Supply Chain Innovation Boilerup Consulting Room 3098A Kashif Khan Andrejs Strateicuks Saadi Azeem Andrew Tye Geddys Gourmet Ice Cream Boilerup Consulting2 Agenda for Today Current SituationProblemsOur RecommendationsAnalysis & AlternativesRisk MitigationImplementationDiscussion 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 RecommendationIssuesAnalysisImplementationProblemSituation Andrew Tye Boilerup Consulting4 Key Challenges RecommendationIssuesAnalysisImplementationProblemSituation 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 Recommendation RecommendationIssuesAnalysisImplementationProblemSituation Use Adaptive Forecasting 1 Improve Store Inventory Allocation 2 Rationalization & Aggregation 4 Supplier Pricing Negotiation 3 Kashif Khan Boilerup Consulting6 Analysis RecommendationIssuesAnalysisImplementationProblemSituation Kashif Khan Responsiveness to changing trends Better utilization of space Higher sales and profits Better customer service Adaptive Forecasting & improved allocation 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 RecommendationIssuesAnalysisImplementationProblemSituation Planning Inventory Kashif Khan Boilerup Consulting8 Analysis RecommendationIssuesAnalysisImplementationProblemSituation 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 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 RecommendationIssuesAnalysisImplementationProblemSituation Inventory, Planning Andrejs Strateicuks Boilerup Consulting10 Analysis RecommendationIssuesAnalysisImplementationProblemSituation Andrejs Strateicuks Expansion consideration: -Area: Karnataka -How: Mixture of Kiosks and Parlors Boilerup Consulting11 Summary of Alternatives RecommendationIssuesAnalysisImplementationProblemSituation Impact: Maintains Vision Addresses Key Issues Prepares for Growth Product ReallocationYes Now Adaptive ForecastingYes Now Renegotiate material contractsYes Mid-term RationalizationYes Long-term AggregationYes Long-term 3 Shifts during peakNoUnneeded Build up inventoryNoYesGrowth RDCs and/or new factoriesYesNoYesGrowth Andrejs Strateicuks Boilerup Consulting12 Risk Mitigation RecommendationIssuesAnalysisImplementationProblemSituation % 50% Impact of Risk Saadi Azeem Boilerup Consulting13 Implementation Plan RecommendationIssuesAnalysisImplementationProblemSituation Saadi Azeem 3 mos Boilerup Consulting14 Conclusion RecommendationIssuesAnalysisImplementationProblemSituation 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 ManufacturingRetailProduct Mix PlanningInventorySourcing ContractsDistributionFunding Supplemental Material Boilerup Consulting17 Policy Profitability Compared Supplemental Material Boilerup Consulting18 Maximizing Profitability Supplemental Material