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Efficient Supply Chain & Sustainable Growth Strategy

Efficient Supply Chain & Sustainable Growth Strategy. Krannert Consulting ( GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney. Agenda for today ( Raghuram Koka ). Our Company. Opportunity to improve ( Raghuram Koka ).

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Efficient Supply Chain & Sustainable Growth Strategy

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  1. Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka KalyaniPatri KuldeepYadav Bharat Varshney

  2. Agenda for today (RaghuramKoka) Our Company

  3. Opportunity to improve (RaghuramKoka) The Challenge Demand seasonality and space constraint are limiting the growth • Urgency: • Loosing market share (Revenue) • Declining customer satisfaction • Objectives: • Identify the key challenges in supply chain • Develop capacity utilization enhancement plan • Find the optimal restocking policy • Build a sustainable growth strategy

  4. What are we proposing? (RaghuramKoka) Recommendation Overview

  5. Understanding the root cause (KalyaniPatri) Challenges in Supply Chain • Changing preference • Substitutes • Display space constraint • Inventory constraint (max 350/store) • Incapable cold storage • Early stage product differentiation • Idle production capacity • Raw material • price fluctuation • Demand seasonality • Lack of • infrastructure

  6. Lets Restructure(KalyaniPatri) Capacity Planning & Demand Shaping

  7. Understanding the root cause (KalyaniPatri) Discrepancy in Demand & Sales

  8. Understanding the root cause(KuldeepYadav) Current Scenario Common Service Level Target service level policy Scaled Stocking Level policy Top 2 Margin Policy Top 3 Margin Policy Target service level policy • Different restocking policies owing to space constraint • Discrepancy between market demand & sales in peak period

  9. What can we do? (KuldeepYadav) Restocking Policy Profit: 48,45,700 INR Profit: 50,31,460 INR Profit: 52,85,240 INR ~ 10 % increase in expected profit

  10. What can we do? (Bharat Varshney) Go Online: E-commerce

  11. What can we do? (Bharat Varshney) Mobile Parlor - Cart • Higher Profit Margins • Brand Recognition • Continuous Inventory Flow • More Maintenance • Coordination Problem ~ 16 % increase in profit

  12. What can we do? (Bharat Varshney) Make it National Short Term Long Term

  13. Roadmap to success(Bharat Varshney) Implementation Timeline

  14. The potential challenge (Bharat Varshney) Risks & Mitigation Plan 1 2 55 5 Impact of Risk 11 1 2 3 3 4 4 5 50% 0% Likelihood of Risk

  15. We can say that again(Bharat Varshney) Conclusion Now is the time to: Optimize resource capabilities Implement scaled stock policy Follow organic growth Because this will: Optimize supply chain Reduce stock-out Assure sustainable growth

  16. ?

  17. Appendix

  18. Where is the problem? (Name of Presenter) Space Constraint Sales Restocking LS TV BBS BT

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