mis_ppt- sonic foods case study
TRANSCRIPT
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Processed Food Industry
India is the world's largest producer of milk.
It has the largest number of livestock in the world.
It is the world's second largest producer of fruit and vegetables.
It has the third largest output of fish.
Poor Processing Levels in
India
Poor Infrastru
cture
Poor Supply of raw
materials
Unfriendly Govt Policies
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Processed Food Industry
Current liberalization and Globalization have facilitated the availability of food products from all over the world
The ethnic food processing industry manufacturing products has traditionally comprised small scale companies but sensing a great business opportunity, MNCs have started foraying into the ethnic food business of late
Big Players of the Industry
This has necessitated a change in thinking and approach to the way business is conducted
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Industry Weaknesses and its Impacts
Weaknesses
Poor Infrastructure
Poor supply of raw materials
Unfriendly Govt Policies
No R & D
No Automation & Computerization
Improper Forecasting
Poor inventory management
Crop prices vary from season to season
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Sonic Foods Ltd
• Started Sonic Foods Ltd• Largest manufacturer of branded pickles in India
1987
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Processes Involved
• ORDER PROCESSING
• PROCUREMENT OF MATERIALS
• MANUFACTURING
• SUPPLY CHAIN
• COMMUNICATION AND INFORMATION PROCESSING
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Order Processing
DISTRIBUTOR
( FEEDBACK)
DEPOT MANAGER
HEAD OFFICE
MARKETING
MANAGER
WORK ORDER
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Order Processing Problems
TOS & wrong order processing Cycle Time too long
Dead Inventory
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Order Processing Solutions
Decentralize
Depot Manager must be kept in the loop
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Procurement of materials : Problems
Sourcing of perishablesUncertainty of crop season
Dependence on farmer
Storage of non perishables
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Procurement of materials: Solutions
Import
Short –Term Forecasting
Contract Farmers
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Manufacturing
Problems semi finished to finished products (as per instructions of the H.O but no
inputs from marketing department) Sales return of finished products
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Manufacturing
Solutions Manual or machine check of leaky / damaged bottles.
Packaging in plastic pouches.
More Information on Market Demand (reduce non moving products)
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Supply Chain
Haryana
Raw Materials
Packaging Materials
From AP, TN, Gujarat, MP, UP, Haryana, Punjab, Rajasthan
From Haryana, Mumbai, Chennai, Kerala
Finished Goods
Depots - Kochi, Chennai, Bangalore, Hyderabad, Tirupati, Vijayawada, Visakhapatnam, Panipat, Jaipur, Lucknow, Bhubaneshwar and New Delhi,
C & F agents in Kolkata, Guwahati, Indore
one consignment stock agent.
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Supply Chain Problems
CFB Boxes
Inconsistent in terms of size and requirement
Glass Jars
• Supplier inconsistency
• High rejection rates
Labels
Mismatch between minimum order level and requirement
Transportation
• Unavailability of Truck on time
• Goods lying in transporter's warehouse
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Solutions – CBF Boxes
Gather historic data – Vendor
Sales Projections Report
Set new order levels
• Maximum Level• EOQ• Minimum Level• Danger Level
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Solutions - Glass Jars
Stricter Contract and Alert Systems
Alternate Suppliers
Larger Number of Suppliers
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Solutions - Labels
Printing order based on Sales
Projection
Scrap old labels spoilt due to long storage
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Solutions - Transportation
Zone – wise contractors
Commissions for on-time delivery
Assured minimum revenue
Alternate Transporters
Penalties for late delivery
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Communication and Information Processing
Materials received in
factory
Suppliers invoice
sent to HO
Suppliers follow with
purchase dept.
F&A dept at HO processes
the bills
Problems faced• Delay of payments to suppliers• Inspite of a central server, data was
independently handled and stored• Untrained Depot staff
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Communication and Information Processing
Solutions An accounting information system that
processes bills as per the date An accounting system that allows access
to every piece of information to a relevant user
Training the depot staff for handling the computerised processes
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Competition
Problem faced: Innumerable small players in
almost every town Their flexibility in deciding prices
Solution:• On ground sales promotional activities• Cheaper variant
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Thank You !!
Chaitali ChandeSidharth DhoteRaashi MehraReshma TrivediChandni PanjwaniAditya Nagavekar