This was our submission for Plan-o-chain - Season 5, a Supply chain and Operations case study competition organized by Nestle for selected B-Schools.

1. Team: Vision Quest
Rohit Kumar
Sumeet Kumar Seth
Raushan Kumar Parthsarthy
Shailesh J. Mehta School of Management, IIT Bombay
Plan-O-Chain (Season 5)

2. Executive Summary
Case
Analysis
• Divided the health card into four broad parameters
• Identified Sub-factors were classified under
corresponding parameters
• Performance Weighted method was used to grade
companies on each parameters
• Broad Supply Chain Recommendation proposal
• Influence of Supply Chain nodes on selected
parameters was examined
• Relative Weighted method has been used
• Future proofing index; Identified Parameters
• Relative performance method has been used
• Result from above three analysis were assessed
• Individual Recommendation were given based on
different parameters
Approach
Bharti
• Associated with
ABC company
• High projected
volume growth
• With current speed,
looks achievable
Akshay
• FMCG expert
• Called on 3
consultants from 3
companies
• Find company with
the best ‘Health
Quotient
Chandrasekhar
• Associated with XYZ
• Customer Centric
• Priority on Working
capital, so, volume
growth rate high
Dhananjay
• Associated with
MNO company
• Market leader
• High acceptance
among the masses

3. Parameter Identification
Parameter
Health
Quotient
Supply
Chain
Future
Proofing
Volume Growth (%)
Market Share (%)
Organic Growth (%)
GT/MT Ratio
Distribution Cost (% of Sales)
Capacity Utilization (%)
Local Production/ Import Ratio
ST DPA(3 Month)@ Pan India
DPA (next Month)@ DC Level
LT DPA (18 Month)@ Pan India
Parameter
Health
Quotient
Supply
Chain
Future
Proofing
Case Fill rate
RSL When on Shelf (Days)
TSL of Product (days)
RSL % When Sold to Customer
Bad Goods (% of Sales)
Vendor Performance/Reliability
Number of Raw Material
Working Capital (% of Sales)
Finished Goods Inventory Days

4. Perspectives
• Volume Growth &
RSL %: High Value is
good
• Capacity Utilization
• Local Production/
Import
• Vendor performance
& reliability,
• No. of raw material
• ST DPA(3 Month) @
Pan India
• Case Fill rate:
Industry Avg. 97%
• Bad Goods(% of
Sales): Lower Value
will be better
Health Quotient
• GT/MT Ratio:
Industry is shifting
towards modern
trade. Hence, lower
value is good.
• Market Share:
Defines our Position
in Market
• Distribution Cost &
Working Capital:
Defines efficiency of
supply chain
ABC XYZ MNO
Health
Percentage (%) 89.8% 71.2% 84.8%
Strength
Industry,
internal &
Customer
Mediocre
in internal Financial
Weakness Financial industry Industry
Approach
• We defined company
health card into 4
perspectives viz;
finance, customer,
internal, & Industry
perspective
• We clubbed various
perspectives to find
diff. combination
(4C2) & prioritized
each perspective by
assigning 0 or 1.
Factor Weightage
Finance 0.25
Customer 0.25
Internal 0.375
Industry 0.125
Assigning weightage

5. End to End Supply Chain Strategies
Methodology
Relative
ranking of
nodes based
on
parameter
values
Identifying
strength and
weakness
areas for
companies
Identify nodes
impacted by
Supply Chain
Parameters
Sum together
all scores
corresponding
to a node
Assign scores
to each node
based on
parameter
performance
Company
specific
suggestion
wrt. Supply
chain nodes
Supplier Manufacturer Warehousing CFA Wholesaler Retailers Total Score
ABC 7 14 9 3 1 6 40
XYZ 8 14 7 6 3 8 46
MNO 9 15 8 3 2 4 41
Relative Ranking Supply chain nodes in terms for companies
 Overall total score indicates, XYZ has the best
supply chain strategy
 Colors transitioning from deep red to deep
green are indicative of best and worst position
respectively

6. End to End Supply Chain
Strength Areas Weakness Areas Average Performing Areas
ABC Warehousing Wholesalers, Suppliers, distributors Retailer, Manufacturer
XYZ Retailing, Distribution Warehousing, Wholesalers Supplier, Manufacturer
MNO Supplier, Manufacturer Retailer, Distributor Wholesaler, Warehousing
ABC
 Create model to
onboard optimum no.
of suppliers
 Credit facilities to
distributors
 Wholesaler incentives &
marketing campaign
 Distributor Linkage
XYZ
 Implement order
management system
 Go for demand pull
strategy
 Wholesaler network
 Improve transportation
network
MNO
 Go for Incentive &
promotional campaigns
 Capture shelf space
 Create DMS
 Credit extension &
distributor linking
Recommendations

7. Future Proofing
VolumeGrowth (%)MarketShare(%) GT/MTRatio LTDPA (18 Month) @ Pan India RSL % When Sold to Customer Vendor Performance/Relaibility
Weightage 19% 24% 5% 24% 14% 14%
WeightageAssesment( Through RelativePerformanceIndex)
ABC XYZ MNO
Volume Growth (%) 0.24 0.16 0.21
Market Share (%) 0.12 0.15 0.24
GT/MT Ratio 0.05 0.04 0.03
LT DPA (18 Month) @ Pan India0.22 0.24 0.21
RSL % When Sold to Customer 0.14 0.14 0.11
Vendor Performance/Relaibility0.13 0.12 0.14
Total 0.91 0.85 0.95
Future Proofing 90.7% 84.7% 94.6%
Future Influencing Factor
Indexing
Methodology: We chose 6 factors (6C2 combinations) for future proofing . Then we assigned 1/0 to each factor based on its
importance. Hence, we found the weightage of each of the factor to calculate future quotient of the companies.
Results: ABC is 91% future risk proof, whereas XYZ & MNO are 85% and 95% future risk proof respectively. So company
MNO is expected to do better in the long term.

8. Results & Recommendations
ABC XYZ MNO
Healthcard
(Index)
89.8% 71.2% 84.8%
Future
Proofing
Element
91% 85% 95%
Supply
Chain
40 46 41
Table indicates the position of
various companies on all the three
parameters of Health Quotient,
Future Proofing and end to end
Supply chain
ABC
 Moderately fair future
growth but poor supply
chain competency
 Poor capacity utilization
leads to higher per unit
fixed cost
 Go for NPD &marketing
campaigns
 Improve warehousing ,
adopt VMS, distributor
linkage
 Go for pull based demand
system
XYZ
 Poor health quotient,
least future proof & best
supply chain
 Lags on market expansion
 Excellent DPA can be used
for excellent forecast &
better case fill rate
 Use quality tests to
reduce stock outs
 Increase shelf life and
volume growth
MNO
 Average SCM with decent
health index and good
future proofing
 Should move to newer
market channels
 Build multi echelon
inventory or increase
capacity
 Increase inventory
turnover ratio
 Introduce VMS &
distributor linages
RecommendationsResults

9. Suggested Flow Diagram

10. Thank you !!

11. Appendix