Supply Chain Management

Topics: NTUC FairPrice, Supply chain management, Supply chain Pages: 13 (2346 words) Published: September 19, 2012
Overview of case studies: Singapore Case study: NTUC FairPrice Mrs. Susan Chong Director Special Projects SPRING SG

• Example of application of the ISO methodology – NTUC FairPrice: Supermarket retailer • Credits – SPRING Singapore Project team: Ms. Susan Chong, Director, Special Projects, Mr. Phua Kim-Chua, Head, Standards Division – Information Technology Standards Committee, Singapore: Ms. Ho Buaey Qui, Executive Secretary – Nanyang Technological University, Ms. Pauline Ping Ting Ting (MBA student), Mr. Preetesh Deora (MBA Student) – Mr. Reinhard Weissinger, ISO, Manager, Research, Education, and Strategy

The Company – 1
 NTUC FairPrice Co-operative Ltd was founded by the labour movement in Singapore in 1973  Now: Singapore’s largest supermarket retailer with more than 240 sales outlets and a share of over 50% of the market  Sale in 2010: Over SGD 2 billion, net profits: over SGD 120 mill.  Over 7’000 employees  Motto: «Service from the Heart» with a corporate vision: «To be Singapore’s Leading World-Class Retailer with a Heart»

The Company – 2
 Key business functions of NTUC FairPrice are: Procurement, Warehousing/Distribution, Retail.  Other functions include Finance, Information Systems, Human Resources  NTUC Fairprice’s primary distribution/warehousing system are:  a wholly owned Fresh Food Distribution Centre and  a centralized warehousing and distribution company, Grocery Logistics of Singapore Pte Ltd

Attitude towards standardization
‘As a trusted supermarket retailer in Singapore serving our customers for more than 30 years, maintaining high quality standards and adopting best international practices are integral to FairPrice's promise to deliver quality products at best value and service to our customers. To be able to measure and quantify how our adoption of standards has helped our organisation and our customers is invaluable as it helps us to clearly identify areas that we have done well, areas that we can further improve upon and to also identify gaps that we need to bridge. Similar to how we conduct surveys and gather feedback to further improve our service offerings to customers, the ISO Pilot project gives us the tools to measure how our implementation of standards have impacted our organisation as a whole.“ Mr Gerry Lee, MD (Business Groups) NTUC FairPrice

Attitude towards standardization
NTUC FairPrice is a strong believer in standards and has been involved in the development and the implementation of standards in Singapore for more than 10 years It is certified against HACCP (Hazard Analysis and Critical Control Points) and ISO 9001: 2008 It has won several awards in recent years in the fields of food safety, customer satisfaction, most trusted brands, green business practices

Value Chain
Supermarket life cycle Key Players Manufacturer Suppliers Logistics service Technology service Human resource Financial service Market planning Procurement Warehouse( DC ) Retail Return recycling

Core Business Supporting activities In scope of the study

Scope of the assessment
Business functions: Key Value Chain Components 1. Procurement • Central Procurement Division 2. Distribution –Inbound & Outbound Logistics • Grocery Logistics of Singapore (GLS) • Fresh Food Distribution Centre (FFDC) 3. Food Retail Outlets • Fairprice Supermarkets • Fairprice Finest • Fairprice Xtra (Hypermarket)


Process Flow
Inbound Logistics Procurement Outbound Logistics Retail Warehousing/ Distribution Feedback

Relationship Info




Process Flow Supplier Food delivery

Key standards applied by NTUC
1. Cold Chain Management - Chilled Pork 2. Cold Chain Management - Milk and Dairy Products (TR 2 : 2000 followed by SS CP 3. Pallet Standard : ISO 6780:2003 and SS 334: 4. Carton Barcode standards 2010

 Primary barcodes 1) EAN 13 2) ISO/IEC 16390: 2007...
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