Product details

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Published by: Asian Business Case Centre
Originally published in: 2011
Version: 5 May 2010
Revision date: 21-Sep-2012

Abstract

In 2002, Neo Sia Meng took over as Executive Director of Four Star Industries Private Limited, a mattress manufacturing company founded three decades ago by his parents. After joining the family business in 1996, Sia Meng saw several local and foreign mattress manufacturers enter the Singapore market. The intense competition, the seasonal and volatile local market resulted in a proliferation of product offerings from all manufacturers. The local dealers who dominated the retail mattress market sought an exclusive range of in-house models from the local manufacturers. As Four Star depended heavily on the local dealers, it tried to accommodate their demands to increase its product range and service level. However, as the company substantially increased the variety of mattress offerings, its operations became chaotic, and matching demand with the correct inventory of mattresses became a significant challenge. Order fulfillment problems created significant pressures on the manufacturing operations and Sia Meng was worried that these operational problems might provoke some of his long serving employees to consider leaving the company. Sia Meng pondered on the short and long term options for Four Star to move towards a responsive, but cost-effective operations model.
Location:
Other setting(s):
1996-2002

About

Abstract

In 2002, Neo Sia Meng took over as Executive Director of Four Star Industries Private Limited, a mattress manufacturing company founded three decades ago by his parents. After joining the family business in 1996, Sia Meng saw several local and foreign mattress manufacturers enter the Singapore market. The intense competition, the seasonal and volatile local market resulted in a proliferation of product offerings from all manufacturers. The local dealers who dominated the retail mattress market sought an exclusive range of in-house models from the local manufacturers. As Four Star depended heavily on the local dealers, it tried to accommodate their demands to increase its product range and service level. However, as the company substantially increased the variety of mattress offerings, its operations became chaotic, and matching demand with the correct inventory of mattresses became a significant challenge. Order fulfillment problems created significant pressures on the manufacturing operations and Sia Meng was worried that these operational problems might provoke some of his long serving employees to consider leaving the company. Sia Meng pondered on the short and long term options for Four Star to move towards a responsive, but cost-effective operations model.

Settings

Location:
Other setting(s):
1996-2002

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