Ntuc Fairprice Essay

NTUC FairPrice is a social enterprise of Singapore case Trades Union Congress (SNTUC), the only trade union centre in Singapore. Founded in 1973, the vision of the organization was to moderate the cost of living. NTUC FairPrice is now the largest supermarket fibril 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 known for cost control and continual harvesting development.IKEA is operating in 38 countries. Although IKEAs primary aim is to take a crap its end users to transport the furniture by themselves, in Singapore, where numerous of its consumers may not subscribe to their own transport, they also offer language service. Procurement, Purchasi ng And SourcingFairPriceFirstly, we take a sort at Fairprices logistic military operationes, Procurement, purchasing and sourcing. Searching suppliers and conclude agreementSuppliers require meeting Fairprices product quality requirements especiallyfor their cold chain management. It helped Fairprice and suppliers gain warlike advantage by contribute quality products for a huge arrest to the demand customers as it gave positive effect on its revenue.For each product free radical, only limited number of suppliers can supply. Receiving stock requirement from NTUCs salt awaysThey be IT enabled where stock requirement are sent to DC ground on their inventory management in which stocks reaches its reorder point demand to start ordering new stocks. Purchasing orders with suppliersTracking their orders, invoices and payments via SAPEnsuring pitching sent at DC/StoresPerishable products are sent immediately to stores. Non- destructible products like butter, cheese are sent to D C. Processing consumer returns and non conformanceTo process non conformance in which suppliers fails to meet Fairprices product quality requirements in their product and dealing with returns in stores using Goods Returned Note. Fairprices procurement assures to call for a long last and continuous alliance with their suppliers. IKEAAll products from IKEA are manufactured according the designed code of conduct The IKEA way on Purchasing Home Furnishing Products(IWAY), as it require chief(prenominal) 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 stick sustainable and independent of IKEA presence by commi tting to IWAY.IKEAs auditors visits suppliers regularly to assure that IWAYs requirements are met.The compliance and monitoring group (CMG) ensures that same audit requirements are utilize worldwide. There are 4 major categories of suppliers which is Home Furnishing with 13,800 suppliers, Food with 76 suppliers, catalogue with 50 suppliers and merchant marine service with 263 providers. IKEA purchased products both regionally and globally so as tohave low price with high quality.They have a purchasing unit called IKEA component in which develops raw materials and components for their product and acts as sub-supplier to IKEA suppliers manufacturing complete products. scrutinize ManagementFairpriceThe 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 ordain reduce costs and positively impact the high societys return on investment. Fairprice has 2 warehouses and they on ly hold finished goods in their warehouse. This enables the company to largely reduce the time Fairprice will destiny to hold the inventory. Inventory cost such as carrying cost and stake cost will be reduce. Fairprices inventory management adopts the advertize approach. The stocks from each outlets will reach a certain stock aim where the store staff will make the orders to the GLS ( food market Logistics of Singapore). GLS will have abundant time to consolidate all order from unalike 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 retail and diffusion services forecast group level. IKEAs store operations focuses on the Paretos law by supporting high-flow facilities and low-flow warehouse that are much manual. In its high-flow warehouses, IKEA employs automatic storage and retrieval corpses (AS/RS) to drive down its costs-per-touch. IKEA have large bins, which is sufficient enough to cover sales for one daylight as what is interchange is captured by Point of Sales (POS) system and what comes into the store is also known via Warehouse Management System (WMS). Thus, very superficial 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 location to do manual checks. With thisprocess and system, it enables the right goods to be in the store with high certainty as compared to the traditional retail forecasting/replenishment process. repositin g and DistributionFairpriceThe third process is warehouses and distribution. FairPrice faced problems till 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 central distribution centre(DC) .GLS manages 2 distribution centres at Penjuru and JooKoon. In 2002, Fresh Food Distribution Centre(FFDC) is Fairprices concentrate refrigerated DC to implement only rattling food items which they subscribe to right temperature to kept fresh. This allowed Fairprice improvise their supply chain management of these perishable products through a better temperature management control. Its essential well-read the temperature for perishable products. Products like milk, chilled pork and dairy products are delivered d irectly to the stores by suppliers to avoid spoilage. There 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 detect assuring that products are kept safe at the right temperatures. This enables NTUC Fairprice increases its faculty and manage its supply chain as moving stocks faster helps bind the freshness and improve quality of products. They provide proper infrastructure to maximise storage management and able to improvise the process of handling the fresh food, especially with the right temperature therefore reducing spoilage. By having Hazard psychoanalysis Critical Control Points (HACCP) certified, they devote maintaining good standard food gum elastic and hygiene in DC. They operate 7 days a workweek and deliver more than 28 million cartons to the stores per year.