SATS Ltd, a Singapore-based provider of air cargo handling services and food solutions, has entered into a Memorandum of Understanding (MoU) with SF Group, a Chinese express delivery and logistics company. This agreement aims to enhance their strategic collaboration and extend supply chain optimisation on a global scale.
The partnership was formalised at SF Group’s headquarters in Shenzhen, with the signing conducted by Zhang Ji, Vice President of SF Group, and Bob Chi, CEO of Gateway Services Asia-Pacific at SATS. Bob Chi will also co-chair the Steering Committee that will supervise regional or country-level Working Groups responsible for the Strategic Projects under this agreement. The collaboration will integrate the expertise and services of both companies and their affiliates, including Worldwide Flight Services (WFS), part of the SATS Group, and SF Airlines, the cargo airline owned by SF Group.
The initial focus will be on expanding the successful collaboration of existing hub operations in Singapore and eCommerce handling in Liege, Belgium, to other global hubs. These include hub operations in Kuala Lumpur, Malaysia, and exploring Proof of Concepts (PoCs) for eCommerce handling in Beijing and at New York’s JFK International Airport. Furthermore, the partners will explore additional network solutions and specialised services across more than 200 locations where SATS operates, leveraging SF Group’s extensive demand channels. SF Group is currently the world’s fourth-largest integrated logistics provider, based in China.
“We are honoured that SF Group has chosen to partner with SATS to identify new network expansion opportunities and service improvements globally. Our organisations can learn a lot from each other as we embrace our collaboration and go beyond the traditional customer-vendor relationship,” ” stated Bob Chi.
“This is a mutually beneficial partnership where both parties are leveraging on each other’s strengths to improve the supply chain and create value for our respective stakeholders. We are confident of building on the successes that we have today to expand into a multi-station global network collaboration.”
Zhang Ji remarked: “As China’s largest and the world’s fourth-largest integrated logistics service provider, SF Group is actively promoting its overseas growth strategy. The collaboration with SATS Group, one of the world’s largest aviation ground service providers, with a continuously growing worldwide network in aviation logistics, will enhance the competitiveness of both parties and achieve a win-win situation.”
The collaboration between SATS and SF Group is poised for growth, driven by the projected expansion of the global eCommerce market, which is forecast to grow by 8.8% in 2024 to USD 6.3 trillion, and to USD 7.9 trillion by 2027.
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