TABLE OF CONTENT

1.0 DEFINITION OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT .....

1.1 Define Logistics Management .........................................................................
1.1.1 Simple Definition .........................................................................................
1.1.2 Detail Definition ..........................................................................................
1.1.3 My Definition...............................................................................................
1.2 Define Supply Chain Management ..................................................................
1.2.1 Simple Definition .........................................................................................
1.2.2 Detail Definition ..........................................................................................
1.2.3 My Definition...............................................................................................

2.0 YOU HAVE BEEN APPOINTED AS A LOGISTICS CONSULTANT BY XXXX.

YOU ARE REQUIRED TO DEVELOP THE LOGISTICS CHAIN FOR THE COMPANY.
YOU ARE REQUIRED TO PREPARE THE REPORT BASE ON THE FOLLOWING
FORMAT: .......................................................................................................................
2.1: Company Background ........................................................................................

3.0: BASE ON YOUR REPORT YOU ARE REQUIRED TO DEVELOP THE SUPPLY
CHAIN STRUCTURE FOR YOUR CLIENT. YOU MUST DRAW AND EXPLAIN THE
SUPPLY CHAIN DIAGRAM ........................................................................................
3.1: SIMPLE SUPPLY CHAIN DIAGRAM ..........................................................
3.2: TYPICAL SUPPLY CHAIN DIAGRAM .......................................................
3.3: EXTENDED SUPPLY CHAIN DIAGRAM...................................................
3.4: UPSTREAM SUPPLY CHAIN .......................................................................
3.5: DOWNSTREAM SUPPLY CHAIN ...............................................................
3.6: TOTAL SUPPLY CHAIN (Upstream and Downstream) ...............................

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1.0 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics normally refers to operations that take place inside the confines of a single
business, but Supply Chain refers to networks of firms that collaborate and coordinate
their actions in order to get a product to market. Furthermore, conventional logistics is
concerned with tasks such as procurement, distribution, maintenance, and inventory
management. Supply Chain Management (SCM) encompasses all traditional logistics
as well as marketing, new product development, financing, and customer support.

Both supply chain management and logistics are concerned with the movement of
products from their point of origin to their destination. Both of these disciplines
require precise coordination of supplies, labor and facilities to ensure goods flow as
needed throughout the supply chain. Logistics is an important part of supply chain
management, but just one piece of the equation.

1.1 DEFINE OF LOGISTICS MANAGEMENT

1.1.1 Simple Definition
Logistics management is the practise of locating and assessing
possible distribution and transportation organisations.

1.1.2 Details Definition

Logistics management is a component of supply chain
management that is used to satisfy customer expectations through
the effective transportation and storage of connected information,
commodities, and services from origin to destination. Logistics
management assists businesses in lowering costs and improving
customer service.

It was the administration of supply chain management functions

that assists businesses in planning, managing, and implementing
systems for moving and storing items. Inbound and outbound
transportation management, fleet management, warehousing,
materials handling, order fulfillment, logistics network design,
inventory control, supply or demand planning, and administration

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 of third-party logistics service providers are typical logistics
management tasks.
Logistics Management is the management process that combines
the transportation of commodities, services, information, and
money from the source of raw resources to the customer. The goal
of this process is to offer the primary client with the right product
of the right quality at the right time, at the right place, and at the
right price. There are two major groups of logistics activities:
(1) Inbound Logistics
(2) Outbound Logistics

1.1.3 My Definition Of Logistics Management

The definition of mine about logistics management it is a service

that guarantees that goods sent from one location to another
location will reach the recipient in good and safe condition.

1.2 DEFINE OF SUPPLY CHAIN MANAGEMENT

1.2.1 Simple Definition
Supply chain management is the management of the movement
of goods and services, which covers all procedures that turn raw
materials into finished products. It entails actively simplifying a
company's supply-side processes in order to optimise customer
value and achieve a competitive edge in the market.

