This study focuses on the impact of standards in the supermarket sector of the food retail business. Led by the Standards, Productivity and Innovation Board (SPRING SG), the project was conducted on Singapore's largest supermarket retailer, NTUC FairPrice, which has a network of over 240 outlets, over 7000 employees and a share of over 50 % of the domestic market.
Focus is placed on three major business functions: Procurement, Warehousing/distribution and Retail and on the most important standards used by these: i.e.standards for cold chain management, for pallets and for warehousing and distribution (barcode standards).
The report underlines that the impact of standards can be primarily described in qualitative terms – for instance, the company management recognizes that cold chain standards have played an important role in improving efficiency in operations and communication, helping to streamline the company processes and to support its substantial sales growth. However, the study has also allowed to assess specific and significant quantitative benefits: i.e. savings in operational costs derived from the use of standards by the analyzed business functions have been estimated at 13.6 million SGD over the last ten years.