SCM056 Beverages

8/12/2019 SCM056 Beverages

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PQR COFFEE COMPANY

PQR Coffee Company Limited was established in the 1996 to recreate the

ambience and experience of the typical Italian neighborhood Espresso ars! PQR

Coffee aims to pro"ide a comfortable place for people to relax and #nwind o"er a c#p

of coffee PQR Coffee Company was established as specialty coffee retailer offering

fine espresso based be"erages! It places strong emphasis on the $#ality of beans and

the process of preparing rich aromatic coffee! %he %PR Coffee Company &an

international rand' is in strategic alliance with PQR with ()!(* sta+es in it! %CL is

c#rrently the excl#si"e s#pplier of coffee blends to PQR for its entire range of

offerings! %his alliance has gi"en %PR access to the "al#e added mar+et thro#ghPQR,s expanding cons#mer base while PQR is benefited by access to %PR,s technical

and blend experience on specialty coffee! %he other coffee retailers in India are Caf-

Coffee days and Qwi+ey! Caf- Coffee daysahs aro#nd 1). o#tlets with an ann#al

t#rno"er aro#nd Rs /00 Crore!

%he following points are highlighted to get a first hand introd#ction of PQR

coffee company!

In all there are 1(0 o#tlets and corners in India and abroad! %he expected

ann#al t#rno"er si Rs!60 Crores2 an increase of /.* o"er last year!

3holly owned o#tlets in India and franchise model for Lan+a and 4#bai

o#tlets!

It has tie #ps with brands s#ch as %a5 otels to open coffee corners in their

premises!

Concentrating on core competence of specialty coffee and hence o#t so#rcingfood items2 which are a"ailable at stores as f#sion food with coffee!

7#mero#s "arieties of hot and Cold be"erages li+e Coffee2 %ea2 8oft 4rin+s

etc and food items of more (0 "arieties!

ro#nd .00 employees with emphasis on specialist and professionals!

Expansion plan in asian co#ntries li+e China2 :alaysia2 8ingapore2 %hailand2

ong ;ong and


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International sales acco#nt for almost 10* of PQR,s b#siness at present!

1. Briefly explain the SCM operations of PQR.

SUPPY C!A"N OF PQR#

PQR has its o#tlets in al ma5or cities of India li+e 4elhi2 :#mbai2 ;ol+atta2

Chennai2 angalore2 yderabad2 Chandigarh2 =oa2 P#ne2 hmedabad2 L#c+now2

;anp#r2 8himla2 L#dhiana2 aroda2 >aip#r and 4ehrad#n! It has its International

?perations at Lan+a and 4#bai!

3e can broadly classify operations of PQR,s s#pply chain into three categories@

1. Central 8#pply Chain!

$. Local 8#pply Chain

%. Aoods 8#pply Chain!

1. Central S&pply Chain#

PQR has ) regional offices at 4elhi2 :#mbai2 angalore and ;ol+atta!

%here is a centraliBed s#pply chain fro 4ry Items2 which ha"e s#fficient shelf


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life! %he PQR head office at 4elhi manages s#pply of 1)0 items comprising

raw materials2 paper and pac+ing items2 cleaning materials2 croc+ery c#tlery2

stationery and #niform2 merchandising items etc!

%he "endors for these materials are mostly located aro#nd 4elhi and there

are more than 100 "endors c#rrently!

$. o'al S&pply Chain#

Perishable items li+e :il+2 Cream2 Ice Cream2 Ice C#bes and other

mil+ based prod#cts are so#rced locally and each city has its own s#pplier

base!

%. Foo( S&pply Chain#

%o foc#s on core competence of pro"iding speciality coffee2 PQR has

no +itchen in its o#tlets! ll eatables li+e 8andwiches2 ti++a2 pasta2 rolls2

desserts and ice creams etc! are so#rced from o#tside! %he o#tlets pass on the

daily sales data to the head office "ia ED:ail!

$. )i*e a +ia,ra--ati' representation of Str&'t&re of SCM

(epart-ent of PQR.


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%. Explain the "nternational S&pply Chain pro'e(&re of PQR

Coffee Co-pany.

"nternational S&pply Chain#

PQR Coffee Company in its present stat#s has already beg#n its

International operations and #nder franchisee model has set #p ) o#tlets each

in 4#bai and 8ri Lan+a! PQR has 5oint "ent#re arrangement with a company in

8ri Lan+a and set #p PQR Coffee Lan+a P"t! Ltd! 8imilarly in 4#bai2 it has

o#tlets! %he s#pply of dry raw material is done from India to maintain the

consistency in $#ality and for this a freight forwarding ser"ice pro"ider is

earmar+ed which ta+es care of all iss#es in"ol"ed in offshore transportation

whereas local s#ppliers s#pply fresh raw materials and f#sion food items! %he


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following few points highlight the feat#res of the international s#pply chain of

PQR!

PQR has a"ailed an International freight forwarding agent! C#stomclearance and other International %ransaction iss#es are handled by it!

It pic+s #p the raw materials from 8afe express ware ho#se at

Chennai!

8#pplies are made once in two months to get economies of scale as

freight charges are high!

:ode of %ransport is ship!

Lead time for shipment to Lan+a is / days where as for 4#bai it is 10

days!

Certain additional doc#ments are needed@

o Pro forma in"oice!

o ?n the basis of this ad"anced payment is made!

o In"oice in place of stoc+ transfer challan!

o Q#ality Certificates!

o 8pecific pac+aging to s#it c#stom re$#irements!

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SCM056 Beverages