This article is part of a series exploring movers and shakers in Malaysia’s logistics segment. Stay tuned to Smart Investor for more updates!
Managing Director Richard Goh
Established: 2013 (Singapore), 2018 (Malaysia)
Core Business: Supply chain and logistics software solutions provider
Management Team: Richard Goh (Managing Director), Eunice Ngiao (Country Manager, Malaysia), Susi Soh Hui Ling (Deputy MD) and Budiyanto Tanjung (Regional GM)
Headquarters: Taman Seputeh, Selangor
1. As a fresh face in Malaysian logistics, could you share a little about Infolog and its journey in the region to date?
We started in Singapore with warehouse management systems (WMS), eventually venturing into transport management systems. More recently, we’ve focused on end-to-end IT and technology solutions, integrating robotics, material-handling equipment, and handheld and voice-picking technologies into our portfolio.
These have been available for some time, but larger players can take time to adopt new innovations, with significant effort and costs. Infolog is a fast-growing company, and we move faster and more effectively than larger players, saving costs and giving shorter ROIs for clients.
The difficult part was talent acquisition and retention. We trained our team ourselves and sent them out to handle projects and gain exposure.
2. What competitive advantage does Infolog bring with it to domestic clients?
The industry is now more demanding. The focus is less on products and more on solutions, particularly one-stop solutions for the value chain as a whole, facilitating coordination with multiple stakeholders.
Infolog provides the infrastructure which underlies operations, from customer ordering portals to the WMS to fleet management, including truck status and availability.
The technology that we use is unique, with SOPs and templates in place for diverse requirement profiles, cutting deployment times by up to 40%. This translates into cost savings for the client. In general, they can expect ROI time frames from two to three years.
3. What opportunities and challenges do you see in the Malaysian market moving forward?
With the introduction of robotics and automation into our portfolio, we look to double our group revenue by 2022. Expanding into Malaysia, we find the main hurdle here is costs.
Local players can offer solutions at 50% to 60% our cost, though these can lack the range of Infolog solutions, which are geared towards enterprises while being highly scalable. Even so, we find that comparisons here often take price as sole basis, without considering features.
However, we think there is potential in the market as labour costs are set to increase in the next few years. As these get higher, it will reach a point where automation makes sense and enterprise solutions are more justifiable to SMEs. There are also still many SMEs here which operate with legacy systems, so penetration is still low.