CRM in the logistics industry of Singapore

• Main Author: Mun, Yong Jian
• Other Authors: Chew Ah Seng, David
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business::General; DRNTU::Business::Management::Logistics
• Online Access: http://hdl.handle.net/10356/63700
• Institution: Nanyang Technological University

The logistics industry contributes significantly towards the GDP growth of Singapore. For the past 15 years, the government of Singapore has invested heavily and made significant improvements to the logistics transportation infrastructure. However, in 2014 Singapore’s overall ranking in the Logistics Performance Index (LPI) fell from 1st place to the 5th. This reveals that high logistic service performance goes beyond having good infrastructure, but also depends on other factors. Customer Relationship Management (CRM) software, a tool to understand customers in terms of buying habits, preferences and prospects, is one other way to improve overall logistics service performance. It is widely adopted by many industries to manage customer relationship and improve service standards. This project adopts the perspective of Shippers with supporting information from the 3PLs and CRM Vendors to examine the reason for low adoption rate of CRM, understand the viability of CRM implementation in the Singapore logistics industry and provide recommendations for the future. We began by researching on existing literature and holding preliminary interviews with 3PLs. Several salient points were identified and formed the basis of our survey questions. Through our findings, we learnt more about the indicated level of CRM Awareness and analysed the benefits, costs, motivators and barriers of CRM Adoption. Though discussion of alignments and misalignments in perception of CRM from the three stakeholders, we provided an assessment for CRM Awareness and accounted for the resulting level of CRM Adoption. Thereafter we discuss the viability of CRM in the Singapore logistics industry and provide recommendations for the future. In summary, this research paper identified that the overall awareness of CRM in Singapore logistics industry is high, but to varying degrees. Some 3PLs have only briefly heard of the term “CRM” while others are aware of how much the system costs and what benefits it may bring to their company. This is indicative that only a small percentage of CRM awareness is translated into adoption. We see a potential for growth of CRM, however proactive steps can be taken, such as taking advantage of government schemes e.g. “SkillsFuture”, to educate the companies and workforce with regards to the potential benefits of CRM.