Case Study
Cor porate Social Responsibility in Supply Chain Management: A Case Study on NTUC FairPrice Cooperative Ltd
Singapore
Written by
Chua Ker Sin
Senior Executive Singapore Compact for CSR With contributions from Ms Evelyn Sue Wong Advisor, Research and Publications Singapore Compact for CSR
Case Study: Singapore
The case was developed with the cooperation of Singapore Compact for CSR solely for educational purposes as a contribution to the Project entitled “New Corporate Procurement Strategy on Trade in Goods and Services in APEC Region - Supply-chain options with CSR perspective -” conducted under the auspices of the Asia Pacific Economic Cooperation (APEC). The case is neither designed nor intended to illustrate the correct or incorrect management of the situation or issues contained in the case. No part of this case can be reproduced, stored or used without the written permission of the author and the Asia Pacific Economic Cooperation. © 2007 APEC Secretariat 216
Case Study: Singapore
Executive Summary
NTUC FairPrice Cooperative Ltd is the leading supermarket retailer in Singapore. The company is known as a “supermarket with social conscience.” Its supply chain activities focus on developing effective strategies to improve product quality and safety by working closely with its suppliers in implementing standards and good CSR practices. Singapore imports 95% of its vegetables from other economies since the local farms cannot meet the local demand. FairPrice itself imports about 80% of its vegetables. Sellers need to ensure that the vegetables are safe for consumption and its supply is ample. FairPrice invested in a fresh food distribution center in 2002 to enhance its ability to move its stock faster and maintain freshness quality. The Good Agricultural Practices for Vegetable Farming (GAP-VF) certification ensures that local suppliers meet the standard but the certification does not cover overseas suppliers. FairPrice needs to encourage
Singapore
Written by
Chua Ker Sin
Senior Executive Singapore Compact for CSR With contributions from Ms Evelyn Sue Wong Advisor, Research and Publications Singapore Compact for CSR
Case Study: Singapore
The case was developed with the cooperation of Singapore Compact for CSR solely for educational purposes as a contribution to the Project entitled “New Corporate Procurement Strategy on Trade in Goods and Services in APEC Region - Supply-chain options with CSR perspective -” conducted under the auspices of the Asia Pacific Economic Cooperation (APEC). The case is neither designed nor intended to illustrate the correct or incorrect management of the situation or issues contained in the case. No part of this case can be reproduced, stored or used without the written permission of the author and the Asia Pacific Economic Cooperation. © 2007 APEC Secretariat 216
Case Study: Singapore
Executive Summary
NTUC FairPrice Cooperative Ltd is the leading supermarket retailer in Singapore. The company is known as a “supermarket with social conscience.” Its supply chain activities focus on developing effective strategies to improve product quality and safety by working closely with its suppliers in implementing standards and good CSR practices. Singapore imports 95% of its vegetables from other economies since the local farms cannot meet the local demand. FairPrice itself imports about 80% of its vegetables. Sellers need to ensure that the vegetables are safe for consumption and its supply is ample. FairPrice invested in a fresh food distribution center in 2002 to enhance its ability to move its stock faster and maintain freshness quality. The Good Agricultural Practices for Vegetable Farming (GAP-VF) certification ensures that local suppliers meet the standard but the certification does not cover overseas suppliers. FairPrice needs to encourage
References: “Agri-business cooperation between Riau and Singapore” Economic Development Board, Singapore, 13 July 2002. “Fresher and Safer Vegetables with New Standard.” SPRING Singapore, 07 September 2007. Good Agricultural Practice for Vegetable Farming, Agri-Food and Veterinary Authority of Singapore, November 2006. The Principles of Organic Agriculture, International Federation of Organic Agriculture Movement. Work-life Excellence Award 2006, Tripartite Committee on Work-life Strategy, 2006. Website: http://www.ifoam.org. NTUC FairPrice’s Website: http://www.fairprice.com.sg. NTUC FairPrice Cooperative Ltd Annual Report 2006/2007. 226