GOING FURTHER, FASTER WITH STRATEGIC PARTNERSHIPS

SPRINGnews
ENABLING ENTERPRISE
APRIL 2016
GOING FURTHER, FASTER WITH
STRATEGIC PARTNERSHIPS
SHOWCASE
A SOLUTION TO
SLEEP APNOEA:
INSPIRATE
MEDICAL
SHOWCASE
SWEET TASTE
OF SUCCESS:
CHOP TAI
CHONG KOK
SPOTLIGHT
BITE-SIZED
PRODUCTIVITY
SOLUTIONS
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APRIL 2016
6
CONTENTS
FEATURE STORY
GOING FURTHER,
FASTER WITH
STRATEGIC
PARTNERSHIPS
PARTNERSHIPS AND
COLLABORATIONS CAN HELP
SMES CREATE PROFITABLE,
SUSTAINABLE AND POWERFUL
BUSINESSES
EDITORIAL TEAM
Marion ABRAHAM ([email protected])
Kristin LOO ([email protected])
Veenaa SUBRAMANIAM ([email protected])
Kathleen TAN ([email protected])
Kathryn ZHANG ([email protected])
10
12
14
17
19
20
SHOWCASE
A SOLUTION TO SLEEP APNOEA
SWEET TASTE OF SUCCESS
GROWING THROUGH
STRATEGIC PARTNERSHIPS
PROFILE
PARTNERS FOR FUTURE
GROWTH
EASIER WAY TO DO BUSINESS
SPOTLIGHT
INCREASING PRODUCTIVITY,
ONE SOLUTION AT A TIME
DESIGN & LAYOUT
Kevin LOO ([email protected])
PUBLISHING CONSULTANT
Editor Group
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BUZZ
Grand designs
Singapore businesses should consider design a key
differentiating factor when it comes to creating a
stronger brand image and driving product innovation.
This was the message at the heart of SingaPlural
2016, Singapore’s annual design innovation festival,
which was held on 7 March. Organised by the
Singapore Furniture Industries Council and supported
by various partners, including SPRING Singapore,
the anchor event of the Singapore Design Week
drew a record 28,000 visitors and featured more than
100 designers and 20 local and global brands. The
event provided a platform for designers to connect
and build brand awareness. ¢
Mr Poon Hong Yuen, Chief Executive of SPRING Singapore (third from left),
at the fifth edition of SingaPlural, accompanied by the heads of nine leading
design-focused associations in Singapore, including the Singapore Institute
of Architects and The Design Society.
Festival-goers exploring the various design installations that
were on display between 7 and 13 March 2016.
Photos courtesy of SingaPlural
More industry-specific help for businesses
Mr Heng Swee Keat, Minister for Finance (second from left), and Dr Koh Poh Koon,
Minister of State for Trade and Industry (third from left) chatting with staff from
Feinmetall Singapore during their visit to the company.
Photo courtesy of the Ministry of Finance
The government will employ more industryspecific measures in the next stage of
restructuring and transforming Singapore
businesses. “More than 20 industries will
each receive an Industry Transformation
Map to drive productivity and innovation,
promote skills development and boost
internationalisation efforts,” said Mr Heng
Swee Keat, Singapore’s Minister for Finance,
during a visit to local precision engineering
firm Feinmetall Singapore on 28 March.
Each map has been tailored to the needs of
a specific industry, and teams comprising
various government agencies, including
SPRING Singapore and International
Enterprise Singapore, will be set up to
manage, implement and support the roadmap
development process in each sector. ¢
APRIL 2016
3
BUZZ
Serving up efficiency
Dr Koh Poh Koon, Minister of State for Trade and Industry (third from left),
at the signing ceremony of JTC Food Hub @ Senoko.
Photo courtesy of the Ministry of Trade and Industry
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4 APRIL 2016
The JTC Food Hub @ Senoko is set to
open in 2017 to help food manufacturing
SMEs reduce their operating costs and
boost productivity. The hub, which
will be operated by food logistics firm
StorBest, will feature pay-per-use cold
room and warehousing facilities, and
shared distribution and delivery services.
This eliminates the need for food
manufacturing SMEs to own and manage
cold rooms, warehouses and delivery
fleets, so they can focus on developing
their businesses and products. “The
JTC Food Hub @ Senoko represents a
stride forward in our government’s efforts
to raise the sector’s productivity in a
more collective manner,” said Dr Koh
Poh Koon, Minister of State for Trade
and Industry, at the signing ceremony
between JTC Corporation and StorBest
on 28 March. ¢
APRIL 2016
5
FEATURE
GOING FURTHER,
FASTER WITH STRATEGIC
PARTNERSHIPS
Partnerships and collaborations can help SMEs create profitable,
sustainable and powerful businesses
M
any SMEs view
larger companies as
competitors, but this
isn’t always the case.
Bigger companies can also be powerful
partners in helping SMEs improve
their business models and processes,
gain access to more customer
segments and markets, and build their
business reputation.
In 2013, SPRING Singapore rolled
out the Partnerships for Capability
Transformation (PACT) programme and
Collaborative Industry Projects (CIP)
6 APRIL 2016
to encourage and facilitate industry
collaborations.
In addition, SPRING has established
seven Centres of Innovation (COI)
to help SMEs upgrade their business
capabilities and manufacture innovative
products. COIs help SMEs develop and
test their technology projects through
partnerships with selected research
institutes and polytechnics.
