Inventory Management Strategies for Competitive Advantage

The assignment is focused on the logistics management of Golden Bridge Foods Manufacturing Limited. The company aims to improve its inventory management by implementing Economic Order Quantity (EOQ), Fixed Order Point (FOP), and Fixed Order Time (FOT) methods. These recommendations aim to reduce costs, enhance customer satisfaction, and increase revenue. The study concludes that these strategies can help the company grow efficiently while reducing costs.

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Project Report: Principles of Logistic Management

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Contents
Introduction:.....................................................................................................................3
The interface.....................................................................................................................3
Production department interface...................................................................................3
Marketing department interface....................................................................................5
Accounting and finance department interface..............................................................5
Order Cycle.......................................................................................................................6
Order places..................................................................................................................6
Calculating the EOQ point........................................................................................6
Key performance indicator...........................................................................................7
Recommendation for the order cycle:...........................................................................7
Order processed..........................................................................................................7
Calculating the EOQ point........................................................................................7
Order shipped and stocked...........................................................................................7
Place the order............................................................................................................7
Inventory management.....................................................................................................8
Recommendations for improvements:..........................................................................9
Conclusion........................................................................................................................9
References.......................................................................................................................10

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Introduction:
Golden bridge foods manufacturing limited is the company of Singapore which
manufactures the best quality food for its customers. This company offers the “Hallal meat”
to the people of Singapore. This company offers the best meat in the country. Normally, this
company makes the best dishes of the meat which could be consumed by the customers at the
same time or lately. HACCP has provided the best dishes of the meat. This company
manufactures the different variety of meat and chicken to the customers. Company takes the
help of stem oven and microwave to cook the meat and the chicken (Home, 2017). The
packaging of the meat and chicken is offered in such a manner that the food becomes always
fresh and eatable all the time within the expiry date by the customers. Various other products
are also provided by the company to the food lovers.
Golden bridge foods manufacturing limited’s key factors have been investigated and
it has been found that the best quality of the food products is the competitive advantage of the
company. The revenue and market base of the company has been enhanced rapidly from last
few years. The main factors of the company are the taste of the food. Certificate of HACCP
has also been received by the company which is also a competitive advantage of the company
(Wisner, 2011). Numerous studies has been analyzed and it has been concluded that the
company has made a promise with its clients to offer them the best of the products in terms of
quality and taste to its customers and the variety of the products would also be offered after
analyzing the choice and demand of the customer. Further, the food offered by this company
is healthy and tasty so that the market base of the company has been enhanced.
The interface:
Interface is a tem which is concerned to the technique which is helpful for a company
to set an interaction among various related aspects, departments and the factors of the
company. According to this report, logistic management of a company is concerned with
entire activities of the company whether it is related to accounting department of the
company, marketing department of the company or the production department of the
company (Chopra & Meindl, 2013).
Production department interface:

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Production of a company must be done in such a manner that the entire activities of
the production run smoothly and help the company to achieve the target. Production run of a
company is more efficient in terms of cost and quantity of a company at the time of
production of the units. At the time, a manger of the company makes the decision in
regarding of number of units to manufacture the each production run. Managers are required
to consider the cost related with the process of production and the inventory holding cost.
Various techniques and tools are available for the managers to evaluate the techniques and
the process of the company to manage the performance and cost of the production department
of the company (Cetinkaya, 2011).
Production run of Golden bridge foods manufacturing limited has been investigated to
analyze the process of the company and the run of production system of the company.
Through investigation, it has been found that the production of the company is of short run as
the production of the company completes in the short span of time and the product of the
company could not be stay fresh for a longer period. Thus it has been found that ether is less
chances in front of the company to make some changes into the procedure and cost of the
production of the company. So it is recommended to the company to make the changes in
cost by changing the production procedure of the company.

