Sheng Siong to build $520m facility to support over 120 stores

Supermarket chain operator Sheng Siong broke ground for its new integrated headquarters and distribution centre (IHDC) worth $520 million in Sungei Kadut, in support of its expansion plans. 

The ground-breaking ceremony took place on Monday (July 13), and was attended by Deputy Prime Minister Gan Kim Yong.

The IHDC is the Sheng Siong's largest investment to date, and reflects its "commitment to building the operating backbone for its next phase of growth", said the company in a press release on the same day.

Construction of the IHDC is expected to be complete in 2029, with the facility spanning across seven storeys and 61,000 sq m — 2.5 times the size of Sheng Siong's current distribution centre at Mandai Link.

"When completed, it will be one of the most advanced automated grocery distribution centres in Southeast Asia," said the company, adding that the new facility is needed to cope with rising consumer demand and continued store expansion.

According to Sheng Siong, the IHDC will be able to support 120 stores, up from the current network of 90.

"More than a larger warehouse, the IHDC is a major step in Sheng Siong’s transformation into a more technology-enabled, data-driven and resilient supermarket operator," they said.

Supported by Enterprise Singapore and JTC, the IHDC will bring together automated storage and retrieval systems, robotics and intelligent warehouse management systems.

Speaking at the ceremony, DPM Gan said that the enhanced automation will also support Sheng Siong's workforce, and "free manpower from repetitive and manual tasks, so that they may be redeployed where they can add greater value".

In particular, warehouse staff will be reskilled to operate automation systems and perform technical maintenance while others will be trained for e-commerce fulfilment and frontline retail roles. 

New technical positions will be created to support new systems, DPM Gan said.

The new facility not only supports workforce development but also strengthens Sheng Siong's network of suppliers.

"By consolidating deliveries through a single, centralised platform, suppliers can expect more predictable schedules, better demand forecasting, and automated handling that reduces errors and product damage," added DPM Gan.

The IHDC will also allow for more effective production planning, allowing for fewer unnecessary trips and better matching of supply to demand, while also reducing Sheng Siong's wastage and carbon footprint.

"As we grow, we must build the foundation that allows us to serve customers better, support our suppliers and create better jobs for our people," said Lim Hock Chee, CEO of Sheng Siong.

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dana.leong@asiaone.com