SINGAPORE - Singapore Post (SingPost) has signed a five-year deal with Google to move its IT workload to the cloud, which will boost efficiency and reduce operational costs, while setting it up for the next leg of expansion.
The deal also gives SingPost access to Google Cloud’s suite of AI (artificial intelligence) tools, which the rapidly-growing logistics player expects will supercharge its business and drive its next phase of growth. AI functions should boost employee productivity by streamlining repetitive tasks, and enabling them to seamlessly collaborate with external partners and customers.
While the company declined to comment on the value of the deal, other users of Google Cloud and its suite of tools said that charges are typically based on usage volume. The more frequently computations are made, the higher the charge, although the unit cost may be lower.
This is all part of SingPost’s efforts to digitalise its business, culture, and processes, beginning with moving technological systems managed in-house to the cloud, SingPost group chief information officer Noel Singgih told The Straits Times on Dec 12.
“We are also partnering with tech companies, such as Boomi, Quincus, NCS and others, to furnish us with the right technological services and capabilities so that we can deliver optimal value to our customers,” he said.
By the end of 2023, SingPost will have moved more than one third of its total workload on to Google Cloud, with the remainder following close behind, in line with the group’s multi-cloud strategy.
The move will yield not only substantial cost savings of some 30 per cent for its IT operations, but will also allow SingPost to take advantage of Google Cloud’s infrastructure, which can handle complex AI workloads, while also ensuring they are sustainable and can be scaled up.
Prototypes of AI solutions have been developed that SingPost is currently testing and applying to various uses, said Mr Singgih.
One streamlines the group’s eCommerce logistics operations, eliminating the need to manually key in partner and supplier information from trade documents, including those with handwritten inputs for database processing.
This frees employees from the drudgery of searching through document archives for the information they need, enabling them to focus on higher value-added tasks, such as making strategic decisions or interacting with customers.
“Eventually, these AI-enabled ways to doing things will spread through all aspects of our operations, from frontline staff who interface with customers, to a slew of internal functions, including route optimisation, as well as the more administrative ones, such as finance, human resource, procurement and legal, among others,” said Mr Singgih.
He noted that SingPost’s objectives extend beyond developing systems to use AI and generative AI.
“We want to foster a digital-first mindset across the organisation, not only to use data to boost smarter decision-making, but also to incorporate it into automation and embed AI in everything that we do,” Mr Singgih added.
SingPost has been no stranger to embracing innovative digital technology, from data analytics to warehouse automation, as it strives to meet the evolving needs of its customers.
This, coupled with strategic investment in high-growth markets, has resulted in international logistics making up 86 per cent of the group’s revenue, as it transforms itself from a Singapore-only postal service into a technology-driven global logistics enterprise.
SingPost has been diversifying its portfolio of external businesses, beginning with Australia, and now extending to South China’s Greater Bay Area, encompassing Guangdong, Hong Kong and Macao, through its newly opened Shenzhen office.
Mr Singgih said this expansion is being driven by SingPost acquiring new customers, as it focuses on trade lanes from Hong Kong to both Australia and South-east Asia, as well as to and from Europe and Asia.
