DRY & FLY FOOD A TASTE OF HOME OUTSIDE HOME

Supply Chain Management

Dry & Fly Food!• What is this concept?• Dry refers to dehydrated and Fly refers to

moving across nations, globe. (Travelers, Tourists & Students, Professionals)

• A food packaging and shipping service for a special community of people who desire for home cooked food or special delicacies from their favorite spot.

Dry & Fly Introduction

Contd.

• Food is highly perishable item, which needs to be consumed in a limited period.

• What to eat while travelling abroad has always posed problem for many Indians especially strict vegetarians.

• Idea is to enhance the period of consumption without adding preservatives or any other chemicals, simultaneously maintaining the nutrition value.

• The market is very niche, availed by a small percentage of people, as it is in emerging or initial stage not much popular yet.

Customer Types

& Business

Types

In Dry & Fly Model

• Jain Customer (Pure veg, without garlic & onion)• Students studying abroad & in distant locations• Parents of such students• Professionals travelling across globe • Travelers on vacation in abroad, Mountaineers etc. • Patients with restricted diets

• Kitchen Concept• Dehydrating & Packaging Company• Dehyd. & PCK. With Direct Shipping• Shipping Only Company

Supply Chain

Home Cooked Food (Customer for packaging)

SATVITA food Packaging

Dehydration & Packaging Unit

Kitchen Partner (Specialized Service)

Customer with specified requirement Parents of Students

Only Packaging Customer

Tourist

Direct shipping as per CustomerRestaurant

s

Dry & Fly Food

“INPUT – TRANSFORMATION – OUTPUT” REALTIONSHIPS

SYSTEM PRIMARY INPUTS

RESOURCES TRANSFORMATION

TYPICAL DESIRED OUTPUT

COOKING, DEHYDRATING & FOOD PACKAGING

o Order by following Customers:

• TOURIST • STUDENTS• PARENTS OF

STUDENTS

• HOME COOKED FOOD

• THIRD PARTY KITCHEN CUSTOMISED FOOD

• NUTRITIONAL VALUE REATINED FOOD

• EASY TO CARRY & CONSUME

• HEALTHY PACKAGING

• SATISFIED CUSTOMER WHO ARE TRAVEELING AND WHO ARE SITTING ACROSS GLOBE

Creating Competitive Advantage

Customers

Competitor

Company

Reducing Cost,Offering Unique Value for competitive advantage

Focus on Existing & prospective Customers

3C

MODEL

Sustained

Competitive

Advantage

Possible sources of differentiation in functions such as: purchasing, design, sales and servicing.

Competitive

Advantage

• Food Dehydrators & packaging is the emerging market in India, many individuals are trying their hands in fly and dry food sector.

• So these companies offer a value to customer in the way desired by customer.

• A customer can cook food at home and get it dehydrated and packaged.

• The process which maintains the taste and nutrition which is utmost requirement of customer.

Contd. • Ready to eat food market has fair number of companies offering many products in veg and non-veg categories, big players like ITC is also in this business, others like MTR.

• But the differentiation from those preserved packaged food is offered by:

• Maintain the nutrition value • No addition of preservatives• Affordable costs.

Dehydration is one of the oldest means of preserving food. Indians have used it to preserve fish like Bombay duck, papads and fruits like mango which become chewy aam – papad.

Make to Order

• Creating a unique product, as desired by customer

• Delivery according to customer’s requirement

• 100% customization is available• Production starts when customer orders• Advantage: No finished goods inventory• Disadvantage: irregular production

• Key performance measures:• -Lead time• - Orders completed on time• - Quality measures

MAKE-TO-ORDER &

POSTPONEMENT

Design

Purchase

Fabrication

Assembly

Packaging

Distribution

MTO Purchasing postponement

Manufacturing Postponement

Assembly Postponement

Packaging/Labelling

postponement

Logistics Postponement

Pure Postponement

Pure Speculation

Efficient&

Responsive Supply Chain

• Supply Chain Efficiency & Responsiveness mean –

o Ability to • Respond to wide range of quantities/ type/

customization demanded by customer• Meeting short lead times• Preparing customized food products• Customer’s requirements as priority• Meeting customer’s specifications and needs• Effective Logistics & distribution(Lastly, everything depends on customer’s requirement & delight)

But there is always a cost involved for achieving responsiveness.

