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New FairPrice Hub to give enterprise boost in productivity

SINGAPORE — The new S$350 million FairPrice Hub in Joo Koon will not just bring together the social enterprise’s headquarters and distribution centre, it will also result in cost savings being passed on to consumers as operations are streamlined.

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SINGAPORE — The new S$350 million FairPrice Hub in Joo Koon will not just bring together the social enterprise’s headquarters and distribution centre, it will also result in cost savings being passed on to consumers as operations are streamlined.

Speaking at the opening of the Hub, NTUC’s chief executive officer Seah Kian Peng said: “Logistics cost is one part of the entire cost of doing business … The supply chain is an important part. So, if we’re able to lower this cost, this is will allow us to operate more efficiently and pass down this cost to make sure that the prices of all our products remain more competitive.”

Calling the 1.2 million sq ft building “state-of-the-art”, Prime Minister Lee Hsien Loong, who was at the launch, said NTUC FairPrice has played an important role in nation building by keeping the cost of living low while offering essential goods at “a fair price”. 

Today (Sept 16) would have been the late founding Prime Minister Lee Kuan Yew’s 92nd birthday. Evoking his memory, Mr Lee recounted the launch of the first NTUC Welcome supermarket in Toa Payoh in 1973.

The late Mr Lee had said then that Singaporeans would get “more value for your money buying here” and  “a return to 5 to 10 per cent back every year on your purchase”.

To date, “FairPrice continues to give Singaporeans a fair deal and keep prices affordable … and does all this while holding its own with other retail players,” said Mr Lee, who was speaking at his first official function since the polls. 

The distribution centre has been operational since late last year. Set up for about S$220 million, it features an automated system said to be the first of its kind in Asia-Pacific and houses over 52,000 pallets — more than double the capacity of its existing warehouse, also in Joo Koon.

All pallets are fitted with Radio Frequency Identification tags for tracking. Robotic technology and autonomous vehicles are programmed to transport these pallets on demand. With the technology, about 200 cartons can be processed per man hour — twice as fast as a distribution centre using manual pallet movers.

“It has allowed us to take advantage by improving our space productivity and manpower productivity as well,” said Mr Seah, estimating that manpower productivity has increased by 25 per cent and looks set to continue on an upswing. More than 600 employees will be based in the 16-storey Hub, which  also boasts a running track, a gym, and training facilities for employees. 

NTUC FairPrice also pledged S$50 million to the FairPrice Foundation over the next five years, on top of the S$88 million donated since 2006.

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