Avaya Chooses Singapore as Asia Pacific Supply Chain Management Hub

Avaya, a global provider of business communications applications, software and services, has established a finished goods distribution center in Singapore as part of its new supply chain management strategy for Asia Pacific. The company estimates that the first phase will see an annual turnover of over 500 tonnes of IT equipment worth over USD100 million out of Singapore.

As part of the new strategy, all Avaya products manufactured in Asia Pacific will be consolidated and shipped to regional customers and business partners from the island nation. Avaya’s manufacturing facilities located in China, Thailand and Indonesia serve the region including Australia, China, India, South East Asia, Korea and Japan. The company expects cost savings of up to 80 percent and a reduction in lead time for delivery of products from 14 days to as short as two days for most of the region.

The three main drivers for choosing Singapore as the hub were cost savings, shorter delivery times, and close proximity to customers and business partners. Avaya is now able to respond more quickly to orders from business partners and pass on these cost savings as freight costs are significantly reduced.

Other locations that Avaya considered include Hong Kong and Malaysia. Singapore’s strategic location in Asia and its world-class infrastructure were key factors for the company in establishing its regional supply chain management center here. In addition, the hub's close proximity to Singapore's award-winning Changi Airport means Avaya is now able to fulfill orders faster than ever before.

Leading global integrated logistics service provider DB Schenker will manage the finished goods distribution center for Avaya in Singapore. The distribution center is housed at DB Schenker Megahub, which is the largest integrated freight and logistics facility in the Airport Logistics Park of Singapore (ALPS). Its strategic location within the Free Trade Zone translates to vital business advantages for Avaya such as minimal customs formalities, tax suspension, and reduced touch points. This is in addition to the freight savings, shorter transportation lead time, lower inventory holding costs and improved service levels enjoyed by Avaya and its business partners. Outsourcing the warehouse operations allows Avaya to focus on its core competencies, and to leverage DB Schenker’s global expertise in logistics and transportation.