1.2.2 Details Definition

Supply chain management (SCM) is the centralized
administration of the flow of goods and services, it includes all
operations that convert raw materials into finished commodities.
Companies can save costs and deliver goods to customers faster
and more effectively by optimizing the supply chain. Good
supply chain management can avoid costly recalls and litigation.
The five most important aspects of SCM are strategy
development, raw material sourcing, manufacturing, distribution

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and returns. Supply chain managers are responsible for
regulating and reducing expenses and avoiding supply
shortages.There is five aspect of SCM:
(1) Planning
SCM often begins with planning to align supply with customer
demand and production to get the best results. Firms must
predict and act on their future demands. This pertains to the raw
materials required at each stage of manufacturing, the capacity
and constraints of the equipment, and the human needs
throughout the SCM process. Enterprise Resources Planning
(ERP) system modules are used by large organisations to
combine information and organise strategies.

(2) Sourcing
Strong supplier connections are essential for an efficient SCM
process. Sourcing requires coordinating with vendors to source
raw materials needed throughout the production process. A
company may be able to prepare ahead of time and work with
suppliers to obtain supplies. However, it has varying resource
requirements. SCM sourcing generally requires:
- the raw materials fulfil the manufacturing specifications
required for products manufacture.
- the prices paid for the items are reasonable in comparison to
market expectations.
- The vendor has the ability to provide emergency goods in the
case of an unanticipated occurrence.
- The vendor has a track record of delivering on schedule and in
good condition.

(3) Manufacturing
Corporations transform raw resources into something new using
machinery, people or other external factors. Although not the
final stage of supply chain management, this final product is the
main goal of the production process. Assembly, testing,
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 inspection and packaging are all subtasks of the manufacturing
process. During the manufacturing process, companies must be
aware of waste and other controllable elements that can lead to
deviations from the original plan. For example, if the company
uses more raw materials than planned and is acquired due to a
lack of employee training, the organization must either correct
the problem or return to the initial stage of SCM.

(4) Delivering
Once the product has been made and the sale has been
completed, the company must deliver the product to its
consumers. As customers have not yet interacted with the goods,
the distribution process is often seen as contributing to the brand
image. Companies with good SCM processes have powerful
logistics capabilities and delivery channels to ensure timely, safe
and low-cost delivery of products. Have multiple backup or
distribution mechanisms in place in case one mode of
transportation is unavailable

(5) Returning
The supply chain management process is completed with product
support and client returns. It's terrible enough when a consumer
has to return a product, but it's even worse when it's due to a
corporate error. This return procedure is known as reverse
logistics, and the firm must guarantee that it is capable of
receiving returned items and appropriately assigning
reimbursements for returns received. Whether a corporation is
undertaking a product recall or a consumer is merely dissatisfied
with the goods, the customer interaction must be resolved.

1.2.3 My Definition Of Supply Chain Management

Supply chain management is the management of products or

services from the beginning to the end user. In terms of the

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 management operations of a new business company, up to the
production of products that need to be produced with the
minimum cash flow.

2.0 REPORT BASE AND COMPANY BACKGROUND OF FARM FRESH MILK

Syarikat Farm Fresh Berhad was formed on 24 March 2010 as The Holstein Milk Company
Sdn Bhd. Initially, the company's major operation was growing and selling dairy cow milk, as
well as manufacturing and distributing other dairy products and plants.
Farm Fresh was founded in 2006 by its creator, Loi Tuan Ee, who purchased 83 acres of
property in Kampung Mawai, Kota Tinggi, Johor. Initially, the purchased area was utilised as
a dragon fruit orchard. However, due to fungal and viral infections, the cultivation of dragon
fruit was halted and he began breeding Arowana fish instead. Unfortunately, the fish farm did
not last long because Kota Tinggi was hit by a heavy flood which damaged the Arowana fish
cage. He then started raising dairy goats. The issue in marketing goat milk is that goat milk is
too expensive, and it cannot meet every demand. Finally, he decided to make cow's milk
anyway.

Farm Fresh grew faster than Loi expected. To help launch his business development, he
worked with the help of an old acquaintance, Azmi Zainal as a partner who brought in
Khazanah National, the Malaysian government's strategic investment agency as an investor in
the company. This relationship successfully created the foundation for the future success of
his company.Loi and Azmi pioneered a new distribution mechanism that allows rural people
to find the natural goodness of cow's milk with Farm Fresh products available in all major
cities within Malaysia. The Farm Fresh Home Dealer Network allows micro-entrepreneurs
(mostly women) to earn a living by distributing Farm Fresh products in their neighborhoods.

