BOUNTY FRESH GROUP

SUMMARY

• Bounty Fresh uses a Systems Applications Product (SAP) in monitoring and controlling inventory items on their storage.

• inventory of Bounty Fresh are 95% and above accurate.

• Bounty Fresh conducts a monthly recalculation or counting of their inventory in order to ensure that its safety stock level is maintained and inventory shortage is avoided.

• Bounty uses perpetual inventory system in order to anticipate demands and make sure that there is enough supply

• CTSI, a 3rd party logistics, pick the orders and they are responsible in delivering it to the respective destinations.

• They only have a specific cycle time when they were request by the customers to deliver

• transportation Bounty Fresh Agro Ventures Inc. and Bounty Fresh Food Inc. both has a Third-Party Logistics the CTSI Logistics who are responsible for all in all transportation system of Bounty Fresh

• The Delivery-lead time set by Bounty Fresh is within 1 day in Metro Manila Area, 1-2 days in Central, Northern and Southern Luzon while in Visayas and Mindanao there is 2-3 days allotted in transiting the products.

• Bounty has its own warehouse operated at Lawa, Calamba, Laguna which is responsible for storing small dry goods or operating supplies such as box of oil, marinate, zip locks or packaging of chickens, different spare parts of vehicles, and numerous electric fans for chickens.

• Bounty fresh has different partners which they can distribute all their products. They distribute their products to 19 business center such as supermarkets, restaurants, live bird markets, and hotels. They also have 70 distributors, 16 hatcheries, 9 feed mills, 19 processing plants, and over 1,300 chooks-to-go retail outlets nationwide.

CONCLUSION

• • 95-100% accuracy rate of the control system that is being used in the inventory proves that strategies being used are effective.
• • This accuracy also shows the effectivity of the employee training since product damages are only below 5% annually.
• • They minimize their cost in terms of the transportation because they have a 3rd party logistics doing their deliveries in the respective destinations of the product.
• • Using SAP system makes them accurate even though they don’t have a particular cycle time
• • bounty fresh is effective and efficient in assessing their warehouse management system

RECOMMENDATION

• • the researchers suggest that Bounty Fresh conducts a more frequent physical count
• • Preventive measures are better than solving issues that have already incurred damages.
• • The company should be more careful in encoding information into their
• • system and making sure that their system are always updated and running.

ORDER PROCESSING

2.2 CYCLE TIME

There is no particular cycle time for their deliveries. The Cycle time differs from the volume or demand of the clients, order and destination of the orders. Some clients have specific time for the arrival of their deliveries. The orders are then tracked by the SAP system to ensure the arrival of the orders to their destination.

2.3 ACCURACY

Bounty has an 97% order processing accuracy rate with minimal mistakes like order entries. Due to the well-coordinated departments with the help of their SAP system, they are able to follow up with their orders with minimal complaints from their clients.

About Bounty Fresh

CURRENT DISTRIBUTION SCHEME

Bounty Fresh Group of Companies (BFFGC) is currently the leading and fastest growing broiler integrator in the Philippines. The humble beginnings of Bounty Fresh was established during 1986 when the Chen family set up one layer house in Sta. Maria, Bulacan and loaded the first 5,000 heads of chicken.

Broiler integration was begun in 1995, while full operation started in 2008 and continuously invested in company-owned facilities – Grand Parent farm, Parent Stock farm, Hatcheries, Dressing Plants, Feed Mills, and Cool‐cell Broiler Complexes. Today, Bounty Fresh Group of Companies has two under companies namely Bounty Agro Ventures Inc. (BAVI) which is responsible for the distribution of products in different localities in provincial areas and Bounty Fresh Food Inc. (BFFI) which is responsible for the distribution in Metro Manila and Central Luzon. They supply live chicken, dressed chicken, cut-ups and marinated chickens, different processed chicken products like nuggets and torikatsu and the most notable in their line is the roasted chicken of Chooks-to-go.

TRANSPORTATION

3.3 Routing and Scheduling

Bounty Fresh has an effective routing and scheduling made by their 3rd party logistics company, CTSI Logistics. CTSI handles the routing and scheduling for Bounty Fresh as they are the ones handling all the transportation for Bounty. CTSI is the one that creates the route and scheduling to be taken by their transport vehicles.

