Supply Chain Innovation at Geddy’s Team Name :GSCMI Warriors 1 st Round Room: 4009 Satish Kunchakuri Harshal Samant Erik Parronchi Gokul Nair

GSCMI 2013 Case Competition 2 Indian Context Harshal Samant Geddy’s Supply Chain Lack of Cold Storage facilities High degree of Seasonality Low Differentiation High power and fuel cost Milk sourcing from co-operative societies

GSCMI 2013 Case Competition 3 Implication on Supply Chain Harshal Samant Limitations to expand business Regional players Cold storage facilities No Level production Limitation to capacity expansion High degree of seasonality Centralized production and storage Forces Geddy’s to maximize usage of depot at factory High power and fuel cost

GSCMI 2013 Case Competition 4 Implication on Supply Chain Harshal Samant Milk sourcing from co-operative societies Need to maintain high degree of quality control Milk supply Maintain high in-stock service level Low differentiation between ice-cream and frozen dessert

GSCMI 2013 Case Competition 5 Short-term strategy Erik Parronchi Cost Efficiency Hedge contracts for raw and packaging materials Benchmark with indirect companies to increase bargaining power Revenue generation through home delivery services 1 2 3

GSCMI 2013 Case Competition 6 Long-term strategy Erik Parronchi Market Expansion AwarenessB2BKiosksCart

GSCMI 2013 Case Competition 7 Long-term strategy Erik Parronchi Cost Efficiency Vertical Integration Increase control Production Raw material Supply Chain Distribution

GSCMI 2013 Case Competition 8 Planning for the uncertainty! Satish K Cost Efficiency Vertical Integration Increase control Production Raw material Supply Chain Distribution Mixed-production strategy Lease out current under-utilized capacity Rent additional cold-storage for increased demand Advertising and promotions during winter season Optimal production + export to Australia and other countries

GSCMI 2013 Case Competition 9 Explaining Discrepancies.. Gokul Nair  Sudden drop in Weekly sales from week 28 to 29  A correlation between sales of BT and BBS observed  BT stock out results in customers not purchasing BBS Insights The customers are probably mixing both flavors in a cone/scope. Therefore, unavailability of one results in drop in sale of other. Conversely, when BT is in stock, the corresponding sale of BBS also increases, so Geddy should try and maintain their availability. Stockouts Week TVBBSLLBTTotal SalesTVBBSLLBT YYY Y

GSCMI 2013 Case Competition 10 Best Performing Policy Gokul Nair  We recommend a “Scaled Stocking Level Policy” in order to maximize the profit (12.04/unit)  Profit Calculations Policy TypeProfit/Unit Target Service Level Policy Scaled Stocking Level Policy Common Service Level Target Level for Top 3 Margin 8.03 Target Level for Top 2 Margin  Achieve highest profits to meet space limits of 350 units.  Target level policy not selected as it never meets the total space limits, despite having higher profits/unit

GSCMI 2013 Case Competition 11

GSCMI 2013 Case Competition 12

GSCMI 2013 Case Competition 13 Calculations.. CoefficientsStandard Errort StatP-value Intercept BT E-05 BBS Regression EquationBBS Sales =.548 x BT Sales+.367 x BBS Demand BT_salesBBS_demandBBS_salesBBS_sales_Actual Anova Chart