Logistics management is a critical component of any successful Singapore trading business. By ensuring that your logistics are handled efficiently and effectively, you can minimize the risk of lost or damaged goods, keep your inventory organized and streamlined, and ensure that your customers receive their orders on time.

Understanding the logistical structure of a trading company

Logistics is the backbone of any business, especially trading businesses. Managing and organizing logistics is essential for any company looking to streamline its operations and optimize its profits. In this article, we will explore the logistical structure of a typical Singaporean trading company.

Firstly, let’s take a look at the different types of logistics that a Singaporean trading company might have. The most common types of logistics are:

  • Inbound logistics: This is the process of receiving and organizing goods received from suppliers.
  • Outbound logistics: This is the process of shipping and delivering products to customers.
  • Warehouse and storage: This is the process of storing goods in a designated area until they are needed.
  • Transport: This is the process of moving goods from one place to another.

Each of these types of logistics can be further broken down into more specific tasks. For example, inbound logistics might include tasks such as order processing, inventory management, and quality control. Outbound logistics might include tasks such as shipping and delivery, order tracking, and customer service.

A Singaporean trading company will typically have a team of employees who are responsible for each of these tasks. However, the company might also outsource some or all of these tasks to third-party providers. This can be a cost-effective solution for companies that don’t have the resources or expertise to handle all of the logistics themselves.

Finally, it’s important to note that the logistical structure of a Singaporean trading company will vary depending on the type of products and services that they offer. For example, a company that specializes in exporting goods will have different logistics needs than a company that specializes in importing goods.

In conclusion, managing logistics is a critical part of any Singaporean trading company. By understanding the different types of logistics and the tasks involved in each, companies can create a streamlined and efficient logistical structure that will help them to optimize their profits.

Important aspects in logistics management

Logistics management is an important aspect of any business, but it is especially crucial for Singapore trading companies. There are a number of things to consider when managing your company’s logistics, and if you overlook even one, it could have a serious impact on your bottom line.

Warehouse management

Warehouses are an important part of the logistics process. They are used to store goods that are either being shipped out or are incoming. There are a few things to consider when setting up and managing a warehouse.

The layout should be designed to maximize space and boost productivity for both the staff and machines. It’s best to sit down and talk with your draftsmen about exactly what you expect from the design. Wider access doors? More conspicuous signage? Closer changing rooms? – These are some of the most commonly overlooked aspects that can influence how smooth your flow of operation will be.

Golden zoning” is the prime tenet behind warehouse design and operates on the idea of minimizing time and human effort via space optimization. The aisles should be wide enough for a forklift to move through and the racks should be placed so that the goods can be easily accessed. Your workers are sure to be more productive if they rarely need to lift their arms too high or do any intensive movements for long durations.

Inventory management also needs to be in place. A centralized tracking system will help tremendously in making sure there’s enough stock to fulfill customer orders. And by extension, give proper warning in a case of shortage.


The logistics staff of a Singapore trading company play an important role in ensuring that goods are delivered to the right place at the right time. They must be able to manage and coordinate the distribution of goods and materials, as well as handle any related paperwork.

Having a cohesive workforce will make or break your entire operation. With orders coming in by the dozens at a time, you need people that know when and where to be at all times. You will need someone to manage the warehouse and pack/unpack the goods and operate the forklift.

Equipment & Transportation

When setting up a Singapore trading company, you will need to manage the transportation and equipment needs of your business. By understanding the different options available to you and planning ahead, you can reduce costs and ensure your goods are delivered on time.

There are several ways to manage the logistics for your Singapore trading company. You can choose to do it yourself, hire a third party or use a combination of both. Each option has its own advantages and disadvantages, so you will need to weigh up the pros and cons before making a decision.

You find a reputable company that can meet your needs. They will take care of transportation and equipment for you, and you can focus on running your business. However, you will need to pay for their services, which can be expensive.

If you decide to do it yourself, you will need to invest in transportation and equipment. This can be a costly option, but it gives you complete control over the process. You will need to find and hire drivers, purchase or lease vehicles, and track shipments yourself.

A combination of both options can be the best solution for many businesses. This approach gives you the control of doing it yourself, while also benefiting from the expertise and resources of a third party. You can find a company that provides transportation and equipment, or you can outsource the entire process.

Digital infrastructure

Having a good digital infrastructure is essential. You need to be able to track inventory levels and shipping statuses in real-time, so you can make quick decisions about when and where to ship products. Additionally, you’ll want to have systems in place that allow customers to place orders and track their shipments online. By investing in good digital infrastructure, you’ll be able to keep your logistics operations running smoothly and efficiently.

Trade compliance

A Singapore trading company needs to be aware of the many tax obligations & incentives when doing business here and abroad. In order to keep your business running smoothly, it is important to have a good understanding of the logistics involved in international trade.

The following are some important tips to keep in mind when managing the logistics for your Singapore trading company:

Know Your Laws – Make sure you have a good understanding of the customs and import/export regulations that apply to your business. This will help you avoid any costly delays or fines.

Plan Ahead – When exporting or importing goods, it is important to allow enough time for the necessary documentation and clearance procedures.

Use a Reputable freight forwarder – A good freight forwarder can help you navigate the complex logistics of international trade, and ensure that your goods are delivered on time and in compliance with all regulations.

Stay Up to Date – Regulations and customs procedures can change at any time, so it is important to keep updated on the latest changes.


New guide

Complete guide to Singapore Trading within your grasp


Best accounting practices for your Singapore trading business

Logistics and transportation businesses have a rather sporadic cost-incurring pattern as there are all sorts of shipping mediums involved. Oil prices and shipping rates are notoriously hard to pin down as they fluctuate on a daily basis, making price quotations a daunting task for any accountant.

But it doesn’t stop there: “Same-day delivery” and next-day delivery” are now top of mind for most consumers in today’s highly digitized shopping world. Shipping firms are now burning the candle at both ends trying to accommodate this new trend of instant gratification while stretching their resources to their absolute limit.

This brings us to the importance of having good accounting practices to add order to a rather chaotic industry. Here are some prominent practices that any trading company should follow:

Produce monthly accounts

Given how dynamic transportation and logistics are, your company should stay on its finances as often as possible. This means preparing cash flow statements, income statements, and so on every month for the entire year. The foremost benefit you’ll get from this is saving your accountants (and yourself) from debilitating migraines trying to crunch numbers before a tax return.

Adhere to local laws

Keeping up with internal matters can take away time that should have been spent on compliance. Nobody likes being held at customs for misclassified cargo or having the wrong tariff codes. Therefore, stay prudent on local laws and regulations before setting out.

Update your accounting software

While most trading businesses have some form of accounting software, very few pay mind to updating them. Outdated accounting softwares don’t have much processing power to them, causing schisms in financial data that could affect your bottom line to various degrees. Nowadays, it’s very common for businesses to opt for cloud-based solutions with integrated business intelligence and AI to fully accommodate the fast-moving world of data.


These were some keynotes to manage logistics and accounting for your Singapore trading business. With so many variables to keep track of, it’s crucial to keep tabs consistently on business operations to make sure everything is accounted for.  If you’d like to explore company formation in Singapore with us, please don’t hesitate to reach out so we can further discuss how to make that happen.

Disclaimer: While BBCIncorp strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact BBCIncorp’s customer services for advice on your specific cases.

Share this article

Get helpful tips and info from our newsletter!

Stay in the know and be empowered with our strategic how-tos, resources, and guidelines.