1. Indian Ice-Cream industry and Supply Chain Innovation at Geddy’s
Shu-Yu Hsueh
Kanako Tone
Naoto Utsumi
Xinxin Xi
Indian Ice-Cream industry and Supply Chain Innovation at Geddy’s
RAWLS 3097
TEAM 4
UNSHY CONSULTING GROUP

2. Our Agenda Today Problem Statement Recommendation Analysis UNSHY
(Xinxin Xi)
Problem Statement
Recommendation
Analysis
UNSHY
Consulting
Alternatives & Risks
Implementation
Conclusion
Q & A
Problem
Recommendation
Analysis
Alternatives
Q & A
Conclusion
11/14/2018

3. The Background Indian Ice-Cream Industry Geddy’s Ice Cream
(Xinxin Xi)
Indian Ice-Cream Industry
Low per capita ice-cream consumption
Fragmented market with unbranded ice-cream
Seasonal Swing in sales
High potential in next decade
Geddy’s Ice Cream
US invested company
Authentic ice-cream
Artisan manufacturing and design
Self-owned franchise retailer
Problem
Recommendation
Analysis
Alternatives
Conclusion
Q & A
11/14/2018

4. Problem Statement Fluctuation of demand Retail Sourcing
(Xinxin Xi)
Sourcing
high raw material cost
Manufacture
Low utilization during off-peak season
Distribution
Imbalanced load
Retail
Short of inventory during peak season
Fluctuation of demand
Problem
Recommendation
Analysis
Alternatives
Q & A
Conclusion

5. Recommendation Short term Long term Mid term
(Xinxin Xi)
Short term
Order twice a week during peak season
Marketing during off-peak season
Mid term
Select Multiple suppliers
Expand portfolio
Long term
Geographic expansion
Problem
Recommendation
Analysis
Alternatives
Conclusion
Q & A
11/14/2018

6. Discrepancy between Sales and Demand Trend
(Naoto Utsumi)
Target Service Level Policy
Scaled Stocking Level Policy
Common Service Policy
Target Level for Top Margin Policy (Priority for top 3, TV, BBS, and LL)
Decline in profit and sales
Target Level for Top Margin Policy (Priority for top 2, TV and BBS)
Recover the profit and sales
Problem
Recommendation
Analysis
Alternatives
Q & A
Conclusion

7. Leftover Effect leading Unusual Sales Trend
(Naoto Utsumi)
Problem
Recommendation
Analysis
Alternatives
Q & A
Conclusion

8. Profitability with Different Policy in High Season (week 14 - 43)*
(Naoto Utsumi)
Policy
Expected Profit
(1000 Rupee)
Expected Lost Sale (units) TV
BBS LL BT
Total
Service Level 90%**
3,483 15 16 11 57
Scaled Stocking Level
3,199
270
301
120
262
952
Common Service Level
3,204
252
263
182
249
946
Target Level for Top Margin
(TV, BBS,LL)
3,138
1,741
1,783
(TV, BBS)
3,143
495
990
1,517
Service Level 90% Restocking twice a week***
3,475 22 23 21 81
* Capacity constraint: 350 units / week
**Neglect capacity constraint
***Neglect the incremental transportation cost
Problem
Recommendation
Analysis
Alternatives
Q & A
Conclusion

9. Feasibility of Increasing Service Level
(Naoto Utsumi)
Profit and Leftover (week ) with Restocking Twice a Week Policy
Service Level
Profit (1000 Rupee)
Leftover
Capacity
Constraint
90%
5,449
1,915 OK
95%
5,473
2,403
98%
5,485
2,973
99.5%
5,491
3,718
Problem
Recommendation
Analysis
Alternatives
Q & A
Conclusion

10. Other Solutions (Kanako Tone)
To tackle issues with fluctuation of demands throughout a year
Issues
Alternatives 
Fluctuation over seasons
Manufacturing Capacity Planning
Storage Capacity Planning
Financial figures
Total
Less variety of products +
+/- -
Marketing in off-peak season
----- 1
Multiple vendors
Extra Storage on the peak season ++
Change in inventory policy 3
Problem
Recommendation
Analysis
Alternatives
Q & A
Conclusion

11. Major Risks (Kanako Tone)
Mitigation
Short term
Higher transportation cost
Build better relationship with logistics company (volume discount)
Mid term -1
Quality control over vendors
Negotiate return policy
Enhance quality policy
Mid term -2
Quality issues at retailers
Incentivize retailers to have better freezing facility
Target modern supermarkets (FDI)
Dilution of Brand Image
Educate customers (marketing)
Pricing strategy
Long term
Manufacturing and storage capacity
Expand new facilities strategically
Higher distribution costs
Problem
Recommendation
Analysis
Risks
Q & A
Conclusion

12. Implementation (Shu-Yu Hsueh)
Phase 1 (year 0-1)
Negotiate with distribution providers
Advertise and/or discount during off-peak seasons
Phase 2 (year 2-5)
Agreement with retailers
Target FDI companies
Change vendor policy
Ensure material quality control
Phase 3 (year 5+)
Expand eastwards
Major commercial centers
Problem
Recommendation
Analysis
Implementation
Q & A
Conclusion

13. Conclusion (Shu-Yu Hsueh)
Geddy’s stocking issues can be solved by restocking more frequently
Centralized ordering and production is easier to ensure quality, but limits Geddy’s expansion potential
Problem
Recommendation
Analysis
implementation
Q & A
Conclusion

14. Thank You Problem Recommendation Analysis Alternatives Q & A
Conclusion