Fruito Executive Summary

Appendix 1

4.1 Fruito inventory records are inaccurate and it will impact the company value chain. It will create situation such as out of stocks or high stock and increase wastage. Similar mistakes in count will increase unnecessary ordering and high stock and out of stock situations. This both risks can be mitigated by not informing the receiving team about the quantity ordered and they are compiled to count the order and signatures will provide responsibilities for each duty that the receiving party performing. Therefore by implementing Just In Time inventory systems (JIT) will provide accurate information for ordering based on actual sales data and especially for perishable products. Further, bar coding will also increase accuracy of the inventory which will smooth the ordering and receiving operation in Fruito.

4.2 Purchasing vegetables not required to Fruito is another risk that faced by the company. It will build up unnecessary stock of fruits and

It will decrease sales and increase customer complaints, returns etc. Further our customer will move to other competitors due to bad quality products and especially perishable products such as fruits and vegetables. Therefore it is important to curry out Supplier audits to identify suppliers who can provide us with quality, fresh products.

4.5 Further to above risks, Fruito has been purchased from unauthorized suppliers which has poor quality and high price rate. When Fruito purchased from theses unauthorized suppliers, the Company increases cost of purchase and unable to provide products for reasonable rates for our customers. By conducing regular supplier audits will help to identify certified company with consistency in quality and suitability of products. EDI specific controls will increase accuracy and speed. It will reduce paper, postage premiums for overnight delivery