Prioritizing Goods for Effective Inventory Management

The provided content discusses the recommendations given to a company, Singapore Food Delight Manufacturer Pte Ltd, to manage its inventory levels effectively. The points include setting a minimum stock level and keeping track of products to maintain optimal inventory levels. Through this study, it was concluded that the company is managing its logistics techniques well but needs to make some changes to improve its performance and profitability.

Running Head: Logistic Management
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Project Report: Principles of logistic management

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Contents
Introduction.......................................................................................................................3
The interfaces....................................................................................................................3
Production.....................................................................................................................4
Marketing......................................................................................................................4
Accounts and finance....................................................................................................6
Order Cycle.......................................................................................................................6
Steps of order cycle......................................................................................................6
KPI................................................................................................................................7
Recommendation for the order cycle:...........................................................................7
Just in Time Approach..............................................................................................7
Customer Service......................................................................................................8
Inventory Management.............................................................................................8
Order Processing.......................................................................................................8
Transportation...........................................................................................................8
Inventory Management.....................................................................................................8
Recommendations for improvements:..........................................................................9
Getting started...........................................................................................................9
Ordering goods.........................................................................................................9
Track of inventories..................................................................................................9
Stock optimization....................................................................................................9
Conclusion......................................................................................................................10
References.......................................................................................................................11

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Introduction:
Singapore food delight manufacturer pte ltd company is a manufacturing company in
the Singapore. This company manufactures the hawker food for the Singapore citizens. This
company offers the fusion traditional foods to its customers. Mainly, this company sets
equilibrium into the various elements of the food to make the food more delicious. HACCP
has analyzed the company according to various standards and offered the HACCP certificate
to the company. This company manufactures the frozen salad, frozen vacuum food, ready to
eat food etc. this product could be steam or microwave by the customers according to their
choice (Christopher, 2016). The packaging of the product is done in such a manner that the
products could be fresh and authentic all the time.
The key elements of the company are the best taste of the product and variety of the
products. This company has adopted various new techniques to cook the food to make the
food fresh for a long time and prepared ready to eat healthy foods. This company has
enhanced its revenue on a huge level as the food is liked by every customers of the company
and they are the loyal and regular customer of the company. Mainly, this company sets
equilibrium into the various elements of the food to make the food more delicious. HACCP
has analyzed the company according to various standards and offered the HACCP certificate
to the company (Gil, Gangopadhyay, Zhou, Gordon, Nayak, 2010). Various promises have
been done by the company to its customers regarding the product quality and the new
initiative into the food offered by the company.
Further, this company has asked the customers about their choice so that company
could produce that goods and thus the best quality product of their choice could be offered to
them. Through the studies, it has been found that the company is performing well in terms of
profit and performance in the company.
The interfaces:
Logistic interface is recognized as a process in which the policies, techniques,
products etc are communicated by a department to another to manage the logistics of the
company. This interface is helpful for the company to manage the inventory level, reduce the
cost level, enhance the sales level etc. The Singapore food delight manufacturer pte limited’s
interface has been analyzed in this report. it has been found that interface of this company
covers all the factors of the production, marketing and accounting department.

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Production:
Production department is related to converting the raw material into the finished
goods. The logistic helps the production department at various stages which starts from
findings the better raw materials to transferring the finished goods into the sales department.
Various steps take place in this process such as carrying the raw material, warehousing the
material, insurance of the product, transferring the finished goods etc are the activities of the
production department which are directly related to the logistic department of the company
(Nepstad et al, 2014).
Through conducting a study over the production system of the company, it has been
analyzed that the production of the company is of long run. Long run production depict that
the company has enough time to make the changes into all the related aspects. In this study, it
has been found that the cost of the company could be managed by the company as various
times is hold by the production department in which changes could be done to reduce the
amount whereas if the length of the production was short than there were no chances for the
company to manage the factors and reduce the extra cost of the company. Company has
adopted the techniques and theories of EOQ, FOT and FOP to manage all the activities in a
better way.
Relationship of Logistic and production department of Singapore food
delight manufacturer pte Limited
(Ahi & Searcy, 2013)

