Escolar Documentos
Profissional Documentos
Cultura Documentos
CASE OVERVIEW
Procurement
Pushing for more bottled milk Forecasting issues Seasonal variations
Production
Resource Allocation problem in cases of excess supply Milk has a low shelf life and butter needs refrigeration
Milk transport
Brought over by individual farmers on a daily basis
Distribution
Increasing cost per delivery due to fall in demand No synergy with marketing department as forecast in not accurate
Demand side
Supply side
Milk Production
Variations in daily procurement as quantity is not fixed in the pre-decided contract
Retail
Inventory pile up due to excess production demand Changing customer purchasing trends
Consumer
Inclination towards convenience stores for lower prices and on-demand consumption
CORE ISSUES
Lower efficiency of manufacturing lines Cheaper alternatives in the market Piling up of perishable inventory Decreasing number of milkmen and residential customers Declining revenues and profits Unlikely to meet profit guidance for the current year
High logistics costs esp. in delivery a cost which cant be passed on to the consumer
Generational shift in consumer buying behavior Unplanned allocation of excess milk supply Inefficient forecasting Inability to plan marketing activities Excess production without planning Lack of synergy between functions
100
1 9 5
3 8 3 86
4 6
6 4
95
90 85 80 75
1
90
85
89
1995
2000
2005
2010
Outcome KPIs: lagging indicators measure the output of past activity. Eg revenues, margins, customer satisfaction Driver KPIs: leading indicators measure activitiy in its current state or a future state eg number of sales meetings today, tomorrow Strategic KPIs designed to enable senior executives execute strategy, manage performance Tactical KPIs designed to help mid-level managers optimize the performance of people & processes under supervision Operational KPIs enable front-line managers to monitor and control core processes on an intraday basis
KPI Benchmarking
Consistent achievement of targets by product groups, periods and territories Achievement of market shares Achievement of profitability Zero complaints from the customers No stock returns Ability to handle emergencies and sudden spurts in demand Balanced sales achievements rather than period/month-end sales skews
Area - 1
Area - 2
GROWTH AVENUES
Bottled milk requirement & profits going down in residential areas Consumers - not a sustainable TG for business in long term
Strategy
IT IMPLEMENTATION
Cloud Based ERP
Online store
Selling through web
Enterprise Customers
Module dedicated to industrial customer managed by Customer management software. Keeps track of individual client demand and order patterns
1995
2000
2005
2010
Forecasting
Efficient forecasting XYZ corporation to provide training to our personnel to properly use the forecasting tools Providing PDAs to farmer interface employees to ensure input of exact supplies and help analyse demand trends Helps increase efficiency thereby enabling marketing department to Adapt to supply and plan promotions Collaborate with XYZ corporation to develop the forecasting tool to take seasonal demand and smoothening into consideration
150
145 140 135
THANK YOU!