DCH Food Mart
Modernising Food Supply Chain to Fortify Management
“Standards are critical component for retail business to meet the ever-changing needs of customers. GS1 HK SCMPS team helps us revisit our supply chain and develop a supply chain standard for us to support the future retail growth. An estimated saving over 30% on our operation is expected to be gained through this supply chain improvement project.”
Margaret Lau, General Manager
Challenge
DCH Food Mart currently offers over thousands of food items, including imported seafood, poultry, meat produce, rice and noodles, ice cream and instant food products. As the business expands, the company realized the paper-based approach and manual operation at the back-office are no longer tenable and in need of improvement, where efficiency and accuracy are declining gradually. The management acknowledged that a systematic approach to transform the current paper-filing system into a digitalized and systematic process is of paramount importance to improve warehouse efficiency and inventory visibility, so as to support the sustainable growth of DCH Food Mart.
As such, DCH Food Mart enlisted the expertise help of GS1 Hong Kong’s Supply Chain Management Professional Services (SCMPS) team for support.
GS1 standards used or solution (s) / service (s) applied
|
 |
Solution
The SCMPS team had conducted a full assessment of the company’s current system to understand its strengths and areas of improvement in the supply chain, followed up with a thorough process consultancy project and a series of customized solutions designed to modernize their work procedures.
Based on the global best practices - Supply Chain Operations Reference Model (SCOR), the SCMPS team identified some major pain points in supply chain efficiency and connectivity, product traceability, etc. The team proceeded to tailor-made certain “to-be” process, meaning the ideal process in future, and solution models to drive the supply chain transformation of DCH Food Mart.
Started in March 2018, the 6-month project is expected to help improve the data visibility and connectivity across the whole DCH Food Mart, making the inventory, production and sales data with greater transparency throughout. The exercise also boosts inventory accuracy in warehouse and retail stores, tightening the control on raw materials and products batch.
The supply chain re-design project is turning into several Enterprise Resource Planning (ERP) system modules, revamping the company’s manual operation to an electronic mode. GS1 Hong Kong also advised the company on vendor sourcing on the development of ERP system, and specifically where to apply barcodes throughout the supply chain.
Benefits
DCH Food Mart is able to optimize its operations flow through the supply chain revamp advice and application of barcode, achieving:
- More than 30% of savings is expected after the supply chain transformation;
- Improved cross-departments communication with higher data transparency;
- Facilitate inventory data analytics to keep an optimal amount of inventory, which is especially key to environment-sensitive food products.
About the Company
With the values of "Guaranteed Quality Products and Excellent Customer Service", DCH Food Mart is dedicated to providing quality products and top-notch service to customers. Nowadays, DCH Food Mart operates over 48 stores and has become the market leader in the frozen food specialty chain store market in Hong Kong.
