Support from government

Kerry Logistics is not the only one turning to IT to re-position its business strategy. Smaller scale logistics providers are also looking to upgrade their IT systems in order to play a part in the global supply chain network, said Tan.

"Compared to the rest of the world, Hong Kong's logistics industry is quite advanced, particularly in airport and freight management," said Tan. "But we are still very young in the growing 3PL service segment and will need technology to support local players to compete in the world-class level."

The smaller operators tend to provide last-mile logistics and are struggling to keep pace within the global network. Since most 3PL providers are subcontracting their businesses to these smaller operators, local operators need to upgrade their IT systems to remain connected with global supply chain providers, added Tan.

As part of the Hong Kong government's effort to nurture innovations and technologies, the LSCM R&D Centre aims to help both smaller and mid-size operators in Hong Kong to accelerate their business with the latest technologies, said Tan.