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farm fresh has 55 regional stockists, 801 home distributors and 952 agents in the company's
network as of March 2023, covering every state and region in Malaysia.

Loi Tuan Ee founder of Farm Fresh Berhad

Farm Fresh which began on a small farm in Johor more than ten years ago, is today
Malaysia's biggest dairy brand.

The firm seeks to give great nourishment to all Malaysians by offering a diverse choice of
farm fresh goods. This covers the most popular milk and yoghurt-based products, as well as
plant-based goods including soy, almond, and oat milk.Under the leadership of Loi Tuan Ee,
Farm Fresh has been awarded 'Best Dairy Farm' by Asia Livestock (2015) and the Asean
Inclusive Business Award (2020).

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3.0 THE SUPPLY CHAIN STRUCTURE OF FARM FRESH MILK BERHAD

3.1 SIMPLE SUPPLY CHAIN DIAGRAM

The agricultural supply chain for farm fresh milk has various steps that start
with the availability of cow's milk. In the second step, it has to go through the
production process before being offered to customers.

3.2 TYPICAL SUPPLY CHAIN DIAGRAM

Farm Fresh has secured supplies of cow's milk from its three farms located
in Kota Tinggi, Desaru, Johor, and Muadzam Shah, Pahang. Aside from that, Farm
Fresh has a source of cow's milk from a livestock farm in Melbourne, Australia,
which is manufactured there and imported into Malaysia. Farm Fresh has received
milk supplies from contract farms around Malaysia due to increased demand. The
milk is then processed at many plants in Larkin, Johor Bahru, Muadzam, Pahang,
and Serdang, Selangor. Farm fresh milk has no colorings or preservatives. Within
48 hours, it will be bottled and sent to wholesalers around the country.

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3.3 EXTENDED SUPPLY CHAIN DIAGRAM

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3.4 UPSTREAM SUPPLY CHAIN

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3.5 DOWNSTREAM SUPPLY CHAIN

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3.6 TOTAL SUPPLY CHAIN (UPSTREAM AND DOWNSTREAM)

Farm Fresh adheres to the "Farm to Shelf in 48 Hours" approach, which is the
primary reason for their outstanding freshness ratings. The cows on their farm are milked
every morning at 5 a.m. and every evening at 5 p.m., which are also the optimal times for
milking. Milk is held below 4°C after being milked and transferred to the Farm Fresh
processing plant. The pasteurisation and homogenization processes are finished on the
same day, and the product is bottled and distributed to local retailers. Farm Fresh milk is
available on grocery shelves within two days.Happy cows provide delicious milk. Tasty
milk produced without preservatives, colorings, or other substances, then delivered within
48 hours equals really fresh, healthful milk.

4.0 REFERENCES

1. Zailani, S., & Rajagopal, P. (2005). Supply chain integration and

performance:US versus East Asian companies. Supply Chain Management: An
International Journal, 10(5), 379-393.

2. Tracey, M., & Tan, C. L. (2001). Empirical analysis of supplier selection and
involvement, customer satisfaction and firm performance. Supply Chain Management: An
International Journal, 6(4), 174-188.

3. Rai, A., Patnayakuni, R., & Seth, N. (2006). Firm Performance Impacts of
Digitally Enabled Supply Chain Integration Capabilities. MIS Quarterly 30(2), 225-246.

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 4. Lee, C. W., Kwon, I.-W. G., & Severance, D. (2007). Relationship between
supply chain performance and degree of linkage among supplier, internal integration, and
customer. Supply Chain Management: An International Journal, 12(6), 444-452.

5. Ganeshan, R., Boone, T., & Stenger, A. J. (2001). The impact of inventory and
how planning parameters on supply chain performance: An exploratory study. Int. J.
Production Economics 71, 111-118.

6. Abdul Razak Raaff (6 September 2018). Holstein Milk Company purchases

dairy plant in Australia New Straits Times. Dicapai pada 19 Januari 2019.

7. Claudia Khaw (15 Jun 2022). Farm Fresh: Malaysian dairy milk brand founder
and business history Vulcan Post. Dicapai pada 18 Oktober 2022.

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