Four Star Industries Singapore Harvard Case Solution & Analysis

Four Star Industries Singapore Case Study Solution 

Challenges faced by the four industries:

Four Star Industries is a leading mattress manufacturing company in Singapore. As international mattress manufacturing companies entered Singapore, Four Star Industries faced intense competition as a result, company introduced new and innovative models to the market, due to which, company’s inventory has increased. As a result, the decline in order fill rate was experienced by the company. Moreover, excessive inventory of different models wasnot sold which caused increase in inventory holding and its cost. In addition, new orders were difficult to process as there was lack of storage space. Consequently, company was unable to meet market demands. The local dealers of the company are demanding new range of in house mattress models from local manufacturers. In addition to this, Four Star has also increased it product ranges.

Impact of proliferation on Four Industries Operations

As the competition among local and international competitors increased, the management and manufacturing operations of the company were badly disturbed. This intense competition in the market led the company to experience intense complexities in the production processes, due to which the company was unable to meet customer’s demand. It also increased the inventory costs which eventually impacted the operating cost of the company. In addition, it also increased the order fulfillment problems in the company.

Moreover, the entire supply chain of the company has been affecting the company’s operations as the manufacturing dealers have rejected the orders of the company.

Four Star Industries Singapore Harvard Case Solution & Analysis

 

 

Recommendations for Four Stars Industries:

Few ideas have been generated by the manager of the company that would lead to a responsive and cost effective model. It includes the following:

  1. Reduce the number of mattress models to its original level in 1996-1998
  2. Develop MOQ for dealers
  3. The company should reduce the safety stock for finished mattresses.
  4. Lastly, the company should relocate the manufacturing.

However, these actions of the company are not feasible. Few other recommendations have been generated for the company which would be more feasible:

  1. The company should reduce the variability of different models of mattresses. Four Star Industries should use forces in order to fulfill customer’s needs.
  2. Company should implement Enterprise Resources Planning (ERP) system in order to improve the communication between different departments such as dealers and manufacturers.
  3. Just in Time (JIT) inventory system should be used as it states to manufacture at the time of need and it would help the company to eliminate the wastage of the raw materials.
  4. Order Fulfillment Requirement should be implemented to receive customer’s orders in advance. As a result, the employees would be retained and the pressure on the employees would be implemented.
  5. The company should open its ware houses in the public.......................

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