chain disruptions thanks firstly to strong partner relations.
The company’s history goes back to 1994 when Mr Lim and other co-founders set up G Link Express that was later sold twice.
On the second management buyout in 2013, Mr Lim, together with partners Mr David Hia and Mr Desmond Gay, reorganised and restructured the company to become what it is today.
As the company grew following the restructuring, it also began to design logistics solutions that are current and relevant to customers’ evolving and different needs. JGL Worldwide reaped rewards with its bespoke and personalised logistics solutions that drove its growth especially during the pandemic, according to Mr Hia, its chief operating officer (COO).
Business continuity plan and technology
The jump in revenue between 2018 and 2021 would not have been possible without a business continuity plan that guided the company through the pandemic.