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MG202 ASSIGNMENT 2 SEMESTER 1

2020

Group Members: o o o o

Zakia Zaisha Ali (s11123725) Sweta Shivani Chand (s11161027) Pratishna Nand (s11076441) Nileshni Devi (s11173092)

Tutor:

o Mr. Subhash Appanna

TABLE OF CONTENT

CONTENT

PAGE #

Introduction

1

Literature Review

2

Methodology

3

Analysis/ Discussion of Results

4

Recommendation

5

Limitations

6

Conclusion

7

Reference

8

Appendix- Questionnaire

9

INTRODUCTION

Flour Mills of Fiji (FMF) organization manufactures the finest quality of products in Fiji. It’s been more than 40 years the flour mill was established and in 1973 Fiji than started to get flour that was milled right here in Fiji. The company officially brought together by Mr. Hari Punja starting with flour milling and later diverted into biscuits, rice, cartons, peas and snacks such as noodles and chips. Suva Flour Mills Co. Ltd was Fiji’s first flour mill which imported premium Australia wheat. FMF brings relief to the nation tries to keep valuable foreign exchange and Fijians buyers got an opportunity to enjoy freshly processed flour rather than waiting for the flour for months after its processed, [ CITATION Kum13 \l 1033 ]. Later the company name was changed to Flour Mills of Fiji Ltd (FMF). Though the name of the company has been changed, but the commitment towards the customers was still the same, in fact stronger. Over forty years, FMF was 100% Fijian owned organization that began with milling just basic varieties of flour has developed as Fiji’s biggest manufacturing company. This company provides far more than flour to their customers in Fiji. Raw materials are mainly bought from Australia and New Zealand with few materials from Asian markets. FMF Company not only sells their goods in Fiji but also sell international as well. This manufacturing company exports the products to Pacific Islands, Australia, New Zealand, United States, Samoa and Tahiti, [ CITATION Kar17 \l 1033 ].

In future, FMF Company stays focused on growing into future. There are various standards that the company holds which itself enforces improvements under food safety and directly contributing to efficient operation of the pant. Today, anyone can purchase FMF products in more than twenty countries including Australia and New Zealand. Thus, the aim for FMF organization is to provide for people with quality products made in Fiji and to create employment. FMF uses shipping as their supply chain to supply products to other country or to bring raw materials from other countries in Fiji. This report writing is based on the supply chain that FMF uses and later in the write up there will few examples given to elaborate more about its supply chain.

2. Describe its supply chain.

a. What are the different components? The different components of the supply chain, which are present in the FMF production are raw materials, supplier, factory, distribution, retailer and customer.

b. How are they linked? The supply chain and the components are linked in by a bond that is between the company (FMF) and its supplies to produce and also to distribute a product to the final buyer, who are known as customers. The components of the chain include all functions, which starts with

receiving an order and also to meet its customers’ requests. The supply chain is a very important factor in the business process, especially for a large organization. The chain components are required to be handled by a skillful and expertise person. Supply chain needs to be very effective for the company, so that overall the company’s cost can be decreased and also to boost profitability. One component in the supply chain won’t be able to function without the other, as all of them are equally important.

c. What does each do? Raw Material is the unprocessed or basic material that are used to make goods, products or future finished products, for e.g. FMF’s raw materials are wheat, flour, etc. Supplier’s role in the supply chain is to provide higher quality products from a manufacturer to the business at a better rate, for e.g. Australian wheat and New Zealand potatoes. The factories is a place whereby a manufacturing and production plant is set up workers and machines, where workers than also manufacture goods and operate machines to process goods and products, the e.g. can be the company factory based in Walubay. Distribution can mainly be done through trucks into supermarkets and while for international customers, the products can either be shipped or air freighted out of the country for e.g. the company exports all of its products to outer countries. Then the retailer’s role is to buy the goods and products / purchase on account from the companies (FMF), which they would get during the distribution process, so that they can sell it over in the market, the e.g. of retailers can be supermarkets, like Shop N Save. The final component is the customer/ consumer, who at last pays for the goods/ products that they purchase and use the product, at last they give in their feedback and if product is good, and if is worth to be sold in market then the company makes as much profits possible. 3. Critically analyse its supply chain practices.

The objective of supply chain management is to structure the supply chain to maximize its competitive advantage and benefits to the ultimate consumer. Supply chains strategic importance. o The coordination of all supply chain activities, starting with raw materials and ending with a satisfied customer o Includes suppliers, manufacturers and/or service providers, distributors, wholesalers, retailers, and final customers o Large portion of sales dollars spent on purchases o Supplier relationships increasingly integrated and long term o Improve innovation, speed design, reduce costs o Managing supplier relationships has added emphasis

