Geddy’s Supply Chain Strategy Team Name: Supply Chain Coup De Main 1 st Round Room 3098A Ellen Coates Eric Fredrickson Julia Phillips Josef Conner

GSCMI 2013 Case Competition 2 Agenda Ellen Coates Market and production challenges Recommendations to address current challenges Inventory policy analysis Inventory policy recommendations

GSCMI 2013 Case Competition 3 Current challenges reflect a dynamic market Geddy’s is facing conflict in developing its competitive strategy, resulting in an inefficient supply chain that fluctuates between excess capacity and inventory stock-outs due to seasonality. Factors imposing supply chain challenges: Market High demand seasonality Disposable income disparity Demographic preferences Dessert market competition Product Ingredient seasonality Raw material cost discrepancy Supplier ability Cold chain inadequacy Ellen Coates

GSCMI 2013 Case Competition 4 Effective approaches to overcome challenges  Demand shaping in seasonality  Return to retail store sales during cooler months  New, limited-time flavors in winter (Diwalicious)  Promotions to lower customer prices  Produce other non-frozen dessert products  Setting competitive strategy drives success Near-Term Focus Market expansion Set target demographic Long-Term Focus Cost efficiency Eric Fredrickson

GSCMI 2013 Case Competition 5 Expected inventory policy profit performance Peak Demand Eric Fredrickson & Julia Phillips

GSCMI 2013 Case Competition 6 Correlation not explained by policy changes  Key takeaways in favor of correlation  Decrease in sales of BBS during peak demand  Occurred simultaneously with lowered BT Stock  Expected profit, if independent, does not match actual Week Inventory Policy BBS Stock (units) BBS Sales (units) BT Stock (units) BT Sales (units) Total Exp. Profit (Rupees) Actual Profit (Rupees) 28Common Target: Top Julia Phillips

GSCMI 2013 Case Competition 7 Optimal inventory policy hinges on corollary effects Study Customer Behavior Find Flavor Correlation Respond to Correlation Strength Independent Target Top 3 Margin Dependent Further Analysis Required Vijay Geddam, Founder Josef Conner

GSCMI 2013 Case Competition 8 Competitive strategy gears up Geddy’s growth Competitive Strategy Market expansion Target demographic Seasonality Increase sales in off- peak Inventory Policy Current constraints Steps for the future Josef Conner

GSCMI 2013 Case Competition 9 Discussion

GSCMI 2013 Case Competition 10 Appendix - Policy Expected Profit Comparison (Rupees) Target Service Level Scaled Stocking Level Common Service Target Level Top 3 Margin Target Level Top 2 Margin PeakN/A22,93923,22524,05223,800 Non-Peak29,116 TotalN/A52,05552,34253,16852,916