Energizing Digital Transformation Through Young Leaders

In today's digital age, the logistics industry is undergoing a significant transformation. Contrary to what many may think, digitalization does not require massive or sudden changes. Raks International Pte Ltd, an example in this regard, demonstrated the profound impact that small, incremental adjustments can bring about. This company, once entrenched in conventional practices, embraced digitalization through a series of gradual, deliberate steps. The transformation unfolds not in a single, monumental leap but through a carefully orchestrated progression towards modernized practices.

Established in 2002, Raks International initially focused on logistics for fast-moving ship spares. Over the years, the company has diversified its services into various verticals such as F&B, pharmaceuticals and commodities. The maritime and ship logistics industry, which Raks International is deeply connected to, are known for its urgent, last-minute demands. To meet these dynamic and time-sensitive requirements, they recognized the importance of developing in-house capabilities. By honing their expertise, Raks International became proficient in managing all aspects of logistics seamlessly.

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Reforming Backend Operations

Aditya Batura, the current Head of Technology at Raks International, recognized inefficiencies in the system when he joined as an intern ten years ago. His early experiences as an intern fuelled his commitment to find pragmatic and effective ways to streamline backend operations, setting the stage for the transformative journey that would unfold. He understood that the key to scalability and efficiency lies in finding simple solutions, where key issues are identified and addressed incrementally.

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Learning from Failures

Aditya acknowledged that the digital transformation journey is not without its challenges. Throughout this process, valuable lessons were learned from setbacks. He highlighted the importance of cross-departmental collaboration and problem-solving skills in resolving issues.

Today, the company boasts its own enterprise resource planning system, incorporating job orders and inventory management capabilities. By digitizing its systems, Raks International has significantly reduced billing turnaround times and provided customers with transparent insights into their inventory items. Aditya stressed, “Understanding the processes at work, not solely fixating on outcomes, is important. It involves constructing an efficient system that facilitates business growth without unnecessary capital expenses.”

Managing change in an industry resistant to transformation can be formidable. Responsibility for steering through these change rests squarely on the shoulders of management, requiring them to champion the transformation and cultivate an environment conducive to innovation and collaboration. He shared, “Involving all operations staff in the change process, providing a voice and opportunity for expressing their needs, is crucial to successful digital transformation.”

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A Call to Young Innovators

Aditya stressed the importance of young professionals in driving innovation and overcoming future challenges. By embracing digital transformation and adopting multi-disciplinary approaches, logistics companies can enhance their operations and attract the next generation of industry leaders. Aditya added, “I was motivated to enter the industry due to a profound sense of purpose. While the role may not offer the same high salary as a job in banking, for me, it represents a calling for personal growth and self-fulfilment.”

The logistics industry offers young people a wealth of opportunities to make a difference through technology. The industry has embraced innovative solutions such as automation, AI and data analytics, which appeal to tech-savvy individuals. Moreover, the dynamic nature of the industry provides a platform to showcase problem-solving abilities. Logistics companies also invest in training and development, keeping employees updated on industry trends and fostering continuous learning.

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Encouraging Industry-Wide Digital Adoption

By recognizing the power of small steps and embracing digitalization, companies can transform their operations and stay ahead in a rapidly evolving world. Aditya's story underscores the significance of effectively engaging employees and managing change, as well as the urgency for young professionals to join the logistics sector and contribute to its growth. The question is not whether change will happen, but how we, as individuals and as an industry, will steer that change.

This article is also available on SLA's website at www.sla.org.sg.