Logistics and Supply Chain Management

Logistics and Supply Chain Management 0
Title: Logistics and Supply Chain Management
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Logistics and Supply Chain Management 1
Executive Summary
In this assignment, the logistics and the supply chain management of the organization NTUC
FairPrice has been evaluated and the various issues related to the supply chain management
has been analyzed. The assignment clearly explains the difference between the supply chain
management of packaged goods and fresh food products. This assignment helps in
understanding the issues, which leads to a bad customer experience due to the centralized
distribution system of fresh food products. The assignment clearly explains the different
factors that has to be changed in the logistic and supply chain management of the fresh food
products in the organization NTUC FairPrice. Also, the various recommendations will help
the organization in facilitating with an effective management system.

Logistics and Supply Chain Management 2
Contents
Introduction................................................................................................................................3
Identify the Problem & Scope for Improvement in the Organization........................................4
Selection of the Quantitative Method........................................................................................5
Data Collection...........................................................................................................................6
Problem Formulation.................................................................................................................7
Analysis......................................................................................................................................9
Results & Discussions..............................................................................................................12
Recommendations....................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15
Appendix..................................................................................................................................19

Logistics and Supply Chain Management 3
Introduction
The NTUC FairPrice is a popular organization in Singapore, as it is the largest
supermarket chain in the country. The organization owns 120 supermarkets in the complete
island. The organization was founded in the year 1973, with the main aim to minimize the
prices of commodities and oil as the prices of different goods were shooting high. Later, the
organization collaborated with SEC, which resulted in the birth of the organization NTUC
FairPrice, which was initially known as NTUC Welcome Supermarket. The NTUC FairPrice
is the first supermarket organization that has a centralized distribution system. This
centralized distribution method helps the organization to increase the efficiency of their
supply chain management. Initially, the organization bought the distribution system in 1998
to hold ownership of the warehouse company and closely monitor the distribution system.
But, in 2003, the organization implemented an innovative idea by buying an area of 13,000
square meters for increasing their efficiency in the distribution of fresh foods. This
refrigerated facility enabled a better distribution and processing system of chilled and fresh
products that have to be delivered in an impeccable state to all the chains. This increase in
efficiency in the supply chain management helped the organization in increasing customer
satisfaction. It is the only organization in Singapore that has its own fresh food distribution
company. It is due to this high standard logistics and supply chain management that has kept
the organization ahead of its competitors, which includes Paragon Market Place, Sheng Siong
Supermarket, Isetan, GIANT Suntec City, and many more (Choudhury, 2014). The key
people of the organization NTUC FairPrice are Bobby Chin, who is the chairman of the
organization. Another important person in the organization is Bernard Chew, who is the chief
information officer. The organization is affiliated with the National Trade Union Congress
(NTUC).

Logistics and Supply Chain Management 4
Website: www.fairprice.com.sg/
Identify the Problem & Scope for Improvement in the Organization
The organization’s approach to developing its own distribution company has helped
the organization in increasing the effectiveness of their supply chain and also helps in
delivering more customer satisfaction. This idea was also implemented to provide customers
with better fresh foods. But there are certain aspects, which requires improvement as they are
major factors of concern. The supply chain management of the organization is mainly
governed by the IT infrastructure, which has successfully managed the inventory
management, supply chain, and procurement process (Bottani et al., 2014). The leaders of the
organization are facilitated with continuous updates about the different activities associated
with the logistics and supply chain management. This also exhibits the fact that the
organization completely depends on its IT infrastructure. The distribution company was also
formulated with the main aim of providing the customers with fresh quality products. Now,
due to the massive dependence on technology, there are some traceability issues which may
emerge due to the failure of any part of the IT infrastructure. The distribution system is
interrelated and thus, a single issue with one part can damage the working of the entire
system. Also, the main traceability issue which will emerge is maintaining a check on the
expiry dates of products. Logistics management is a factor that facilitates an efficient flow of
goods and products, as it is important for implementing plans and controlling the supply
chain management (Bouzaabia, van Riel and Semeijn, 2013). It also has all the information
from the point of origin to consumption, with the core aim of fulfilling the customers’
requirements. In the organization NTUC FairPrice, the logistics management can be broken

Logistics and Supply Chain Management 5
down into three main aspects which are operational, strategic, and tactical. With the
organization stepping into e-business, there are certain aspects which require improvement,
associated with the delivery of fresh food products (Nicasio, 2019).
The main problem of the organization is the complete dependence of the organization
on technology, the traceability issue for fresh food products, and the management of the
supply chain between the 120 stores and the e-business customers. This logistics and supply
chain aspect has been selected because it will help in providing a clearer understanding of the
supply chain, innovation, and business expansion. The three crucial aspects that are beneficial
for any organization. Also, currently the organization NTUC FairPrice is also new to the e-
business, so they have also planning to incorporate new strategies and bring further
improvement in the logistics and supply chain management (Chong, 2011).
Selection of the Quantitative Method
The quantitative method that has been selected for this study is the risk analysis. The
quantitative risk analysis method is a process that quantifies the highest risks priority wise
and is utilized to determine the chances of attaining the main objectives associated with cost
and schedule. This method is best amongst all the quantitative approaches, as the risk analysis
is the only tool that provides with the most accurate information, which can be further
utilized for bringing better improvement (de Souza et al., 2014). For example, rather than
rating the impact of loss in an organization on a scale of one to five as in the qualitative
method, the quantitative method will measure the impact of loss due to 10,000 customers.
Few benefits of the quantitative risk analysis methods are –
 It provides with an overall analysis of the organization and will also provide the core
drivers.