Avaya sets up Asian logistics hub here

Avaya sets up Asian logistics hub here

 

COMMUNICATIONS technology specialist Avaya is ringing in a new logistics gameplan for its Asian operations from Singapore.

 

The New Jersey-headquartered company has established its first Asian supply chain management hub in Singapore, to improve its finished goods distribution operations in Asia-Pacific.

 

The new warehousing facility at the Airport Logistics Park of Singapore (ALPS) will be managed by logistics services giant DB Schenker, a subsidiary of German national railway operator Deutsche Bahn.

 

Mark Leigh, president of Avaya Asia-Pacific, said yesterday the company’s growing manufacturing activities in the region precipitated its first distribution centre in Asia.

 

Establishing a logistics operation within Asia means faster delivery and lower freight charges when it comes to distributing Avaya products that are made in Asia-Pacific to other regional destinations, he said.

 

Specifically, the lead times for delivering goods within most parts of Asia can be slashed from 14 days to two. As well, the associated costs will be lowered by 80 per cent, Mr Leigh said. This is savings on mostly freight costs. And Avaya intends to pass on ‘most of the savings to our customers’.

 

He added: ‘We want to be more competitive in the market, and the more we move things to Asia and localise them, the better it will be for the customers and that gives us a competitive advantage.’

 

Mr Leigh said the company expects over 500 tonnes of IT equipment, worth over US$100 million, to pass through the Singapore facilities over the next 12 months.

 

Avaya manufactures business telephony equipment and specialises in communications and call centre solutions.

 

The company’s manufacturing facilities in China, Thailand and Indonesia serve its regional markets, which include Australia, China, India, Korea, Japan, and South-east Asia.

 

Elsewhere, Avaya’s other logistics hubs are located in the US, Germany, The Netherlands, Brazil and Canada.

 

For its fiscal year 2007, Avaya posted a turnover of US$442 million in Asia-Pacific. The company’s global turnover in the same year was US$5.28 billion.

 

Mr Leigh said Singapore was chosen over a shortlist of Asian countries, which included Hong Kong and Malaysia, because of the nation’s close proximity to regional customers, good infrastructure and the free trade zone status of the Airport Logistics Park of Singapore. ‘No other location came close,’ he added.

 

Singapore is also Avaya’s regional headquarters, which has 250 staff.

 

At yesterday’s announcement, Linda Sein, executive director for infocomms and media of the Economic Development Board (EDB), noted that Singapore is now home to more than two-thirds of the world’s most established third-party logistics players.

 

Singapore‘s strategic location and good business connectivity are reasons why network equipment providers such as Avaya, Cisco Systems and Harris Stratex have set up their headquarters here to manage their regional operations and supply chains, she added.

 

Source: Business Times

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