Hitachi Data Systems, a wholly owned subsidiary of Japan's Hitachi, yesterday launched its first Asia-Pacific distribution centre here so that it can serve regional customers faster.

The investment, of $4.6 million, is the company's second major investment here.

Early last year, it opened its Asean headquarters along with a business solutions centre here, located at The Concourse in Beach Road.

The new 35,746 sq ft facility aims to streamline operations and reduce transportation and warehousing costs by being closer to its customers in the region and its product supplier, Hitachi Japan.

Customer orders from the Asia-Pacific region will be assembled at the facility and sent out. Previously, this was done from the United States.

Hitachi Data Systems' senior vice-president and general manager for Asia-Pacific, Mr Kevin Eggleston, said yesterday that the new facility brings the company closer to its customers in the Asia-Pacific region.

'Asia-Pacific is the fastest growing region in the world. Our customer footprint in this region has grown rapidly and there has also been an increase in customer service level requirement,' he added.

The new distribution centre, the company's third globally, is at the Airport Logistics Park of Singapore (Alps), which is within the country's Free Trade Zone next to Changi Airport.

Said senior vice-president of global supply chain and chief logistics officer Frans van Rijn: 'The location of the centre at the Alps will help us to tap on Singapore's excellent air connectivity with major markets globally, and achieve quick turnaround for value-added logistics and regional distribution activities, especially for time-critical goods.'

The reduced transportation time will also ensure specific customer requirements can be met expeditiously. This will also enable the company to reduce its carbon emissions by 36 per cent, or 780 tonnes a month less of air pollution.

The distribution centre here started its operations on April 1. Its staff count stands at 25.

Mr van Rijn said the company plans to expand the new distribution centre by adding 30 per cent more space. He also revealed plans to increase the distribution centre's staff size by 15 per cent to 20 per cent.

Source : The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.