To date, PACT and CIP have assisted
about 700 enterprises each, while
COIs have helped strengthen more than
800 enterprises across different industries.
PACT for growth
Large organisations (LOs) have a
key role in helping SMEs realise their
potential. Jointly administered by
SPRING and the Singapore Economic
Development Board, PACT helps foster
win-win collaborations between LOs
and SMEs, including partnerships
for capability upgrading, knowledge
transfer and co-innovation.
“For instance, under the PACT
programme, US technology giant
Google has agreed to collaborate
with 100 Singapore SMEs to sell
their products and services overseas
through its new Go Global portal,”
said Mrs Kee Ai Nah, SPRING’s Group
Director for Industry and Enterprise
Development, at the launch of the
initiative in November 2015. “This is
an example of a great collaboration
which will not only enhance local
SMEs’ online marketing strategies but
also boost Google’s customer base
and appeal.”
In 2014, ST Kinetics, one of Asia’s
leading defence contractors, worked
with 11 SME suppliers to upgrade their
technologies and processes as part
of the PACT initiative. They used the
Kaizen methodology, which focuses
on eliminating waste, improving
productivity and continuously
improving.
Partnerships work both ways. ST
Kinetics gained access to high-quality,
innovative products, while the SMEs
struck more business deals through
ST Kinetics’ strong business links and
experience in Asian markets.
Sharing best practices and industry
know-how also creates mutually
beneficial partnerships. For example,
the food services arm of Unilever, one
of the world’s leading consumer goods
companies, helps Singapore chefs
optimise kitchen operations, improve
their menus using quality ingredients,
and maximise profits. This knowledge
transfer indirectly raises awareness of
Unilever’s food products in the local
food industry.
Co-innovation enables SMEs and
LOs to collaborate on, develop, test
and commercialise new products
or services to increase competitive
advantage and market share.
Take Cyrus Innovations, a local provider
of high-tech solutions, for example. The
PACT programme helped Cyrus and
Sentosa Leisure Group collaborate,
enabling Cyrus to use Sentosa as a
testbed for its video analytics product.
In return, the product, which uses
abnormality detection technology
COIs have been established to help SMEs upgrade their technological capabilities.
to distinguish between normal and
abnormal visitor activity, helped to
improve Sentosa’s security.
SMEs that participate in the PACT
programme are eligible for funding
that covers up to 70% of qualifying
development costs. LOs can also
receive support to hire a PACT
manager.
Collaborating for success
SMEs can also form partnerships with
other small businesses to overcome
challenges. Under CIP, SPRING
promotes cross-sector collaborations
between SMEs and industry partners
– such as Trade Associations and
Chambers, and COIs – to solve the
common problems faced by SMEs.
The Manufacturing Productivity
Technology Centre (MPTC) – a research
institute under the Agency for Science,
Technology and Research (A*STAR)
– works with SPRING to help small
manufacturers improve productivity,
reduce labour costs and increase
profits.
MPTC has rolled out five productivity
solutions, including an overall
equipment effectiveness (OEE)
assessment. Keystone Cable, a local
manufacturer and supplier of cables,
used the assessment in November
2014 to improve machine productivity.
The OEE assessment, which uses data
collection software, helped Keystone
Cable identify causes of breakdowns
and failures, and improve overall
effectiveness of its machinery. The
number of breakdowns has been
reduced by 29%, and machine setup time has been cut by 59%.
Under the CIP scheme, participating
SMEs are eligible for up to 70% of
costs for initiative to streamline their
services and processes, and achieve
higher growth through co-innovation
and new business models.
From ideas to action
Many SMEs have creative, innovative
ideas but lack the resources, technical
expertise and capabilities to develop,
test and commercialise their concepts.
This is where the seven COIs can help.
Each COI specialises in a different
industry, and provides laboratory
facilities, technology consultancy
and training courses for local
enterprises. Collectively, they cover
APRIL 2016
7
FEATURE
electronics, supply chain management, environment and water, food,
materials, marine and offshore, and
precision engineering.
For example, the Materials COI
housed at A*STAR’s Institute of
Materials Research and Engineering
helps SMEs develop new products,
such as phase-change materials that
can cool body temperatures, keep
drinks cool and grow plants that
thrive in cold climates. The Materials
COI is working with more than 200
SMEs to develop and test new material
concepts.
The PACT programme helped Cyrus Innovations, a local provider of high-tech
solutions, and Sentosa Leisure Group to collaborate, enabling Cyrus to use Sentosa
to test its abnormality detection technology.
In 2013, the Food Innovation &
Resource Centre , another COI, helped
Chop Tai Chong Kok, a mooncake
manufacturer. The company automated
production and expanded capacity,
and is developing packaging that locks
in flavour and freshness, extending the
shelf life of its products. The company
has since increased production by
30% and revenue by 33%.
Building a strong SME
sector
There are many other platforms
SMEs can use to foster partnerships
and boost their competitiveness.
For example, online grocer RedMart
launched its e-commerce platform,
Marketplace, in 2015, and is working
with SPRING to encourage SMEs
to use the platform to enhance their
e-commerce skills. Selected SMEs
will complete a six-month business
improvement course, including training
in all aspects of e-commerce.
8 APRIL 2016
Chop Tai Chong Kok automated and
expanded its mooncake production
capacity with the help of the Food
Innovation & Resource Centre.
