home breads

8/18/2019 Home Breads

1/15

1

Acknowledgement

On the very outset of this report, we would like to extend our sincere & heartfelt

obligation towards all the personages who have helped us in this endeavor. Without

their active guidance, help, cooperation & encouragement, we would not have made

headway in the project.

We are extremely thankful and pay our gratitude to our faculty Mrs Richa Agarwal

for her valuable guidance and support on completion of this project.

We extend our gratitude to Auro University for giving us this opportunity.

At last but not least gratitude goes to all of our friends who directly or indirectly

helped us to complete this project report. Any omission in this brief

acknowledgement does not mean lack of gratitude.


2/15

2

Index

Sr no. Particulars Pg. no.

1 Introduction 3

2 Supply chain of Home Breads 4-6

3 Inventory management 7-8

4 Forecasting 9

5 Locational decisions 10

6 Transportation 11-12

7 SCM integration , Outsourcing 13

8 Recommendation 14

9 Harvard Referencing 15


3/15

3

Introduction

Home Breads Is a unique bakery-café started in Surat 20 years back, with the desire for mouth-

watering pastries. They quickly established themselves with delightfully tasting pastries, among

which, is the now famous 'black forest pastry'. These pastries also come in other flavors such as

'pineapple', 'butterscotch' and 'Strawberry'. These have quickly become customer favorites. Word

rapidly spread across town and ultimately people were raving about the wonderfully moist and

delicious fresh cream layered pastries. A dedicated following of customers came daily for their

oven-fresh baked variety Breads, croissants, puffs and buns.

With a strong following of satisfied customers, Home breads is more than just a familiar name

to customers, as many folks from all backgrounds have come to enjoy their wide range of products

and snacks. Home Breads has many treats to please your palette. Their goal is to deliver the best

'comfort food' to customers. It will bring a smile upon your face and a taste so simple, yet

unforgettable. When it comes to baking, their bakers are dedicated to the highest standards of

quality, delivering freshly made products from scratch in our kitchen on premises. Their

professional bakers and confectioners are skilled in the art of baking and decorating and bring you

exquisite designed cakes to match every occasion, whether it's a wedding or a birthday celebration.

Their staff begins their day early in the wee hours of the morning, preparing fresh Breads,

croissants, puffs, buns and cakes at sunrise. The aroma and taste speaks for itself. Home breads,

time stands still when you are enjoying their treats, except for their staff who are working

continuously to make your experience at our bakery-Pastries an unforgettable one.

The Business is owned by Mr. Anil Tibrewal who has 20 years of experience in the bread

manufacturing business. There are 25+ employees at their stores and Mr. Tibrewal’s son helps him

with the management of the same.


4/15

4

Supply Chain Management

The products are available to the consumers at stores at 3 locations in the city.

Home bread has limited number of suppliers. Mr. Tibrewal says that all the raw material reaches

their ghoddod road branch every night on time. Thus states that efficiency of the back end

suppliers.

The manufacturing takes place in the back kitchen of their ghoddod road branch at 4am every

morning. Home breads provides almost 100 varieties of bread at their shop. It takes 2 Hours for

the baking process. Home breads believes in fresh supply thus manufactures bread every morning

for daily stock and supply at their shops.

VendorManufacturing

unitStores Customers


5/15

5

Supply of imported and packaged products: -

Home breads provides hundreds of imported chocolates from around the world imported by

themselves as an agent on the Mumbai port. The supply of those products is done by manufacturers

from around the world. The owner uses the online portals by the companies in order to source the

products. Also various products such as Ferrero rocher chocolate and many other which are now

manufactured in India are now directly sourced from local agents of the products.

Type of Supply chain

MTO

This strategy still is for standard products which have a clearly defined specification. Other than

MTS, there is absolutely no forecast on products which are made to an order from a customer. You

start production after the customer’s request comes in and not, like with MTS, beforehand.

MTS

When your product is a commodity that can be sold out of a catalog and is defined and specified

through a master record, it can be planned; if it is somewhat predictable. A steady consumption in

the past helps predicting the future, however, there may be events in the future which require a

more forward-looking planning process.

