PLM Principles of Logistics Management Report Sample
Assignment Brief (80%, 100 marks)
Choose a fast-food restaurant that is locally operated but not necessarily locally owned. It can be an existing small business, or a start?up. Refrain from using companies that you have no association with and are located on the Internet. You are to ensure that you know the owner(s) or someone in the organisation who can answer any questions posed to them.
Your task in this assignment is to evaluate the logistics of the chosen company, applying the knowledge that you have learnt in this subject, whether the company’s logistics is achieving its objectives i.e., being responsive or efficient to its customers’ needs. The process of assessing the company’s logistics must meet the following requirements:
1. Introduction
• Explain how the company competes in its industry. You can look at the competition, the players in the industry, and the regulations that govern them, customer expectations in the supply chain, including those of the end consumer, and so on, which would justify the approach the company is taking. The statements that you make must be supported by evidence from credible and independent references.
• You need not attempt to address this section using PESTLE, Porter’s 5 Forces, SWOT, etc. Base your assessment on anecdotal evidence obtained from the owner(s) of the company themselves, or publicly available information.
2. Order Fulfilment
• Logistics creates value by delivering orders when and where they are needed. An important issue in order fulfilment then, is to reduce order cycle times.
• In that sense, consider and explain how well the company coordinates all the activities that comprise the order cycle. This would include the placing of production facilities in the right location, leveraging appropriate process technologies to streamline the order processing,
and carrying the right quantity and mix of inventory to rapidly fulfill complete orders.
3. Transportation Management
• Transportation cost, availability, and reliability, play a vital role in logistics. Decisions such as modal choice, carrier selection, and transportation routing should, therefore, be considered carefully.
• The modal selection decision is complex, requiring careful costing and trade?off analysis. Explain how the company understands its logistical network, to identify opportunities to leverage logistical expertise, so that it meets its customers’ needs and requirements.
4. Distribution Management
• Warehousing performs a vital storage function – decoupling manufacturing from consumption, thereby making the company’s products available when it is needed.
• Assess the distribution network that the company has, to achieve its objective of being responsive or efficient in meeting the needs of its customers. This would require evaluating the number, location, ownership, and automation of warehouse operations. This would also include a consideration of the distribution network as demand patterns change.
Solution
1. Introduction
City Satay is a street food cart, operating in the food and beverage services sector which is a billion-dollar industry in Singapore. Five per cent of Singapore's restaurants are fast food joints, but they account for around 16 per cent of the country's operational income from the food service industry (Hirschmann, 2023). University Assignment Help, Fast food restaurants may keep operational costs lower than full-service restaurants because their business strategy relies on a large volume of customers and little wait staff (Hirschmann, 2023). This means that fast-food franchises in Singapore generate the most income per square foot of any other kind of restaurant. Research estimates that in 2023 Singapore's food and beverage sector will be valued at $8.3 billion, growing at a compound annual growth rate (CAGR) of 2.1% (Sonali, 2023). More effective coordination of supply chain operations is required to keep up with the dynamic nature of the restaurant industry.
Tourists and locals alike flock to Singapore for its reputation as the world's street-food capital (Descalsota, 2022). It is under danger because of the conflict and the epidemic. The major players and competitors of City Satay are Yong Seng Satay, 168 CMY Satay, etc. From this, it can be said the company is operating in a highly competitive environment. This means that the company has been the victim of the competitive forces in the market. Thus, the company ensures that it takes effective measures with the help of which they can compete in the local market. The company has a shop licence from the Singapore Food Agency (SFA) (Sfa.gov.sg, 2023). The company ensures that there are a number of particular requirements, including having the right physical layout and equipment, adhering to safe food handling and storage procedures, and implementing a pest management programme.
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Figure 1: City Satay
(Source: Author)
City Satay, a popular fast-food chain in Singapore, thrives by catering to the locals' need for quick and inexpensive meals. City Satay achieves better revenue per square foot than full-service restaurants by adopting a business strategy prioritising high customer volume and little wait staff, reducing operating expenses. City Satay uses its varied menu items, such as hamburgers, hotdogs, and root beer, to appeal to the tastes of its local clientele. City Satay is well-positioned to continue doing well as Singapore's food and beverage sector continues to expand, as seen by A&W's return to the market in 2019 (Eresources.nlb.gov.sg, 2005). City Satay stays ahead of the competition by improving its supply chain operations to meet the ever-changing demands of the restaurant sector and grab expansion possibilities in this multi-billion-dollar industry.