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(Beske and Seuring, 2014)
Marketing department interface:
Marketing department interface has been analyzed with the logistic system of the
company to analyze that how the logistic department of a manufacturing company affects the
marketing activities of a company. there are various perspective of the logistic department
and the marketing activities which depict about the relationship of both the companies.
Mainly 4 perspectives are there in the interface of marketing with logistic which are
Traditionalist, Re-labeling, Unionist and Intersections. These 4 perspectives describe about
the different situation of marketing interface. With the time, various changes have taken place
into the logistic and marketing activities which could be described through the above
perspectives. Firstly, traditionalist view of the company has been analyzed. This perspective
depicts that marketing activities and logistic activities are totally different from each and thus
there is no interface among them (Assey, 2012). Further, Re-labelling perspective depict
about the relationship of marketing and logistic, according to it, marketing is a large fraction
of the logistic activities and the management which is requisite to administer the sales,
customers etc. of the company. Lastly, the unionist approach express that activities of both
department works jointly to administer the presentation of the firm.
Accounting and finance department interface:

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A powerful structure and a few creative facets of logistic help a firm to guide about
the various economic benefits. Golden bridge foods manufacturing limited too takes support
of accounts and finance department in administrating the procedure of finance throughout the
logistic activities so that bottom line perspective of the company could be improved.
Corporation has finished it all the way through managing, cutting and exploring all the extra
expenses and cost with the assistance of logistic section of the corporation. This cutting cost
cannot make a collision over the firm’s operations as whole cutter rate was not at all helpful
for the company (Wisner et al, 2012). This helps the company in investing its money into
diverse other suggestions to progress the firm’s profitability condition. Golden bridge foods
manufacturing limited is looking at the forefront to take only some more ladders to cut and
administer the added cost.
Order Cycle:
When a firm order raw material from its suppliers than the total time period taken
from placing the order to the time, the order is received by the company and produces further
to offer the end inventory to the customer, the period is called as order cycle. Golden bridge
foods manufacturing limited’s order cycle has been analyzed to investigate over the efficient
and effective technique of order cycle. It has been found that company is using the best of the
technology to manage the order cycle of the company. Following steps are used by the
company for managing the best logistic activities of the firm:
Order places:
1.Order shipped and stocked:
At this level, order is shipped from the suppliers to the company to start the
production process of the company (Wisner, 2011).
2.Order processed:
At this level, order is dent from the warehouse to the production department of the
company to start the production process of the company.
Calculating the EOQ point
At this level, EOQ point and other evaluation technique of the company is analyzed to
identify the minimum stock of the company.

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3.Place the order:
Lastly, order is placed by the company according to the minimum inventory level and
the production level of the Golden bridge foods manufacturing limited.
Key performance indicator:
Key performance indicators (KPIs) of Golden bridge foods manufacturing limited has
been investigated and it has been found that various KPIs are there in the business
functioning of the company to manage the performance and system of the company.
Company has used the best measurement techniques to identify the cost and manage the
activities of the company. Through the study, it has been found that the main KPI of the
company is its competitive price and the better activities of the company. the logistic process
of the company is also compatible which helps the other department of the company to
manage their activity and reduce the cost at a great level (Toomey, 2012).
Recommendation for the order cycle:
Some recommendation has been given to the top level management of the company to
manage the order cycle to make it more competitive for the company:
Order Processing:
Firm must process the order in such a manner that the controlling over the activities
and the cost of the company could be done. This depict that firm must place the order and
Order
processed
Calculating the
EOQ point
Order shipped and
stocked
Place the order

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process the order further while keeping various aspect in the mind of better management and
cost reduction.
Transportation:
The shipping method of dispense the ending products of the corporation to customer
ought to be very powerful to pull the customer towards company to enhance the revenue.
Customer Service:
Customer services depict that the product must be delivered to the customers on time
so that the satisfaction level of customers could be enhanced. Customer support service is
supposed to be dynamic and ought to sort out whole queries of customers. If the goods would
be accessible to the customers on instance than clientele would be gratify (Lysons and
Farrington, 2012).
Inventory Management:
Corporation must control over the inventory stage in a successful way to engrave the
whole cost and diminish all the extra charges of company.
Inventory management:
The management of inventory is crucial for every business. It is a method to estimate
the level of inventory of the firm in order that the production and the level of inventory of the
corporation could be administered in a successful approach to augment the company’s profit
level and subtract the total cost which could be occurred in the company. The inventory
management methods express that the company must look over the needs and demands of the
company and must work accordingly to manage the performance, profit and customer loyalty
level of the company. the effectual management system of this firm is viable for the
company which helps the firm to manage entire activities (Arndt , 2008).
Golden bridge foods manufacturing limited is calculating the stock through a variety
of manners to identify and administer the stock level. The process of managing the inventory
of Golden bridge foods manufacturing limited is viable and assists the other activities to take
place easily (Wu &. Xu, 2013). According to a study over this company, it has been
evaluated that the various new changes are quite helpful for the company to enhance its
activities and administer the level of inventory of the company. The inventory management

