Singapore Post and Google Cloud have signed a five-year strategic agreement to accelerate Singapore Post's digital transformation and sustainability efforts.。

SingPost has migrated all IT workloads hosted in its on-premises data centers to Google Cloud and is coordinating and consolidating its technology stack, a move that has not only resulted in a significant 30% savings in IT operating costs, but has also been able to leverage Google Cloud's infrastructure to ensure its sustainability and scalability.。This will undoubtedly improve SingPost's operational efficiency and reduce operating costs, while preparing for the next expansion。

Through this transaction, SingPost employees will receive a suite of artificial intelligence (AI) driven tools to increase productivity, simplify repetitive tasks, and facilitate seamless collaboration with external partners and customers.。

Noel Singgih, Group Chief Information Officer, SingPost, said: "SingPost has been meeting the changing needs of many customers with innovations ranging from data analytics to warehouse automation.。In addition, thanks to our strategic investment in high-growth markets, international logistics revenue accounts for 86% of the group's revenue, which is an important milestone in our transformation into a technology-driven logistics enterprise.。"

Layer by layer penetration AI completely changes the logistics industry

AI is revolutionizing supply chain management and logistics and giving businesses a competitive advantage in uncertain markets.。After the outbreak, AI helped a number of companies ensure business continuity。Today, with the development of generative artificial intelligence (GenAI) solutions, the industry's bright spots are not just delivery automation and route management。

In logistics and supply chain management, AI enables:

• Route optimization and delivery automation: AI reduces fuel consumption, carbon emissions, costs and delivery times by using real-time data such as traffic, weather, road conditions and customer preferences to find the best delivery routes。
• Demand forecasting: AI can analyze data from multiple sources, such as sales history, market trends, weather, customer behavior and social media, to accurately predict future demand, so that enterprises can optimize inventory, simplify supply chain processes and reduce the risk of out-of-stock or excess.。

• Improved loading​​Process：AICan use computer vision, robots and sensors to improve handling efficiency, and reduce labor costs and human error。

With GenAI, companies in the logistics industry can automate paperwork, predict operating results, tariffs, and even negotiate freight rates。As the heat for sustainability continues to rise, GenAI can also play a key role in creating an environmentally friendly supply chain。

Technology-driven digital logistics in hot progress

Since participating in the "AI Trailblazers" program jointly implemented by Google Cloud and the Singapore government, SingPost has worked with Google Cloud to develop an AI solution that eliminates the need for employees to manually enter partner and supplier information into a database, simplifying its e-commerce logistics operations.。

According to reports, the AI solution is based on Google Cloud's Vertex AI platform, basic model and Document AI, which can convert unstructured data in transaction information into a searchable repository, and is equipped with a chat interface supported by GenAI, which can query and display accurate information after understanding natural language.。

During use, SingPost retains full control over the data, including prompts and user input during inference when using Vertex AI。This means that the data does not need to leave SingPost's Google Cloud environment, is encrypted both in transit and at rest, and cannot be accessed by Google Cloud or any other external party.。

Mark Micallef, Managing Director, Google Cloud Southeast Asia, said: "By investing in AI development and a collaboration platform with built-in privacy, control, security and compliance capabilities, SingPost empowers every employee to identify and achieve optimizations at work and is poised to become a leader in logistics service innovation.。"

SignPost will also work with Google Cloud to expand the use of its solutions, with the goal of optimizing supply chain orchestration across the logistics network and facilitating faster delivery.。

As a result, SingPost is also using Vertex AI to explore solutions for several other use cases, including automating internal legal document reviews and providing more personalized interactions to enhance customer service.。

Not only that, but SingPost has replaced traditional production tools with Google Workspace's Duet AI, increasing the efficiency of employee writing, visualization, organization and connection, such as applications for front-line service management, inventory management, delivery route optimization, etc. IT administrators can set governance parameters for how these applications are created and used。

To further protect its enterprise data and applications, SingPost has also deployed Google Cloud's BeyondCorp Enterprise platform to protect data by implementing zero-trust security principles such as multi-factor authentication and device verification, ensuring that only authorized employees can access proprietary company information.。