The establishment of Segi Logistics, for the integration of the groups’ logistic flows with fully implemented SAP (Systems, Applications and Products in Data Processing) system the Segi Group subscribes to.
The groups’ real estate investment arm, Segi Realty was established.
The establishment of Segi Logistics, with the aim of enhancing the company’s’ distribution channels. Managing shipping protocols, warehousing, ordering & inventory, Segi Logistics is a self-sustaining operation platform.
Holistic Business Model
Segi Group of Companies encompass various business activities that span across industries. While each business unit under the group has its own area of focus, they all function to complement each other’s operations and the overall aim of fostering a complete end-to-end grocery supply chain that delivers fresh and affordable produce to customers.
From import to export, trading to logistics, distribution and property management, each business unit was established as a natural extension of the company’s growth, which is motivated by its corporate mission to create value for the community, consumers and vendors. By maintaining sight over all aspects of its supply chain, Segi is able to ensure that the products at its wholesales stores are of good quality and reasonably priced.
Groceries, produce, and meat are directly sourced from farmers, fishermen, and manufacturers both locally and abroad, eliminating the cost of engaging middle men in order to pass on the savings to customers. The company is further able to exercise control over freshness and quality by supervising its own logistics, which includes storage and distribution to all its marketing networks and consumers.
With the extent of localization and removal of unnecessary costs, Segi is able to bring about the additional value creation with the aim of passing back the savings to its customers through competitive pricing, enhancing the freshness or helping customers to save in many other ways, including, but not limited to; free delivery services – right to the doorstep and time saving.
Segi invests on people development, knowledge enhancement, technological investments in terms of systems and its infrastructure to help in its business activities to continue improving. it aims to supplement its business operations and supported by a robust foundation laid for growth, in tandem with the continued need for expansion to cater for its customers.
Through this holistic business model that oversees the entire farm to fork chain, Segi is able to provide a personal guarantee of value to its customers.
Not only is Segi Cash & Carry (SCC) the pioneer business of the Segi Group, it is also the heart of the group’s operations, pumping lifeblood into the business activities of the other units that are mainly revolved around it.
While SCC was initially founded as a traditional market wholesaler in September 1994, as a wholesales and retail later was a crucial turning point for the company as it led to the expansion of the business and the development of the Segi Group. SCC is also largely responsible for strengthening the Segi brand name through the introduction of its concept stores, Segi Fresh.
This new concept store which emphasizes on providing fresh and quality food supply to its customers, whilst ensuring prices offered remain competitive and affordable. Its mission towards this has been recognized by the awards given in recognition towards such efforts. The awareness of its concept is brought about through its tagline used which is “Pilih Fresh, Pilih Segi” within stores and the corporate branding tagline that spells “Barangan Segar, Harga Borong, Pilihan Semua”.
Since its inception in 1997, SAE has scoured farmlands throughout Southeast Asia and further afeld in China, India and Pakistan to provide its customers and wholesalers with a varied and exciting selection of agricultural products. These include kitchen perennials such as dried chilies, potatoes, beans, and spices, as well as an assortment of fruits and vegetables, all of which are sourced directly from farmers both locally and abroad.
Prior to distribution, these products are housed at SAE’s very own warehouse and chilled storage facilities which has a total combined space of 350,000 square feet. At these facilities, standard operating procedures and strict quality control measures are observed to ensure the quality of food items are not compromised on its way to the market.
The fundamental distribution of our sourced products for local market is through various channels including wholesales, modern and traditional trade and supplementing our own wholesales and retail chain stores to bring similar benefits enjoyed through bulk purchases to the end customers.
Delicious and healthy meals start with fresh raw ingredients, which Segi strives to make available to its customers. This was the impetus for the establishment of Segi Marine Enterprise (SME). A relatively new addition to the Segi Group, SME, which was formed in 2009, is the seafood and meat counterpart to SAE.
Through this business unit, Segi sources its products directly from fishermen both locally and those in the neighboring countries like Thailand and Indonesia. From red snapper and pomfret to mackerel and catfish, as well as other aquatic favorites like shrimp and squid, variety is also a priority to ensure a wide selection of fresh and frozen seafood for customers. In addition, this unit also supplies meat and poultry fresh from the farm to wholesalers and retail chain stores.
It aims to upheld its standards by ensuring quality products are being supplied to our customers and maintaining the freshness and quality of the seafood, meat, poultry, vegetables and fruits in line with the concept of our stores; Segi Fresh.
SME is known to be the First company in Malaysia to be able to source directly and supply through its own wholesales and retail stores. Today, we are proud to be known for the best quality and freshness of our fresh products.
Founded in April 2011, with the aim of enhancing Segi’s distribution channels, SL also functions to manage all logistical requirements and distribution to all the retail chain stores.
The epicenter of operations for the group, SL is the conduit that bridges Segi’s direct sourcing activities with its retail operation networks. As such, this business unit also manages shipping protocols for importing and exporting goods, warehousing of all sourced products, ordering and inventory management, as well as the local transportation network. SL acts as the Distribution Center (DC) to manage the above said.
SL is a self-sustaining operation built on a platform that supports the entire group’s business model. It is envisaged to grow organically by venturing into rental of its cold room facilities for storage. However, its main focus will remain to effectively manage the thousands of different products that is channeled through its distribution center to all Segi’s retail chain stores in a timely manner while maintaining freshness and quality, our primary mission value.
Segi Realty (SR) was formed to support the growth of the other business units and company’s overall expansion in 2009. As Segi continues to grow, the company will need more facilities for new wholesales stores.
Through its team of technical staff, SR oversees the group’s physical expansion by providing the following services:-
• Handling the acquisition and management of all its assets and properties.
• Maintenance of all Segi’s building and capital equipment
• Prospecting for and identify land, conducting feasibility studies on viability of such investments
• Manages projects including renovation, conversion and build-to-lease such property identified.
SR seeks to continually assess existing and new business requirements of the various business units and to create value by exploring potential landmarks for expansion, especially for new Segi Fresh stores and warehouses.
Its challenges lies in the provision of suitable sites that caters to the business needs as laid within the parameters determined.
Into The Future
SEGI Group aims to open its 100th Segi Fresh supermarket by the end of 2022, supported by a special focus on market penetration in more areas, especially around the north of the Peninsula.
With 50 stores in hand, another 50 branches will be opened in stages with the focus of the company to create a better logistics network heading north and utilizing seafood and farmers to be marketed in Segi Fresh.
To date, Segi Fresh is already in Melaka, Negeri Sembilan, Putrajaya, Kuala Lumpur, Selangor and Perak covering various forms of business premises including single buildings that reach an area of up to 40,000 square feet.
For the 51st branch and beyond, the focus is to operate in shop-shaped premises involving three to five lots with an area of around 5,000 to 7,000 square feet. As more customers now prefer to visit small-sized supermarkets, in search of convenience, it’s become a more suited business model.
With hopes to ensure that Segi Fresh’s business grows in line with the benefits for local fishermen and farmers through the initiative, to get supplies directly from them without middlemen to enable fishermen and farmers to generate better income.
This also coincides with the objective of Segi Fresh which not only wants to provide fresh produce to its customers but also create opportunities for the local community in terms of employment and income.
“Our ambition determines how large our world will become. The bigger our dream, the further we go. Success begins with the first step we take”
– Chui Ah Hock –