Benchmarking in the Singapore logistics industry (food industry)

• Main Author: Ho, Andrea Chun Hui
• Other Authors: -
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2020
• Subjects: Business::Operations management::Supply chain management; Engineering::Maritime studies
• Online Access: https://hdl.handle.net/10356/139409
• Institution: Nanyang Technological University

This paper focuses on how food warehouses have been using and can use benchmarking to improve their functions. Benchmarking is a continuous comparative exercise which employs the identification of a reference point against an adversary, or another industry, or past internal historical data. Like many other business tools, benchmarking is carried out as a deliberate exercise that involves these 4 stages of analysis: (a) planning; (b) analysis; (c) integration and (d) action. In the case of the logistics industry, with the constant pressure on logistics companies to exceed the expectations of customers, benchmarking ought not to take the backseat. As stated, this paper aims to examine a specific area of logistics, namely food warehousing. From the analysis of survey results and interviews conducted, this paper arrives at the conclusion that benchmarking is a useful tool in refining the quality of operations and achieving best practices in the following areas: (a) sanitation programmes for facilities and personnel; (b) automated operations; and (c) inventory management. That said, there are challenges to effectively use benchmarking in food warehouses. One major concern expressed by all the interviewees is the availability and authenticity of information relating to best practices. As food warehouses would like to protect their own interest, it is believed that the shared benchmarks might lead to a loss of competitive edge. Even with best practices on food warehouses available, the lack of mutual trust in the industry makes it a challenge to carry out benchmarking. To overcome this hurdle, the government should provide adequate resources to support and encourage transparency among food warehouses and ultimately, aim to achieve supply chain cooperation. Additionally, joint ventures could be an option. This could be a potential solution and a research topic for future study. Hence, this paper shows that the benefits brought about by benchmarking for food warehouses is well worth the efforts in improving their quality of operations.