1. Efficient Supply Chain & Sustainable Growth Strategy Krannert Consulting (GR1, Room # 3097) Raghu Koka Kalyani Patri Kuldeep Yadav Bharat Varshney

2. GSCMI 2013 Case Competition 2 Agenda for today (Raghuram Koka) ProblemRecommendationAnalysisImplementationRisk MitigationQ & A Our Company

3. GSCMI 2013 Case Competition 3 Opportunity to improve (Raghuram Koka) Urgency : Loosing market share (Revenue) Declining customer satisfaction Objectives: Identify the key challenges in supply chain Develop capacity utilization enhancement plan Find the optimal restocking policy Build a sustainable growth strategy Demand seasonality and space constraint are limiting the growth The Challenge

4. GSCMI 2013 Case Competition 4 What are we proposing? (Raghuram Koka) Optimize Production Processes and Resources Capabilities Implement Scaled Stock Level Policy (W21 to W43) Organic Growth via E-commerce, Mobile Parlor & Strategic Alliances Recommendation Overview

5. GSCMI 2013 Case Competition 5 Understanding the root cause (Kalyani Patri) Production Planning ManufacturingDistributionRetailsCustomer  Raw material price fluctuation  Demand seasonality  Early stage product differentiation  Idle production capacity  Lack of infrastructure  Display space constraint  Inventory constraint (max 350/store)  Incapable cold storage  Changing preference  Substitutes Challenges in Supply Chain

6. GSCMI 2013 Case Competition 6 Lets Restructure (Kalyani Patri) Reliance Fresh, Big Bazar etc. Increase market presence More bargaining power Negate the effect of macro- economic factor Produce in off- season FIFO inventory policy Hourly wage rate More utilization Flexible Labor Just in Time Production Partnership with Retailers Contract with Suppliers Capacity Planning & Demand Shaping

7. GSCMI 2013 Case Competition 7 Understanding the root cause (Kalyani Patri) Low cross selling of flavors Stock-out of low margin products Mismatch in demand & supply for high margin products Sub-optimal restocking policy Discrepancy in Demand & Sales

8. GSCMI 2013 Case Competition 8 Target service level policy Scaled Stocking Level policy Common Service Level Top 3 Margin Policy Top 2 Margin Policy Target service level policy Current Scenario  Different restocking policies owing to space constraint  Discrepancy between market demand & sales in peak period Understanding the root cause (Kuldeep Yadav)

9. GSCMI 2013 Case Competition 9 Common Service Level Scaled Stock Level Top 2 Margin- 90% SL Top 3 Margin-90% SL % of Expected P & L 3.5%4%8%36% Profit: 48,45,700 INR Profit: 50,31,460 INR Profit: 52,85,240 INR What can we do? (Kuldeep Yadav) Restocking Policy ~ 10 % increase in expected profit

10. GSCMI 2013 Case Competition 10 High Revenue Low Operational Cost Larger Customer Base Corporate Orders Competitive Advantage What can we do? (Bharat Varshney) Go Online: E-commerce

11. GSCMI 2013 Case Competition 11 What can we do? (Bharat Varshney) Higher Profit Margins Brand Recognition Continuous Inventory Flow More Maintenance Coordination Problem Mobile Parlor - Cart ~ 16 % increase in profit

12. GSCMI 2013 Case Competition 12 Short Term Long Term Available Capacity Resource Increasing Consumer Base Low Competition Structured Branded Market What can we do? (Bharat Varshney) Make it National

13. GSCMI 2013 Case Competition 13 Roadmap to success (Bharat Varshney) Implementation Timeline

14. GSCMI 2013 Case Competition 14 The potential challenge (Bharat Varshney) Risks & Mitigation Plan Brand Dilution Demand Forecasting Competitor Backlash Quality Issues Macro Economic Factors Likelihood of Risk 55 2 3 4 0%50% Impact of Risk 11 1 5 1 1 2 2 3 3 4 4 5 5

15. GSCMI 2013 Case Competition 15 We can say that again (Bharat Varshney) Conclusion Now is the time to : Optimize resource capabilities Implement scaled stock policy Follow organic growth Because this will : Optimize supply chain Reduce stock-out Assure sustainable growth

16. GSCMI 2013 Case Competition 16 ?

17. GSCMI 2013 Case Competition 17 Appendix

18. GSCMI 2013 Case Competition 18 Where is the problem? (Name of Presenter) TV BBS LS BT Sales Restocking Space Constraint