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methods express that this company is looking over the needs and demands of the company
and working accordingly to manage the performance, profit and customer loyalty level of the
company. Even through, few more changes into the inventory level of the company would
help the company more in managing the entire activities.
Recommendations for improvements:
Some recommendation has been given to the top level management of the company to
manage the inventory management to make it more competitive for the company:
EOQ:
EOQ stands for economic order quantity. This technique of inventory management
depict that the inventory must be ordered by the company at the point where the minimum
level of inventory has been reached in the warehouse of the company. This evaluation
technique helps the company to measure that point. Through this the inventory level, order
cost and the carrying cost of the company is viable (Hussey, 2007).
FOP:
FOP stands for fixed order point. This technique depict that the company is required
to manage the fixed units of stock in the company to manage the inventory level and cost of
the company. Through reducing the warehouse charges of the company and other production
cost of the company, inventory level of the company could be done (Yu et al, 2013).
FOT:
FOT stands for fixed order time. This technique depict that the company is required to
order the fixed units of stock in the given time period of the company to manage the
inventory level and cost of the company. Through reducing the warehouse charges of the
company and other production cost of the company, inventory level of the company could be
done.
Conclusion:
The above study over the logistics management concludes that the Golden Bridge
foods manufacturing limited is administrating the tools and methods of the company in an
effective manner. This study concludes that the above given recommendation could help the
company to enjoy more growth and deduct the cost efficiently.

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References:
Arndt , H., (2008), Supply Chain Management, Germany: Gabler Verlag
Assey, J.J.M. (2012). A New Introduction to Supply Chains and Supply Chain Management:
Definitions and Theories Perspective, Journal of Business and Economic. 5 (1). pp.
194-207
Beske, P. and Seuring, S. (2014). Putting sustainability into supply chain management,
Supply Chain Management: An International Journal. 19 (3). pp. 324-333.
Cetinkaya, B. (2011). Sustainable Supply Chain Management: Practical Ideas for Moving
Towards Best Practice. Springer Science & Business Media
Chopra, S. & Meindl, P. (2013). Supply Chain Management: Strategy, Planning, and
Operation (5th ed.). US: Pearson, Global Edition
Home. (2017). Golden bridge foods manufacturing limited. Retrieved from
http://www.golden-bridge.com.sg/ on 23rd Sept 2017.
Hussey, D.E., (2007), Strategic Management: From Theory to Implementation, UK: Taylor
& Francis
Lysons, K. and Farrington, B. (2012), Purchasing and supply chain management, Harlow,
Essex: Pearson Financial Times
Toomey, J., (2012), Inventory Management: Principles, Concepts and Techniques, Germany:
Springer Science & Business Media
Wisner, J D (2011), Principles of Supply Chain Management: A Balanced Approach,
Cengage Learning
Wisner, J. D., (2011), Principles of Supply Chain Management: A Balanced Approach,
Cengage Learning
Wisner, J.D., Tan, K., & Leong, G.K., (2012), Principles of Supply Chain Management: A
Balanced Approach, (3rd)South-Western Cengage Learning, 572
Wu, J., Li, L., &. Xu, L. D., (2013), A Randomized Pricing Decision Support System in
Electronic Commerce: Decision Support Systems

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Yu, Y, Hong, Z F, Zhang, L Liang, L & Chu,C B (2013), Optimal selection of retailers for a
manufacturing vendor in a vendor managed inventory system: European Journal of
Operational Research, 225(2), pp 273–284