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Supply Chain Innovation. Geddy’s Gourmet Ice Cream. Boilerup Consulting Room 3098A Kashif Khan Andrejs Strateicuks Saadi Azeem Andrew Tye. Agenda for Today. Andrew Tye. Current Situation. Recommendation. Issues. Analysis. Implementation. Problem. Situation. Andrew Tye. - PowerPoint PPT Presentation
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Supply Chain Innovation
Boilerup ConsultingRoom 3098A
Kashif KhanAndrejs Strateicuks
Saadi AzeemAndrew Tye
Geddy’s Gourmet Ice Cream
Boilerup Consulting2
Agenda for Today
Current Situation
Problems
Our Recommendations
Analysis & Alternatives
Risk Mitigation
Implementation
Discussion Time
Andrew Tye
Boilerup Consulting3
Current Situation
• Strong customer dedication• High quality ice cream• Offer a lot of variety• Desire to expand
• 100% consumption growth forecast• 15-20% market growth forecast• High margin industry• Recent deregulations
Strong Foundation
Clear Opportunity
Recommendation Issues Analysis ImplementationProblemSituation
Andrew Tye
Boilerup Consulting4
Key ChallengesRecommendation Issues Analysis ImplementationProblemSituation
Andrew Tye
Seasonality• Creates fluctuating demand
Cold chain capacity• Hard to maintain enough stock in peak demand
Fluctuating material prices• Damages margins• Hard to predict
Boilerup Consulting5
Our RecommendationRecommendation Issues Analysis ImplementationProblemSituation
Use Adaptive Forecasting1
Improve Store Inventory Allocation2
Rationalization & Aggregation4
Supplier Pricing Negotiation3
Kashif Khan
Boilerup Consulting6
AnalysisRecommendation Issues Analysis ImplementationProblemSituation
Kashif Khan
• Responsiveness to changing trends• Better utilization of space• Higher sales and profits• Better customer service
Adaptive Forecasting & improved allocation
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Original90% svc Final
Week of the Year
Wee
kly
Profi
t (10
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pee)
103 Million Rs increased profit
Boilerup Consulting7
Analysis
• Better forecast and more store space per unit• Increases service level• Eliminates low selling products• Possible loss of sales
Rationalization
• Reduces lead time, labor & complexity• Greater overall profit through core products• Identify products for possible inventory buildup• Requires technology investment• Organizational change challenges
Aggregation / VMI
Recommendation Issues Analysis ImplementationProblemSituation
Planning
Inventory
Kashif Khan
Boilerup Consulting8
AnalysisRecommendation Issues Analysis ImplementationProblemSituation
• Increased capacity during peak demand• Does not really solve the problem
Run 3 production shifts during peak times
• Increased production during peak times• Major capital expenditure• Does not solve the problem of stock-outs
New production facilities
Manufacturing
Manufacturing
Kashif Khan
Boilerup Consulting9
Analysis
• Smooth out production• Possible quality concerns• Preferences could change unexpectedly
Inventory buildup during low utilization
• Allows for continuous replenishment at local level without incurring prohibitive freight costs
• Not enough demands in these areas to justify• Would be ideal as demand grows in these regions
RDCs in Kerala, Mumbai, & expansion areas
Recommendation Issues Analysis ImplementationProblemSituation
Inventory,Planning
Andrejs Strateicuks
Boilerup Consulting10
AnalysisRecommendation Issues Analysis ImplementationProblemSituation
Andrejs Strateicuks
Expansion consideration: - Area: Karnataka- How: Mixture of Kiosks and Parlors
Boilerup Consulting11
Summary of AlternativesRecommendation Issues Analysis ImplementationProblemSituation
Impact: Maintains Vision
Addresses Key Issues
Prepares for Growth
Product Reallocation Yes Yes Now
Adaptive Forecasting Yes Yes Yes Now
Renegotiate material contracts Yes Yes Mid-term
Rationalization Yes Yes Long-term
Aggregation Yes Yes Long-term
3 Shifts during peak No Unneeded
Build up inventory No Yes Growth
RDCs and/or new factories Yes No Yes Growth
Andrejs Strateicuks
Boilerup Consulting12
Risk MitigationRecommendation Issues Analysis ImplementationProblemSituation
Sales loss from limited flavors
Demand Mismatching
Competitor Backlash
Unexpected taste changes
Macro Economic Factors
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0% 50%
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f Risk
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Saadi Azeem
Boilerup Consulting13
Implementation PlanRecommendation Issues Analysis ImplementationProblemSituation
Saadi Azeem
3 mo’s
Boilerup Consulting14
ConclusionRecommendation Issues Analysis ImplementationProblemSituation
• Cold-chain storage• Fluctuating demand• Large potential for growth
Key Challenges and Opportunities
• Adjust service levels by product• Rationalization across all stores
Capacity planning & Demand shaping
• Short-term: market expansion • Long-term: cost efficiency
Implementation focus
• Use Better Forecasting • Improve Inventory Allocation• Long-term: Aggregation & Rationalization
Recommendations
Saadi Azeem
Boilerup Consulting15
Discussion Time
Boilerup Consulting16
Key issue areas to consider
Manufacturing Retail Product Mix
Planning Inventory Sourcing
Contracts Distribution Funding
Supplemental Material
Boilerup Consulting17
Policy Profitability Compared
Integrated Solution 103,923,773.78 90% Service Level 49,746,833.20
Total Profit increase per Policy (rupee)
Supplemental Material
Boilerup Consulting18
Maximizing Profitability
Supplemental Material
0 10 20 30 40 50 60600
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Original90% svc Final
Week of the Year
Wee
kly
Profi
t (10
0 Ru
pee)
