Due to the pandemic, the past few years have been challenging for the F&B and food manufacturing industry. As a local household brand for over 50 years, Saga Foodstuffs wanted to explore how they could improve their current business model and develop appropriate strategic plans in order to scale up.
To help Saga to kickstart its digital journey, a Value Stream Mapping (VSM) study was conducted for Saga where all the important steps of the work processes to deliver value from start to end of the production were identified and scrutinised. This helped Saga identify the bottlenecks of their processes and the areas for automation and process enhancements.
Besides that, we advised them to develop Standard Work Instructions (SWIs) to improve comprehension & retention of procedural information.
Business Strategy Development
We assisted to build up a proper corporate structure & business model that enables scalability. On top of that, we helped to lay out strategic plans for business transformation.
We also recommended expanding their product portfolio by leveraging on several factors that impact consumers’ food purchasing decisions today in Singapore:
- Elder-friendly & health consciousness – Functional foods for Asia’s ageing population have been identified as a core growth opportunity for firms in Singapore.
- RTE (ready-to-eat) or ‘quick meal’ – Covid-19 has led to a considerably shift in the buying patterns of consumers ranging from basic necessities to high-value items like packed food items, processed food, snacks, etc. There was a significant spike in the demand for packaged food products like biscuits and instant noodles, resulting in an increase in the average purchase value per customer.
We discovered that Saga Foodstuffs did not tap on digital platforms and e-commerce channels to reach out to a growing base of online shoppers and customers.
To ride on the digitalisation wave, we proposed to establish a Flagship Store at online marketplaces such as Lazada and/or Shopee. The benefits of selling on these two leading platforms is that Saga can cater to the needs of buyers more effectively (better shipping terms, for example), and the availability of multiple payment options potentially attract more customers.
To help Saga with the selection, a comparison was made between Shopee & Lazada, to which Saga considered these platforms as complementary instead of separate channels.
Saga then leveraged on such platforms by using a small initial investment to test new market and buyer demands before committing more resources. They could benchmark competitors to see where they stand, and make the necessary adjustments and adaptations.
Human Capital Consulting
In view of their ageing workforce, we recommended a Mature Talent Programme to facilitate knowledge transfer from older, more experienced employees to the new batch of younger workers. This will also help ensure higher talent acquisition & retention.