In any case, if you can somewhat predict what will happen, you may consider a Make to Stock

strategy. Even if it is hard to predict the future, but the customer does not accept long delivery

times, you might be required to make some of your product to stock.

Manufacturer Stores customer


6/15

6

Making to stock means production without actual requirements. The Sales Order does not drive

the production program but the forecast does. Incoming Sales Orders use existing inventory for

the delivery which keeps the customer lead time to a minimum.

HB fulfils its order delivery lead time through MTS (make to stock) process and Make to order

process in case of customised cakes or cakes on order. Breads and imported packaged goods are

make to stock items which derive customers according to their need/requirement whereas cakes

are customized according to the need of the customers thus are a Make to order Product.


7/15

7

Inventory Management

Min-Max method

The management at Home Breads uses the Min Max method in order to maintain the supply of the

products. Home Breads feels the proper number of stock to maintain is 6 for each and every product

at their store. The order of 4 More is placed as soon as the stock reaches from 6 to 2.

Cycle Inventory

Cycle stock inventory is the portion of an inventory that the seller cycles through to satisfy regular

sales orders. It is part of on-hand inventory, which includes all of the items that a seller has in its

possession. For example, a retailer's on-hand inventory would include the items on store shelves

as well as most of those in a store room or stock area. Over time, cycle stock inventory refreshes

itself, or turns over, as new items replace older ones that are sold. Home breads manufactures only

according to the daily demand of the city. Thus the bread stock cycles each and every day on their

stores.

0

1

2

3

4

5

6

7

Chart Title

Stock Safety Stock


8/15

8

Safety Stock

Safety stock (also called buffer stock ) is a term used by logisticians to describe a level of

extra stock that is maintained to mitigate risk of stock outs (shortfall in raw material or packaging)

due to uncertainties in supply and demand. Home breads keeps extra stock at a warehouse at bhatar

road, just 2-3 kms from their ghoddod road outlet. Mr. Tibrewal explains that they have to order

extra stock from the online websites as it takes 45-150 days for the products to reach to the stores.

The companies outside India do no entertain small orders thus Mr. Tibrewal has to order in

consortium with 2-3 importers of other cities of India so that they don’t have to stock too much

money as stock/inventory.

Seasonal Stock

Seasonality is a characteristic of a time series in which the data experiences regular and predictable

changes which recur every calendar year. Any predictable change or pattern in a time series that

recurs or repeats over a one-year period can be said to be seasonal. Home breads uses seasons in

order to understand the demand of the market every month thus they ensure high stock during the

seasons which provide high sales.

Functional Products

Functional products are staples that people buy in a wide range of retail outlets. Typically, they

do not change much over time, have low profit margins, stable predictable demand and long life

cycles. Home breads deals in breads and imported food consumer foods thus deals in the the

functional products category. Though the margin on the imported products is very high against the

feature of low margin in case of functional products. At the same time it is also not possible to

have a stable predictable demand for the imported products as they are very highly priced and do

not exist on the average consumption chart of 95% of the people in the city

http://www.investopedia.com/terms/t/timeseries.asphttp://www.investopedia.com/terms/c/calendaryear.asphttp://www.investopedia.com/terms/c/calendaryear.asphttp://www.investopedia.com/terms/t/timeseries.asp


9/15

9

Forecasting

Informed Judgment

A judgment is a decision we make about something that shows what we believe. To make

an informed judgment means making a decision about something based on information, not just

on feelings or what someone wants us to believe.

The management at Home Breads and also because of Mr.Tibrewal’s experience in the business

derives the demand of the month by using a combination of seasonal behaviors of the market and

the sale of the outlet in the same month/season last year. The reason of high sales during May-June

and end Novemeber-January was explained by Mr. Tibrewal as a result of wedding seasons

whereas low sales during March-April and October were board exams and City people on

vacations respectively.

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Sales of Bread and Confectionary items

Sales of Bread and Confectionary items


10/15

10

Locational Decisions

The manufacturing of the bread items takes place in the back kitchen of their main ghoddod road

outlet. Thus as explained by Mr. Tibrewal it saves them a lot of time and money. The demand of

the other two outlets is catered through the main kitchen itself.

