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Case Study3 Food Savories

The company manufactures fast food items and faces issues with unreliable transporters resulting in 20% goods losses, erratic supply schedules causing lost customers, and inadequate coordination between distribution centers preventing business expansion. As a logistics consultant, you are tasked with providing suggestions to set up an effective logistics information system and forecasting system, establish purchasing and distribution, improve storage and packaging, consider alternative transport, and address competitive strategies.

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saheram goud
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43 views2 pages

Case Study3 Food Savories

The company manufactures fast food items and faces issues with unreliable transporters resulting in 20% goods losses, erratic supply schedules causing lost customers, and inadequate coordination between distribution centers preventing business expansion. As a logistics consultant, you are tasked with providing suggestions to set up an effective logistics information system and forecasting system, establish purchasing and distribution, improve storage and packaging, consider alternative transport, and address competitive strategies.

Uploaded by

saheram goud
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case Study No.

3
Food Savories Limited is engaged in the manufacturing of various
types of fast food items that are ready-to-eat variety. It has been
in the business for the past 12 years. It has its factory as well as
the processing unit in Navi Mumbai. The raw materials required
are mainly vegetables, chicken which the company procures from
either the local vendors, or from various suppliers situated at
Nasik, Pune and other districts. The required materials are
procured with the help of hired transporters. However, the hired
transporters do not care much about the preservation of the
goods. Hence, about 20% of the goods are lost due to damage,
deterioration, pilferage, etc. Again, the hired transporters are
unreliable with regard to their availability as well as prompt
delivery schedules.
The company•s products are quite popular with the customers
who are situated in Mumbai, Navi Mumbai, Pune, etc. However,
the company stands to lose the market due to erratic supply
schedules which do not cater promptly to the customers. The
packaging of the products is attractive, but it does not preserve
the product for a long time. The shelf-life is only about 5 hours, if
the goods are not properly refrigerated. Loss on this account is
about 10%.
The company has about 10 distribution centres. But there does
not seem to be the much coordination between these centres.
Logistical information system is not adequate. Due to this, the
company is unable to expand its business. In fact, due to
competition, there is fear that the company may stand to lose its
existing clientele. Due to mismanagement, the company is unable
to meet increase in the demands during festival seasons and
holidays.
You are appointed as a logistics consultant. You are required to
put forward your suggestions with regard to:
 1. Setting-up of proper, effective logistical information system to
improve coordination [Note: Discuss about Logistics as an integrated
process, ensuring proper planning]
 2. Effective forecasting system to reduce inventory carrying cost,
wastages, damages, pilferages [ Note: Forecasting can be in terms of
door-to-door surveys, questionnaires, telephonic interviews. For
markets/stores that are close-by, think of JIT strategies]
 3. Setting-up of effective purchasing and distribution system [Note:
Quality control with regard to purchases is required. Prefer those
suppliers who can supply goods in their own transport]
 4. Improved system of storage, handling and packaging [Note: Study
warehousing, material handling system and packaging. Write/discus
relevant points relating to the question.]
 5. Alternative modes of transport to reduce/eliminate wastages [Note:
Study has to be made regarding capital investment in having own fleet
of specialized trucks and related variable costs versus hiring specialized
fleet of trucks. In case of hired trucks, agreement should be made with
regard to compensation to be paid by the transport company in case
goods are damaged/pilfered by them]
 6. Ways and means to tackle and counter competitors• strategies
[ Note: Analysis as to why competitors are having a •cutting edge•.
Improvement in the company•s performance vis-à-vis performance in
inbound logistics, processing, packaging, storage/warehousing,
marketing/sales programmes. Quality and taste of the product may be
altered to suit various sections of customers. Different sizes of packets to
suit customers• budget]

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