In addition, SPRING’s Clinician Driven
Innovation initiative aids collaboration
between technology SMEs and
healthcare institutions. These
partnerships allow SMEs to use real
environments to test their products,
and give healthcare institutions access
to the latest innovations.
“The partnership will place these 22
restaurants in a stronger position to
invest in technology and automation,
aggregate demand, purchase in
bulk and reap economies of scale,”
Mr Tharman Shanmugaratnam,
Singapore’s Deputy Prime Minister,
said at the signing of the memorandum
of understanding between iRAS,
SPC and ACI in October 2015.
A strategy for the future
The power of partnerships and
collaborations to address the
significant challenges that businesses
face cannot be underestimated.
The strict quality standards imposed
by LOs will drive SMEs to improve their
processes and productivity, boosting
their profitability, credibility and market
opportunities.
Recently, 22 members of the Indian
Restaurants Association (Singapore)
(iRAS) formed a partnership with the
Singapore Productivity Centre (SPC)
and the Asian Culinary Institute (ACI)
to set up two central processing units
(CPUs) to source, prepare and produce
food for local Indian restaurants.
Small but innovative businesses can
offer their mature partners opportunities
to attract younger customers and
remain relevant. Under PACT, small
businesses can increase productivity
and capabilities while LOs can tap
into SMEs’ niche areas of expertise
to create solutions.
The CPUs will have high-tech facilities
and equipment, and are expected
to improve productivity and reduce
manpower needs by up to 40%.
In other words, both large and small
companies can brighten their business
prospects by collaborating to capitalise
on each other’s strengths. ¢
SHOWCASE
A SOLUTION TO
SLEEP APNOEA
Strategic partnerships have helped local start-up
Inspirate Medical gain investor and customer confidence
T
iredness and fatigue are
modern-day epidemics.
One of the main culprits
is a condition called sleep
apnoea – a common and potentially
serious disorder in which breathing
repeatedly stops during sleep, often
resulting in loud snoring, gasping or
choking.
About 15% of Singapore’s population
suffer from this sleep disorder. For
instance, in 2013 alone, the National
University Hospital (NUH) diagnosed
more than 400 patients with the
condition, up from about 350 each
year in the previous two years.
The most common treatment for
sleep apnoea is the Continuous
10 APRIL 2016
Positive Airway Pressure (CPAP)
mask, which pushes air into the nasal
passages to enable easier breathing.
“However, these masks are typically
big, bulky and uncomfortable, and
many patients refuse to wear one, or
rip theirs off while asleep,” says Mr Ivan
Chandra Suriady, co-founder of local
start-up Inspirate Medical. “Recent
studies have shown that about half
of all people prescribed CPAP masks
stop using them in the first year.”
In 2014, as fresh National University
of Singapore (NUS) graduates, Mr
Suriady and his long-time friend and
fellow co-founder Mr Norman Wanto
realised that there was a gap in the
healthcare market for an effective,
comfortable and user-friendly sleep
apnoea treatment device. This
sparked a business idea and led
Mr Suriady and Mr Wanto to set up
Inspirate Medical in 2015 to create
a less cumbersome mask that is
customised to a patient’s facial
contours.
Strong support system
Like any new start-up, Mr Wanto and
Mr Suriady faced cost challenges and
struggled to transform their idea into
a tangible product. “This included
costs for purchasing raw materials,
the right tools and technologies, such
as a 3D printer,” says Mr Suriady.
The two co-founders sought to raise
venture capital. “But we did not have
made it easier to convince the
hospital that our solution was safe,
and of high quality, and would work
in the healthcare industry,” says
Mr Wanto.
We did not have a working prototype,
which made it difficult to convince the
investor community of the value of our idea.
SPRING believed in us and we received
the CDG in October 2015.
Mr Norman Wanto (left)
with Co-Founder, Mr Ivan Chandra Suriady
Inspirate Medical
a working prototype, which made
it difficult to convince the investor
community of the value of our idea,”
says Mr Wanto.
In mid-2015, the company decided
to apply for SPRING Singapore’s
Capability Development Grant (CDG) –
an initiative that allows businesses to
claim up to 70% of qualifying costs
for initiatives to improve capabilities.
“SPRING believed in us, and we
received the CDG in October
2015. Only then did our product
development journey begin,” says
Mr Wanto.
Inspirate Medical used the CDG to
purchase raw materials, such as
liquid silicone, and a 3D printer to
accelerate the product development
process.
As the partners also lacked the
necessary technical expertise to
develop the product, they sought
advice from their alma mater and
former professors.
“For instance, neither of us really
knew how to make a medical-grade
silicone mask from scratch, using
the right temperature, viscosity and
additives,” says Mr Suriady. “But with
help from our NUS advisors – whom
we now see as our trusted partners
– we developed a working prototype
by the end of 2015.”
A win-win situation
Inspirate Medical then approached
NUH with the prototype.
“Having reputable organisations like
NUS and SPRING as our partners
NUH agreed to support the
company through clinical trials of
the prototype, which Mr Wanto
describes as a win-win collaboration.
“This included facilitating meetings
with their nurses and patients to
help us better understand their sleep
apnoea challenges,” he explains.
“Many NUH patients, and even staff,
suffer from sleep apnoea – something
that our solution could potentially
help with.”
Strategy for growth
Overall, Mr Wanto and Mr Suriady
believe that working with established
organisations such as SPRING, NUS
and NUH gives Inspirate Medical
credibility.
