Geddys Supply Chain Strategy Team Name Supply Chain

Geddy’s Supply Chain Strategy Team Name: Supply Chain Coup De Main 1 st Round Room 3098 A Ellen Coates Eric Fredrickson Julia Phillips Josef Conner

Ellen Coates Agenda Market and production challenges Recommendations to address current challenges Inventory policy analysis Inventory policy recommendations GSCMI 2013 Case Competition 2

Current challenges reflect a dynamic market Ellen Coates Geddy’s is facing conflict in developing its competitive strategy, resulting in an inefficient supply chain that fluctuates between excess capacity and inventory stock-outs due to seasonality. High demand seasonality Disposable income disparity Demographic preferences Dessert market competition Product Market Factors imposing supply chain challenges: Ingredient seasonality Raw material cost discrepancy Supplier ability Cold chain inadequacy GSCMI 2013 Case Competition 3

Eric Fredrickson Effective approaches to overcome challenges § Demand shaping in seasonality § § Return to retail store sales during cooler months New, limited-time flavors in winter (Diwalicious) Promotions to lower customer prices Produce other non-frozen dessert products § Setting competitive strategy drives success Near-Term Focus Market expansion Long-Term Focus Cost efficiency GSCMI 2013 Case Competition Set target demographic 4

Eric Fredrickson & Julia Phillips Expected inventory policy profit performance Actual Target Scaled Common 1300 Target: Top 3 Target: Top 2 Peak Demand Weekly Profit (100 Rupee) 1200 1100 1000 900 800 700 600 0 10 20 30 40 50 Week GSCMI 2013 Case Competition 5

Correlation not explained by policy changes Julia Phillips Week Inventory Policy BBS Stock (units) BBS Sales (units) BT Stock (units) BT Sales (units) Total Exp. Profit (Rupees) Actual Profit (Rupees) 28 Common 108 96 96 1162. 54 1085. 3 29 Target: Top 3 138 77 16 16 1166. 19 793. 4 § Key takeaways in favor of correlation § Decrease in sales of BBS during peak demand § Occurred simultaneously with lowered BT Stock § Expected profit, if independent, does not match actual GSCMI 2013 Case Competition 6

Josef Conner Optimal inventory policy hinges on corollary effects Study Customer Behavior Find Flavor Correlation Respond to Correlation Strength Independent Dependent Target Top 3 Margin Further Analysis Required Vijay Geddam, Founder GSCMI 2013 Case Competition 7

Josef Conner Competitive strategy gears up Geddy’s growth Inventory Policy • Current constraints • Steps for the future Seasonality • Increase sales in off- peak Competitive Strategy • Market expansion • Target demographic GSCMI 2013 Case Competition 8

Discussion GSCMI 2013 Case Competition 9

Appendix - Policy Expected Profit Comparison (Rupees) Target Service Level Scaled Stocking Level Common Service Peak N/A 22, 939 23, 225 24, 052 23, 800 Non-Peak 29, 116 29, 116 Total N/A 52, 055 52, 342 53, 168 52, 916 Target Level Top 3 Margin Top 2 Margin GSCMI 2013 Case Competition 10