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Supply Chain Management
April 2024 Examination
1. “SV Foods” is a snack supply start-up, who set up business post covid. They make varieties of sweets and snack items which are delicacies from different Indian cuisine. Over last 2 years they have expanded operations to Mumbai, Pune, Bangalore, Chennai, Kolkata. They have also started getting international orders from snack dealers, event organizers etc. Locally within India, party organizers, wedding organizers, caterers have tied up with them for bulk orders and customized orders. In addition, they have recently started online portal for retail orders as well which is picking volumes. Describe any 3 types of distribution network design they can look at to cater to this their business growth. (10 Marks)
Ans 1.
Introduction
The evolution of “SV Foods” from a post-COVID startup to a multifaceted snack supplier highlights the dynamic nature of modern supply chain management (SCM). Specializing in Indian cuisine delicacies, SV Foods has rapidly expanded, serving diverse markets in Mumbai, Pune, Bangalore, Chennai, Kolkata, and now internationally. Their growth trajectory includes bulk orders from local event organizers and caterers, alongside a burgeoning online retail segment. This expansion necessitates a robust and flexible distribution network to effectively manage the complexity and scale of their operations. A well-designed
2. “On Call” is a super market chain that operates 6 locations within the city. They do good volume of consumer-packaged goods business especially food, beverage, toiletries etc., Business growth has lead to issues like non-availability of items meet customer demand. Other times, high stocks of items which are disposed due to shelf- life. Overall, the main challenge of availability on time. Their thought is to have centralized and safety stock and some items with comparatively high shelf-life in stock. Issue with this approach would be seasonal and sudden demand changes. Recommend how you would remedy this situation through safety stock maintenance (10 Marks)
Ans 2.
Introduction
Supply Chain Management (SCM) is pivotal in retail operations, especially for supermarket chains like “On Call,” which grapples with the dynamic demands of consumer-packaged goods, including food, beverage, and toiletries. The primary challenge they face is maintaining an equilibrium between supply and demand to prevent stockouts and overstocking, which can lead to disposal of products due to shelf-life expiration. This challenge is further compounded by seasonal variations and sudden shifts in consumer demand. The consideration of a centralized inventory with safety stock for items with longer shelf-lives is a strategic move. However, it presents its own set of challenges, notably in
3.“Grow More” is a gardening items store. They have gardening pots, tools, manure, seeds etc. They have higher sales during monsoon and some stable sales for certain items across other seasons as well. They also have 5 people who do consultancy and provide garden maintenance tips for customers by visiting their home garden. Being a growing organization, they have difficulties related to database maintenance, lack of support system and organization structure, no formal customer service measurement and improvement which affects customer satisfaction. Some customer complaint took very long time to resolve and it lead to bad reviews in their FB/X (Twitter) handle.
a. Apply any 3 supply chain enablers they can address to remedy this situation? (5 Marks)
Ans 3a.
Introduction
“Grow More,” a burgeoning gardening store, finds itself at a crucial juncture where its operational challenges are starting to impact customer satisfaction. The issues stemming from inadequate database maintenance, lack of a structured support system, and the absence of a formal customer service evaluation mechanism are not just internal inefficiencies but are also tarnishing their public image. In the competitive retail sector, especially in specialized areas like gardening, addressing these issues through effective supply chain enablers is vital.
b. Their long-term view is to operate at a Lean and Agile Value Chain, specifically apply any 3 improvement points which will logically enable them to evolve to that level? (5 Marks)
Ans 3b.
Introduction
“Grow More” is poised to transition towards a Lean and Agile Value Chain, a strategic move that can significantly enhance their operational efficiency and customer responsiveness. This approach focuses on streamlining processes, eliminating waste, and being adaptable to changing customer needs. In the context of a gardening items store, this transition is not just about internal efficiency; it’s about creating a value chain that is responsive to seasonal
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