When asked what if the demand of the city increases Mr. Tibrewal explained that presently it takes

2 hours of preparation and 2 hours of process in order to cater the present demand. He would

preferably choose double shift manufacturing in order to cater to high demand and presently has

not given a though about manufacturing someplace else.


11/15

11

Transportation

As all the Manufacturing is done at the ghoddod road brand itself the product reached the shelves

of the ghoddod road branch as soon as the packing is done with. Whereas the demand of the other

two outlets is catered using 2 tempo trucks which leave for both the outlets every morning.

The demand of the other outlets is to be informed to the main kitchen every night so that the baking

takes place at 4 am in the morning.

Manufacturing

Parlepoint Vesu

Ghoddod


12/15

12

Imported Products Transportation

The Imported goods reach the Mumbai port by ship from various locations that Home breads

orders from. Usually shipments arrive from USA and Singapore (Doritos). Mr. Tibrewal explains

that the products imported from USA are more highly priced as they are better in quality and have

high standards of food safety regulation.

The container that reaches Mumbai port is then transported through trucks to the warehouse of

Home Breads located at Bhatar from where the products hit the store shelves.

The Products sourced from the agents in India are directly received at the warehouse of Home

Breads at Bhatar.

Manufacturing Mumbai PortSurat

WarehouseStores


13/15

13

SCM Integration

Home Breads management does not use any ERP software in order for supply chain management.

Mr. Tibrewal explains that it is not needed by them as they do all the stock management manually

i.e. using excel. Daily sales are recorded in books and stock is reduced in the excel sheet.

Outsourcing

Home Breads completely owns all the aspects required to run the supply chain. The company only

outsources the requirement of transportation of goods only when there is a catering demand byrestaurants or event management companies on various occasions.


14/15

14

Recommendations

1.

Use ERP Software: - In the era of IT industry, Home Bread is still stuck with the

traditional methods of stock calculation and supply chain management. The results if the

company opts for an ERP software will be tremendous and will also decrease the load on

Mr. Tibrewal and his son of entering daily data on the excel sheets. Though they do use a

billing software but an ERP system will directly relate the billing to the stock ensuring

better accuracy and less workload for the management for stock and supply Management.

2. Use of Inventory Control Techniques: - Home Breads should use Inventory control

techniques such as ABC Classification or FSN Classification in order for better

understanding of the demand and supply. Both of these methods will provide them with

the products which they can segment in the priority area. The sales data provided by the

ERP Software and then the analysis using any of these 2 Techniques will also help them to

decide the percentage of import of particular products which are imported as it takes a long

45-150 days of time for the products to reach the stores.

3. Look for Manufacturing Unit: - Although Mr. Tibrewal does not see the potential

requirement for a unit now but in future if they intend to expand to get a big share of the

market which is possible as demand is high for premium quality bread and imported

chocolates due to rising disposable income with the Surat population, it will be essential to

have a manufacturing unit to cater to more number of stores. Manufacturing in Shifts might

create a mismatch in the demand timings as most of the bread is sold in the morning. Thus

an expansion plan will require a complete supply chain restructuring for the organization.


15/15

15

Harvard Referencing

Welcome to Home Breads : Cakes, Breads, Cafe, Gourmet :. 2016. Welcome to Home Breads: Cakes, Breads, Cafe, Gourmet :. [ONLINE] Available at: http://homebreads.com/index.html.

[Accessed 01 April 2016].

Seasonality Definition | Investopedia. 2016. Seasonality Definition | Investopedia. [ONLINE]

Available at: http://www.investopedia.com/terms/s/seasonality.asp. [Accessed 03 April 2016].
http://homebreads.com/index.htmlhttp://homebreads.com/index.htmlhttp://homebreads.com/index.htmlhttp://www.investopedia.com/terms/s/seasonality.asphttp://www.investopedia.com/terms/s/seasonality.asphttp://www.investopedia.com/terms/s/seasonality.asphttp://www.investopedia.com/terms/s/seasonality.asphttp://homebreads.com/index.html

home breads

Documents