Singapore delivery firms resort to tech to cope with holiday shopping rush

FedEx Singapore has deployed a robotic sorting arm powered by artificial intelligence to streamline package handling. "We are also ramping up manpower to support the sorting of inbound and outbound shipments, deploying additional couriers to manage increased volumes and extending operational hours where needed," Eric Tan, managing director of FedEx Singapore, The Straits Times newspaper quoted him as saying.

The company has upgraded its air network in recent months to provide faster and more reliable services, helping businesses thrive during the peak holiday season and beyond, he said.

Ninja Van Singapore has extended the operating hours of its sorting belts in factories, starting at 9 a.m. instead of the typical 6 p.m., to handle increased parcel volumes, according to country head Justina Sim. The company has also hired additional permanent and temporary staff, though it has been tempered by upgrades to its automated facilities.

Passers-by hold their mobile phones as people take a selfie photo using a smartphone, with Singapore's central business district skyline, in Singapore, May 10, 2019. Photo by Reuters

DHL Express invested over €100 million (US$104 million) globally this quarter to expand its transport and handling capacities. It also uses digital tools powered by AI and machine learning to process customer requests more efficiently, Ken Lee, its CEO for the Asia-Pacific, said.

The company upgraded several facilities across the region in 2024, installing X-ray scanning and sorting machines to make inspections faster and more accurate in detecting suspicious goods, he said. He added that demand has been unpredictable this year due to inflation and rising interest rates, but DHL recorded a 20% increase in e-commerce deliveries in Singapore between August and October.

Ninja Van also reported a significant rise in volumes following the Nov. 11 sales campaign. "In comparison to previous years, which experienced a huge surge due to the pandemic-driven e-commerce boom, the increase this year is more muted," Sim said.

But the companies were not willing to disclose actual figures.

E-commerce platforms are also preparing for the rush. Shopee is running regular sales campaigns and offering next-day delivery to meet strong consumer demand. It plans to improve customer service by responding to over 95% of calls and chats promptly and resolving issues within a day, according to Chua Kel Jin, its Singapore director.

Singapore-based Zalora is leveraging a subscription program that offers personalized perks to attract and retain loyal customers. A spokesperson said: "These loyal customers are significantly more valuable, spending two to three times more than average shoppers."

The Asia-Pacific region’s business-to-consumer and business-to-business markets continue to grow, driven by supply chain diversification and e-commerce expansion, according to DHL’s Lee. "These enhancements support our customers during the traditional peak season, when consumer e-commerce traffic will spike."