Global Takeoffs
Tune in to any business channel in Asia, and you're likely to catch Ken Koh, CEO of Yang Kee Logistics Group, championing Singapore's small to medium enterprises (SMEs). While Singapore serves as a regional hub for multinational corporations, the invaluable contribution of local SMEs and micro-enterprises to the economy cannot be overlooked. Employing 70% of the workforce and accounting for nearly half of the country's GDP, these indigenous businesses play a pivotal role in shaping Singapore's economic landscape. Inspired by the profound impact of native SMEs on national prosperity, Ken Koh made the pivotal decision to join his father's company, founded by Koh Yang Kee in 1990.
The University of Life's Lessons
After earning my degree in electrical engineering from Nanyang Technological University in 2000, I began my professional journey at Hewlett-Packard," Ken recalls. While harboring a long-standing aspiration to eventually join the family business, Ken recognized the abundant growth opportunities inherent in homegrown SMEs compared to multinational corporations. However, his entry into the family enterprise arrived sooner than anticipated, thanks to his father's persuasive nudges. At just 24 years old, Ken embarked on a journey of experiential learning within the company's IT department, gradually ascending the organizational ladder. His ascent culminated in his appointment as managing director in 2011.
Ken candidly acknowledges the challenges he confronted on his path to executive leadership, admitting that his journey has been marked by a series of trial-and-error endeavors.
After exploring entrepreneurship for two years, I realized my passion for sales and the corporate environment. Accepting an opportunity to join Healthway as a sales manager in 2004, my objective was clear: to revitalize sales performance. By infusing healthcare marketing with a sense of fun and creativity, I successfully navigated the challenge and achieved notable success.
The Challenge of Succession
Reflecting on the dynamics of many family businesses, Ken highlights a common challenge: the absence of a defined career trajectory or formal training program for successors. He describes his own entry into the business as akin to a "school of hard knocks."
Notwithstanding the hurdles encountered, both Ken and his father have propelled Yang Kee Logistics from its modest origins as a small transport company with only two trucks to its current stature as a comprehensive logistics provider. Specializing in freight forwarding and warehousing solutions, the company caters primarily to the chemical, consumer and retail, industrial, and oil and gas sectors. Strategically situated in Singapore's Jurong Port district, the company's headquarters boasts a 900,000-square-foot site, featuring a purpose-built chemical logistics hub inaugurated in 2012. This facility is slated to be complemented by a multimillion-dollar, five-level development in Tuas South, currently underway and slated for completion in early 2018.
Expanding Global Footprint
Honored as one of the recipients of the SME 100 Awards 2016, which celebrates Singapore's most dynamic and agile enterprises, Yang Kee Logistics now boasts a workforce exceeding 400 employees and maintains offices in seven countries across the Asia-Pacific region, including Cambodia, Thailand, and Malaysia. Viewing Singapore as a "saturated market," Ken is resolute in his ambition to extend the company's global footprint. He underscores the company's strategic shift towards international expansion, noting that the bulk of their resources and capital are invested overseas rather than locally. Ken envisions Yang Kee Logistics evolving into a billion-dollar enterprise within three years, predominantly fueled by ventures outside Singapore. He envisions establishing a comprehensive global network with proprietary offices in key markets such as the United States and Europe."
Initiating Global Expansion
Earlier this year, Yang Kee Logistics achieved a significant milestone in its international expansion efforts by acquiring an Australian company headquartered in Melbourne, details of which remain undisclosed. Ken anticipates that this acquisition will grant Yang Kee Logistics a firm foothold in Australia, inclusive of 200 personnel, three warehouses spanning four cities, and an estimated revenue of $150 million. With Australia secured, the company sets its sights on New Zealand as its next destination. Ken projects the acquisition of another company in New Zealand by the end of the first quarter of 2017, followed by a strategic pivot towards Europe. Ken envisions that by the year's end, the company's revenue will soar to approximately S$370 million.
Government Support for Growth
Yang Kee Logistics' remarkable growth trajectory has been bolstered by support from the Singapore government, which actively encourages SMEs to enhance their capabilities and expand into global markets. Ken acknowledges the government's backing, citing subsidies provided for the company's expansion endeavors. Through collaboration with International Enterprise (IE), a government agency dedicated to facilitating Singaporean companies' global expansion, Yang Kee Logistics benefits from initiatives such as the Internationalisation Finance Scheme (IFS). The IFS plays a vital role in underwriting loans and mitigating risks associated with overseas expansion, enabling businesses to navigate international markets with confidence. Additionally, Yang Kee Logistics leverages IE's Manpower Development program, which offers assistance in attracting top-tier C-suite and executive-level talent to spearhead international initiatives. Notably, the current CEO of Yang Kee, Jos Raaymakers, hails from the Netherlands and boasts a wealth of experience, having previously served as managing director East Asia for a multinational corporation."
