Joycies

1. Marketing:
- strong brand image in 3 of 4 product ranges
- no shops survive as a specialty bakery outlet
2. Sales:
- products are primarily sold to large retailer organisation and franchized
bakery shop
- strong sales organization
- distribution J is working with specialist logistics services (Food logistics
Speacialist)
- account manager: deal with large customers: discuss advertising
campaigns, promotional actions (tailored per retail chain), sales premiums,
and promotional support. Tailored actions were required in order to maintain
or even expand shelf space.
- new information systems were adopted by retail chains, enabling retail
chains to trace and track products from suppliers and manufacturers, through
the warehouse/distribution centers to the retail stores. Through these
detailed systems, retail buyers were able to compare their suppliers on on
Direct Product Cost (DPC) and Direct Product Profit (DPP) per product per
square meter. Buyers shifted their focus on total cost and revenue. Detail
records are kept of supplier performance: some retailers sent their records on
a monthly basis to their manufacturers , indicating transport, delivery,
quality, packaging, administrative efficiency.
- BFS (KA) requirements
3. Production and Logistics
- replace artificial color by natural colors/
- batch size increase so more time was spent on cleaning machines and
setting them up for the next batch
- In the past, "BFS required J to link into its logistics planning systems, J would
be responsible for the material planning, scheduling and distribution. Based
on min-max inventories J would check inventories everyday and replenish
each warehouse 2-3 times a week, based on actual volume needed."
- BSF now wants to reduce inventories considerably, suppliers are required to
deliver in 8 hours throughout the country. If storage was needed, BFS will
provide space, but would charge this back to the manufacturer (BFS was
studying the possibilities for direct supply by its suppliers.)
- logistics planning department:
+ monitor volume usage at the DC's of Key Accounts (through EDI computer
linkages),
+ check incoming orders from small accounts,
+ translate product volume into a detailed production planning,
+ plan for production capacity, gross material requirements and match these
with the current inventories of raw materials and packaging,
+ send out materials requisitions to the purchasing department.

- Then the purchasing department would place the orders to their

suppliers (bulk amount of most materials and components, orders were
placed once/ twice a month, however, products were delivered daily/ several
times a week by most suppliers. For storage, J had large tanks and silo's
available which serve as a buffer stock.
- Orders from different customers were grouped until an economic lotsize was
reached for production. Then a production order and corresponding
production planning were made. the company now work with two major
product lines (cookies and choco/ diet pro and low fat snacks).
*Difficulties:
- The rapid growing product -> line planning and materials planning a difficult
issues.
- old system doed not work
- changing equipment and setting them up for another new batch happened
daily.
- Normally 3 shifts of production; 4 shift system being considered to meet
customer demands.
- After production, products be packed and transported to warehouse FLS.
Planning dept provide info where and when to ship.
Difficulty:
cant meet the min max arrangement made for KA
cant meet orders for SA within a promised lead times
changes in mix and volumes -> in time but partial delivery (half full trucks
sentout)
: lead time: 3days to 12 hours,
4. Purchasing and supply relationships
- production manager is responsible for supplier selection, negotiate on
annual agreements and contracts, place and order and trouble shoot.
- 400 suppliers (raw materials, components, premixes, packaging,), some are
big (J just a average customer), premixes and flavor supplier (top5)
-most products are bought in a traditional way from known suppliers.
- detailed specification of ingredients
- materials on purchase orders: big (voluminous items were called off on a
daily basis in line with the production schedule).
- purchasing dept had to change materials delivery schedules constantly
because production schedule change at daily rate,
- had built extra storage capacity for buffer stock
- find new suppliers for natural ingredients.
++ biggest problem:
- BFS requirements
+ logistics
+ production (quality guarantee)
- other customers