Indian Ice-Cream Industry and Supply Chain Innovation at Geddy’s Team Kaizen Kurtis Homan Kongpon Kijnum Sudavee Nantavipaovng Afief Helmi Baasir 1 st Round Room RAWLS 3098A

GSCMI 2013 Case Competition 2  Problem Statement  Business Analysis  Policy Analysis  Recommendation  Risk & Caveat  Q&A Agenda (Sudavee Nantavipaovng)

GSCMI 2013 Case Competition 3  Loss of profits during peak season  Storage limitation of 350 units  Low capacity utilization during off-peak  Ineffective inventory policy  Optimal service levels  Maximize expected profit Problem Statement (Sudavee Nantavipaovng) Seasonality Limited Capacity Capacity Utilization

GSCMI 2013 Case Competition 4 Supply Chain (Sudavee Nantavipaovng) Geddy’s Ice Cream Supplier Manufacturer RetailerCustomer

GSCMI 2013 Case Competition 5 Business Analysis (Kongpon Kijnum)  Key feature of product  Sourcing  Seasonal raw material  Large product variation  Production  High fixed cost structure  Temperature sensitive  Key feature of market  Demand  Seasonality  High correlation of temperature and seasonal factor demand for forecasting  Behavior of customer  Annual growth rate of 15-20%

GSCMI 2013 Case Competition 6 Policy Analysis (Kongpon Kijnum) 5,251,424 5,151,5095,145,167 5,247,328

GSCMI 2013 Case Competition 7 Policy Analysis (Kongpon Kijnum) 5,491,9945,208,4485,251,424 Total (Rupee): (100 Rupee)

GSCMI 2013 Case Competition 8 Discrepancy in Profit (Kurtis Homan)  Low stocking rate of the lowest margin product  Top 3 policy  Unexpected drop in actual sales

GSCMI 2013 Case Competition 9 Recommendation (Kurtis Homan)  Common service level policy  Peak season  Equal service level between available flavors  Satisfy diverse customer tastes  Increase storage to satisfy demand  Off-peak season  Increase demand during off-peak period  Specific product promotion during off-peak based on the seasonality of raw materials  Smooth production for peak season when raw materials price decrease

GSCMI 2013 Case Competition 10 Implementation (Afief Helmi Baasir) Short TermLong Term Supply Chain Management Improvement & Higher Market Penetration  Focus on Cost Efficiency  Implement Common service level policy  Maintain product variety  Set Milestones for market expansion  Focus on market expansion  When differentiation of 90% to Common Service Level is about 525,000  Have more capacity per store  Expand to other geographical locations  Evaluate vendors to lower transportation and lead times closer to new locations

GSCMI 2013 Case Competition 11 Risk and Caveat (Afief Helmi Baasir) Lose first mover advantage Focus Cost Efficiency Limited capacity for common service level potentially can lose market share for higher profit items Common Service Policy Ice cream being held can expire or change in customer tastes for no sale Smoothing Production

GSCMI 2013 Case Competition 12 Thank you Kaizen Q&A

GSCMI 2013 Case Competition 13 Thank you Kaizen Q&A

GSCMI 2013 Case Competition 14 Thank you Kaizen

GSCMI 2013 Case Competition 15 Back up

GSCMI 2013 Case Competition 16 Short TermLong Term Cost efficiency+ Better cost structure + Less impact from exchange rate + Better profitability - Loosing market share - Herder to implement in long term - Market expansion+ Prime location + Shorter lead time + First mover advantages - High Investment - Less profitable - Loosing first mover advantages - Harder to gain M.S.