Supply Chain Innovation Geddys Gourmet Ice Cream Boilerup

Supply Chain Innovation Geddy’s Gourmet Ice Cream Boilerup Consulting Room 3098 A Kashif Khan Andrejs Strateicuks Saadi Azeem Andrew Tye

Agenda for Today Current Situation Problems Our Recommendations Analysis & Alternatives Risk Mitigation Implementation Discussion Time 2 Andrew Tye Boilerup Consulting

Current Situation Problem Recommendation Issues Analysis Implementation • • Strong customer dedication High quality ice cream Offer a lot of variety Desire to expand Strong Foundation • • 100% consumption growth forecast 15 -20% market growth forecast High margin industry Recent deregulations Clear Opportunity 3 Andrew Tye Boilerup Consulting

Key Challenges Situation Problem Recommendation Issues Analysis Implementation Seasonality • Creates fluctuating demand Cold chain capacity • Hard to maintain enough stock in peak demand Fluctuating material prices • Damages margins • Hard to predict 4 Andrew Tye Boilerup Consulting

Our Recommendation Situation Problem Issues Analysis Implementation Use Adaptive Forecasting 1 2 5 Recommendation Improve Store Inventory Allocation 3 Supplier Pricing Negotiation 4 Rationalization & Aggregation Kashif Khan Boilerup Consulting

Analysis Situation Problem Recommendation Issues Analysis 103 Million Rs increased profit 1200 Weekly Profit (100 Rupee) Implementation 1100 1000 Original 900 90% svc 800 Final 700 600 0 10 20 30 Week of the Year 40 50 60 Adaptive Forecasting & improved allocation • Responsiveness to changing trends • Better utilization of space • Higher sales and profits • Better customer service 6 Kashif Khan Boilerup Consulting

Analysis Situation Problem Recommendation Issues Analysis Implementation Rationalization • • Better forecast and more store space per unit Increases service level Eliminates low selling products Possible loss of sales Planning Aggregation / VMI • • • 7 Reduces lead time, labor & complexity Greater overall profit through core products Identify products for possible inventory buildup Requires technology investment Organizational change challenges Kashif Khan Inventory Boilerup Consulting

Analysis Situation Problem Recommendation Issues Analysis Implementation Run 3 production shifts during peak times • Increased capacity during peak demand • Does not really solve the problem Manufacturing New production facilities • Increased production during peak times • Major capital expenditure • Does not solve the problem of stock-outs 8 Kashif Khan Manufacturing Boilerup Consulting

Analysis Situation Problem Recommendation Issues Analysis Implementation Inventory buildup during low utilization • Smooth out production • Possible quality concerns • Preferences could change unexpectedly Inventory, Planning RDCs in Kerala, Mumbai, & expansion areas • Allows for continuous replenishment at local level without incurring prohibitive freight costs • Not enough demands in these areas to justify • Would be ideal as demand grows in these regions 9 Andrejs Strateicuks Boilerup Consulting

Analysis Situation Problem Recommendation Issues Analysis Implementation Expansion consideration: - Area: Karnataka - How: Mixture of Kiosks and Parlors 10 Andrejs Strateicuks Boilerup Consulting

Summary of Alternatives Situation Problem Recommendation Impact: Maintains Vision Product Reallocation Issues Analysis Implementation Addresses Key Issues Prepares for Growth Yes Now Adaptive Forecasting Yes Renegotiate material contracts Yes Mid-term Rationalization Yes Long-term Aggregation Yes Long-term 3 Shifts during peak No Build up inventory No Yes Growth RDCs and/or new factories 11 Andrejs Strateicuks Yes Unneeded Boilerup Consulting

Risk Mitigation Problem Recommendation 1 Sales loss from limited flavors 2 Demand Mismatching 3 4 5 12 Competitor Backlash Issues Impact of Risk Situation Unexpected taste changes Macro Economic Factors Saadi Azeem Analysis Implementation 5 2 1 3 4 0% 50% Boilerup Consulting

Implementation Plan Situation Problem Recommendation Issues Analysis Implementation 3 mo’s 13 Saadi Azeem Boilerup Consulting

Conclusion Situation Problem Issues Analysis Key Challenges and Opportunities • Cold-chain storage • Fluctuating demand • Large potential for growth Capacity planning & Demand shaping • Adjust service levels by product • Rationalization across all stores Implementation focus • Short-term: market expansion • Long-term: cost efficiency Recommendations 14 Recommendation Saadi Azeem Implementation • Use Better Forecasting • Improve Inventory Allocation • Long-term: Aggregation & Rationalization Boilerup Consulting

Discussion Time 15 Boilerup Consulting

Key issue areas to consider Manufacturing Retail Product Mix Planning Inventory Sourcing Contracts Distribution Funding 16 Supplemental Material Boilerup Consulting

Policy Profitability Compared 17 Supplemental Material Boilerup Consulting

Maximizing Profitability 1200 Weekly Profit (100 Rupee) 1100 1000 Original 900 90% svc 800 Final 700 600 0 18 10 20 Supplemental Material 30 Week of the Year 40 50 60 Boilerup Consulting