Ntuc Fairprice Essay

NTUC FairPrice is a social enterprise of Singapore National Trades Union coitus (SNTUC), the completely trade union centre in Singapore. Founded in 1973, the vision of the organization was to moderate the approach of living. NTUC FairPrice is now the largest supermarket chain in Singapore, they consist of 1.FairPrice Supermarkets2.FairPrice Finest3.Cheers4.FairPrice Xtra,5.FairPrice Xpress6.FairPrice Online7.providing their service to 300,000 odd customers daily (Superbands). IKEAIKEA was founded in Sweden in 1943. Their uniqueness lies in their design furniture for flat packs for self assembly, by the customers (IKEA, 2011). IKEAs business practice is cognise for damage control and continuous product development.IKEA is operating in 38 countries. Although IKEAs primary role is to sustain its end users to transport the furniture by themselves, in Singapore, where many of its consumers may not have their own transport, they also offer delivery service. Procurement, get And Sou rcingFairPriceFirstly, we take a look at Fairprices logistic workes, Procurement, purchasing and sourcing. Searching suppliers and conclude agreementSuppliers require meeting Fairprices product theatrical role requirements especiallyfor their cold chain takement. It helped Fairprice and suppliers gain competitive advantage by contribute quality products for a retentive period to the demand customers as it gave positive effect on its revenue.For to each one product group, only limited number of suppliers can supply. Receiving stock requirement from NTUCs storesThey atomic number 18 IT enabled where stock requirement are sent to DC based on their inventory management in which stocks reaches its reorder point unavoidably to start ordering new stocks. Purchasing orders with suppliersTracking their orders, invoices and payments via SAPEnsuring delivery sent at DC/StoresPerishable products are sent directly to stores. Non-perishable products like butter, cheese are sent to DC. Proc essing consumer returns and non accordTo process non conformance in which suppliers fails to meet Fairprices product quality requirements in their product and transaction with returns in stores using Goods Returned Note. Fairprices procurement assures to have a long last and continuous race with their suppliers. IKEAAll products from IKEA are manufactured according the designed code of conduct The IKEA way on Purchasing inhabitancy Furnishing Products(IWAY), as it require main IKEAs relationship with their suppliers. All suppliers must achieve the requirements.IKEA sources internationally with 5 countries which is China, Italy, Poland, Sweden, Germany. Their 2 main focus is to increase sustainability of their suppliers and increase uses of sustainable raw materials. IKEA aims building long term relationship with suppliers that share same values. They focus to encourage suppliers having developments become sustainable and independent of IKEA front by committing to IWAY.IKEAs audi tors visits suppliers regularly to assure that IWAYs requirements are met.The compliance and supervise group (CMG) ensures that same audit requirements are used worldwide. in that respect are 4 major categories of suppliers which is Home Furnishing with 13,800 suppliers, Food with 76 suppliers, catalogue with 50 suppliers and Transport service with 263 bidrs. IKEA purchased products both regionally and globally so as tohave low price with high quality.They have a purchasing unit called IKEA voice in which develops raw materials and components for their product and acts as sub-supplier to IKEA suppliers manufacturing finished products. Inventory prudenceFairpriceThe second logistic process that we are going to look into is the Inventory management. Fairprice and Ikea have designed their inventory management in a way that it go forth reduce costs and positively impact the companys return on investment. Fairprice has 2 warehouses and they only hold finished goods in their warehou se. This enables the company to largely reduce the magazine Fairprice entrust need to hold the inventory. Inventory cost such as carrying cost and risk cost will be reduce. Fairprices inventory management adopts the push approach. The stocks from each outlets will reach a sure stock level where the store staff will make the orders to the GLS (Grocery Logistics of Singapore). GLS will have enough time to consolidate all order from different outlets and enables them to make lesser trips for delivery, thus save the delivery cost and also prevent a stock out situation. IKEAIKEA adopts a special inventory whereby they manufacture their products by a push approach. The operational forecast and the tactical forecast are combined to create a final forecasts on store levels which will be aggregated, reconciled and compared with the same frames based on the sell and distribution services forecast group level. IKEAs store operations focuses on the Paretos constabulary by supporting high-fl ow facilities and low-flow warehouse that are more manual. In its high-flow warehouses, IKEA employs automatic storage and retrieval ashess (AS/RS) to engage down its costs-per-touch. IKEA have large bins, which is sufficient enough to cover sales for one daylight as what is sold is captured by Point of Sales (POS) system and what comes into the store is also known via Warehouse Management System (WMS). Thus, very little cycle counting is done. However, IKEA is able to detect any abnormalities. For example, when the system expects a certain volume of a particular product to have been sold during a two day period and less products was actually sold, the system will trigger and will direct in-store logistics to head to the kettle of fish to do manual checks. With thisprocess and system, it enables the right goods to be in the store with higher certainty as compared to the traditional retail forecasting/replenishment process. Warehousing and DistributionFairpriceThe third process i s warehouses and distribution. FairPrice faced problems savings bank 1993 as suppliers used to deliver their products to Fairprice stores directly. This recorded up to 200 deliveries everyday with more than 30,000 products to managed and their distribution system were unproductive and was prone to errors. After 1993, Fairprices manage the Grocery Logistic of Singapore(GLS) Distribution Centre which is cardinal distribution centre(DC) .GLS manages 2 distribution centres at Penjuru and JooKoon. In 2002, Fresh Food Distribution Centre(FFDC) is Fairprices alter refrigerated DC to implement only clear food items which they need right temperature to kept fresh. This allowed Fairprice extemporize their supply chain management of these perishable products through a better temperature management control. Its native knowing the temperature for perishable products. Products like milk, chilled pork and dairy products are delivered directly to the stores by suppliers to avoid spoilage. The re are 6 warehouse handled under FFDC with different controlled temperatures ranges between -20 to 18 degree Celsius. The temperature in each of the warehouse is controlled and observed assuring that products are kept safe at the right temperatures. This enables NTUC Fairprice increases its efficiency and manage its supply chain as moving stocks faster helps maintain the freshness and improve quality of products. They provide proper infrastructure to maximize storage management and able to improvise the process of handling the fresh food, especially with the right temperature therefore reducing spoilage. By having Hazard Analysis Critical Control Points (HACCP) certified, they trust maintaining good standard food safety and hygiene in DC. They operate 7 days a week and deliver more than 28 million cartons to the stores per year.