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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!
