Ntuc Fair Price Supply Chain

MGMT 257: Principle of Supply Chain

Individual Report: NTUC FairPrice Co-operative

Bachelor of Commerce (Supply Chain Management)

Company Overview

NTUC FairPrice Co-operative (NTUC FairPrice) is a Singapore-based company engaged in operating supermarkets, department stores and convenience stores. The company operates through a network of outlets that includes FairPrice, FairPrice Finest, FairPrice Xtra, FairPrice Xpress, Cheers, and FairPrice Online. (Eds.a.ebscohost.com.ezproxy.uow.edu.au 2015). It is one of Singapore’s leading retailers who aims to be the Best Place to Shop, Best Place to Work and Best Corporate Citizen through responsible retailing (CSR FairPrice 2015). Their founding mission is to help moderate the cost living for low income households in Singapore and remains at the heart of its operations (Pradhan, S. and Pradhan, S.  2009, p.106). They provides a good welfare to its employees, develops ethical strategy on pricing and supply chain, and community care which inspired me.

NTUC FairPrice Supply Chain

FairPrice did a very great job on their supply chain management by centralizing the supply chain in order to lower down the supply chain cost to get a cheapest unit procurement cost to customers and improve service level (singaporehealthcaremanagement.sg 2015). FairPrice have their own central warehousing and Distribution Company which is Grocery Logistics of Singapore Pte Ltd. FairPrice has also set up a 13,000-square-metre Fresh Food Distribution Centre. This refrigerated distribution facility centralises the distribution of temperature-sensitive fresh and chilled products to all its outlets (ISO.org, 2015). It lets FairPrice enable to deliver the best quality and fresh products to the customers. Each part of chain of FairPrice are controlled by themselves and it makes FairPrice easy to expand and control their process flow in order to manage emergency task. Every products are delivered from the GLS or direct delivery from suppliers and this is the reason why they can always provide the low pricing strategy to the public.

NTUC FairPrice’s welfare

FairPrice have committed to their employees by providing attractive remuneration package that commensurate with qualifications and experience. FairPrice offers discount to the employees who make purchase in any outlets of NTUC. Beside, FairPrice contributes statutory leaves, family charity leave, parent care leave which is more humanize for the employees. Nonetheless, each employee of FairPrice can expect an average of 30 hours of training per year that equates to 225,000 hours of training across the FairPrice business which will be award by certificate, advance certificate and Diploma certificate. They also provide employees in food safety, customer service and product knowledge (CSR FairPrice, 2015). FairPrice implements study grant for employee’s children and offer overseas study programmes to individual employees who wish to pursue more advanced studies from diplomas to Masters’ degree (FairPrice.com.sg 2015).