NTUC Fairprice Hybrid System: Business Operation Management and Models

List of figures
Figure 1 Conceptual model of NTUC Fairprice Hybrid system..............................................6
Figure 2 Rich Picture illustrating part 1....................................................................................11
Figure 3 NTUC Business Process Plan..............................................................................14
Figure 4 Performance Model.....................................................................................................18

List of tables
Table 1 CATWOE Analysis.......................................................................................................12
Table 2 The customer’s perspective........................................................................................19
Table 3 Financial Perspective...................................................................................................20
Table 4 Internal process perspective.......................................................................................21
Table 5 Innovation and leaning perspective...........................................................................22

Table of contents
List of figures...................................................................................................................................1
List of tables...................................................................................................................................2
PART 1............................................................................................................................................5
1.1. Essential components for effective business operation management...................5
1.2. Use of a soft system methodology to evaluate the issues that NTUC might face if
they decide to introduce a hybrid system that allow their customer to continue order
goods online and have them delivered to their doors.........................................................7
1.2.1. Soft system methodology.........................................................................................7
1.2.2. Issues NTUC might face........................................................................................9
1.3. Compare and contrast different models used by the sector in which NTUC
operates and recommend appropriate solutions to continue being competitive in the
market, make easier for customers to select and but their product (Issues to consider
centralized/decentralized inventory and delivery chain, customer value chain, cost
implications, sustainability)....................................................................................................11
1.3.1. Business to Business Model..................................................................................11
1.3.2. Business to Government model............................................................................11
1.3. With reference to the parcel conundrum recommend how NTUC should respond to this
conundrum (Keeping in mind the possible technological and environmental CO2 impact).....12
PART 2..........................................................................................................................................14
2.1. Rich picture illustrating part 1........................................................................................14

2.2. Root Definition for NTUC Fairprice Hybrid Facilities.................................................15
2.3. CATWOE ANALYSIS......................................................................................................15
2.4. ‘AS IS’ Process plan.......................................................................................................18
PART 3..........................................................................................................................................19
3.1. Discuss how managers would turn performance objectives into operations priorities and
the resources that would be necessary for effective implementation of the new process.........19
3.1.1. Performance model.................................................................................................21
3.2. Using a balance scorecard, discuss how the business performance can be
measured post implementation (Refer to the last three years of the company annual
reports and any other relevant data for improvement and target trends for NTUC)....22
3.2.1. Customers perspective...........................................................................................22
3.2.2. Financial Perspective..............................................................................................23
3.2.3. Internal process perspective..................................................................................24
3.2.1. Innovation and leaning perspective......................................................................25

PART 1
1.1. Essential components for effective business operation management
2. Having many suppliers – NTUC FairPrice do have many suppliers who provide the
necessary commodities required by their potential as well as prospective customers.
They understand to a great extent what it means for customers to fail to get the
necessary commodities at their disposal when they need them most. (Anon, 2016)
This has enabled NTUC FairPrice to retain most of their potential customers while
on the lookout for more prospective customers.
3. High capacity center for distribution - NTUC FairPrice has a huge center for
distribution called the FairPrice Hub which has Warehouses, shops, and restaurants
where the customers can buy goods/foodstuff in bulk and enjoy the economy of
scale while saving some money. The distribution centers also have a variety of
products which they deliver to their respective outlets to enable their customers to
have a wide variety of choices (Insley & Nunan, 2014).
4. Improving customer experience – NTUC FairPrice has over the years put in place
progressive measures to improve their customer experience. These are inclusive of
many options implemented to aid the customer to pay after purchasing the products
more conveniently. The latest improvement that has been put in place by NTUC
FairPrice is the self-checkout machines used to pay for goods by either notes or
coins.
5. High rate of order fulfilment - The NTUC FairPrice has put in place various
automation systems to aid in the production and packaging the various customer
orders, by using the technology of Caddy Pick’s the workers had managed to
increase their product twice and this has greatly enhanced the rate of fulfilling the
orders form their potential customers. (DiSanza & Legge, 2005)
6. High Quality and Environment-friendly products – NTUC FairPrice has over the time
rise to dominate the market in Singapore, due production of very high quality and
environmentaly friendly product which are readily available for their customers on
the online platform as well as in their various shopping centers and distribution hubs.

7. Free delivery of goods purchased online – NTUC FairPrice offers special free
delivery for goods purchased online, as a result, the effectiveness and the efficiency
of the business in Singapore have doubled off the years. It has enabled NTUC
FairPrice to meet their customer demands and add more value to their already high-
quality products.