Geddy’s Supply Chain Strategy

Team Name: Supply Chain Coup De Main1st Round Room 3098A

Ellen CoatesEric Fredrickson

Julia PhillipsJosef Conner

GSCMI 2013 Case Competition 2

AgendaEllen Coates

Market and production challenges

Recommendations to address current challenges

Inventory policy analysis

Inventory policy recommendations

GSCMI 2013 Case Competition 3

Current challenges reflect a dynamic market

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.

Factors imposing supply chain challenges:

Mar

ket

High demand seasonalityDisposable income disparityDemographic preferencesDessert market competition

Prod

uct

Ingredient seasonality Raw material cost discrepancySupplier abilityCold chain inadequacy

Ellen Coates

GSCMI 2013 Case Competition 4

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

Set target demographic

Long-Term Focus

Cost efficiency

Eric Fredrickson

GSCMI 2013 Case Competition 5

Expected inventory policy profit performance

0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54600

700

800

900

1000

1100

1200

1300

Actual Target Scaled Common Target: Top 3 Target: Top 2

Week

We

ek

ly P

rofi

t (1

00

Ru

pe

e)

Peak Demand

Eric Fredrickson & Julia Phillips

GSCMI 2013 Case Competition 6

Correlation not explained by policy changes

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

Week Inventory Policy

BBS Stock(units)

BBS Sales

(units)

BT Stock(units)

BT Sales

(units)

Total Exp. Profit

(Rupees)

Actual Profit

(Rupees)

28 Common 108 108 96 96 1162.54 1085.3

29 Target: Top 3 138 77 16 16 1166.19 793.4

Julia Phillips

GSCMI 2013 Case Competition 7

Optimal inventory policy hinges on corollary effects

Study Customer Behavior

Find Flavor

Correlation

Respond toCorrelation Strength

Independent

Target Top 3 Margin

Dependent

Further Analysis Required

Vijay Geddam, Founder

Josef Conner

GSCMI 2013 Case Competition 8

Competitive strategy gears up Geddy’s growth

Competitive Strategy

• Market expansion• Target demographic

Seasonality

• Increase sales in off- peak

Inventory

Policy

• Current constraints• Steps for the future

Josef Conner

GSCMI 2013 Case Competition 9

Discussion

GSCMI 2013 Case Competition 10

Appendix - Policy Expected Profit Comparison (Rupees)

Target Service Level

Scaled Stocking

LevelCommon

ServiceTarget Level Top 3 Margin

Target Level Top 2 Margin

Peak N/A 22,939 23,225 24,052 23,800

Non-Peak 29,116 29,116 29,116 29,116 29,116

Total N/A 52,055 52,342 53,168 52,916