This is the trouble with Sheng Siong’s automation efforts

It’s not efficient enough, analysts say.

Sheng Siong has recently begun introducing self-checkout machines at its stores. While the push for automation is laudable, RHB analysts note that Sheng Siong still has some way to go in its quest for full efficiency.

Sheng Siong’s hybrid self-checkout system means that cashiers still scan and pack, but as they no longer need to collect payment, they can serve customers 25% faster.

“This efficiency, however, is mostly negated by the cost of the higher number of self-checkout machines and the additional staff assisting customers,” said the report. 

“We believe Sheng Siong may have to fine-tune its system, which is still in the early stages, to achieve greater efficiency. On the other hand, the company’s system is the least disruptive to customers’ experience and, accordingly, consumers are less reluctant to check out at these new counters,” the report added.