“These days, we find it much easier
to convince investors, and even
customers, of our product’s gamechanging potential,” says Mr Wanto.
“We’ve already started receiving
orders, although the product won’t
be launched until next year!”
However, Mr Suriady acknowledges
that starting and running a business
is not easy. “As a new start-up, we
require recognition, endorsement and
validation from various stakeholders,
such as industry leaders, to get
ahead,” he says. “But now, with
our strong pool of partners, we’re
confident that we’ll be able to meet
future challenges and even turn them
into opportunities.” ¢
keytakeaways
¢SMEs don’t have to tackle business
challenges alone. SMEs can seek win-win
collaborations with experts in many areas.
¢Find out how SPRING can help you
achieve higher productivity by visiting
http://www.spring.gov.sg/CDG.
APRIL 2016
11
SHOWCASE
SWEET TASTE
OF SUCCESS
Chop Tai Chong Kok
collaborated with the
Food Innovation and
Resource Centre to
automate its processes,
improve productivity
and reduce costs
12 APRIL 2016
S
ince 1935, Chinatown
confectionary Chop Tai
Chong Kok has been
producing traditional
Chinese treats such as mooncakes
and niangao, a cake made of
sweetened glutinous rice. “Even
now, we bake these the old-fashioned
way – with only the best ingredients,
and without preservatives,” says
Mr Ham Weng Seng (left), the
company’s third-generation owner.
Chop Tai Chong Kok is today a
household name. During the MidAutumn Festival, for example, it sells
up to 30,000 mooncakes a day and
supplies 20 promotional booths in
malls island-wide. By 2013, the company
began finding it hard to cope with the
increasing demand for its products.
“For instance, it could take up to three
days to manually make a single batch
of niangao, as it involves soaking white
glutinous rice, grinding it, mixing it
with water and sugar, placing it in tins
lined with banana leaves and steaming
it for eight hours,” Mr Ham explains.
“We realised that we needed to hire
more workers.”
However, searching for people who
were willing to take on manual and
time-consuming work amid a tight
labour market proved difficult. In 2013,
the company collaborated with the Food
Innovation and Resource Centre (FIRC)
– one of seven Singapore’s Centres of
Innovation – to develop a strategy for
automating its processes.
“We also wanted to develop packaging
that would lock in flavour and freshness,
as well as new manufacturing
techniques to increase product shelf
life,” says Mr Ham.
Road to productivity
Mr Ham decided that, as a first step,
the company would semi-automate
its core production processes only.
“A consultant from FIRC helped us
identify product lines with the highest
growth rate, as well as those that
required significant man-hours,” he says.
These hours included time spent
manually stamping each mooncake
with the company’s logo and making
lotus paste from scratch, which
involved removing the shoots from
inside lotus seeds, and grinding and
cooking the lotus seeds. “Previously,
there was little consistency in terms
of appearance and taste,” he says.
“This meant we were ending up with
uneven, jagged mooncakes.”
Using SPRING’s Capability Development Grant (CDG), the company set
about buying new high-tech equipment
to automate those processes, reduce
its reliance on manpower, improve
workflow and boost productivity. The
CDG allows businesses to claim up to
70% of qualifying costs for initiatives
to improve capabilities.
Automation
enables us to
increase output with
fewer labour inputs, and
this has translated
to more profit.
Mr Ham Weng Seng
Owner and Managing Director
Chop Tai Chong Kok
“We no longer have to keep hiring
staff,” says Mr Ham. “Some of our
existing staff have been redeployed
to more value-added roles, such as in
customer delivery, and enhancing the
quality of our products and recipes.”
In 2015, the company reported that
its revenue increased by one-third.
“Automation enables us to increase
output with fewer labour inputs, and
this has translated to more profit.”
Boosting business growth
Now, with its new production facilities,
including a dough-cutting machine,
paste mixer, stamping machine and
paste-filling machine, errors and
inconsistencies are kept to a minimum.
“We’ve been able to not only reduce
our wastage to nearly zero, but also
reduce costs,” Mr Ham says.
The FIRC consultant also advised
Mr Ham to invest in a rotary oven to
increase production capacity. “We can
now bake up to 18 trays of mooncakes
at any one time, compared to only nine
previously,” he says. Chop Tai Chong
Kok has since increased its production
capacity by 30%.
Improving staff efficiency
It used to take up to five staff members to
stamp 1,000 mooncakes a day. With the
stamping machine, Chop Tai Chong Kok
only needs to use two staff members.
This strategy has helped the company
save up to 60% in manpower costs.
The benefits and cost savings brought
about by Chop Tai Chong Kok’s
successful automation initiative means
the company is now in a better position
to expand into overseas markets,
such as China.
“But first, we plan to invest in a vacuum
packaging machine, as suggested by
FIRC, to further extend the shelf life of
our products and boost their export
appeal,” says Mr Ham. The company
is also working with FIRC to enhance
the packaging of its food products so
that they can be sold as gifts.
Overall, Mr Ham believes that
working with SPRING and FIRC
keeps the company up to date with
the latest trends and technologies
in manufacturing and workflow
processes, and helps it take the next
step forward. ¢
keytakeaways
¢Partnerships and collaborations are an
effective strategy for business growth.
¢Visit www.spring.gov.sg/COI to find
out how Centres of Innovation can help
you adopt new technologies, and stay
innovative and competitive.
