Supply Chain Innovation at Geddy’s
Team Name :GSCMI Warriors
1st Round Room: 4009
Satish Kunchakuri
Harshal Samant
Erik Parronchi
Gokul Nair
Indian Context
Harshal Samant
Low
Differentiation
High degree of
Seasonality
Lack of Cold
Storage
facilities
High power
and fuel cost
Geddy’s
Supply
Chain
GSCMI 2013 Case Competition
Milk sourcing
from
co-operative
societies
2
Implication on Supply Chain
Harshal Samant
High degree of seasonality
• No Level production
• Limitation to capacity expansion
Cold storage facilities
• Limitations to expand business
• Regional players
High power and fuel cost
• Centralized production and storage
• Forces Geddy’s to maximize usage of depot at factory
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Implication on Supply Chain
Harshal Samant
Low differentiation between ice-cream and
frozen dessert
• Maintain high in-stock service level
Milk supply
• Milk sourcing from co-operative societies
• Need to maintain high degree of quality control
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Short-term strategy
Erik Parronchi
Cost Efficiency
Hedge contracts for raw and
packaging materials
1
2
3
Benchmark with indirect companies
to increase bargaining power
Revenue generation through home
delivery services
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Long-term strategy
Erik Parronchi
Market Expansion
Awareness
B2B
Kiosks
Cart
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Long-term strategy
Erik Parronchi
Cost Efficiency
Vertical
Integration
• Increase
control
Production
• Raw
material
Supply
Chain
GSCMI 2013 Case Competition
• Distribution
7
Planning for the uncertainty!
Cost Efficiency
Satish K
Mixed-production strategy
Vertical
Integration
• Increase
control
Lease out current under-utilized capacity
Rent additional cold-storage
for increased
• Raw
Production
demand material
Advertising and promotions during winter
season
Supply
• Distribution
Chain
Optimal production + export to Australia
and other countries
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Explaining Discrepancies..
Gokul Nair
 Sudden drop in Weekly sales from week 28 to 29
 A correlation between sales of BT and BBS observed
 BT stock out results in customers not purchasing BBS
Stockouts
TV
BBS
LL
BT
Total Sales
TV
BBS
LL
BT
28
93
108
49
96
345
-
Y
Y
Y
29
91
77
44
16
227
-
Week
Y
Insights
 The customers are probably mixing both flavors in a cone/scope.
Therefore, unavailability of one results in drop in sale of other.
 Conversely, when BT is in stock, the corresponding sale of BBS
also increases, so Geddy should try and maintain their
availability.
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Best Performing Policy
Gokul Nair
 We recommend a “Scaled Stocking Level Policy” in order to
maximize the profit (12.04/unit)
 Profit Calculations
Policy Type
Target Service Level Policy
Profit/Unit
Profit/Unit
12.30
14.00
12.00
Scaled Stocking Level Policy
Common Service Level
12.04
10.00
11.28
8.00
Target Level for Top 3 Margin
8.03
6.00
Target Level for Top 2 Margin
10.45
12.30
12.04
11.28
10.45
8.03
Profit/Unit
4.00
2.00
 Achieve highest profits to
0.00
meet space limits of 350 units.
 Target level policy not
selected as it never meets the
total space limits, despite
having higher profits/unit
Target
Scaled
Common Target Level Target Level
Service Level Stocking Service Level for Top 3
for Top 2
Policy
Level Policy
Margin
Margin
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Calculations..
Anova Chart
Coefficients
Intercept
Standard Error
t Stat
P-value
11.5935985
6.057849798
1.913814
0.062017
BT
0.5485405
0.11520873
4.761275
2.03E-05
BBS
0.3677582
0.090271696
4.073904
0.000185
Regression Equation
BBS Sales = .548 x BT Sales+ .367 x BBS Demand + 11.59
BT_sales
BBS_demand
BBS_sales
BBS_sales_Actual
15.68308
122.88
65.38653
76.72314672
10.81985
124.8
63.42495
76.65585203
15.75081
122.88
65.42368
63.8793426
15.44297
122.88
65.25482
64.755019
18.15733
121.92
66.39071
70.96235342
20.6293
120.96
67.39364
69.43307939
25.49975
119.04
69.35918
70.44340177
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