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maximum output of each plant is 4000 Truckloads in a year without any additional investment. To your
second question- we did consider evaluating the Intermodal option a few years back, but the trial runs were
not really successful then. But, there is no harm in re-evaluating!
The next area of concern for us is vehicle scheduling at our manufacturing plants at Atlanta and Lufkin. Our
inland freight providers complain of high waiting time for their trucks especially in the mornings. This is
because most of our vehicle schedules, both inbound and outbound, are skewed towards mornings. Is there
some way we could work towards better scheduling of trucks at these plants?
Kim (GEP Project Lead): We could consider implementation of a Yard Management Tool and a Slot Booking
Tool for these locations. We can conduct supply market research and recommend you the top 3 players in
this category including some insights into the benefits from these tools and key parameters to further
evaluate the suppliers.
Jerry: That would be great. Thanks! Olivier and Rita, could we now discuss areas where you envisage you
would need GEPs support to optimize costs in the European market?
Olivier (French Warehouse Manager): France is one of our major markets in terms of net sales in Europe.
We currently promise our customers delivery within 3 days. We are proud to be hitting this target
consistently, resulting in high levels of customer satisfaction. This is a phenomenal achievement from our
supply chain team considering that our competitors in this market have a 5-day delivery commitment. We
have achieved this target primarily by ensuring that we dispatch shipments from our warehouse on the
same day that we receive the order. However, of late, the freight costs we incur have been on a rising trend.
I have shared the shipment report for the month of July-16 with you. Can GEP analyze the data to help
identify areas we need to work on? Also, lately we have seen an increase in product returns-which include
ambient and refrigerated products. Based on your past experience, can GEP come up with a list of root
causes for this issue and suggested actions to mitigate this?
Scott (GEP SME Lead): We have strong data analytics capabilities and logistics experience. Im sure Kim can
help address both your concerns. Also, considering that ABC is primarily into the Snacks segment which has
a longer shelf life compared to other perishable food products, I believe modifying the current service level
commitment of 3 days would not significantly affect sales. Do you concur?
Olivier (French Warehouse Manager): Well, that is a difficult one to answer. We take pride in our 3-day
delivery commitment and our customers greatly appreciate this. But having said that, I would like to see
the potential cost savings opportunity.
Rita (German Plant Manager): Another area of concern is the rising cost of ocean freight for outbound
shipments from our Berlin plant. We have pulled together the data for May-16, and seek your expertise in
identifying areas of improvement and building potential cost mitigation strategies.
Kim (GEP Project lead): Wed be happy to help!
Jerry: I believe the discussion weve had today will serve as a good starting point for this project. We look
forward to recommendations from GEP in a couple of weeks time on the areas discussed today. Thanks
everyone for your time!
Post the meeting, Kim quickly got onto a call with Scott to understand his recommendations on the way
forward.
Kim (GEP Project Lead): The warehouse positioning for the US market is an interesting challenge. We can
perform a detailed scenario analysis to evaluate whether ABC Inc. would need to shift to other warehouses.
Scott (GEP SME Lead): Yes, but you might not readily know the costs of transportation to/from the new
warehouse locations. We can assume a freight rate of $10 per mile for shipments travelling 0-100 Miles, $
7 per mile for 100-300 Miles, $4 per mile for 300-750 Miles, $3 for 750-1500 Miles and $2.4 for >1500 Miles
to calculate the freight cost. We would also need to consider the additional costs of shifting to new
warehouses based on the information Jerry has provided, so that we can compare the ongoing annual costs
across various scenarios. Also, on the Intermodal transport model I proposed, could you provide a list of
pros and cons of moving to an intermodal model and if it would be a good option for ABC Inc. based on the
existing outbound shipments data only on the current scenario? Just make sure that the intermodal
proposal is kept separate from warehouse positioning problem.
Kim (GEP Project Lead): Sure Scott. Also, on the issues faced in the European market
Scott (GEP SME): Sorry Kim, I need to get onto another call. Apologies for not being able to discuss this
further. I leave it to your best judgement to provide recommendations based on the data shared and what
we discussed before. Just remember, the devil is always in the details, so well need to slice and dice the
data in multiple ways to come up with insights!
Could you help Kim review the concerns shared by ABC Inc., and provide recommendations based on the
conversations above and the additional data provided?
Final Round:
Based on Round 1 responses, one team per campus will be selected as the Campus Winner. The winning
teams from all campuses will have a final presentation at the GEP office in Mumbai, wherein they would be
required to present their recommendations to the evaluation committee and the senior leadership at GEP.
Further instructions for final round will be shared with selected teams.
The winning team will receive a cash prize worth INR 1,00,000 and all the Campus Winners shall receive
PPIs*
*Internship interview for first year students, Pre-Placement Interviews for final year students as per institute placement
committees approval