Issue in Supply Chain

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Issues in the supply chain faced by NTUC

NTUC FairPrice Cooperative Ltd, is the leading supermarket retailer in Singapore. The company’s mission is a “supermarket with social conscience.” Its supply chain activities focus on developing effective strategies to improve product quality and safety by working closely with suppliers in implementing standards and good Corporate Social Responsibilities (CSR) practices.

For retailers to compete effectively in the market today, they need to assure consumers that what they put on the retail shelves are ‘ethical products’. Ethical products means fresh and safe product. In the supermarket retail industry, product quality (e.g. freshness, taste) and safety are two of the key concerns.

If consumers in Singapore are in doubt about the product quality and safety of any retailer, they have alternative sources such as vendors in local fresh produce markets. Hence, to compete effectively, supermarket retailers need to look at how and not just what they are doing in business. By examining the opportunities and challenges in the context of Corporate Social Responsibility (CSR) within the supply chain, businesses can sharpen their competitive edge and be good corporate citizens.

The issues faced may not necessary be a weakness/wrong processes in the supply chain. It could also be obstacles that the company need to overcome in order to achieve their aspirations such as a business expansion or change in their competitive strategy.

Issues faced by NTUC
1) Have to have a large fresh food distribution centre to better manage its supply chain for fresh food. As this enhances the ability of FairPrice to move its stock faster and maintain freshness quality. It has to have the right infrastructure (e.g. good temperature management and storage management) to improve the handling process of fresh food, thus reducing spoilage and preventing...
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