3.2 Cost

The transportation of Bounty is solely depending on their 3rd Party Logistics Company, CTSI Logistics. By having the 3rd Party Logistics to outsource the company’s distribution Bounty is able to minimize cost and secure their product delivery.

 Product Loss/Damage rate

Bounty, not specific about it but answered that there is 3% and below monthly average percentage of damage or product loss when delivering products. In case of product loss or damage, Bounty would fine CTSI depending on the amount of damaged and lost products.

 Delivery Accuracy

The delivery accuracy of Bounty is high. According to Bounty they have 95% delivery accuracy because of their 3rd Party Logistics Company, CTSI. With the use of SAP system they are able to identify the accuracy of their delivery.

3.1 Consistency

They are in contract with a 3rd Party Logistics Company, CTSI Logistics. In cases of product damage, loss or delay CTSI is fined depending on the number of damaged products, loss or the length of delay. With the use of their warehouse management, InSite that is customized to be able to interact with the different management systems of their clients they are able to determine the accuracy of their transportation and notify the company in-case of delay or the arrival of the product in its respective destinations.

3.4 Delivery Lead-Time

Delivery lead-time differs from the location of the retail store or outlet. The delivery lead-time set by bounty for their 3rd Party Logistics Company, CTSI Logistics, with regards the delivery within Metro Manila is 1 day. In Central Luzon, Northern and Southern Luzon the delivery lead time take 1-2 days. When it comes to the Visayas and Mindanao are the delivery lead-time should only take 2-3 days. This to reduce the product loss due to expiration. The scheduling differs from the request of the client and depending on what type of store or retailer they are transporting to.

INVENTORY

4.1

• Warehouses for chicken are in the plant itself to remain the freshness of the chicken

• Dry storage of raw materials and equipment for operations are stored in Lawa and Parian Laguna

WAREHOUSING

distribution scheme

4.4 Network Location

• Chooks-to-go retail outlets all over the Philippines

• • Hypermarkets/Supermarkets
• • Hotels
• • Restaurants
• • Institutional Food Companies
• • Live bird markets

4.3

The following comprises the distribution network of Bounty Fresh:

• 19 business center

• 70 distributors

• 500 broiler contact farms

• 16 hatcheries

• 9 feed mills

• 19 processing plants

• 1,300 retail outlet/stores

1.2 Cost

Due to confidentiality, Bounty Fresh didn’t specify the cost that inventory incurs to the company. However, they listed down the costs that comprise that inventory cost. These consist of the cost they incur in replenishing their inventory, carrying cost which takes up the biggest portion of inventory. Temporary or permanent loss of sales are rarely part of the cost of inventory since accidents that causes damage or product losses don’t usually happen.

1.4 Inventory Availability

In order to make sure enough number or volume of products is available for deliveries, Bounty uses a computerized system in order to track available products stored. Since every transaction are gathered and recorded instantaneously using SAP, Bounty is able to make sure that stocks stored in their warehouse are enough to supply current and future demands.

1.1 Control System

• Bounty Fresh uses System Applications Product to track and control inventory items in its storage.
• First-in first-out policy is implemented to make sure that the first products to expired are properly distributed first to the clients
• SAP has 95-100% grading in terms of its effectiveness and help in ensuring that stocks are enough to supply to its distributors.

1.3 Inventory Accuracy

Based on one of the warehouse manager, inventory management of bounty is 95-100% accurate. This is because of the company’s use of SAP in their monitoring and controlling of inventory.

In order to check and monitor inventory accuracy, warehouses employees conducts a physical count of each SKUs. Bounty Fresh conducts a monthly recalculation or counting of their inventory in order to ensure that its safety stock level is maintained and inventory shortage is avoided.

1.5 Product Problems

 Damages – Mishandling is the most common cause of product damages that is experienced during the times that stocks are kept in the inventory.

 Obsolescence – In order to avoid obsolescence, Bounty uses its SAP system in order to make sure that products are disposed based on their expiration level.

 Pilferages – Though it was not specified, bounty has a very small number of reports involving pilferages cases in its storage.

 Losses – Bounty experience a small number of product losses during inventory.

 Inaccurate Record and Errors- Even though Bounty Fresh uses SAP as their system, they also encounter this problem. It occurs when there’s a misunderstanding with the instructions given by the manager to the employee and out-dated records.

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