'Ntuc Fairprice Essay\r'

'NTUC FairPrice is a sociable enterprise of Singapore National Trades jointure Congress (SNTUC), the only trade heart and soul centre in Singapore. Founded in 1973, the raft of the organization was to moderate the live of living. NTUC FairPrice is straight the heroicst supermarket chain in Singapore, they consist of 1.FairPrice Supermarkets\r\n2.FairPrice Finest\r\n3.Cheers\r\n4.FairPrice Xtra,\r\n5.FairPrice Xpress\r\n6.FairPrice Online\r\n7.providing their dish up to 300,000 odd customers daily (Superbands). IKEA\r\nIKEA was founded in Sweden in 1943. Their uniqueness lies in their design piece of furniture for flat packs for self assembly, by the customers (IKEA, 2011). IKEA’s business practice is kn suffer for address control and continuous intersection point development.IKEA is run in 38 countries. Although IKEA’s primary feather intention is to have its end users to enrapture the furniture by themselves, in Singapore, where legion(predicate) of its c onsumers may not have their own transport, they in bid manner offer delivery service. Procurement, acquire And Sourcing\r\nFairPrice\r\nFirstly, we take a relish at Fairprice’s logistic carry by dint ofes, Procurement, purchasing and sourcing. probing suppliers and conclude agreement\r\nSuppliers bespeak conflict Fairprice’s produce feel emergencys oddly\r\nfor their cold chain management. It helped Fairprice and suppliers gain warring advantage by contribute woodland products for a extensive period to the film customers as it gave positive effect on its revenue.For each product group, only particular number of suppliers can sum. Receiving railway line unavoidableness from NTUC’s stores\r\nThey be IT enabled where stock requirement atomic number 18 send to DC base on their list management in which stocks reaches its re coiffe point inquires to give-up the ghost ordering new stocks. Purchasing orders with suppliers\r\n tracking their o rders, invoices and payments via SAP\r\nEnsuring delivery sent at DC/Stores\r\nPerishable products atomic number 18 sent immediately to stores. Non-perishable products like butter, cheese are sent to DC. Processing consumer outlets and non conformance\r\nTo process non conformance in which suppliers fails to meet Fairprice’s product quality requirements in their product and dealing with returns in stores using Goods Returned Note. Fairprice’s procurement assures to have a long last and continuous relationship with their suppliers. IKEA\r\n completely products from IKEA are counterbalanced according the knowing code of conduct â€Å"The IKEA course on Purchasing Home Furnishing Products”(IWAY), as it require main IKEA’s relationship with their suppliers. either suppliers must achieve the requirements.IKEA sources internationally with 5 countries which is China, Italy, Poland, Sweden, Germany. Their 2 main focus is to growing sustainability of thei r suppliers and increase uses of sustainable raw materials. IKEA aims construction long term relationship with suppliers that bundle same values. They focus to encourage suppliers having developments call on sustainable and independent of IKEA presence by committing to IWAY.IKEA’s visitor’s visits suppliers on a regular basis to assure that IWAY’s requirements are met.The ossification and monitoring group (CMG) ensures that same audit requirements are used worldwide. There are 4 major categories of suppliers which is Home Furnishing with 13,800 suppliers, fodder with 76 suppliers, catalogue with 50 suppliers and place service with 263 providers. IKEA purchased products both regionally and globally so as to\r\nhave kickoff 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 end products. Inventory Management\r\nFa irprice\r\nThe second logistic process that we are going to look into is the Inventory management. Fairprice and Ikea have designed their gunstock management in a way that it go out reduce costs and positively impact the company’s return on investment. Fairprice has 2 warehouses and they only give birth finished goods in their warehouse. This enables the company to more than often than not reduce the time Fairprice leave contend to hold the inventory. Inventory cost much(prenominal) as carrying cost and risk cost leave be reduce. Fairprice’s inventory management adopts the push approach. The stocks from each outlets will reach a true stock level where the store staff will make the orders to the GLS (Grocery logisticals of Singapore). GLS will have luxuriant time to consolidate all order from antithetic outlets and enables them to make lesser trips for delivery, therefore save the delivery cost and also prevent a stock out situation. IKEA\r\nIKEA adopts a special inventory whereby they manufacture their products by a push approach. The running(a) prognosis and the tactical forecast are combined to create a terminal forecasts on store levels which will be aggregated, reconciled and compared with the same frames based on the retail and dispersal services forecast group level. IKEA’s store trading operations focuses on the Pareto’s law by supporting high-flow facilities and low-flow warehouse that are more manual. In its high-flow warehouses, IKEA employs automatic storage and convalescence governances (AS/RS) to drive down its costs-per-touch. IKEA have large bins, which is sufficient enough to cover gross revenue for one day as what is exchange is captured by Point of Sales (POS) system and what comes into the store is also known via store Management System (WMS). Thus, very niggling cycle counting is done. However, IKEA is able to expose any abnormalities. For example, when the system expects a certain volume of a particular product to have been sold during a deuce day period and less products was truly sold, the system will trigger and will direct in-store logistics to head to the location to do manual checks. With this\r\nprocess and system, it enables the right goods to be in the store with higher proof as compared to the traditional retail anticipation/replenishment process. Warehousing and Distribution\r\nFairprice\r\nThe ternion process is warehouses and dissemination. 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. later on 1993, Fairprice’s 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) i s Fairprice’s centralized refrigerated DC to follow up only fresh provender items which they need right temperature to kept fresh. This allowed Fairprice improvize their lend chain management of these perishable products through a better temperature management control. It’s essential 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. 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 observed assure that products are kept safe at the right temperatures. This enables NTUC Fairprice increases its efficiency and manage its supply chain as moving stocks double-quick helps maintain the freshness and improve quality of products. They provide proper infrastructure to maximize storage management and able to improvise the proces s of handling the fresh food, in particular with the right temperature therefore reducing spoilage. By having Hazard Analysis Critical realise Points (HACCP) certified, they devote maintaining good standard food safety and hygiene in DC. They conk 7 days a workweek and deliver more than 28 one thousand thousand cartons to the stores per year.\r\n'