RADHESHYAM BHELPURI• Assemble – to – Order• Make – to – Order

• In case of Dry & Fly food, ingredients, machinery, equipment, materials etc. all are acquired, but processing only starts after customer’s order.

• In case of Customized food delivery chain ATO will be applicableSource: Supply Chain Management Course Material by Prof.

Suhas Rane

Extensions of

Dry & FlyBusiness

Two kind of product

portfolios

In case of expansion of the Dry & Fly food, two types of product portfolios can be developed.

• Make – To – Order will be taken ahead as separate entity, with longer customer lead time available.

• Assemble – To – Order segment will provide semi customized food delivery at customer’s location

Make – To – Order

• In make to order portfolio we need to Incorporate online order/payment service and direct delivery of cooked – dehydrated – packaged food products at customer’s address whether the delivery is to be made in New York, (abroad)

• The benefits are: I. Reduced production waste, II. Less work in progressIII. Reduced inventory holding costsIV. Better customer lead times and flexibility to

adjust to consumer demand changesV. Improved cash flow. As soon as an order is

placed, production line starts to produce exact quantities following predetermined time constraints.

VI. Higher margins

Make To Order Process Model

Design, Machinery, Packaging

Components All are ready

Customer Order Placed

Dehydration & packaging of

food

Ready to be dispatched or picked up by

customer

Direct Shipping to

addressCustomer Pick

up

CUSTOMER PLACING ORDER

Assemble – To – Order

Food Delivery Service

Processes Involved in Assemble to order:• Development of a online platform, a

Application which will act as customer interphase for placing order.

• A bank tie up for prevailing online payment option to customers

• Vertical Integration of Kitchen with chefs & cooks, delivery service ( Personnel & Vehicles), a online portal/platform for customers, maintenance of raw material inventory.

• Establishment of a efficient supply chain which is cost affective to cope up with shorter lead time

ATO Supply ChainRaw

Material Inventory

Kitchen WIP Packaged Food

Ready To Dispatch

Raw Material Supplier

Front OfficeManaging

Orders and deliveries

Delivery at 10 am

Customer Order online and app

Order at 9:00 am

Home & Location Specific Delivery Service to Customers

Two Way Information flow

Sit and EatKolhapur

One of a Kind Service • A service based on customer’s demand and

desire, order whatever you are yearning for, we will deliver it at your doorstep or you can come and grab your desired meal.

Source: https://sitneatkolhapur.wordpress.com/

Outsourcing

o Satvita Foods had outsourced a kitchen which prepares the customized food as per the order by Satvita’s customer requirements.

o Here Advantages to Satvita Food is:• No need of Raw material inventory

management.• As some items are perishable they don’t

have to worry about stocking quantities.• Reduced expenses and risks• Customization with perfection

Agile Supply Chain

In case of Customized Food Delivering Service:• Low Volume• Highly Customized product• Demand Driven• Localized Configuration• Flexible & responsive as per customer requirement

Procurement || Manufacturing || Delivery

Lead Time Gap

Customer Order Cycle

Order Fulfillment

Logistic Lead Time

THANK YOU

Submitted to:Prof. Dr. Suhas Rane

Course: Supply Chain ManagementWoxsen School of Business

Submitted by:Chirag Sharma (PGID:1521024)Jonty Basetia (PGID:1521023)Suraj Roy (PGID:1521020)

References:• Article from Times of India (Times

Group)• Images from various sources

(Google)• Cover Pic (Anil Bora)• Guidance: Prof. Dr. Suhas Rane