APRIL 2016
13
SHOWCASE
GROWING THROUGH
STRATEGIC
PARTNERSHIPS
A strong support system has placed Cyrus Innovations on
a path to future growth and success
14 APRIL 2016
A
common problem with
today’s video surveillance
cameras is that many
aren’t equipped with the
right analytics to distinguish normal
activity from abnormal. “Many video
surveillance cameras use rule-based
video analytics, which often results in
false alarms,” says Mr Raymond Looi
(left), founder and Director of Cyrus
Innovations, a local start-up.
The rule-based approach uses a set
of predefined rules, such as loitering
and perimeter fence intrusion, to
automatically detect suspicious human
activities or events in public areas.
“Because these are crowded areas,
setting predefined rules only leads
to false alarms,” Mr Looi explains.
“More than just a non-productive
inconvenience, these false alarm
challenges have reduced confidence
in surveillance systems.
“There are also too many surveillance
cameras for one security officer to
monitor. For instance, in a typical large
enterprise set-up, a single officer might
be monitoring dozens, even hundreds,
of cameras simultaneously, making it
impossible to immediately recognise
suspicious activity.”
These challenges led the company,
which was established in 2010, to
develop and commercialise a solution
that uses abnormality detection
(AD) technology to accurately
and automatically detect unusual
activities. “We saw this as an
opportunity that would give Cyrus
Innovations an advantage in the
security and surveillance industry,”
Mr Looi adds.
Forming a PACT
In 2014, Cyrus Innovations
received funding through SPRING
Singapore’s Technology Enterprise
Commercialisation Scheme. The
scheme helps tech start-ups develop
and commercialise their technology
solutions through early-stage funding.
Mr Looi used the funding to employ
a research and development team,
and develop and commercialise the
solution. But like any new company,
Cyrus Innovations faced hiccups in
the initial stages.
“For instance, the first machinelearning technique proposed by our
researcher was not feasible in real-life
scenarios,” says Mr Looi. “We had
to rework everything from scratch,
including developing a new machinelearning algorithm.”
In 2015, the solution had been refined
to the point that it was able to learn
activity patterns in a camera’s field of
view, establish norms of activity for
each camera and alert security officers
when the camera registered anomalies.
Having
Sentosa and
SPRING as our partners
has helped take our
solution and company
to the next level.
Mr Raymond Looi
Founder and Director
Cyrus Innovations
“All we needed then was a spacious
area with a large number of visitors
to test the solution’s capabilities in
a real-life crowded environment,”
Mr Looi says.
Fortunately, Cyrus Innovations is
supported by SPRING’s Partnerships
for Capability Transformation (PACT)
initiative, which brought about a
collaboration between Cyrus and
Sentosa Leisure Group, enabling
Cyrus to use Sentosa as a testbed
for its solution. “In return, our solution
helps improve Sentosa’s security as it is
able to distinguish between normal and
abnormal visitor activity,” Mr Looi says.
Jointly administered by SPRING and
the Singapore Economic Development
Board, PACT helps foster winning
collaborations, including partnerships
to upgrade capabilities, transfer
knowledge and co-innovate.
A strong résumé
Collaborating with an industry giant
like Sentosa makes it easier for Cyrus
Innovations to convince investors and
customers of its solution’s capabilities
and potential.
In 2015, the company was invited to
test and deploy its solution at
Singapore’s Ministry of Home Affairs
and several other government
agencies. “Having Sentosa and
SPRING as our partners has helped
to take our solution and company to
the next level,” says Mr Looi. “In fact,
we recently received a huge round
of venture capitalist funding.”
Last November, Cyrus decided to create
a spin-off company, Vi Dimensions, to
focus on commercialisation, gaining
more investment and taking its patented
AD technology to the next level.
“This includes further improving the
technology so that it can be used to
analyse more surveillance cameras – up
to 500 or even 1,000 – for anomalies,”
Mr Looi explains.
As for future plans, Mr Looi is on a
mission to develop and promote more
homegrown technologies. “We are
proud to say that our solution is fully
made and developed in Singapore –
something we could not have done
without our partners.” ¢
keytakeaways
¢Forming partnerships with large
organisations is a great way to accelerate
business growth.
¢To find out how SPRING can
help you form strategic alliances,
visit www.spring.gov.sg/PACT.
APRIL 2016
15
Now every business
can up their standards
WHY?
Standards help you meet both local and international requirements.
Adopt quality and excellence as a business strategy to raise
productivity, improve quality of products and services and gain
access to new markets.
SOME OF THE PROJECTS YOU CAN DO WITH
INNOVATION &
CAPABILITY VOUCHER
SCHEMES
SPRING Singapore helps businesses improve their standards and
their competitiveness with financial assistance like the Innovation &
Capability Voucher as well as the Capability Development Grant.
SOME OF THE PROJECTS YOU CAN DO WITH
CAPABILITY DEVELOPMENT GRANT
For more information, please visit www.spring.gov.sg/Enterprise/CDG
www.enterpriseone.gov.sg
PROFILE
PARTNERS FOR
FUTURE GROWTH
The RedMart Marketplace platform allows local SMEs and independent
sellers to list, sell and even deliver their products. SPRINGnews caught
up with Director Mr Jose Silva (above) to find out more
Tell us about Marketplace.
What business challenges
does it aim to address?
