SUPPLY CHAIN MANAGEMENT

Presented By:Sefali Mishra Sneha Gupta

Agenda
Introduction Purpose of the Study SCM of Ice-cream Industry Celesty Frostee Comparison Conclusion

Agenda
Introduction Purpose of the Study SCM of Ice-cream Industry Celesty Frostee Comparison Conclusion

Introduction
 The Ice cream market in India can be divided into: the branded market and the grey market. Grey market consists of small local players and cottage industry players. The total market is Rs. 2000 Cr.  Moreover looking at the world Ice cream market, it is one of the biggest food categories and is growing at +3.5% per annum.  With the changing trends Ice cream is becoming an all season product rather than a summer treat only so the Ice cream consumption is increasing.  Logistics are constantly improving their delivery systems, there exists less wastage in supplying the stocks and retailers are gaining on that.

Agenda
Introduction Purpose of the Study SCM of Ice-cream Industry Celesty Frostee Comparison Conclusion

Purpose of the Study

 Food & Health Industry belong to the defensive category i.e. independent of the growth of economy so the demand for it is continuous. Food industry is growing because of the following acceleratorsGrowing Urbanization Improved disposable income Increasing deep freezer penetration Growth of modern format/convenience store

Supply Chain Management

Benefits of Supply Chain

MANUFACTURERS
Reduced inventory Increased revenue Lower order management costs Higher Gross Margin Better forecast accuracy Better allocation of promotional budgets

MATERIAL SUPPLIERS
Reduced inventory Lower warehousing costs Lower material acquisition costs Fewer stockout conditions

SERVICE SUPPLIERS
Lower freight costs Faster and more reliable delivery Lower capital costs Reduced depreciation Lower fixed costs

Improved customer service More efficient use of human resources

Agenda
Introduction Purpose of the Study SCM of Ice-cream Industry Celesty Frostee Comparison Conclusion

SCM of Ice-cream Industry

The peak period of Ice Cream sales is from March to June. More than 60% of the annual sales and the new product launches are planned during this part of the year. The supply chain has to be very active and well equipped with the delivery system. There is need for exclusive planning team for managing demand based upon sales trend, seasonality etc. In order to meet the demand in time, it is the retailers and logistic team who are in constant touch to avoid any kind of late deliveries. The logistic team chooses the area wise delivery by gathering the orders from the retailers. Due to intact supply chain and cold storage facilities, there is also almost no wastage during transporting the whole stock.

Plan

Buy

Make

Move

Store

Sell

Return

Standard
Legally, ice cream must conform to the following standards;
Have at least 10% milk fat Have at least 20% milk solids Have at most 0.5% stabilizers Have at most 0.2% emulsifiers Adding air can only double the volume of the ice cream A gallon of ice cream must weigh at least 4.5 lbs

The amount of fat and air in the ice cream determines its quality.
Super premium ice creams: 16% fat Average ice creams: 12% fat Cheap ice creams: 50% air

General rule: The heavier the ice cream the better it will be - because it has less air added.

Competitors
Kwality Wall's Mother Dairy Vadilal Amul Narulas

Market Share

Agenda
Introduction Purpose of the Study SCM of Ice-cream Industry Celesty Frostee Comparison Conclusion

Celesty
The brand Celesty was introduced in the year 1999 by the Saralia Group. Celesty is distributed through over 500 outlets in the state of Orissa, Chhattisgarh, Jharkhand and Andhra Pradesh. Their valued partnership is with Big Bazaar, Caf Coffee Day, May Fair Resorts and many other hotels and public establishments. Celesty is manufactured at Bhubaneswar and Raipur. It is manufactured using world class production techniques and the machineries used has been imported to further strengthen the quality of the products.

Quality Policy
We are committed to provide our customers with a high quality Ice Cream product meeting legal and statutory requirements, codes of practices including ISO 9001:2000 standards. It has also got NQAQSR certification. We seek to continually improve the effectiveness of the QM system, wherever our systems may benefit by doing so involving all through teamwork. After the procurement of raw materials, they pass through laboratory where sample testing(chemical and micro biological) is done and then it goes for processing.

Products
Double Trouble

 Nut in Love

Mad about Love

Products
Categories Ice cream Exotic Sundaes Thick Shakes American Soda pop Floaters List Of Products Novelties like Oddissi Matka, Nutty Roll, Supereme Casatta, Celesty Kulfi, Sundaes Exclusive premium varieties like Traffic Jam, Dry Fruit Masti, Belgium Dark Chocolate, American Dry Fruit, Very Berry Strawberry, Choco Almond Fudge,  Fresh Fruit Natural ice cream like Litchi, Guava, Sithaphal, Mango, Pineapple, Strawberry, and our exclusive Pan Masala Frozen ice cream.

Agenda
Introduction Purpose of the Study SCM of Ice-cream Industry Celesty Frostee Comparison Conclusion

Frostee
 Frostee is the largest Ice-cream manufacturer in Orissa and the first Ice-cream company to be certified with ISO 9001:2008 and HACCP certified in Orissa. This certificate itself speaks volumes about the company and the product.  It is the largest dealer and distributor network in Orissa.

