Restructuring supply chain &
assuring sustainable quality
Geddy’s Ice-Cream
Team Name: Eclipse Consulting
1st Round Room____3097______
Abhishek Pandey
Mirant Desai
Vineet Sahni
Yesh Gowda
Agenda
(Abhishek)
Problem
Recommendation
Analysis
Risk Mitigation
Implementation
Question & Answer
GSCMI 2013 Case Competition
2
Current Problems
Industry
Problem
(Abhishek)
Competitors
Under Developed
Cold Storage
chain
High Competition
with Amul, Kwality,
Regional Players
Seasonal Demand
Low consumption
per capital
Extra costs on
Brand Building
and promotional
Campains
High Raw Material
Cost (40%-45%)
Other
supplementsSweets, Deserts
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
3
Current Problems – Geddy’s
(Abhishek )
Major
• Stock out due to space constraints
• Expansion Constraints (seasonal demand)
• Sourcing constraints (taxes, custom duty, currency
fluctuations)
• Longer Replenishment time during peak demand
Minor
•
•
•
•
Problem
Transportation – underdeveloped cold chain
Inventory Management
Quality and product standards
High Input Costs
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
4
Recommendations
(Abhishek )
Increase Replenishment Time - Biweekly
(Short Term)
Capacity Expansion
(Long Term)
Reduce Target Level
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
5
Evaluating Biweekly Replenishment
(Mirant)
Peak period Weekly Demand
500
400
300
200
100
0
Weekly Sales
400
350
300
250
200
150
100
50
0
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
6
Evaluating Biweekly Replenishment
Maximum
Profit
(Mirant)
Average of Wk Profit (100Rupee)
1200
1000
800
600
400
200
0
Common Service
Level
Scaled Stocking
Level Policy
Target Level for
Top 2 Margin
Target Level for
Top 3 Margin
Target Service
Level Policy
Trying Different Stocking policy
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
7
Evaluating Biweekly Replenishment
1300
500
Weekly Profit (100
400
900
350
700
300
Total Weekly Sales
500
Current Implementation
450
250
300
Total Weekly Sales
Weekly Profit
1100
(Mirant)
200
0
10
20
30
Week
40
50
60
500
Weekly Profit (100 Rupee)
1100
400
900
350
700
Recommendation
300
Total Weekly Sales
500
250
300
200
0
Problem
450
Total Weekly Sales
Common Service Level
during Peak Season
Weekly Profit (100 Rupee)
1300
Analysis
10
20
30
Week
Risk Mitigation
GSCMI 2013 Case Competition
40
50
60
Implementation
8
Profits during Biweekly Replenishment
(Mirant)
500
Weekly Profit (100 Rupee)
1300
450
1100
400
900
350
700
300
Total Weekly Sales
500
250
300
200
0
10
20
Total Weekly Sales
Weekly Profit (100 Rupee)
1500
30
Week
40
50
60
Biweekly Replenishment during peak Months
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
9
Effect on Profits and Stock Out
(Mirant)
60000
58000
56000
20%
54000
52000
50000
48000
46000
44000
42000
Original Profits
New Profits
Stock Outs
70
Profits
60
40%
50
40
30
20
10
0
Original Stockout
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
New Stockout
Implementation
10
Effect on Value Chain
SHORT
LEAD
INVENTORY
SOURCING
(Mirant)
MANUFACT
URING
LOGISTICS
LONG LEAD
INVENTORY
RETAILERS
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
11
Risks Analysis
(Mirant)
• Increase in Logistics/Transportation Cost
• (20% increase)
• Inventory Management due to Sourcing
• Removing bottleneck at Manufacturing
• Procurement and sourcing policy will change
• Maintain High Quality
 Capacity expansion at the retail outlets
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
12
Alternative Option - Capacity Expansion ( Long
Term)
 Increasing Market Share
 Increased Disposable Income
 Per Capita Consumption to grow at least 100 %
 Shrewd Marketing Campaigns can help flatten
variability in demand
 Evaluate using a time horizon and cost of capital
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
13
Implementation
(Abhishek)
 Total duration (1 - 2 months)




Implemented during Peak Season to meet demand
Investment in Logistics and Transportation
Improving the bottleneck at Manufacturing
New Sourcing contracts to handle peak season
demand
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
14
Conclusion
(Abhishek)
 Now is the time to:
Problem
 Replenish stock Biweekly
 Invest in Logistics
 Improve sourcing Contracts
Recommendation
Analysis
Risk Mitigation
Implementation
 Because this will:
1. Increase profitability by 20%
2. Decrease Stock out by 40%
3. Boost expansion plans
Problem
Recommendation
Analysis
Risk Mitigation
GSCMI 2013 Case Competition
Implementation
15
Questions
(Abhishek)
Q&A ?
GSCMI 2013 Case Competition
16