Businesses today face various
challenges, including sky-high rents
and a lack of manpower. In July 2015,
our online grocery store RedMart
launched Marketplace, a platform
that allows collaboration between
local SMEs and independent sellers,
including some of Singapore’s niche
restaurants and specialty shops.
Marketplace now offers more than
25,000 products – the largest product
range in Singapore. Not only can local
sellers list and sell their products here
for free, they can also use RedMart’s
logistics and wide delivery network to
reach more customers, and use our
offline and digital marketing channels
to promote their products.
How has Marketplace
benefited local SMEs and
RedMart?
Marketplace removes all barriers to
business for SMEs in the competitive
e-commerce space, including the cost
of adopting and running an e-commerce
site, marketing, warehousing and
hiring staff. In other words, it takes
away the day-to-day hassles of running
a business-to-consumer company
and allows SMEs to focus on their
core competencies.
For RedMart, it’s a win-win partnership
that allows us to continuously expand
our product offerings and remain
competitive. For instance, we have
increased our number of products from
8,000 to more than 25,000 since July
2015. What’s more, Marketplace has
been growing its product offerings
by 40% each month since it was
launched.
How did RedMart’s
SME business improvement
programme come about?
What does it aim to achieve?
As many SMEs lack the skills
and tools to adopt e-commerce,
RedMart and SPRING Singapore
collaborated to train local SMEs in
all aspects of e-commerce, including
pricing and marketing. Under the
programme, small businesses learn
how to take product photos and
write descriptions, analyse their
product performance and competitors,
and manage their online store
inventory efficiently. Essentially, it
aims to enhance SME competitiveness, productivity and growth.
What other initiatives has
RedMart introduced to
help local SMEs boost their
e-commerce sales?
We plan to launch two seller events
to promote our products to retailers,
customers and industry experts, and
boost sales. These events – which
will be held in June and December
this year – also aim to showcase
RedMart as a partner of choice
for SMEs. Additionally, we have
formed partnerships with third-party
warehousing and fulfilment firms
to pick, pack and ship single items
and small-volume orders to
customers, simplifying order
management and delivery processes
for our sellers. ¢
APRIL 2016
17
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having the right set of business capabilities will
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to 70% of qualifying project costs when you enhance
your capabilities to grow your business.
For more information, visit www.spring.gov.sg/CDG
or call 6898 1800 to make an appointment with an
SME Centre business advisor today!
PROFILE
EASIER
WAY TO DO
BUSINESS
SPRINGnews spoke to Ms Sangeetha Ranganath (above), Vice-President
of SingPost’s Small Business E-commerce Solutions, to find out more
about ezyCommerce, its e-commerce order fulfilment solution
What are some of the
unique features of
ezyCommerce?
Launched in April 2015, ezyCommerce
is a cloud-based e-commerce order
fulfilment solution for SMEs. Using
SingPost’s established warehousing
and logistics operations worldwide, the
solution offers scalable warehousing
and a range of delivery options. It also
allows those who sell their products
on one or more online marketplaces
to automate their order fulfilment
processes. ezyCommerce comes with
a business intelligence dashboard that
allows SMEs to monitor key metrics,
such as top-selling items and inventory
levels of all their listed products, so
they can make more informed
decisions on their business operations.
Essentially, it allows businesses to
outsource their entire e-commerce
order fulfilment process to SingPost,
so they can focus on their core
competencies and strengths.
What are some of the
business challenges the
solution aims to address?
The rising costs of doing business
and unpredictable future productivity
and scalability demands are some of
the barriers to growth for Singapore’s
SMEs. Because of these constraints,
many SMEs do not have time to
focus on areas crucial to business
competitiveness and sustainability,
such as innovation, procurement,
sales and marketing. So, SingPost
collaborated with SPRING Singapore
under the Collaborative Industry
Projects (CIP) initiative to take the
cost and hassle out of daily order
fulfilment processes for SMEs.
As part of the CIP initiative, SPRING
agreed to subsidise some of the
expenses associated with running
an e-commerce business to reduce
SMEs’ cost burden. With CIP, SMEs
get 70% off monthly payments for
ezyCommerce services. In other
words, having SPRING as our partner
enables us to offer a more costeffective solution.
How does ezyCommerce
help SMEs cost-effectively
grow outside the Singapore
market?
ezyCommerce’s pay-as-you-use
outsourcing model helps SMEs
eliminate fixed costs, such as rentals
and salaries, because there is no
need to pay for premises or hire
administrative or delivery staff. Instead,
SMEs can spend their funds in areas
directly related to their business, such
as creating products and services that
suit different markets, and building
brand awareness globally. In other
words, outsourcing business functions
to an expert like SingPost can be a
great strategy for improving overall
business efficiency.
Could you provide an
example of an SME
that has benefited from
ezyCommerce?
ezyCommerce helped Fitoverspecs
– a local SME that designs, sells
and makes sunglasses – expand its
online retail business, and reduce
the time it spent manually retrieving
stock, delivering orders and tracking
shipments. ezyCommerce offered
the company scalable storage
space and the ability to manage
shipping, delivery and inventory
processes in one place. Today,
Fitoverspecs has a strong customer
following globally, partly because
SingPost enables it to provide
on-time delivery locally and
internationally, putting customer
convenience and satisfaction first. ¢
APRIL 2016 19
SPOTLIGHT
INCREASING PRODUCTIVITY,
ONE SOLUTION AT A TIME
The Manufacturing Productivity Technology Centre’s
collaboration with SPRING Singapore is helping SMEs adopt
bite-sized productivity solutions
D
r Lee Eng Wah (above),
Director of the Manufacturing Productivity
Technology Centre
(MPTC) at the Singapore Institute of
Manufacturing Technology, believes
that technology can be used as a tool
to meet business targets efficiently
without wasting unnecessary resources.