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Marketing:
Normally, 3 marketing logistics activities exists for planning, delivering and making a
control over the flow of goods which has been manufactured by the company and transferred
into the finished goods department. Singapore food delight manufacturing limited’s main
focus is to identify the customer’s needs, analyze the forever needs and random needs, further
the products are manufactured accordingly to make more profits and make loyal customers.
This process assists the firm to be more competitive (Monczka et al, 2015). The product
delivery plays a very important role in Singapore food delight manufacturing limited if a
product is delivered by company on time than it would impact positively on the customers.
Services and products must also be spirited. The basic meaning of marketing department with
logistic interface is to deliver the products to the customer in reasonable price within the time.
There are various perspective related to marketing such as re-labelling, traditionalist,
intersections and unionist etc. re-labelling perspective of marketing depict that the marketing
is a big part of the logistic management which is required to manage the sales and the
customers of the company. Intersection perspective of the company depict that the marketing
is a broad strategy that cuts the procedure of business function. Consequently, the unionist
approach says that the both the department works together to manage the performance of the
company.

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(Wisner, Tan & Leong, 2014)
Accounts and finance:
An effectual structure and some inventive aspects of logistic guide a corporation
towards the economic benefits. Singapore Food delight manufacturing limited also takes
assistance of finance and accounts in managing the process of finance through logistic so that
it could improve the company’s bottom line. Corporation has completed it through cutting
and managing all the extra cost with the help of logistic department of the company. This
cutting cost could not make an impact over the company’s operations as entire cutter cost was
not at all useful for the firm. This assists the firm in investing its amount into various other
proposals to improve the company’s profitability (Fawcett et al, 2011). Singapore food
delight manufacturer pte limited is looking ahead to take few more steps to cut and manage
the extra cost.
Order Cycle:
Order cycle is basically a time period in that an order is procured in raw material form
and further, sold it to end customers or distributors in form of finished goods. This
Company’s order cycle has been analyzed and it has been found that it is quite effectual and

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competent because the order is delivered in the company on time and quickly and further, the
finished goods are transferred quickly too due to a better logistics management in the
company. The logistic department has set the techniques in such a manner that company
would not be required to identify and maintain the extra stock. This would help the company
in reducing the cost.
Steps of order cycle:
a. Order placement:
Order is placed by the company in this step.
b. Getting the order:
Further, the order is received by the company.
c. Identify various level of inventory:
In addition, various techniques are evaluated to analyze and identify the inventory
level so that the next order is placed (Zott & Amit, 2010).
d. Next order placement:
Lastly, according to the evaluation technique, inventory level is analyzed and next
order is placed by the company.
(Balocco, Perego & Perotti, 2010)
KPI:
Getting the
order
Identify the
various level of the
inventory
Order Placement
Next order
placement

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Key performance indicators of Singapore food delight manufacturer pte ltd company
are the best evaluation techniques which are recognized by the company to manage the
inventory level of the company, process of logistic department which helps all the other
departments to manage the process accordingly. Further, the main KPI of the company is its
suppliers and the best quality product of the company as well as the cooking technique and
style of the company which helps the company to make the loyal customers and the logistic
process of the company is also rapid to offer the products and services on time so that no
issues could be faced by the production department of the company as well as the customers
of the company.
Recommendation for the order cycle:
Below are few recommendation to Singapore food delight manufacturer pte ltd
company which has been given to company to make few developments in the order cycle of
the company:
Just in Time Approach:
JIT approach of a company depict about the process in which the material is get by
the company timely. It contains customer service, processing methods, inventory
management, transportation etc. JIT approach is used widely and it is one of the effective
theories of logistics. This approach could be used at any point of logistic. This theory covers
entire process.
Customer Service:
Customer services mainly focus to make the ambiance where client could sense
satisfaction. The team of customer service should be active and should sort out entire queries
of clients. If the products would be offered to the clients on time than customers would be
satisfy (Monteiro et al, 2013).
Inventory Management:
Firm must administer the inventory level in an effective method to cut the entire cost
and decrease all the additional charges of firm.
Order Processing:

