Mission Food ES4C9 Supply Chain Management Victor Batliwalla 18th November 2013 Technology

Founded in Mexico – 1949 [1] Subsidiary of Gruma, others brands include: [1] Largest manufacturer of corn flour and tortillas in the world. Turnover: Mex$64,316million (£3,082million) [1] 16 plants and 50 distribution centres [2] 2,000 independent distributors transporting to 2,300 routes. [2] Does not sell direct to customer. Company Overview

Products

Supermarket Competitors – Old El Paso, Mexican Discovery Food and Drink Federation (FDF) [3] - levels of packaging to consumers - use of water during production - impact of transportation - waste to landfill - energy use during production Market Pressure

Hardware - RFID Due to pressure from FDF introduced Returnable plastic containers (RPC) Nearly 100% of the RPC used for shipping were being replaced each year at a loss of $3.5 million. Introduced RFID to track containers & reader portals on each door. Cost to implement: $100,000 [4] 7 trips for RPC breakeven point RFID [4]

Software - ERP Hardware is linked wirelessly to software so more accurate planning can be made: SAP : Enterprise resource planning (ERP) [4] System that automates and integrates core business processes. An ERP management information system integrates areas such as: - Manufacturing- Inventory management - Shipping- Marketing and sales

SWOT Analysis Strengths Average of 25turns per container [5] Annual Saving: $700,000 [5] Decrease of around 96% container replacement rate Decrease in contingency stock Weakness Late implementation Missed savings of over $6.3Million Opportunities Increase transparency (Next slide) Threats Highly dependent on RFID Cost to maintain technology

Recommendations  Increase transparency within the supply chain Solution - Utilising cloud services in supply chain [6] - Reduce number of independent distributors (Currently 2000) -Integrate with Gruma Faster time to market with the implementation of new technologies

References  [1] =1www.gruma.com/vIng/Relacion/relacion_reportes.asp?idEmpresa =1  [2] s.pdfhttp:// s.pdf  [3] reports/cmenvaud.HC879.pdfhttp:// reports/cmenvaud.HC879.pdf  [4] studies/en/MissionFoods2_cs_web.pdfhttp:// studies/en/MissionFoods2_cs_web.pdf  [5] ment_mission_foods_wireless_evolution/D2http:// ment_mission_foods_wireless_evolution/D2  [6] ransform_Supply_Chain_Performancehttp:// ransform_Supply_Chain_Performance

Thank You For Listening Any Questions?