At the same time, most SMEs do not
have the resources to adopt costly
productivity solutions with long
implementation time. That’s where
MPTC’s five bite-sized productivity
solutions come in.
Since 2013, MPTC has worked
with SPRING Singapore under its
Collaborative Industry Projects (CIP)
initiative to progressively develop and
roll out these solutions which can help
SME manufacturers use technology
to improve productivity, reduce labour
and operation costs – without requiring
a great deal of investment.
20 APRIL 2016
The CIP initiative promotes crosssector collaborations between SMEs
and industry partners – such as
Trade Associations and Chambers,
and Centres of Innovation – to solve
common industry-specific and
business challenges.
“We worked with SPRING to ensure
these productivity solutions are simple,
easy to adopt and require minimal cost
and implementation time for SMEs,”
says Dr Lee.
So far, more than 160 SMEs from
various industries have benefited from
the productivity solutions. “On average,
each SME has seen a 20% increase in
productivity,” Dr Lee reports.
So what do these bite-sized solutions
look like in action?
Measuring productivity
In November 2014, Keystone Cable,
a Singapore-based manufacturer
and supplier of cables, worked with
MPTC to conduct an overall equipment
effectiveness (OEE) assessment to
accurately measure and improve
machine productivity.
The assessment, which uses
software tools to collect and analyse
machine productivity data, helped
Keystone Cable identify the causes of
breakdowns and failures, and improve
the effectiveness of its machinery.
Thanks to the OEE assessment
and software tools, the number of
breakdowns has been reduced by
29% and machine set-up time has
been cut by 59%.
Track-and-trace solution
Dynamics Circuit Singapore
specialises in maintaining and
repairing manufacturing equipment for
clients in various industries. However,
manually managing and tracking a large
number of customer products proved to
be time-consuming and labour-intensive.
In August 2014, the company
implemented MPTC’s item management and tracking system, which uses
radio-frequency identification (RFID)
tags to track items and collect accurate
data in real time. The system has
since simplified the company’s
stocktaking processes, reduced
labour time by up to 60% and boosted
its supply chain visibility.
MPTC bite-sized productivity solutions
MEASURING
PRODUCTIVITY
An OEE assessment
to accurately measure
and improve machine
productivity.
LEAN and EFFICIENT
Lean tools, techniques
and concepts are applied
to eliminate wastage such
as extra transport, excess
inventory, unnecessary motion,
waiting and over-production.
TRACK and TRACE SOLUTION
An item management and tracking
system, which uses RFID tags to track
items and collect accurate data in
real time.
FIT for SMEs
An RFID- and smartphone-based
solution to efficiently track staff
whereabouts during work hours.
FIT simplifies payroll processes,
improves the accuracy of attendance
data and reduces payment errors.
MANAGING HIGH-MIX,
LOW-VOLUME MANUFACTURING
This helps companies improve their operational
efficiency and service through planning production,
scheduling, and tracking the shop floor.
Lean and efficient
Last year, Piaget Chemicals &
Manufacturing reassessed the
business processes it has used
for more than 40 years. The local
chemicals supplier used MPTC’s lean
implementation solution to make the
best possible use of its resources.
First, the company’s staff were trained
in lean techniques. Then MPTC helped
Piaget Chemicals manage its inventory,
including disposing of old products
and improving its use of floor space.
Previously, for instance, it used to
take staff up to 10 hours to arrange
packaging pallets for unloading, and
dismantle and dispose of rotting
pallets. After implementing the MPTC
solution, this time has been reduced
by 20%.
Managing high-mix, lowvolume manufacturing
Techcom Technology – a local provider
of precision sheet metal, machined
parts and subassembly work –
implemented MPTC’s high-mix, lowvolume solution to reduce waste,
optimise production flow and boost
productivity.
The solution helps companies improve
operational efficiency through planning
production, scheduling and tracking
the shop floor. It helped Techcom
eliminate non–value added manual
processes, decrease missing items
during production, and reduce errors
and delays.
Since adopting the solution, Techcom
has seen a 70% reduction in the number
of missing items during production and
a 20% increase in on-time deliveries.
We worked with SPRING to ensure these
productivity solutions are simple, easy to
adopt and require minimal cost and
implementation time for SMEs.
Dr Lee Eng Wah
Director
Manufacturing Productivity Technology Centre
FIT for SMEs
CYC Movers, a local company that
provides international and domestic
relocation solutions, used to manually
record staff attendance using a paperbased timesheet system. Because its
staff are often required to work on-site
at various locations, the company found
it difficult to keep track of attendance
and overtime claims.
It decided to implement MPTC’s field
worker identification and tracking (FIT)
system, an RFID- and smartphonebased solution that can be used
by companies from any industry to
efficiently track staff whereabouts
during work hours. FIT has helped CYC
Movers simplify its payroll processes,
improve the accuracy of attendance
data and reduce payment errors.
Optimising productivity for
future success
In October 2015, MPTC rolled out
an affordable ‘manufacturing control
tower’ system for SMEs. The software
platform allows SMEs to view all
components of their production
processes online, and track and
monitor supply chains remotely.