FMF Foods has six subsidiary companies under its fold, producing some of Fiji’s most popular brands found in bakeries, hotels, retail stores, kitchens and on dining tables throughout the wider South Pacific region. Biscuit Company of Fiji Ltd Making biscuits since 1991, Biscuit Company of Fiji has made its FMF Breakfast Cracker a national icon as well as a major success story for FMF. Biscuits made here are now being shipped to more than 20 countries including Australia, New Zealand, USA, Tahiti, Samoa and other Pacific islands. The company employs more than 200 people operating automated ovens in three shifts, six days a week. In 2004 the company bought out Australia’s Fine Fare brand and added a range of cream biscuits, followed by chocolate biscuits in 2006. The varieties of biscuits produced in this factory today are vast and fascinating. Rice Company of Fiji Ltd The Rice Company’s business is milling, grading, packing and selling rice which is a staple food for many households. It began operations in 1996 and has developed a highly efficient processing line using fully automated machinery. Sorting and cleaning rice prior to cooking is a time consuming chore. Imagine it being done in restaurants and resorts for the quantity they use! Well the Rice Company came up with a solution

to help. It installed a rice sorter in the processing line to remove any foreign particles and unwanted bits and pieces so that every bag of rice is safe and of top quality. It is this superior quality that gives the company its competitive edge. Customers have a choice of four varieties of rice that cover most preferences and recipe requirements: Cal rose medium grain rice, Australian long grain rice, Thai/Vietnamese long grain rice and the fragrant Jasmine rice. Atlantic and Pacific Packaging Co Ltd: At Pack It not only serves the FMF Group Companies and the local market but has also created a name for itself in export markets such as Tonga, Samoa, Tahiti and New Caledonia. In 2015 at pack ventured into producing plastic pails and polypropylene bags (PP bags). The pails are used for FMF Breakfast Cracker Biscuits and the PPs bags for FMF Flour. The company’s production line run by about 75 people includes printing, gluing, stitching, waxing, slitting, folding and die cutting and working towards the company slogan, “first impression counts” and the aim of making sure the company achieves its crucial aim of reliability, service and quality at an acceptable price [ CITATION FMF20 \l 1033 ]. FMF Foods limited has many suppliers. Commonly used for commodity products. Competitors compete with one another. FMF is responsible for technology, expertise, forecasting, cost, quality and delivery. FMF Chow noodles biggest competitor is Maggi noodles. They usually compete with each other as to which sells better and improved products. Competition can be in terms of advertising, packaging and delivery. The packet size, color and the content varies for both the competitors. It is very important that the advertised product should be met by actual. FMF raw materials are mostly imported from Australia, New Zealand and Asian Markets. These can include wheat’s and biscuits. The machines are also imported from China and in Fiji staffs assemble to make it fit to work. The products which are made at these facilities in Fiji are also exported to outer parts of the world. The shipping systems FMF used is trucking. It moves the vast majority of manufactured goods. The major advantage is flexibility. FMF supplies to other parts of Fiji with products like Chow Noodles, biscuits. Another shipping system is Waterways. FMF uses this method for bulky cargo. It is used when shipping cost is more important than speed. Mostly to overseas companies. FMF uses Distribution Management system as it has facilities over Pacific Island countries. This generally improves response time and customer satisfaction. Companies also have supply chain risks associated with it. Compounded by globalization and logistical complexity. Vendor liability and quality risks. Some of the security and JIT are that the shipments get misrouted, stolen and damaged. Large lots also reduce shipping costs warehousing technique for FMF is used when distributors become manufacturer’s partners. Finished goods inventory is reduced. It has better market response with less investment. Distributors can be among the local supermarkets, shops and also overseas markets. The supply chain practices are good in terms of supplier responsiveness. The market is vast growing and the supplier like FMF foods limited can meet those customer demands. This company has shown commitment in providing with good and quality products to all its customers. The supply chain is really good for the company, as all components are well linked to one another to function well.

4. What do you see as its strengths and weaknesses?

Strengths: Supply chain includes people, organizations, processes which are involved in making, marketing, selling and delivering the products. The first strength through supply chain of FMF Company is that it can reduce costs and give better customer services. For instance, when the resources arrive on time, the work are done more efficiently, things tends to flow more smoothly as in the organization website shopping functions more softly, the inventory procedure lets the company efficiently store and retrieve items, also it lets the company to quickly and efficiently take the orders and ship items, [ CITATION Sam20 \l 1033 ]. Basically, from the beginning of the products are beings processed the supply chain management is taking place. Second strength for supply chain is raise output, mainly to reduce paper work. The supply chain is designed in a way to improve communication, corporates and coordinates with vendors, transports and shipping businesses, suppliers and raise provides two way information flow. Restructured and integrated strategy makes supply chain more reliable for users and provide more correct results. Lastly, strength for supply chain is benchmarking. Benchmarking is basically to measure the performance of the organizations supply chain by looking at the quantity, price and time. Thus, benchmarking plays very important role in the company since it measures efficiency of the processes in supply chain and allows to create strong foundation of company’s performance. Benchmarking also measures impacts of improvement made by executives to appropriately measure indicator. Weaknesses: Although supply chain has its strength of completing the product, it also have some of the weakness too. First weakness for supply chain of FMF Company is improper implementation. Basically if the supply chain management system is conducted improperly, there would be a high chance of wasted labor, missed deadlines which may result in making the performance go down. To avoid this, the organization should do a detailed analysis before implementing the changes in supply chain. Second weakness is lack of accountability, meaning that being responsible enough for small duties. Not only FMF but too many companies does not make anyone liable for supply chain disruptions which later arsis many problems. To overcome this the company have to make proper decision. Lastly, machine breakdown can stop the company’s ability to deliver the products and making money. For instance, when machine breakdown the suppliers cannot than supply goods, sales websites crushes, the entire operation could have gone down. It is very important that checking the systems should be more often done.