Innovative Technological Advancements
Ken Koh identifies internationalization and manpower development as two of the three primary areas in which SMEs significantly contribute to Singapore's economy, with productivity and innovation completing the quartet. Drawing on innovation as a prime example, he elucidates how each element synergistically reinforces the other. Traditionally, logistics has been perceived as a blue-collar domain, but Ken underscores the company's strategic utilization of technological advancements to attract and cultivate talent within the industry. Despite his charismatic presence injecting personality into both the company and the sector at large, Ken acknowledges the prevailing perception that labor-intensive roles, such as those in logistics, lack excitement and allure, particularly in comparison to fields like finance, banking, or consultancy. In response, Yang Kee Logistics is integrating novel technologies into its operations to elevate the value-added aspect of its work, thereby rendering it more appealing and engaging for the workforce.
Ken identifies robotics as the most captivating innovation driving industry transformation, particularly within warehouse environments. Automated guided vehicles (AGVs) represent a significant leap forward, facilitating cargo transport from containers to warehouse loading bays. The implementation of robotics has significantly diminished the demand for manual labor, as forklift operations have transitioned to complete automation. Moreover, substantial investments in software, including enterprise-level systems, enable real-time monitoring of operational activities, providing employees with comprehensive visibility into cargo movement. While each innovation contributes to a reduction in manpower requirements, Ken emphasizes the tangible benefits accruing to employees. The company's policy dictates that savings resulting from reduced manpower costs are reinvested in employee development initiatives, including training and salary increments, fostering an environment conducive to personal and professional growth.
Embracing Corporate Welfare
Yang Kee Logistics is renowned for its extensive array of employee welfare initiatives, epitomizing its commitment to nurturing a supportive work environment. The in-house logistics academy offers internal training opportunities, particularly at the senior management level, resulting in enhanced skill sets and elevated income levels. Additionally, the company actively participates in the SkillsFuture Earn and Learn scheme, facilitating the seamless transition of graduates from Singapore's Polytechnic and the Institute of Technical Education (ITE) into their chosen careers. To further cater to mid-career professionals seeking entry into the industry, Yang Kee Logistics spearheads a professional conversion program. Corporate welfare initiatives extend beyond training, encompassing annual fitness days, family events, and the provision of onsite childcare facilities and nursing rooms for working mothers, underscoring the company's family-centric ethos.
Navigating Growth Challenges
Ken candidly acknowledges the challenges arising from Yang Kee Logistics' rapid expansion, particularly concerning the integration of long-serving employees with new recruits. Ensuring a smooth transition has been a primary focus during his tenure, as the company endeavors to harmonize the expertise of existing staff with the fresh perspectives brought by professionals from multinational backgrounds. Effective communication has been instrumental in addressing these challenges, with Ken spearheading numerous meetings to elucidate the rationale behind organizational changes and emphasize the imperative of adapting to evolving market dynamics.
Setting the Standard in Service Excellence
Differentiating itself in the saturated Singaporean logistics landscape, Yang Kee Logistics prioritizes service excellence and personalization in client interactions. The company's selective approach to customer engagement underscores its commitment to delivering exceptional service, leveraging corporate governance practices on par with industry giants while providing a level of personalized attention unmatched by larger competitors. By striking a balance between corporate governance standards and personalized service, Yang Kee Logistics has garnered considerable traction among multinational corporations, cementing its reputation as a trusted logistics partner.
Looking to the Future
Ken envisions Yang Kee Logistics evolving into the premier logistics partner of choice for discerning clients, synonymous with reliability and excellence in service delivery. By prioritizing supplier relationships and fostering an environment of mutual respect and collaboration, the company ensures seamless operations and exceptional customer service. As Ken fervently believes, logistics permeates every facet of daily life, playing an indispensable role in facilitating the movement of goods and services. With its corporate ethos encapsulated in the tagline 'We Move Together,' Yang Kee Logistics remains steadfast in its commitment to facilitating the seamless movement of people, goods, and ideas, ultimately enriching lives and driving progress."