Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu...
-
Upload
stephany-jennings -
Category
Documents
-
view
218 -
download
0
description
Transcript of Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu...
![Page 1: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/1.jpg)
Efficient Supply Chain & Sustainable Growth
Strategy
Krannert Consulting (GR1, Room # 3097)
Raghu KokaKalyani PatriKuldeep YadavBharat Varshney
![Page 2: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/2.jpg)
GSCMI 2013 Case Competition 2
Agenda for today (Raghuram Koka)
Problem
Recommendation
Analysis
Implementation
Risk Mitigation
Q & A
Our Company
![Page 3: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/3.jpg)
GSCMI 2013 Case Competition 3
Opportunity to improve (Raghuram Koka)
• Urgency: • Loosing market share (Revenue)• Declining customer satisfaction
• Objectives:• Identify the key challenges in supply chain• Develop capacity utilization enhancement plan• Find the optimal restocking policy • Build a sustainable growth strategy
Demand seasonality and space constraint are limiting
the growth
The Challenge
![Page 4: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/4.jpg)
GSCMI 2013 Case Competition 4
What are we proposing? (Raghuram Koka)
Optimize Production Processes and Resources Capabilities
Implement Scaled Stock Level Policy (W21 to W43)
Organic Growth via E-commerce, Mobile Parlor & Strategic Alliances
Recommendation Overview
![Page 5: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/5.jpg)
GSCMI 2013 Case Competition 5
Understanding the root cause (Kalyani Patri)
Production
PlanningManufacturin
gDistributio
n Retails Customer
Raw material price fluctuationDemand
seasonality
Early stage product differentiation
Idle production capacity
Lack of infrastructure
Display space constraint
Inventory constraint (max 350/store)
Incapable cold storage
Changing preference
Substitutes
Challenges in Supply Chain
![Page 6: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/6.jpg)
GSCMI 2013 Case Competition 6
Lets Restructure (Kalyani Patri)
• Reliance Fresh, Big Bazar etc.
• Increase market presence
• More bargaining power
• Negate the effect of macro-economic factor
• Produce in off-season
• FIFO inventory policy
• Hourly wage rate• More utilization
Flexible Labor
Just in Time
Production
Partnership with
Retailers
Contract with
Suppliers
Capacity Planning & Demand Shaping
![Page 7: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/7.jpg)
GSCMI 2013 Case Competition 7
Understanding the root cause (Kalyani Patri)
Low cross selling of flavors
Stock-out of low margin products
Mismatch in demand & supply for high margin products
Sub-optimal restocking policy
0
100
200
300
400
500
600
Aggregate Seasonal DemandTotal Sales
Planning period - Weeks
Qua
ntity
Discrepancy in Demand & Sales
![Page 8: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/8.jpg)
GSCMI 2013 Case Competition 8
0 10 20 30 40 50 60300
500
700
900
1100
1300
200
250
300
350
400
450
500
Week
Wee
kly
Profi
t (1
00
Rup
ee)
Tota
l Wee
kly
Sale
s
Weekly Profit (100 Rupee)
Total Weekly Sales
Target service level policy
ScaledStockingLevel policy
CommonServiceLevel
Top 3 MarginPolicy
Top 2MarginPolicy
Target service level policy
Current Scenario
Different restocking policies owing to space constraint Discrepancy between market demand & sales in peak
period
Understanding the root cause (Kuldeep Yadav)
![Page 9: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/9.jpg)
GSCMI 2013 Case Competition 9
Common
Service Level
Scaled Stock Level
Top 2 Margin-90% SL
Top 3 Margin-90% SL
% of Expected P & L 3.5% 4% 8% 36%
Profit:48,45,700 INR
0 10 20 30 40 50 60300
500
700
900
1100
1300
200
250
300
350
400
450
500Based on Initial Stocking policy
Week
Wee
kly
Profi
t (1
00 R
upee
)
Tota
l Wee
kly
Sale
s
Weekly Profit (100 Ru-pee)
Total Weekly Sales
Profit:50,31,460 INRProfit:52,85,240 INR
0 10 20 30 40 50 60300
500
700
900
1100
1300
200
250
300
350
400
450
500Common Service Level
Week
Wee
kly
Profi
t (1
00 R
upee
)
Tota
l Wee
kly
Sale
s
Weekly Profit (100 Ru-pee)
Total Weekly Sales
0 10 20 30 40 50 60300
500
700
900
1100
1300
200
250
300
350
400
450
500Scaled Stocking Level Policy
Week
Wee
kly
Profi
t (1
00 R
upee
)
Tota
l Wee
kly
Sale
s
Weekly Profit (100 Ru-pee)
Total Weekly Sales
What can we do? (Kuldeep Yadav)Restocking Policy
~ 10 % increase in expected profit
![Page 10: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/10.jpg)
GSCMI 2013 Case Competition 10
High Revenue
Low Operation
al Cost
Larger Customer
BaseCorporate
Orders
Competitive
Advantage
What can we do? (Bharat Varshney)Go Online: E-commerce
![Page 11: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/11.jpg)
GSCMI 2013 Case Competition 11
What can we do? (Bharat Varshney)
Cart Parlor# of Units 10 1Capital Cost (Rs)
350,000 350,000
Revenue (Rs)
400,000 230,000
Profit Margin
30% 45%
Profit (Rs) 120,000 103,500
• Higher Profit Margins
• Brand Recognition
• Continuous Inventory Flow
• More Maintenance
• Coordination Problem
Mobile Parlor - Cart
~ 16 % increase in profit
![Page 12: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/12.jpg)
GSCMI 2013 Case Competition 12
Short Term Long Term
Available Capacity Resource
Increasing Consumer
Base
Low Competitio
n
Structured Branded Market
What can we do? (Bharat Varshney)Make it National
![Page 13: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/13.jpg)
GSCMI 2013 Case Competition 13
Roadmap to success (Bharat Varshney)Implementation Timeline
![Page 14: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/14.jpg)
GSCMI 2013 Case Competition 14
The potential challenge (Bharat Varshney)Risks & Mitigation Plan
Brand Dilution
Demand Forecasting
Competitor Backlash
Quality Issues
Macro Economic FactorsLikelihood of Risk
55
2
34
0% 50%
Impa
ct o
f Ri
sk
111
5
1
2
3
4
5
![Page 15: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/15.jpg)
GSCMI 2013 Case Competition 15
We can say that again (Bharat Varshney)Conclusion
Now is the time to:• Optimize resource capabilities• Implement scaled stock policy• Follow organic growth
Because this will:• Optimize supply
chain • Reduce stock-out • Assure sustainable
growth
![Page 16: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/16.jpg)
GSCMI 2013 Case Competition 16
?
![Page 17: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/17.jpg)
GSCMI 2013 Case Competition 17
Appendix
![Page 18: Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney.](https://reader036.fdocuments.in/reader036/viewer/2022062503/5a4d1ade7f8b9ab059975cc5/html5/thumbnails/18.jpg)
GSCMI 2013 Case Competition 18
Where is the problem? (Name of Presenter)
1 5 9 13 17 21 25 29 33 37 41 45 49 530
20
40
60
80
100
120
140
0
20
40
60
80
100
120
140
160
0
10
20
30
40
50
60
70
80
1 5 9 13 17 21 25 29 33 37 41 45 49 530
20
40
60
80
100
120
TV
BBS
LS
BT
SalesRestocking
Space Constraint