“Having greater awareness of each
production stage will put SMEs in a
better position to identify and reduce
waste, and speed up processes,”
says Dr Lee.
Overall, given the tight labour
market, Dr Lee believes businesses
must equip their staff with the right
hardware and systems to keep them
working at peak efficiency. He puts it
this way: “Ultimately, with increased
productivity and profitability, small
businesses will be able to compete
effectively in global markets.” ¢
keytakeaways
¢Technology is the key to higher
performance and productivity.
¢Visit www.spring.gov.sg/CIP to find out
how SPRING can help you solve your
business challenges through strategic
collaborations with industry partners.
APRIL 2016
21
Ms Shermaine Tay
Business Advisor
SME Centre@SMF
Mr Sia Chye Whatt
Director
Darwin Design &
Development Pte Ltd
Ms Angel Tnee Ching Mei
Founder
Allure Beauty Salon Pte Ltd
Mr Ng Cheng Kai
Business Advisor
SME Centre@SMF
Ms Ashura D/O
Isaahak Piperdy
Business Advisor
SME Centre@SMCCI
Mdm Supiah Abdullah
Director
Foodcrumz Pte Ltd
Ms Ho Qian Yi Fermelle
Director
Iconz Pte ltd
Mr Andrew Gam
Business Advisor
SME Centre@ASME
More than
Business Advisors,
they are my partners
in business
Mr. Ishvinder Singh
Business Advisor
SME Centre@SICCI
Ms Stella Aw Yong
Business Advisor
SME Centre@ASME
Mr P. Gunasegeran
CEO
Just R Enterprise Pte Ltd
Mr Kentigern Tan
Director
Suniwell Trading Pte Ltd
Ms Ong Poh Geok
Founder
Shing Mei Confectionery
Mr Alan Wong Peng How
Business Advisor
SME Centre@SCCCI
Ms Viswanatham Sangari
Business Advisor
SME Centre@SICCI
Mr Mahendran S/O
Navaratna Rajah
Regional Director
Omni-Health Pte Ltd
Mr Tan Guang Lin
Business Advisor
SME Centre@SMF
Join these SMEs that have taken
their businesses to the next level
At the SME Centre, our Business Advisors partner you on your
growth journey, guiding you to the next level in your business.
Leverage their insights on the SME community, and tap on readily
available business resources, to start growing your business today!
Find out more at www.smecentres.sg
Supported by
SMF
Ms Ann Yeo
General Manager
Five Star Hainanese
Kampong Chicken Rice
CONTACTS
SME Infoline
Tel: (65) 6898 1800
Email: [email protected]
Website: www.smeportal.sg
SME Centres
SME Centre@ASME
Association of Small and Medium
Enterprises (ASME)
167 Jalan Bukit Merah
Tower 4, #03-13
Singapore 150167
Tel: (65) 6513 0388
Email: [email protected]
Website: www.smecentre-asme.sg
SME Centre@SCCCI
Singapore Chinese Chamber of
Commerce and Industry (SCCCI)
47 Hill Street, #09-00
Singapore 179365
Tel: (65) 6337 8381
Fax: (65) 6339 0605
Email: [email protected]
Website: www.smecentre-sccci.sg
SME Centre@SICCI
Singapore Indian Chamber of
Commerce and Industry (SICCI)
SICCI Building
31 Stanley Street
Singapore 068740
Tel: (65) 6508 0147
Email: [email protected]
Website: www.smecentre-sicci.sg
SME Centre@SMCCI
Singapore Malay Chamber of
Commerce and Industry (SMCCI)
15 Jalan Pinang
Singapore 199147
Tel: (65) 6293 3822
Fax: (65) 6293 3905
Email: [email protected]
Website: www.smecentre-smcci.sg
SME Centre@SMF
Singapore Manufacturing Federation (SMF)
2985 Jalan Bukit Merah
Singapore 159457
Tel: (65) 6826 3020
Fax: (65) 6826 3021
Email: [email protected]
Website: www.smecentre-smf.sg
For assistance, you can visit
satellite SME Centres located at the
Community Development Councils (CDCs),
Changi Simei Community Club and
Ang Mo Kio Community Centre.
Sales of Standards
Toppan Leefung Pte Ltd
Great World City East Tower
1 Kim Seng Promenade, #18-01
Singapore 237994
Tel: (65) 6826 9691
Fax: (65) 6820 3341
Email: [email protected]
Website: www.singaporestandardseshop.sg
Standards Collection
National Library Board
Lee Kong Chian Reference Library
100 Victoria Street
Level 7
Singapore 188064
Tel: (65) 6332 3255
Email: [email protected]
Website: eresources.nlb.gov.sg/standards
SPRING Singapore is an agency under the Ministry of Trade and Industry, responsible for helping Singapore enterprises grow
and building trust in Singapore products and services. As the enterprise development agency, SPRING works with partners to
help enterprises with financing, capability and management development, technology and innovation, and access to markets.
As the national standards and accreditation body, SPRING develops and promotes an internationally recognised standards and
quality assurance infrastructure. SPRING also oversees the safety of general consumer goods in Singapore.
Satellite SME Centres are also located at the Community Development Councils (CDCs).
SPRING Singapore
1 Fusionopolis Walk, #01-02 South Tower, Solaris, Singapore 138628
Tel: +65 6278 6666, Fax: +65 6278 6667
www.spring.gov.sg