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Supply Chain Innovation at Geddy’s

Supply Chain Innovation at Geddy’s. Asia - Pacific Consulting Group 1 st Round Room 4009 Momo (Chenyang) Liu Luis Carnero Randall (Jie) Miao Jun Karamon. Meeting at glance . Case approach Supply Chain at Geddy’s Recommendation Look into the Future Conclusions. Case Approach .

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Supply Chain Innovation at Geddy’s

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  1. Supply Chain Innovation at Geddy’s

    Asia - Pacific Consulting Group 1st Round Room 4009 Momo (Chenyang) Liu Luis Carnero Randall (Jie) Miao Jun Karamon
  2. Meeting at glance Case approach Supply Chain at Geddy’s Recommendation Look into the Future Conclusions
  3. Case Approach Luis Carnero We based our approach on the upfront diagnostic / “as is” assessment which include: “As Is” Findings “Transitioning to Success” Short-term: Forecasting to: Meet demand. Conduct strategic Sourcing. Optimize utilization. Inventory management: Product mix Increase sales and profitability. Reduce costs Long-range plan: Manufacturing process: Level production vs. seasonal Capacity utilization. Distribution Network Vertical integration Market trends + Supply Chain Innovation
  4. Supply Chain at Geddy’s Luis Carnero “Treat people with the authentic ice-cream made with the right ingredients in the artisan way” Sales & Outlets Suppliers Geddy’s Manufacturing Warehouse & Distribution Price and volume fluctuations due to seasonality. Quality issues on critical ingredients such as a milk Quality issues in packages Too many product ingredients (200 -300) Idle capacity and different utilization sue to seasonal production plan Accurate location and distribution lead time Demand constrained by seasonality Sales capacity constrained by stores’ capacity (350) Competitive Strategy: High Quality Competitive drivers: cost & sales SCM strategy: Cost Efficiency
  5. Recommendation Jun Karaman Current Situation: Proposed Solution: New efficiencies: Increase plant utilization by ~7.72% Increase profit by ~8% Sales & Outlets Suppliers Geddy’s Manufacturing Warehouse & Distribution Efficient zone Assumptions: Model: Periodic inv. P = 1 week L = 0 (same day) Holding cost = 0
  6. Look into the Future Randall Miao Sales & Outlets Suppliers Geddy’s Manufacturing Warehouse & Distribution
  7. Conclusions Luis Carnero Selling price is the same. But the cost for each flavor is different; therefore, Geddy’s should focus on cost efficiency. Short-term plan: Increase the demand during summer is the key to gain more profit Keep all types of flavor in-stock is important on the retailer side Shift the inventory policy to common service level policy with 350 units per week Potential risks: what if we cannot ignore the holding cost? Change the inventory policy to the target service level(S.L 90%) Long-term plan: Focus on cost efficiency in its current operations model with current retailers Later, expand its business to some states adjacent to Bangalore and establish their distribution center Set up new contracts, or develop the new relations with suppliers as they are expanding the market to other states. Expand our business by producing private label products to deal with the excessive capacity
  8. Q&A
  9. Appendix
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