2. Order Fulfilment
2.1 Value creation value by delivering orders
When running a fast food business, City Satay knows the value of logistics. The organisation understands that happy and loyal clients result from well-oiled logistics. Reduced order cycle times is a primary goal of City Satay's logistics strategy. City Satay aims to improve the customer experience by minimising the time required to fulfil an order. A quicker order cycle time ensures happier consumers since their purchases will arrive sooner (Ferrari et al. 2021). A faster order completion rate also increases business by enticing potential clients to try the service themselves (Zhou et al. 2019). Moreover, City Satay's ability to reduce order cycle times might be a major selling point in the cutthroat fast food sector.
2.2 Coordinating the Order Cycle
City Satay does a fantastic job of organising the many steps of the order cycle. The organisation provides quick and comprehensive order fulfilment by strategically situating manufacturing facilities, using relevant process technology, and managing inventories properly.
Placing Production Facilities in the Right Location: City Satay's manufacturing facilities, often the food cart it, are placed strategically in high-traffic locations with strong client demand. Due to its convenient location, the business easily caters to the demands of its many clients (Krogmann et al. 2023). However, there is a lot of competition for great places, and finding them is difficult
Leveraging Appropriate Process Technologies: City Satay uses state-of-the-art point-of-sale (POS) systems and order management software to speed up the order-taking process. These innovations provide two-way communication between the kitchen and the service crew, which speeds up and improves the quality of order fulfillment (Papakostas et al. 2019). However, software errors or technological problems momentarily halt production.
Carrying the Right Quantity and Mix of Inventory: City Satay properly maintains its inventory to ensure it always has the appropriate number and variety of ingredients on hand. For example, the company assures that it has more quantity of food during weekends since the demand is high. The company forecasts a footfall of 100 customers in weekdays and 200 customers in weekends.
Capacity Constraints: City Satay has capacity constraints during peak hours and busy seasons owing to the size of its street food cart and the number of employees available. Customer happiness and revenue potential take a hit from excessive waiting periods (Go?a?, 2020).
Weather Dependency: Since City Satay is a mobile restaurant on wheels, its operations are susceptible to the elements. Severe weather, such as flooding or sweltering temperatures, ruins company operations and reduces income (Ferrari et al. 2021).
The coordination efforts of City Satay continue to be robust notwithstanding these setbacks (Zhou et al. 2019). The corporation increases its capacity to meet peak demand, improve its inventory management via the use of sophisticated demand forecasting tools, and investigate alternative strategies in case of extreme weather.
3. Transportation Management
The success of City Satay, a popular Singaporean street food vendor, depends on more than just its delicious satay skewers (Jagtap et al. 2020). It also requires careful management of its supply chain operations. A company's capacity to satisfy client demands, maintain quality standards, and assure timely delivery is profoundly impacted by the logistics of transporting raw materials and acquiring specialised components (Nechaev et al. 2021).
Transportation of Raw Materials:
Transporting its raw materials is an important part of City Satay's supply chain operations. When deciding how to get materials like meat, veggies, spices, and skewers, the organisation gives careful consideration to the transportation methods available (Trivellas et al. 2020). Due to the short shelf life of certain substances, it is crucial that transportation be dependable and efficient. The effectiveness of a supply chain may be affected by the decision to use road, rail, or air delivery.
Modal Selection and Trade-Off Analysis:
Choosing the best mode of transport for City Satay requires a complicated analysis of costs and benefits, known as "Modal Selection." In order to find a happy medium between price, delivery time, and the unique needs of each component, the firm does extensive pricing and trade-off research (Wang & Sarkis, 2021). Some perishable commodities, like particular herbs and spices, are only sent by air, while others, like skewers, are more cost-effectively conveyed by road or train. City Satay saves money on transport costs and increases supply chain efficiency by selecting the most cost-effective mode of travel. Some components, however, are seasonal, which causes price and availability fluctuations. Sourcing and inventory management need to be planned for (Mohtar & Daher, 2014).
Sourcing their Ingredients:
The success of City Satay's mission to provide high-quality skewers depends on the company's ability to track down precise ingredients from dependable vendors. The firm builds reliable partnerships with suppliers that reliably provide high-quality raw materials (Moosavi et al. 2021). Sourcing ingredients from many sources might help them save money and ensure that they always have enough on hand. City Satay also does its part to help the local economy and cut down on carbon emissions by looking into the possibility of using locally produced ingredients. However, the quality and availability of raw materials might be unpredictable when depending on a number of different sources (Huang et al. 2020). City Satay has to evaluate its suppliers' dependability so that it can maintain a constant supply of ingredients.
