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“AC RESTAURANTS AND THEIR SUPPLY CHAIN MANAGEMENT IN

BHUBANESWAR”By

Mahima Prasad Sahoo

MTS PRESENTATION

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Plan of Presentation

Introduction Back ground of the project Objective & scope of the project Methodology Analysis & interpretation Finding & suggestion Recommendation Conclusion

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INTRODUCTION

What is SCM ?

Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

Flow of supply chain management.

The product flow

The information flow

The finances flow

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Importance of Supply Chain Management

Reduced inventories along the chain Better information sharing among the partners Planning being done in consultation rather than in isolation

The benefits too would be reflected in terms of:

Lower costs

Better customer service

Efficient food preparing

Better trust among the partners leading to win-win

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CONTD……

The benefits for Ac Restaurants in the supply chain include

Reduced real costs, with margins maintenance Incentive to remove waste from the process Delivery of better underlying value to the client Greater confidence in longer-term planning

Supply Chain Management in Restaurants:Supply chain is operating as efficient as possible and

generating the highest level of customer satisfaction at the lowest cost, restaurants have adopted supply chain management processes.

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CONTD……

Elements of the Supply Chain, which is used in restaurant:

Customer

Planning

Purchasing

Inventory

Production

Transportation

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Back ground of the project

The supply chain needs to respond to market requirements and do so in a way that supports the restaurants business strategy

Depending on the needs of its customers, a restaurants supply chain must deliver the appropriate dish of responsiveness and efficiency

Rapid development of the temple city Bhubaneswar The tourism potential of the state is immense Burning example -big business for the hotel and restaurant

more than Rs10.2 Crore out of total business Rs508.95 Crore approximately. (Source- The Telegraph 17/07/11)

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Objective & scope of the project

Objective: To study the entire supply chain management of the Ac

Restaurants in Bhubaneswar and identifying the problems associated with it.

Is to link potential vegetable suppliers who are willing to supply fresh vegetable at an affordable price to the Ac Restaurants in Bhubaneswar.

Scope: The scope of the study is Bhubaneswar but mostly focused

on four restaurants hub in Bhubaneswar such as Bapuji nagar, Saheed nagar, Master canteen and Patia.

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Methodology

The research methodology is totally based upon qualitative

techniques.

Primary data collection through a set of well structured

questionnaire & personal interview with owners/restaurants

managers.

The questionnaire is both open-ended and close ended.

Secondary data collection from journals and websites

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Analysis & interpretation

Objective: To know the purchase planning of 65 respondents for different vegetables from the market in a week.

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Objective: To know the how many restaurants are depend on any vendors regularly to provide vegetables and other items to the restaurants.

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CONTD……

Objective: To know the how many respondents are interested to sign a contract with agents, who wants to supply fresh vegetables once a day.

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Summary of the analysis and interpretation

Huge demand for fresh Vegetables in Ac restaurant in Bhubaneswar Market

The point of interest for the restaurants here in Bhubaneswar is to get the good quality vegetables at reasonable price round the year

It is evident that 71% of respondents are willing to sign a contract with the agent provided they supply to them on certain agreed terms and condition are

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CONTD……

Supplied vegetables should be fresh and of good Quality. The agents should be providing vegetable in the right quantities(at the right place) at the right moment at affordable price In the beginning supply order shall be valid for one month if found satisfactory it will be extended for whole year. This Contract shall be applicable for one year but restaurants owner has full right to cancel the contract before the completion of contract i.e. one year.

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FINDINGS AND SUGGESTION

Only few vegetables suppliers are available to ac restaurants in Bhubaneswar market.Most of the time, suppliers provide low quality (sometimes rotten) vegetables to the restaurants.Hence there is a demand for suppliers, who can supply fresh vegetables at a comparatively affordable price to the ac restaurants.There is a inherent notion among few restaurant owners that the farmers who sell vegetables in local market supply fresh and also at an affordable price and also they belief that these suppliers (contract agents) may not be consistent with the quality all the time.

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CONTD……

Few of the restaurants loyal towards these farmers who sell in the local market.But, still they keep the option open for procuring vegetables from the suppliers (contract agents) if they can provide good quality at an affordable price.Some of the restaurant owner are very pragmatic and practical while saying that if we go for contract with agents then sometimes we may not enjoy the low prices that prevail in the marketAfter discussing with restaurants manager out of 65 respondents, majority are interested to contract with an agent. 

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SUGGESTION

In my view there is a demand for fresh vegetables at an affordable price by the ac restaurants but the supply option are not good enough to meet the demand, so there is an opportunity for the potential supplier to fill the gap.Good quality and timely supply is the need of these restaurants this should be taken care off by the vendor.Special discount scheme should be given to the restaurants.Agreement should be favorable with the purchase planning of restaurants.

CONCLUSION

From the study it is evident that there is a demand for fresh and qualitative vegetables at affordable price by the Ac Restaurants in Bhubaneswar.Majority of restaurants owner and managers are ready to sign a contract with agents , if suppliers supply fresh and qualitative vegetables at affordable price in the right quantities (at the right place) at the right moment.