5. What improvements (if any) can be made to this supply chain? These are the following improvements can be made to the supply chain:

o Staff Up To Date with the system – all staff should be updated with plan of one day’s work for example all staff should know how hum to produce one day, what is the target per day and work towards it. o Shipping schedules- company should be advance in ordering raw materials so that there is unlimited raw materials available for future production of goods like when there is issues like covid 19 so that they don’t go running short of raw materials. o Giving all new recruits proper and detailed training in machines so that workers are trained to operate all types of machine in the company and hence to achieve set target on time.

LITERATURE REVIEW

Over the past decade, the traditional purchasing and logistics functions have evolved into a Broader strategic approach to materials and distribution management known as SCM. Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption[ CITATION Lum20 \l 1033 ]. Supply chain management is the backbone of business in global and competitive world market. Supply chains are increasingly becoming more complex and dynamic. The success of the business often depends on the success of your supply chain. A leaner supply chains enabling through process and IT related interventions in planning, execution and

collaboration are indeed the need of modern retail companies. This paper aims to review the supply chain management, its contributors, the SCM practices and the strengths and weaknesses. FMF Foods limited components of the supply chain is the raw materials are imported from Australia, New Zealand and few Asian Markets. Materials like Wheat and biscuits. These imported materials are then put into machines for instance wheat is imported, then it is put into silo storage and it is then thoroughly cleaned for any dirt. The modern technologies are used in processing the goods. The wheat is then turned into flour and this flour is distributed to the biscuit, noodles and flour departments. After all the products are turned into finished goods (Chow Noodles, Biscuits [Breakfast crackers, cookies, fine fare, etc.], flour, rice, dalo chips, peas and potato chips), these are gone for packaging with proper packets and labeling. All the products are tuned into finished goods from the machines, just the breakdowns are attended by staffs. The cartons with all the loads are sent to the warehouse from where it is distributed to the leading supermarkets and registered shops in the Pacific Island countries. Its distribution channel, the stocks are stored in the warehouse and the staffs print out invoice and delivery orders. The deliveries are made according to the summary of the delivery. Physical stock reconciliation is done every afternoon and the maintenance is also performed. The wholesale distributor is intermediary between the company and retailer. It distributes product to retailer and maintains enough stock level. Technological systems are used to get feedback from customers and retailers. Effective supply chain management needs efficient information system which aligns and helps the company to execute FMF’s plans with customers. FMF needs to improve on its staff training methods and treat all staff equally. The SCM system is considered a good factor as it encourages FMF to produce ore of the products and also to satisfy their customer needs.

METHODOLOGY In order to collect all relevant data for this assignment, the following tools were used: PRIMARY SOURCE (QUESTIONNAIRES): Are the type of data which were created by someone else, who did not experience this at firsthand or participate in the events that the research is based on. The group used up questionnaires for the primary source of data collection. A set of 15 questions were made, and then the

questionnaire was sent in to the staff of FMF through email and then was forwarded back. The respondents were given three days to answer the questions. The questionnaire was very simple so that people’s work could be made much easier to understand.

SECONDARY SOURCE (INTERNET): Is the type of data/ research that is also known as the original source, the examples can be Artifacts, document, diary, manuscript, autobiography, recording, etc. In the research topic, the online articles and webpages were used to expand the knowledge discussion and ideas to compile possible and proper results for the assignment.

ANALYSIS/ DISCUSSION OF RESULTS

Types of products produced in FMF Company.

Products produced in FMF Company. 6

Quality of Products

5 4 3 2 1 0

Rice

Flour

Biscuits

Chips

Noodles

Dhal

Peas

Types of Products

Discussion The above column graph shows the types of products produced in FMF Company such as rice, flour, biscuits, thumbs up chips, noodles, dhal and peas. According to the working people, rated five out of five to the products produced in FMF Company. Through its subsidiaries, FMF Foods is able to give both the domestic and export sector a wide variety of goods. As the core of the company is Quality, Operation & Distribution, FMFs strive to provide the right alternative for both its corporate and household customers.

Does Company manufactures all resources in Fiji?

Quantity of Products

Yes No

100.00%

Discussion According to the figure above, the pie chart shows quantity of products manufactured by FMF Company in Fiji. As based on questionnaire, people responded that 100 percent of its resources and raw materials are being imported from the overseas countries such as Australia, New Zealand and some from Asian countries. However, the FMF Company manufactures zero percent of resources and raw materials from Fiji.

Does the Manufacturing system of FMF produces quality goods?

Does manufacturing system of FMF produces quality goods? 16 14

Number of workers

12 10 8 ...