Government jumpstarts $75mn food services productivity plan

This five year plan aims to increase the productivity of the food sector by 20 per cent.

According to SPRING Singapore, the food sector's VA per worker stood only at $22,300, less than one third of the national average of $89,900.

“The food services productivity plan was developed in close consultation with food services companies, industry consultants and partner associations,” said Mr Png Cheong Boon, Chief Executive of SPRING Singapore. “The plan addresses productivity challenges specific to this sector. It will equip companies with the necessary knowledge, support and tools to build upon its own capabilities to improve productivity and competitiveness.”

The food services sector faces challenges that include low adoption of technology, poor human resource practices, a mismatch between manpower supply and market demands, and the lack of productivity measurement tools.

Re-designing processes to optimise workflow and improve service delivery

A prevalent issue in this sector is the heavy reliance on manual operations. SPRING’s productivity plan encourages companies to adopt new technology such as the use of wireless infrastructure. These applications will cut down processing time, reduce customer waiting time and improve service. Another tool is the procurement portal that can help collate demand and enhance integration with suppliers. With IT adoption, these transactions can be made online, improving supply chain efficiency and reducing human error and manpower. Companies can also explore the use of automation in areas such as placing orders, payment, food preparation, and cleaning.

An emerging trend for this sector is the use of central kitchens that emulate the food manufacturing facility to achieve economies of scale. Setting up such facilities is a viable method for streamlining processes at companies with several food outlets.

Upgrading manpower and HR capabilities for a more productive workforce

To develop a more productive workforce, SPRING will be providing support to help companies better manage, develop, and retain their employees. The use of professional and customised manpower scheduling will enable companies to optimise employee schedules and resources in line with the needs of business growth and future plans.

Given the sector’s inherent nature of highly fluctuating customer traffic, companies can maximise productivity by tapping on part-time employees during peak periods to complement their existing staff strength. SPRING will be helping companies to aggregate demand, as well as recruit and train a pool of professional part-timers for deployment at outlets.

Innovation is critical to sustaining competitiveness

Innovation is a key factor in sustaining productivity and competitiveness. SPRING will facilitate the development of innovative food products and dining concepts to help companies grow their customer base, optimise capacities, and raise vibrancy in the sector.

Working with partners to boost outreach efforts on productivity

SPRING will also continue to work closely with strategic partners to broaden its outreach to companies and roll out broad-based initiatives under the productivity plan.

Infrastructure support and expertise on productivity to be developed

SPRING has embarked on a benchmarking study to establish a set of productivity metrics relevant to the food services industry. The metrics will serve as indicators that the sector can use to identify areas for improvement. This study will be concluded by end 2011. It will also track the success of the productivity plan over the next five years. A productivity framework, performance metrics, diagnostic toolkit and methodologies adapted for the food services sector will also be developed. This information will then be distilled into self-help toolkits for easy adoption by the companies. Besides providing the know-how, SPRING will work with partners to equip managers with the necessary skills to champion productivity in their own organisations, leading to a sustained productivity journey.