supply chain innovation at geddy’s team name :gscmi warriors 1 st round room: 4009 satish...
TRANSCRIPT
Supply Chain Innovation at Geddy’s
Team Name :GSCMI Warriors1st Round Room: 4009
Satish KunchakuriHarshal SamantErik Parronchi
Gokul Nair
GSCMI 2013 Case Competition 2
Indian Context Harshal Samant
Geddy’s Supply Chain
Lack of Cold Storage facilities
High degree of Seasonality
Low Differentiation
High power and fuel cost
Milk sourcing from co-operative
societies
GSCMI 2013 Case Competition 3
Implication on Supply Chain Harshal Samant
• Limitations to expand business• Regional players
Cold storage facilities
• No Level production• Limitation to capacity expansion
High degree of seasonality
• Centralized production and storage• Forces Geddy’s to maximize usage of depot at factory
High power and fuel cost
GSCMI 2013 Case Competition 4
Implication on Supply Chain Harshal Samant
• Milk sourcing from co-operative societies• Need to maintain high degree of quality control
Milk supply
• Maintain high in-stock service level
Low differentiation between ice-cream and frozen dessert
GSCMI 2013 Case Competition 5
Short-term strategy Erik Parronchi
Cost Efficiency
Hedge contracts for raw and packaging materials
Benchmark with indirect companies to increase bargaining power
Revenue generation through home delivery services
1
2
3
GSCMI 2013 Case Competition 6
Long-term strategy Erik Parronchi
Market Expansion
Awareness B2B
Kiosks Cart
GSCMI 2013 Case Competition 7
Long-term strategy Erik Parronchi
Cost Efficiency
Vertical Integration
• Increase control
Production• Raw
material
Supply Chain
• Distribution
GSCMI 2013 Case Competition 8
Planning for the uncertainty! Satish K
Cost Efficiency
Vertical Integration
• Increase control
Production• Raw
material
Supply Chain
• Distribution
Mixed-production strategy
Lease out current under-utilized capacity
Rent additional cold-storage for increased demand
Advertising and promotions during winter season
Optimal production + export to Australia and other countries
GSCMI 2013 Case Competition 9
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
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.
Stockouts
Week 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 - Y
GSCMI 2013 Case Competition 10
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 Profit/Unit
Target Service Level Policy 12.30
Scaled Stocking Level Policy 12.04
Common Service Level 11.28
Target Level for Top 3 Margin 8.03
Target Level for Top 2 Margin 10.45
Targe
t Serv
ice Le
vel P
olicy
Scaled
Stocki
ng Lev
el Policy
Common Servi
ce Lev
el
Targe
t Lev
el for T
op 3 Marg
in
Targe
t Lev
el for T
op 2 Marg
in0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
12.30 12.0411.28
8.03
10.45
Profit/Unit
Profit/Unit
Achieve highest profits to meet space limits of 350 units.
Target level policy not selected as it never meets the total space limits, despite having higher profits/unit
GSCMI 2013 Case Competition 11
GSCMI 2013 Case Competition 12
GSCMI 2013 Case Competition 13
Calculations..
Coefficients Standard Error t Stat P-value
Intercept 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
Anova Chart