Logistics & Supply Chain Management

Running head: LOGISTICS & SUPPLY CHAIN MANAGEMENT 1
LOGISTICS & SUPPLY CHAIN MANAGEMENT
Student’s name
Institution

LOGISTICS & SUPPLY CHAIN MANAGEMENT 2
Logistics & Supply Chain Management
Introduction
Supply chain management is a critical approach in any business organization or
company. It pertains to the management of the flow of goods and services, and other process
involved in processing raw materials to final products (Christopher, 2016). Therefore, this report
examines supply chain management at Singapore Pte. Ltd. Mainly, the study focuses on
supplier’s criteria and related issues, ICT for purchasing operation and purchasing cost analysis.
Detailed discussions on the particular subtopics are covered in this report. Also, the report
provides a recommendation based on the Singapore Fodd Pte. Ltd on the relevant topics.
Singapore Food Pte. Ltd is an MNC company that process and supplies food in Singapore
and other parts of the world. It was founded in 1973 with its headquarters located in Singapore.
The company processes and offers fresh vegetables and fruits, frozen meat, canned food, dry
provisions, beverages and seafood products such as wine, whiskey, beer, and cigarettes. Also, the
company provides various logistic services (Khoo, Lim & Tan, 2010). The company supplies its
food products to supermarkets, hotels, ship supplies, ship, and government institutions. The main
competitors are Nestle Singapore (Pte) Ltd, ABR Holdings Ltd, Coca-Cola Singapore, Apex-Pal
International Ltd, and F & N Foods Pte Ltd.
The company's primary goal is to provide goods of high quality at the convenient of their
customers to enhance high customers’ satisfaction (Kong, 2015). Also, they aim at ensuring
safety and hygienic food for the sake of protecting consumes health. Moreover, the company
implements various strategies which aid at providing the highest level of international standards
and quality food. According to companies reports, they adopt training and development
programs which aim at educating their workers on the latest methods and procedures to enhance
their efficiency in the production process. Also, the strategy ensures that the company achieves
quality standards.
Supplier Selection Criteria and Issues
Purchasing goals and needs at Singapore Food Pte. Ltd

LOGISTICS & SUPPLY CHAIN MANAGEMENT 3
Maintaining and building supplier relationships. According to studies, the purchasing
department at any organization is focused on obtaining the lowest cost possible. Therefore, the
process of purchasing mainly depends on competitive bidding (Jolliffe & Prydz, 2015).
However, most companies rely on the purchasing department to identify, interact, and develop a
lasting relationship with potential suppliers. The stronger connection between the buyers and the
sellers enhances the adaptability and flexibility when the organization is faced with obstacles.
Singapore Food Pte. Ltd has ensured an efficient supply of safe food. They work their best to
ensure that their customers are happy.
Getting the best value out of customers. Organizations should aim at obtaining value out
of customers. Studies show that the best value involves securing quality products at meaningful
rates (Heskett, Sasser & Schlesinger, 2010). For instance, the reseller requires a good price to
obtain a reasonable profit. Singapore Food Pte. Ltd provides its customers with quality food
products, which attracts a reasonable profit. They are among the best food supplies in Singapore
and dominates a significant market share.
Coordination of relevant documentation. The purchasing process is associated with a lot
of documentation and paperwork. Studies show that the purchasing department has the sole role
of maintaining contract files of all supplies (O’malley at el., 2010). Also, all purchasing activities
are connected to the organizations accounting system, which links all the accounting activities
with the companies purchasing orders. Singapore Food Pte. Ltd has a well-established
accounting system that facilitates the documentation of all orders and other essential paperwork.
Recommendations
According to studies, various companies and organization has adopted various strategies
to rationalize their supplier base. Thus, most companies prefer single sourcing strategy for
various commodities (Christopher & Peck, 2012). The approach has enabled various companies
and organization to gain significant advantages. Therefore, in the case of Singapore Food Pte.
Ltd I recommend single sourcing criteria. The strategy will allow the company to obtain the
following benefits;
• There will enjoy improved innovation and design collaboration
• The company will enjoy chances of bargaining power thus reducing the overall material cost

LOGISTICS & SUPPLY CHAIN MANAGEMENT 4
• Their supplies are always responsive to the organization needs
• There are limited efforts to manage and track the overall supplier performance
• There are better plans and facilitates information exchange
According to reports from various companies and organization, single sourcing strategy
help them to obtain a competitive advantage by enhancing their potential and capability of their
supply chain.
Research shows that various procurement managers are very conscious of the risk
involved when securing raw materials; thus they are looking for suitable mechanisms of
mitigating those risks. Therefore, in the case of Singapore Food Pte. Ltd I would recommend that
the procurement manager should asses that supply chain history of the supplier and examine his
relationship with each category of material he supplies. Thus, the procurement manager should
carry out an overall objective evaluation to determine the total risks, thus, make a better decision
on the source supplier.
Thus, in the case of Singapore Food Pte. Ltd, we will evaluate the raw materials required
for canned food. The Peter Kraljic diagram below analyzes canned food product raw material
requirement in terms of value and easy or difficult to obtains the specific raw material
( Wildgoose, Brennan & Thompson, 2012).
Raw materials Value/Importance Easy or Difficult to find
Fish High Easy
Baked beans High Easy
Coconut milk High Difficult
Vegetables High Easy
Lentils low Difficult
Tomatoes High Easy
Supplier evaluation
In the current competitive sourcing environment, companies should select the supplier
based on their capabilities but not in terms of the competitive process. Therefore, the suppliers