Following the successful completion of the first SYNNEX Logistics Center in 2014, the rapid growth in business necessitated the planning and construction of the second phase in 2019. Despite facing delays caused by the COVID-19 pandemic, the project was completed and launched recently.
The projected increase of 65% in operation capacity compared to the first phase will enable SYNNEX to serve its customers on the east coast and north eastern section of Australia more efficiently and with greater timeliness. The company's services are likely to become more competitive, solidifying its position as the largest ICT service provider in Australia.
Kee Ong, CEO of SYNNEX Australia, highlighted the distinctive obstacles arising from Australia’s vast land and sparse population, along with the challenges of high logistics costs, expensive labour, and demanding service quality standards.
By deciding to invest in sophisticated computer systems and adopting the highest-standard automation equipment, SYNNEX has positioned itself well to tackle these challenges. The ability to improve logistics efficiency and meet high service quality standards will likely enhance customer satisfaction and loyalty.
The experience gained from constructing and operating nearly 30 logistics centres throughout Asia has also provided SYNNEX Group with valuable expertise in navigating the stringent environmental protection and safety requirements in Australia.
With labour costs in Australia surging by 40% since 2014 and continued to grow rapidly at a rate of 27% over the past five years, deploying advanced automation equipment is expected to result in greater benefits for the expansion of SYNNEX’s market presence in Australia.
SYNNEX ventured into the Australian market in 1997, from the ground up. Despite the challenges posed by a mature market with high labor costs, the company dedicated eights years to establish a solid foundation. By 2005, SYNNEX Australia achieved a revenue of AU$500 million, representing only 20% of its competitors’ revenue at that time.
During the second eight-year period, SYNNEX Australia experienced a rapid growth. In 2011, it surpassed its competitors, securing its position as the leading ICT distributor in Australia. Two years later, in 2013, the company’s revenue reached NT$46 billion, earning it a place among the top 250 companies in Australia.
During the third eight-year period, SYNNEX Australia ramped up its investment in a highly automated logistics center and continued expanding its operational scale. The expansion of new business and growth of their logistics services, led to a revenue achievement of NT$65 billion in 2022, positioning the company as the 126th largest in Australia (according to the information released by the Australian Taxation Office), and became the largest Taiwanese company operating in Australia.
This success story stands as one of SYNNEX’s most remarkable achievements in overseas operations.