Company Profile
 The company Health Food Product (P) Ltd. (HFPPL), was established in the year 1997 and started its commercial production on 1st January 1998 under the aegis of Mr. Hasan Akbar Ali and his younger brother Mr. Karim Kabiruddin.  HFPPL nurtured and built a brand name, FROSTEE Ice-cream from scratch in a market which was previously monopolized by a MultiNational brand. Initially intended to carter to a local market. HFPPL grew its distribution market to all over Orissa (i.e. covering all the districts) as well as the neighboring northern Andhra Pradesh. The company at present has more than 3500 retail outlets.

Achievement
FROSTEE ice-cream broke the myth of ice-cream being a seasonal product by producing a wide variety of ice-cream to cater to different seasons.

Vision & Quality Policy

 We at Frostee are committed to deliver hygienically produced Ice-Cream and Frozen Desserts at affordable price and attain customer delight.  We shall be always in compliance with statutory and regulatory requirements of customers through continual improvement of our quality management system, said objectives and team work.

Quality Management
 Delight our customer by analyzing and reviewing customer feedback and provide new varieties and flavours.  Monitor and measure all process parameter and reduce the in process rejection level.  Increase market share and customers base.  Meet delivery schedule as committed.  Train employees continually and improve upon retention period.  Reduce down time of plant and production equipment and improve productivity.  Be always in compliance with ISO 9001-2008 and HACCP management system

Products

Agenda
Introduction Purpose of the Study SCM of Ice-cream Industry Celesty Frostee Comparison Conclusion

Supply Chain Management

Inbound Logistics
Raw materials Milk, butter, sugar, skimmed milk powder. Skimmed Milk Powder, Water, Sugar, Milkmaid, Butter Stabilizer, Pasteurizing Vat, Homogenizer, Plate Heat Exchanger, Flavoured Tank, Continuous Freezer, Automatic Cup & Cone machine, Ammonia Compressors, Cold Room Freezer on Wheel.

Plant & Machinery

Stabilizer , mobilizer, plate heat exchanger, continuous freezing machine, hot water generator, sensor, conveyor belt, fruit feeder, calcium water tank, air pumps, blast freezer.

Inbound Logistics
Types of Raw Mix High Fat Medium Fat Low Fat Catering Mix (Gallons) Plane Mix (Cups,etc) Parlour Mix (Kings, Special, etc) The major suppliers of Frosty in India are from places like Gujarat, Kolkata, Punjab, Delhi, Bangalore, Baroda(Premium Products), Mumbai(Essence), China & Brazil(Plant & Machinery).

Suppliers

The major suppliers of Celesty in India are from places like Delhi, Mumbai, Hyderabad, Bangalore, Chennai, Kolkata and Ahmadabad. Outside the country, suppliers are from Denmark(Raisins), Italy(Belgium Dark Chocolate), Malaysia(Cocoa Powder), China, Dubai, Thailand.

Processing

Inspected Stored in godown

Raw mix
Boiled to 80.C Chemical and Microbiological test

From 80 to 10. C Continuous freezing

Raw Materials

Heat Exchange

Processing
Add ins
Dry fruits Accessories

Addition of flavour and essence Continuous Freezing

Respective Machinery Packing & Storing

Flavour

Allocation

Outbound Logistics
Channel Design Distributor Retailer Customer Distributor Retailer Customer

Distribution Channel

Retailers, Parlours, Hotels, Institutes, Push Carts, Malls, Retail Chain

Retailers, Parlours Hotels, Restaurants, Caterers of Orissa, Orissa Tourism Development Corporation, Panthanivas, Push Carts, Malls 48 over Odisha & Andhra Pradesh.

Number of Distributors

5 in Bhubaneswar and 2 in Cuttack.

Transportation

Lease Vehicles with freezers

Lease vehicles with insurance and put freezers on them

Dissimilarities
CRITERIA

PREMIUIM BRAND

Flavours

Kings 5

PRODUCT PRODUCED PER DAY REVIEW PERIOD FOR ISO CERTIFICATE

Checking once in 6 months. Checking once in a year and then renewal done. ISO 9001:2000 ISO 9001:2008

EXTRA RECOGNITIONS

NQAQSR(Automotive Supplier Quality Requirements Task Force)

HACCP(Hazard analysis and critical control points), BIS

Managerial Practices
 Quality is maintained at each level of production.  Projected demand for next year is current years demand plus 15% approximately  The 15% includes general, special and competitors approach.  Two backup suppliers are kept who are advised to keep 15% extra inventory to meet the contingencies.

Agenda
Introduction Purpose of the Study SCM of Ice-cream Industry Celesty Frostee Comparison Conclusion

Conclusion
The growth in Ice cream industry has been primarily due to strengthening of distribution network and cold chain infrastructure. Channels have been expanding year on year to reach out to a larger set of consumers. Besides, consumers also have the choice of trying out varied product offerings from different brands to keep them excited.

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