1. Supply Chain Innovation at Geddy’s Deccan Consulting (R 3098A) Tarun Sharma Monica Ravi Vinod Varma Penmetsa Deepika Mokkarala

2. Problem Recommendation Analysis Implementation Risks Q&A Agenda(Tarun) Problem at HandRecommendationAnalysisImplementationRisksQ & A

3. Problem Recommendation Analysis Implementation Risks Q&A Why We Are Here (Tarun) To manage the seasonality of the market demand in order to increase profitability and reduce stock outs Problem Statement Capacity utilization Service level policy Seasonality of the demand Key Issues

4. Problem Recommendation Analysis Implementation Risks Q&A Our Recommendations (Tarun) Eliminate target level for top margin policy Replenishment of flavor based on demand Market expansion through In-store freezer Use target service level policy for higher profits Current system based on margins on decreases profits Helps to utilize excess capacity and increase brand equity

5. Problem Recommendation Analysis Implementation Risks Q&A Supply chain challenges (Tarun) Market Product Seasonality of demand Underdeveloped cold chain Introduction of FD into retail Lack of distribution through retail Growing market Too many flavors Storage Requires fresh supplies Special refrigeration required Longer Lead times because of longer production

6. Problem Recommendation Analysis Implementation Risks Q&A Where to focus? (Monica) Cost-Efficiency  Improved Profit margin  Optimization of supply chain  Quality deterioration  Continued under utilization of excess capacity  Improved utilization  Penetrate new markets  Enhances brand equity  Ability to mitigate risk  Ability to reach untapped customers  Additional capital expenditure  Additional Infrastructure Market Expansion

7. Problem Recommendation Analysis Implementation Risks Q&A How to expand? (Monica) InvestmentReturn Need External Support Long Term Viability Ease of Implementation Total Vending Cart -+ +-++1 Instore Freezer/ kisosk -++ - +/-+2 Standalone Parlor -- ++/-+ -

8. Problem Recommendation Analysis Implementation Risks Q&A Capacity Planning-Peak Season (Vinod) Replenishment of high demand products against high margins Improve Shelf Utilization by eliminating low demand/ no demand flavors Leverage excess production capacity to address peak demand through retail

9. Problem Recommendation Analysis Implementation Risks Q&A Capacity Planning-off-peak Season (Vinod) Test and gather consumer feedback on newer flavor to be implemented during peak season Develop new ice cream based products to stimulate demand Leverage on impulse buy’s by market expansion into retail

10. Problem Recommendation Analysis Implementation Risks Q&A Seasonality vs. Profits (Vinod) Assumption that high margin products  high profits is proven false

11. Problem Recommendation Analysis Implementation Risks Q&A Average Weekly Profit/Policy (Deepika) PolicyWeekAverage Profit /Policy Average De-sesonalized Profit/ Policy Target Service Level Policy Week 1-13 790.6971.68 Scaled Stock Keeping Level Policy Week 14- 20 1020.9952.43 Common Service LevelWeek 21-28 1020.9892.28 Target Level for Top 3 Margin Week 29- 35 1087.6634.70 Target Level for Top 2 Margin Week 36-43 807.7831.90 Target Service Level Policy Week 44-55 919.2993.80

12. Problem Recommendation Analysis Implementation Risks Q&A Implementation (Deepika)

13. Problem Recommendation Analysis Implementation Risks Q&A Analyzing Risks (Deepika) Threat to quality in retail stores Customer reaction to new product category might affect current sales Changing customer behavior Impact of Risk Likelihood of Risk 1 2 3 1 2 3 0%50% 100% $

14. Problem Recommendation Analysis Implementation Risks Q&A Overcoming the Challenges (Deepika) Now is the time to : Expand locally Adopt demand based replenishment policy Eliminate target service level policy based on margins

15. Problem Recommendation Analysis Implementation Risks Q&A Questions?

16. Problem Recommendation Analysis Implementation Risks Q&A APPENDIX

17. Problem Recommendation Analysis Implementation Risks Q&A SWOT Strengths Opportunities Threats Weaknesses Quality Strong supplier base Economies of scale through alliances Less awareness compared to market players Adulterated market Seasonality of the demand Target customers are traditionally non –ice cream eating Expand locations Expand into retail market Increase the product range Established competitors Increase in raw material cost owing to macro economic factors

18. Problem Recommendation Analysis Implementation Risks Q&A Profit calculations for Expansion FormatNumberMonthlyYearlyMargins Profit Margins off-peak(8 months) Peak (4 months ) Standalone parlour18000015000012400000.45558000 In store freezer14250006000061600000.2251386000 Vending cart10100003000020000000.3600000