The Supply Chain Network:
City Satay has a deep familiarity with its supply chain network, allowing it to see prospects for capitalising on logistical know-how and gratifying clients' demands. To do this, they first create a map of the whole procedure, from the procurement of ingredients to the shipment of finished satay skewers (Seyedan & Mafakheri, 2020). This will help the organisation simplify its supply chain by reducing lead times, identifying possible bottlenecks, and streamlining transportation. Having a firm grasp of the system also helps in the creation of backup plans to deal with interruptions and keep raw materials in pristine condition while in transit (Vendrell-Herrero et al. 2021). Transportation costs change over time, particularly for certain components. These fluctuations are important for City Satay to include into its budget planning.
City Satay's supply chain operations are based around the transportation of raw materials and the acquisition of specialised ingredients. The organisation may optimise its supply chain, cut costs, and boost customer happiness by making educated judgements regarding mode selection, carrier alternatives, and ingredient sourcing (Magableh, 2021).
4. Distribution Management
City Satay is a beloved food cart in Singapore, and its goal is to provide its regulars with tasty satay skewers. No matter how big a company is, it still requires a reliable distribution system to respond quickly to client demands.
Location of the Food Cart:
City Satay's location is particularly important to its distribution system because of its small size and portability. The food cart is placed in high-traffic places where there is a dense population of prospective buyers (Torabizadeh et al. 2020). It is situated in 109 North Bridge Road 05-19 Funan Digitalife Mall, Singapore. Locations close to tourist hotspots, parks, office buildings, and other gathering places would increase exposure and accessibility.
Inventory Management and Storage:
City Satay is a mobile food vendor, so keeping a consistent supply of ingredients and skewers requires careful storage and inventory management. Due to space constraints, it is important to strike a good balance between stockings up when necessary and wasting as little as possible (Istiqomah et al. 2020). To maximise storage and save expenses, City Satay routinely evaluates its inventory turnover rate, order frequency, and demand trends.
Supplier Relationships and Local Sourcing
City Satay prioritises buying local ingredients to improve their response. Having reliable, long-standing partnerships with regional providers assures a steady supply of high-quality ingredients with little waste and transit expenses (Fauzan et al. 2020). The cart's popularity is boosted by the fact that it uses locally sourced materials, since shoppers want to give back to the communities where they live and work.
Transportation and Delivery
Deliveries to consumers in a timely manner are made possible by the streamlined nature of City Satay's distribution network. Since it's a food cart, getting the food to customers as quickly as possible inside its designated delivery area is a top priority (Ribeiro et al. 2022). The firm promises consumers that their meal will be delivered to them within 15 to 30 minutes after they place their order.
Monitoring Demand in Real Time:
City Satay, a mobile food vendor, uses real-time demand monitoring to learn more about its customers and make better business decisions. It is easier to collect client input and monitor changes in demand with the use of technology, such as mobile applications or internet platforms (Fatima et al. 2022).
Adaptability and Flexibility in the Workplace
City Satay has the benefit of being a small, nimble company because of this. The distribution system is designed to swiftly adjust to new circumstances, including unexpected occurrences or weather (Schleper et al. 2021). City Satay has been successful due to its ability to adapt quickly to new circumstances and seize opportunities as they arise.
City Satay may is a small business, but its distribution network plays a crucial part in its ability to respond quickly to and fulfil the demands of its clientele. Maintaining a balance between responsiveness and efficiency is key for City Satay, which is why the food cart is placed in a strategic location, storage and inventory management are optimised, partnerships with local suppliers are solid, and delivery operations are optimised. City Satay is a well-loved Singaporean street food cart, and embracing adaptability and real-time monitoring will allow them to keep pleasing consumers with tasty satay skewers for years to come.
5. Conclusion
In conclusion, City Satay has found a way to blend responsiveness with efficiency in its logistical operations, allowing it to satisfy its clients' expectations. Improved customer satisfaction is the result of the company's efforts to shorten the time it takes to process orders and move them through the production pipeline. City Satay is attentive to its customers' needs and wants since it uses cutting-edge point-of-sale technologies and real-time monitoring. In addition, they assure a consistent supply of high-quality ingredients by placing a priority on local sourcing and dependable supplier connections, which boosts operational efficiency. Despite obstacles like capacity restrictions and weather dependence, City Satay is committed to satisfying client expectations effectively and economically via measures like improving coordination and optimising transportation.
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