What should do? OSCO 1 1 st Round Room 3093 Jess Miller Jazna Stannard Lauren (Luojing) Liu Huan Zhi

GSCMI 2013 Case Competition 2 Agenda (Jazna Stannard) Question: What should Geddy do? Complication: Geddy has too many products and not enough storage space while combating temperature fluctuations throughout the seasons  Plan accordingly by implying target level top 3 margin policy for the entire peak season  Recalculate the estimated average demands to improve weekly profits Recommendation: Geddy needs to utilize the limited space in the best way possible to produce the highest profit margins  Goal: Increase total profits IntroductionNew FrontiersGrowth StrategyImplementation

GSCMI 2013 Case Competition 3 Overview of the Approach (Huan Zhi) What should Geddy do? Stock Outs Delivering the right product in the right quantity Strategize not to run out of high profit products Low Profits Decrease unsold units at the end of the week OutsourcingMilk SuppliersDeliveryChocolate IntroductionNew FrontiersGrowth StrategyImplementation

GSCMI 2013 Case Competition 4 Sticking to Company Values (Huan Zhi) Driven by Company Philosophy  Geddy believes that manufacturing ice-cream in an artisan way are to provide finest and tastiest ice- creams and establish strong branch name and a loyal customer base  Having an upper advantage in the market, Geddy refuses to use substitutes, the primary ingredients in their competitors products IntroductionNew FrontiersGrowth StrategyImplementation “Ice-cream is a business which is clean, hygienic, and provides both retail and branding opportunities” - Vijay Geddam, Founder, Geddy’s Ice-cream

GSCMI 2013 Case Competition 5 Market Potential (Lauren (Luojing) Liu) Market Potential  Despite the climatic appeal Indian has very low per capita ice- cream consumption but over the past year aggressive local business players have been emerging into the market, the opportunities in India make the venture a sure success IntroductionNew FrontiersGrowth StrategyImplementation

GSCMI 2013 Case Competition 6 Seasonal Demands (Lauren (Luojing) Liu) At high peaks in temperature profit ensues and demand increases resulting in continued growth for the company IntroductionNew FrontiersGrowth StrategyImplementation

GSCMI 2013 Case Competition 7 Stock Outs (Jess Miller) Problem: Geddy is running out of high profit products Solution: To implement the target level for top three margin policy during the seasonal peak, weeks  This will reduce the stock out of high profit product increasing the profit margins IntroductionNew FrontiersGrowth StrategyImplementation

GSCMI 2013 Case Competition 8 Low Profits (Jess Miller) Problem: There is a significant profit drop in weeks Solution: Recalculate the estimated average demand  This will create more units to be utilize in stock out items, creating less unsold units at the end of the week IntroductionNew FrontiersGrowth StrategyImplementation

GSCMI 2013 Case Competition 9 Out Sourcing (Jazna Stannard) Problem: Within an organization different departments can have different methods of running a process, outsourcing only furthers this problem. Milk  Geddy’s milk supply for the ice-cream is not harvested from one location but small quantities across several farmers  Solution: Find larger farmers to produce bigger quantities Chocolate  Geddy’s chocolate supply comes from Africa, this distant relation to another country leaves Geddy’s at a disadvantage if they were to lose the relation.  Solution: Bring in all products from within the country of India Delivery Trucks  The delivery system is out sourced, something that Geddy is hoping to change upon in the future with their own line.  Solution: Looking upon future planning is key for success and innovation IntroductionNew FrontiersGrowth StrategyImplementation

GSCMI 2013 Case Competition 10 Implementation (Jazna Stannard) We propose to increase Geddy’s profit margin through the implementation of reducing stock outs and reducing significant profit drops Through the recalculation of estimated average demands we will eliminate unsold products at the end of the week By minimizing out sourcing and promoting more services within the organizations profit will rise, product quality will increase, and reliability upon arrival will occur IntroductionNew FrontiersGrowth StrategyImplementation

GSCMI 2013 Case Competition 11 Questions & Answers