DBS launches P-Card to digitalise logistic processes

DBS on Thursday launched a cashless purchasing card to allow logistics firms to settle payments and collections at container depots digitally.

The current manual and paper-based processes are longstanding pain points in Singapore's logistics and supply chain sector, said Joyce Tee, DBS's group head of SME Banking.

"Operational inefficiencies from these processes could hamper the growth ambitions of logistics SMEs once the Covid-19 situation stabilises."

Today, drivers typically carry about S$200 to S$500 in petty cash on them to pay for a range of services at container depots, such as processing, handling, washing and repair charges.

Drivers with insufficient cash on them need to contact their office and either wait for additional cash or a cheque to be delivered, or for their office to transfer the shortfall to the container depot through bank transfer, resulting in lost productivity and time, DBS said in a statement.

It is estimated that each driver can save around 30 minutes each day on payment matters if the cashless purchasing card, or the DBS P-Card, is made available across all container depots in Singapore, said the bank.

"Beyond the benefit of convenience, the DBS P-Card reduces drivers' and cashiers' exposure to bacteria and viruses from handling cash, providing added health and safety assurance especially during the ongoing Covid-19 situation," it added.

The first SME to adopt this solution, Yang Kee Logistics, will see drivers and hauliers using the DBS P-Card for payments and collections at Yang Kee's two container depots in Tuas - Pacific Trans and Container Connections.

An estimated 1,000 drivers are expected to eventually benefit, the bank said.

On average, Yang Kee processes over 25,000 payments each month at its two container depots. These payments are currently done manually and out of pocket with the use of physical cash.

"The DBS P-Card streamlines the entire payment and collection process at our two container depots, and benefits both our container depot staff and the drivers who use our container depots. The DBS P-Card is just one step in Yang Kee's digital roadmap, and we look forward to working closely with DBS and our partners to further drive our digital transformation," said Koh Yang Kee, executive chairman and founder of Yang Kee Logistics.

The DBS P-Card is part of the bank's Digital Logistics Solutions Package which was launched at Logistics Disrupt in October 2019.

"The current economic lull due to the Covid-19 situation presents an opportunity for us to test and implement some of these solutions so that our logistics SMEs, which form the bedrock of Singapore as a global logistics hub, are in a better position to capture the uptick in business activity when the crisis passes," said Ms Tee.