YCH Group used to confine its services to logistics until it underwent a transformation that completely changed the face of its business.
The turning point came when it expanded its services to encompass supply chain management.
This happened in 1996, when YCH was first appointed by Compaq Asia to service its Asia-Pacific manufacturing operations.
Nonetheless, change did not come easily.
'The greatest challenge was changing the mindset of our own employees. At that time, everyone in the company was too used to logistics as just 'transportation', 'freight' or 'warehousing'. It took some time to ensure our own YCHees understood where we were going,' recalled Robert Yap, chairman and chief executive of YCH Group.
Dr Yap was named Ernst & Young Entrepreneur of the Year Singapore 2007. He is also one of the conference speakers at this year's BlueSky Conference, an event for entrepreneurs.
'It was essential that our people understand the difference between a strategic supply chain provider (providing both management and strategy consulting to help our customers streamline and optimise their own supply chains) and a normal logistics operator that just executes based on customer instructions,' added Dr Yap.
While headquartered here, YCH also operates in countries such as Malaysia, Thailand, Indonesia, Australia, China and India.
To maintain its edge in today's competitive business landscape, YCH aims to widen its network of clients within the Asia-Pacific region, strengthening its presence especially in countries such as China, India and Vietnam.
YCH also plans to continue investing in technology, in a bid to enhance its processes and ensure scalability in its growth and expansion plans.
We 'are constantly leveraging on the latest technologies to be at the forefront of the industry. YCH's open culture embraces innovation and knowledge sharing', said Dr Yap.
YCH earned over $200 million in revenue last year and is expecting to grow by more than 30 per cent - or achieve over $250 million in turnover - this year.
Dr Yap's advice to SMEs striving to make that critical breakthrough?
He believes that it is imperative to make quick decisions that can then be executed more quickly than one's competitors.
As such, he constantly keeps an eye on competitors and industry trends, so as to remain ahead.
He also highlighted the importance of building long-term, symbiotic relationships with partners - a strategy that is YCH's biggest advantage, he feels.
Finally, 'believe in your own identified niches and pursue them with focus. Do not give up and be prepared to take risks', he added.
This affinity for risk-taking is also clearly evident in another BlueSky conference speaker.
Soaring oil prices and the global credit crunch may be plaguing the airline industry, but group chief executive officer of Malaysian budget airline AirAsia, Tony Fernandes, is largely unfazed.
'We've reached a stage where we've gotten through the worst. Every day has been a challenge. This is not the worst crisis we've gone through,' he said, pointing out that the Sars crisis was worse as people were completely unwilling to fly, unlike today.
Constant innovation as well as a rapid response to problems has helped the budget airline through some tough times.
As some airlines are responding to the current crisis by weeding out under-performing routes and streamlining operations through cost-cutting measures, AirAsia is bent on capitalising on the gaps left in the market.
'Most airlines are cutting capacity and cutting costs, but I think it's a good time to build market share in times of strife. To go against the wind may be a good approach. Use it as an opportunity to build,' added Mr Fernandes.
This characteristic of going against the current seems to be a consistent one.
When traffic to Bali dropped after the Bali bombings and other airlines were looking at cutting back, AirAsia instead gave away 10,000 free seats.
The region's biggest budget airline, which has 60 per cent of the market share in Malaysia, will be adding a new route to South India in September.
It currently has a fleet of almost 80 planes. 'We're always focused on South-east Asia. We've dipped our toes in China, we're going after India soon,' Mr Fernandes added.
Established in December 2001, the airline now flies to over 60 destinations in countries such as Malaysia, Thailand, Singapore, China, Philippines, Laos, Vietnam and Myanmar.
For FY2007, net income came in at RM498 million (S$208 million), more than twice the previous year's figure of RM201 million.
Revenue rose by 52 per cent year-on-year to RM1,603 million from RM1,058 million. However, Mr Fernandes remains ever mindful of the dangers of expanding too fast.
'Take each step at the right pace. Be king in your own country first, then your region, then grow from there,' he cautioned.
Another critical point is to ensure that the company has the right people. One of the things that sets AirAsia apart from other airlines, reckons Mr Fernandes, is its passion and drive.
It is important to 'create an environment for people to innovate, where everyone feels comfortable to contribute ideas', he said.
This article was first published in The Business Times on 18 July 2008.
