Business Times, 8 May 2007
SIMPLEX TARGETS VIETNAM, IT NICHE
By Benita Aw Yeong
Benjamin Lim, head of Simplex, tells Benita Aw Yeong how he plans to grow the business so that it will rely less on the demand for kitchen equipment, which is often dependent on the economy's health.
WHEN Benjamin Lim first graduated from a local university with a degree in computer science, he did not intend to go into business. Instead, impressed by the structured career path and training offered by Mcdonalds, he joined the fast food chain as a trainee manager in July 1996. Today, the 35-year-old heads Simplex Pte Ltd, a company which was set up in the same year as he was born.
Simplex is headquatered in Singapore, with operations in Asia-Pacific territorries including Vietnam, China & Hong Kong. Most of the group's $15 Milion annual turnover comes from supplying blenders, ice cream machines and fryers, among other kitchen equipment, to international fast food chain and restaurants chain like McDonalds and Gelato as well as hotels such as Shangri-La and the Amara.
Mr Lim says there are even one or two requests a year from a wealthy individuals who are willing to pay up to $100,000 for professional kitchen equipment to be installed in their homes.
The company currently has partnerships and exclusive rights to distribute products of brands like Taylor & Frigomat and Vitamix, which designs and manufactures professional kitchen equipment. In addition, Simplex provides consultancy, maintenance and after-sales services to its clients.
Potential clients of Simplex hear about the company through its website as well as exhibitions such as Food & Hotel Asia, ,which the company participates in every two years.
Mr Lim, travels frequently to countries where Simplex subsidiaries are located. He believes in the importance of being "hands on" and having 'a good touch with the background".
He visits Vietnam espescially often, spending 20 to 25 per cent of his time there, because of the vast potential Vietnamese markets hold for the company.
We've already been in Vietnam for nine years, but prior to 2004 there was not a lot of focus and commitment to business there because it was a joint venture. Ever since we started putting in 100 per cent there our business in Vietnam has been growing exponentially, with last year's report showing triple digit growth. Mr Lim says.
He recalls a time where things were not as smooth-sailing. The company got hit in the recession during the 1980s as well as in 1997 financial crisis. Simplex suffered a double whammy during the latter, when a strong growth in China, coupled with a series of bad debts in Indonesia, caused a serious cash flow problems, he says.
Because Simplex deals largely with capital equipment, business performance is closely linked with the health of a country's GDP.
Currently Simplex Singapore has 60-70 staff, 10 of which are service technicians who maintain and repair equipment.
Mr Lim says one of the most unique aspects of the industry is its "fluidity". He says Simplex competitors can sometimes even be its suppliers, ,partners and customers at the same time.
We meet our competitors very often and even have coffee with them, because certain clients want specific equipment which we may not supply and in these circumtances we get them from our competitors, who then become our suppliers and vice versa, Mr Lim says.
Looking ahead, Mr Lim intends to use his own IT background to help develop the IT niche area he recently discovered. Last year, Simplex launced software for the F&B industry, acting as a link between the front and back end system of kitchens.
"Smaller fast food chains may not have the budget or expertise to interface the front end point of sale system such as the cashier ith the back end inventory & accounting system", Mr Lim says. "We have created an interface which allows managers to do just in time inventory control and waste management".
Mr Lim plans to gear up on the preventive maintenance side of the business, where clients pay to have their equipment kept in good condition. He believes that this will provde a more stable supplementary revenue stream, instead of relying solely on demand for equipment, which is often dependent on the economy's health.
Mr Lim, who was a waiter in a Japanese restaurant during his university days, says it is the passion for the food and beverage trade that led him to join Simplex in 2000.
