Geddy’s Supply Chain Innovation

Team Name:___SASE 2________1st Round Room____________

Gary KhooMartin Lopez

Chastapon Wannakomonwat

GSCMI 2013 Case Competition 2

Main Issue (Gary)

Difficulty in adjusting the supply chain model due to high seasonal fluctuation Sales/profit plummet during peak season Excess Capacity during low season

0 10 20 30 40 50 60300

500

700

900

1100

1300

200

250

300

350

400

450

500

Week

Weekly

Pro

fit

(100 R

up

ee)

Tota

l W

eekly

Sale

s

Weekly Profit (100 Ru-pee)

Total Weekly Sales

GSCMI 2013 Case Competition 3

Short-term Recommendation (Gary)

Increase Sales Growth and Profitability Eliminate LL flavor

Lowest demand and low margin Average sales of 41 per week Maximize inventory utilization

Drive BT & BBS flavor sales High correlation between BT and BBS flavor

(Complement) Free toppings for double scoop to drive sales

82

8441

67

Sales Distribution

TVBBSLL

GSCMI 2013 Case Competition 4

Correlation between BBS and BT (Gary)

0 10 20 30 40 50 600

20

40

60

80

100

120

Sales vs time

BBS

BT

Weeks

Sal

es

GSCMI 2013 Case Competition 5

Inventory Management Policy (Martin)

Deseasonalized weekly profit

Old Policy De-seasonalized Profit

Target Service 982

Scaled Stocking 954

Common Service 929

Target level top 3 630

Target level top 2 828

GSCMI 2013 Case Competition 6

Inventory Management Policy (Martin)

Old Policy

Target Service

Scaled Stocking

Common Service

Top 3 Margin

Top 2 Margin

Target Service

Scaled Stocking

Common Service

Scaled Stocking

New Policy

GSCMI 2013 Case Competition 7

Future Sales Profit Forecasting (Martin)

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 550.0

200.0

400.0

600.0

800.0

1000.0

1200.0

Week

Wee

kly

Pro

fit

(100

Ru

pee

)

GSCMI 2013 Case Competition 8

Short-term Recommendation (Chastapon)

To eliminate excess capacity Selling ice cream colloid (excess capacity) to

other related industry E.g. 1st tier ice cream supplier for Fast food

chain, catering, etc.

GSCMI 2013 Case Competition 9

Long-term Recommendation (Chastapon)

Introduction of new product line – soft serve ice cream

Purpose: Market Expansion to different regions in

India Mitigate cold chain infrastructure

constraintAdvantages: Low investment cost for expansion

(Kiosk: Rs. 25000 = $500 < Standalone Parlor Rs. 350000 = $7000)

High Shelf Life No need for cold chain infrastructure

(Ultra heat treated mix)

GSCMI 2013 Case Competition 10

Q & A