1. Indian Ice-Cream Industry Analysis Team Name: Group 10 1 st Round Room: RAWLS 3095 Grace Dong Olivia Fahnestock Jason Miller Alex Johnson

2. GSCMI 2013 Case Competition 2 Main Challenges Grace Dong  Seasonal swing in ice cream sales  Overall cost of manufacturing & operations  Availability during peak season  Sourcing/procurement  Taxes, custom duties, currency fluctuations  Seasonal ingredients  High price fluctuations

3. GSCMI 2013 Case Competition 3 Main Challenges Grace Dong  Inadequate infrastructure  Underdeveloped cold chain  Major retail outlets do not have cold storage capacities  Many other dessert options  Frozen desserts  Competition from dominant local players

4. GSCMI 2013 Case Competition 4 Capacity & Utilization Olivia Fahnestock  Minimizing excess capacity  Merge another manufacturing facility with ‘Just Bake’  Rent out part of manufacturing facility  Increase utilization  Diversify products with similar raw materials  Innovative product such as chocolate hotpot (fondue)  Ice cream cake  Increase hot beverage production during winter  New product of coffee

5. GSCMI 2013 Case Competition 5 Short Term Focus Jason Miller  Market Expansion  Take advantage of 15-20% market growth  Ice cream consumption is to grow 100% within 1 year  Indian Government now allows foreign direct investment  Vending carts  Cost Efficiency  Expensive product  Competition from dominant local players  Stabilize supplier relationships further

6. GSCMI 2013 Case Competition 6 Long Term Focus Jason Miller  Market Expansion  Expand ‘Just Sundaes’ in collaboration with ‘Just Bake’  Add and diversify products  Open more stores to increase utilization  Cost Efficiency  Supply chain transportation for new stores  Inadequate infrastructure

7. GSCMI 2013 Case Competition 7 Analysis Grace Dong Policy Average weekly profits Average de-seasonalized weekly profit Target Service Level784.1983.19 Scaled Stocking Level1020.92952.43 Common Service Level1087.62892.28 Target Level for Top 3 margin807.66634.71 Target Level for Top 2 margin919.16831.91

8. GSCMI 2013 Case Competition 8 Analysis Grace Dong

9. GSCMI 2013 Case Competition 9 Recommendations Alex Johnson  Take advantage of seasonal demand  Weeks 23-37  Increase store capacity  Increase by 5%  Temporary mini fridge  Use 5S principles to reorganize stores  Restock twice per week  Utilize short distance between manufacturing facility and stores  Short lead time makes this feasible

10. GSCMI 2013 Case Competition 10 Results Alex Johnson  Implement Common Service Level Policy  Increased capacity allows Geddy’s to stock all the products needed to meet target in-stock levels  Return of 5% increase in profit per 52 weeks