Addressing the insufficient supply of a Chinese food business

This action research, focused on addressing the insufficient supply of finished goods inventory of CDEF Company, a Chinese Food Business, located in its retail outs in several SM malls in Metro Manila. CDEFs main goal is to maximize profits through the optimization of the retail distribution of high quality Chinese Delicacies, servicing customer demand in the quantity and at the time supply is needed and making the customer happy by way of not only quality products but also excellent customer service. During the first few months of operation as a start-up company, out-of-stock situations became frequent. Mall Supervisors kept on calling our attention for low stocks. The management team collaboratively identified the issue to address insufficient supply of Dim sum specifically Hakaw and Siomai. Our goal in this research is to decrease the rate of occurrence of stock outs, thereby curbing likewise the probability of opportunity loss. In the first cycle of action research, we used the Kraljic model in identifying actions to be taken and Kurt Lewins Force Field analysis guided us in initiating change in the organization. This action research, first cycle focused on improving supplies. The second cycle focused on improving the capacity utilization of a commissary facility as a result of backward integration from the first cycle. During this action research, one-on-one interviews, focus group discussions, collection and analysis of data were conducted. This action research was used as a tool for us to identify issues, formulate and implement strategies, and take corrective action collaboratively. This improved the supply chain activities by ensuring products were delivered on time, in the right quantities (as forecasted and given buffer stocks for peak demand) and in compliance with the quality standards set by the company. This did not only solve the problems related to areas for improvement in the supply chain but also created golden opportunities for CDEF