MARICO OVER THE WALL

OPERATIONS CASE STUDY, Aug

2016.

by
Bala Aditya Kummari (pgpb05.18@misbbocconi.com)
Deepthi Bathula (pgpb05.18@misbbocconi.com)
Sneha Singh (pgpb05.18@misbbocconi.com)

MISB Bocconi
9th floor, Hiranandani Knowledge Park
Powai, Mumbai- 400076 India
Tel. +91 (022) 4086 7016
www.misbbocconi.com

Improving Category Savings:

Set up a Market Intelligence Team internal to organization to study the
present market price fluctuations
Set-up the specific packaging requirements for the organization according
to category
Compare the suppliers against one another to find which meet our
requirements
Co-ordinate with the Market Intelligence Team to finalize the prices to
quote for all the categories
Determine run-sizes according to the production plan
Determine proper re-order time-lines for the run-sizes
Consolidating packaging suppliers as the suppliers are not ready to shift to
transparent cost model
Determining optimal run sizes for packaging production
Establishing proper reorder points understanding correct amount of
inventory to be maintained
Make a very broad classification instead of narrow/closer categorization.
Currently making classification according to Size makes a better option,
since all types come under all sizes
This provides the transparency among the costs, and also makes the
supplies align to the concept of categorizing of the organization
Improving Long Term Supply Assurance:
Demand for end product is growing much, necessity to increase the
procurement is absolutely important. But the present procurement plan
may not be efficient t need future forecasts
So, separate agendas for both traders and farmers are to be proposed and
implemented for better assurance of the supplies without any glitch
Maintain a 3/1 way inbound/outbound type of inventory in the plant to
speed up the unloading process and reduce the detention costs
Agenda for Traders:
Increase the Security Deposit
Maintain constant buying price and nominally high than market
Agenda for Farmers:
Assure farmers a buyer-guarantee from the firm
Provide the hinterland farmers with better quality seeds
Provide field checks and advices from agriculture experts
AOP should include the task of planning-into-the-future for the end
collector instead of performing the task on current basis
In case of the Packaging Materials, include new suppliers with strong
contracts and best business processes for quality of materials and
communication protocols
Implement 30-60-90 Forecast Plan to increase flexibility and efficiently
coping up with the minor changes that has potential to affect long-term
operations
Improving Service Delivery:

 Proper Service Delivery comes when all the business operations are
interlinked
So, proper internal communication channels depicting the flow of goods
and decisions of organization should be implemented
Improving Supplier Relationship Management:
Annual Relations Meeting with Suppliers before quoting and inviting
tenders
To present the increased costs Y-o-Y by Market Intelligence Team
To discuss the advantages of categorization and ask for
suggestions/concerns
Reward the Best Suppliers, and provide points for others to improve
their supplier efficiency
Inviting Suppliers to become a partner and get involved into the
business processes of the organization
Explain the Order-Shipment-Acknowledge protocols (and software) to all
the Suppliers
Conduct a session for mutual suggestions, scopes for improvements and
expectations
Share the Forecast metrics with all Suppliers to get an idea of the further
years demand
Improving Delivery on Innovation:
Implement an ERP in the organisation to makes everything interconnected
and enable proper communication protocols
Leverage onto latest communication technologies to track the delivery and
Supplier-Plant Communications through the Procurement Officer
This may provide a better view about proceedings of the organization in
accordance to the supplies
Using Analytics tools to analyse the trends of the market, forecast the
future demand, proceed with procuring materials, and take better
decisions
Same forecasts should be distributed to all the key stakeholders in the
organization
Research and develop innovative techniques to find variability that exists
within the species to increase the productivity or to increase the yield
Improving Transaction Productivity:
Proper Management and Employees to implement the Supplier
Relationship and achieving Service Delivery can increase Transaction
Productivity
Setting up a separate kiosk at the collection center for efficient collection
operations
Schemes to partner with farmers which involving communicating-channels
can grow the network and gain loyalty at the same time