SPRING Singapore invests $86mln to boost retail sector

The retail productivity plan aims to raise the nominal value-added per worker by about 25 % by 2015.

According to SPRING Singapore, the plan was announced by Mr Lee Yi Shyan, Minister of State, Ministry for Trade & Industry and Manpower, during his visit to Robinsons at The Centrepoint.

The retail sector is a significant contributor to the Singapore’s economy. In 2009, it employed about 102,000 workers. The sector also registered some $26 billion in operating receipts and generated $3.8 billion in VA. This is equivalent to 1.5 per cent of Singapore’s GDP. The VA per worker for the retail sector is a mere $37,000, which is only 40 per cent of the national average 1. Besides its economic and employment significance, the sector helps to shape Singapore’s image as a leading travel destination and shopping haven.

“The retail sector is a highly competitive sector, especially with the increasing supply of retail space across the island. Retailers need to differentiate themselves by providing a unique shopping experience to their customers,” said Mr Png Cheong Boon, Chief Executive of SPRING Singapore. “To achieve that, retailers must improve and innovate. We want more retailers to tap this plan for their productivity improvements.”

The retail productivity plan will provide support and know-how to retailers to achieve excellence in three crucial areas – process, people and service.

Achieving process excellence for efficiency

As part of the retail productivity plan, SPRING Singapore will drive technology adoption for process excellence. Advanced information and communication technologies such as Enterprise Resource Planning (ERP), integrated point of sales and customer relationship management (CRM) systems greatly relieve manual labour and streamline operational processes. CRM also enable companies to datamine to improve customer loyalty. On a higher level, retailers with multiple outlets can explore automation and system integration with their suppliers. Besides getting an immediate update on inventory levels and demands, such supply chain collaborations can reduce human error and processing time for all parties.

Besides automation, SPRING will encourage retailers to explore new concepts and to enhance capabilities in areas such as branding, visual merchandising, marketing and design. A bold and innovative retail concept transforms the entire customer experience, leading to customer loyalty and enhanced profits.

Developing nimble and productive culture in the workforce

With the enhanced business processes in place, retailers would be able to focus on matching existing talents with new opportunities to maximise productivity performance. Besides management, the human resource (HR) department plays an important role in hiring, retaining talent and instilling a productivity culture in the company. SPRING will work closely with industry associations to facilitate continuous learning and sharing of best practices of top organisations through seminars, workshops, study missions and business leadership programmes.

To ensure sustainable results, a comprehensive training programme will be developed to equip managers with the skills to drive productivity in their organisations. This would enable companies to identify gaps and implement best practices, which cannot be achieved with the use of software and technology alone.

In addition to strengthening the skill sets of the retail workforce, retailers need to be nimble and manage the frontline staff deployment according to customer traffic and demands. There are ready-to-use manpower scheduling tools that help retailers to anticipate demand and to recruit the right mix of people to support their business needs.

Great service generates sales leads and contributes to productivity

In the highly competitive retail sector, providing a positive customer service experience is a key ingredient to success. Hence, SPRING will continue to drive service excellence through the Customer-Centric Initiative (CCI). Since its launch in 2005, some 250 companies have embarked on the CCI journey with great success.

Industry performance indicators for productivity to be developed

One of the common challenges faced by the sector is the lack of industry-specific benchmarking data for performance indicators. To address this, SPRING will establish a set of common productivity metrics and performance indicators, at both industry and enterprise levels. This information will help retailers to review their processes, identify areas for improvement and monitor their progress. The study is expected to be concluded by end 2011.