In the early 1990s, Boon Suan Chew was working for a marketing and distribution company which owned and managed several warehouses. It was a very product-based setup with various brand managers. He became aware of third-party warehouses which were run more as a service, where the value of the service was the warehouse space and its related services. To run such a warehouse, many operators were using a modified version of enterprise resource planning (ERP) software designed for inventory management rather than warehousing. Boon saw the gap in the market and jumped at it.
Boon decided to partner with two of the best IT MNCs, Sun Microsystems and Oracle, to develop a software application for third-party warehouses that is built on a well-known hardware platform and an equally robust database. By building the business on two very trusted brands, he hoped to achieve greater acceptance of his product offering. "Customer would take one look at the partners and not ask too many questions after that," said Boon with a laugh. Today, Boon is the managing director of Boon Software Consulting Pte Ltd, a company whose solutions are used by a significant number of third-party warehouses in Singapore.
When the Infocomm Development Authority of Singapore (IDA) introduced the Infocomm Local Industry Upgrading Programme (iLIUP), the programme seemed to be the perfect platform to seal the partnerships between Boon Software and its MNC partners. The objective of the iLIUP program - accelerating capability development of local enterprises and preparing them for the global marketplace - was in line with Boon's priorities for the business.
"The MNCs were not just interested in selling more hardware and software to our customers," said Boon. "When they came across news or software developments that would be of interest to us, they would call us." The relationship grew through invitations to participate in exclusive events and exhibitions as well as sharing of technology and expertise.
Under the partnerships, Boon Software gained branding and market recognition. As Boon Software's offerings became more developed, its partners gladly endorsed its products. The MNCs complemented Boon Software's weaknesses with their own capabilities. "The interests of a small growing company was suddenly the concern of the MNCs," said Boon.
Boon Software is now focusing on creating a suite of products that will do more than warehouse management. The software suite will extend its capabilities to transport and freight management. At the same time, Boon is developing the capabilities of the company to address the needs of vertical industries such as the automotive and pharmaceutical industry.
"A good partnership is no substitution for hard work and a solid track record. There is no sure-win scenario, even under the best programme," Boon said. "You must have a correct business model. Only then can the partnership serve as useful leverage. The fundamentals such as technology, marketing and branding must first be there."