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It contains the administration, controlling and tracking over entire orders of the firm.
This assists the firm in placing the order on a right time so that cost reduction could be done.
Transportation:
The transportation procedure of distributing the final products of the company to
consumer should be very effectual to magnetize the customer extra (Meng, 2012).
Inventory Management:
Inventory management is a technique to look over the inventory of the company so that
the inventory of the company could be managed in an effective manner to enhance the profit
of the company and deduct the cost of the company. The inventory management tools depict
the company about a level of the inventory in the hand to meet entire demands of the
customer on time and the production requirement of the company. Effective management
system is a competitive advantage for a company as it permits the company to manage and
cut the cost and enhance the goodwill in the marketplace (Leonard, 2012).
Singapore food delight manufacturer pte limited is evaluating the inventory through
various ways to manage the level of inventory. Inventory management of this company is
quite competent and effectual as it takes full deliberation of the logistics management. The
technique of inventory management of a manufacturing firm is not fairly easy. Though, with
the assistance of proper management study of logistic, company can manage to set an
effectual inventory management of the company. This technique helps the firms in looking a
path over the various evaluation techniques such as budget and it also enables the competence
of the firm according to the operating capital, cost of production etc.
The current system of management of inventory of Singapore food delight
manufacturer pte limited is not much effective as the controlling could not be done through it
over the company’s operating cost. This company uses the Last in first out policies to manage
the inventory of the company at production level as well as finished goods level (Lambert &
Schwieterman, 2012). The inventory management technique of the company is not that much
effectual and effective. This company has been suggested to do some changes in its
techniques of inventory management strategies and policies.

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Recommendations for improvements:
Below is few recommendation to Singapore food delight manufacturer pte ltd
company which has been given to company to make few developments in the inventory
management of the company:
Getting started:
 An individual could only be responsible for managing the level of inventory.
 Technology could be used by the company to track the inventory.
 System of pack up should be used.
 IT system of Inventory management should be established (Tseng, 2014).
Ordering goods
 Bargaining with suppliers must be done
 inventory management technique must be changed timely
 order lot and cost must be compared
 more time must not be spent while ordering
Track of inventories:
 database technology must be used
 tracking over the inventories must be done
 look over the accuracy and control
 appropriate methods of tracking must be used
Stock optimization:
 Prioritize the goods
 Track the development of market
 Discount on mass sales
 Min Level of Stock
 Keep track over the products (Prajogo et al, 2012)
The above points are few recommendations which have been given to the company to
manage the inventory level.
Conclusion:

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Through this study, it could be concluded that the Singapore food delight manufacturer
pte ltd is managing the logistic techniques in a proper manner. This study depict that
company is required to do some changes into the past technique to manage the performance
and profitability position of the company in a better manner.

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References:
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sustainable supply chain management. Journal of Cleaner Production, vol. 52, pp.
329-341.
Balocco, R., Perego, A., & Perotti, S. (2010). B2b eMarketplaces: a classification framework
to analyse business models and critical success factors. Industrial Management &
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Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Fawcett, S. E., Wallin, C., Allred, C., Fawcett, A. M., & Magnan, G. M. (2011). Information
technology as an enabler of supply chain collaboration: a dynamic‐capabilities
perspective. Journal of Supply Chain Management, vol. 47 (1), pp. 38-59.
Gil, R., Gangopadhyay, D., Zhou, J., Gordon, S., & Nayak, S. (2010). U.S. Patent No.
7,761,319. Washington, DC: U.S. Patent and Trademark Office.
Lambert, D. M., & Schwieterman, M. A. (2012). Supplier relationship management as a
macro business process. Supply Chain Management: An International Journal, vol.
17 (3), pp. 337-352.
Leonard, L. N. (2012). Attitude influencers in C2C e-commerce: Buying and selling. Journal
of Computer Information Systems, vol. 52 (3), pp. 11-17.
Meng, X. (2012). The effect of relationship management on project performance in
construction. International journal of project management, vol. 30 (2), pp. 188-198.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing
and supply chain management. Cengage Learning.