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DRY & FLY FOOD A TASTE OF HOME OUTSIDE HOME
Supply Chain Management
Dry & Fly Food!• What is this concept?• Dry refers to dehydrated and Fly refers to
moving across nations, globe. (Travelers, Tourists & Students, Professionals)
• A food packaging and shipping service for a special community of people who desire for home cooked food or special delicacies from their favorite spot.
Dry & Fly Introduction
Contd.
• Food is highly perishable item, which needs to be consumed in a limited period.
• What to eat while travelling abroad has always posed problem for many Indians especially strict vegetarians.
• Idea is to enhance the period of consumption without adding preservatives or any other chemicals, simultaneously maintaining the nutrition value.
• The market is very niche, availed by a small percentage of people, as it is in emerging or initial stage not much popular yet.
Customer Types
& Business
Types
In Dry & Fly Model
• Jain Customer (Pure veg, without garlic & onion)• Students studying abroad & in distant locations• Parents of such students• Professionals travelling across globe • Travelers on vacation in abroad, Mountaineers etc. • Patients with restricted diets
• Kitchen Concept• Dehydrating & Packaging Company• Dehyd. & PCK. With Direct Shipping• Shipping Only Company
Supply Chain
Home Cooked Food (Customer for packaging)
SATVITA food Packaging
Dehydration & Packaging Unit
Kitchen Partner (Specialized Service)
Customer with specified requirement Parents of Students
Only Packaging Customer
Tourist
Direct shipping as per CustomerRestaurant
s
Dry & Fly Food
“INPUT – TRANSFORMATION – OUTPUT” REALTIONSHIPS
SYSTEM PRIMARY INPUTS
RESOURCES TRANSFORMATION
TYPICAL DESIRED OUTPUT
COOKING, DEHYDRATING & FOOD PACKAGING
o Order by following Customers:
• TOURIST • STUDENTS• PARENTS OF
STUDENTS
• HOME COOKED FOOD
• THIRD PARTY KITCHEN CUSTOMISED FOOD
• NUTRITIONAL VALUE REATINED FOOD
• EASY TO CARRY & CONSUME
• HEALTHY PACKAGING
• SATISFIED CUSTOMER WHO ARE TRAVEELING AND WHO ARE SITTING ACROSS GLOBE
Creating Competitive Advantage
Customers
Competitor
Company
Reducing Cost,Offering Unique Value for competitive advantage
Focus on Existing & prospective Customers
3C
MODEL
Sustained
Competitive
Advantage
Possible sources of differentiation in functions such as: purchasing, design, sales and servicing.
Competitive
Advantage
• Food Dehydrators & packaging is the emerging market in India, many individuals are trying their hands in fly and dry food sector.
• So these companies offer a value to customer in the way desired by customer.
• A customer can cook food at home and get it dehydrated and packaged.
• The process which maintains the taste and nutrition which is utmost requirement of customer.
Contd. • Ready to eat food market has fair number of companies offering many products in veg and non-veg categories, big players like ITC is also in this business, others like MTR.
• But the differentiation from those preserved packaged food is offered by:
• Maintain the nutrition value • No addition of preservatives• Affordable costs.
Dehydration is one of the oldest means of preserving food. Indians have used it to preserve fish like Bombay duck, papads and fruits like mango which become chewy aam – papad.
Make to Order
• Creating a unique product, as desired by customer
• Delivery according to customer’s requirement
• 100% customization is available• Production starts when customer orders• Advantage: No finished goods inventory• Disadvantage: irregular production
• Key performance measures:• -Lead time• - Orders completed on time• - Quality measures
MAKE-TO-ORDER &
POSTPONEMENT
Design
Purchase
Fabrication
Assembly
Packaging
Distribution
MTO Purchasing postponement
Manufacturing Postponement
Assembly Postponement
Packaging/Labelling
postponement
Logistics Postponement
Pure Postponement
Pure Speculation
Efficient&
Responsive Supply Chain
• Supply Chain Efficiency & Responsiveness mean –
o Ability to • Respond to wide range of quantities/ type/
customization demanded by customer• Meeting short lead times• Preparing customized food products• Customer’s requirements as priority• Meeting customer’s specifications and needs• Effective Logistics & distribution(Lastly, everything depends on customer’s requirement & delight)
But there is always a cost involved for achieving responsiveness.
RADHESHYAM BHELPURI• Assemble – to – Order• Make – to – Order
• In case of Dry & Fly food, ingredients, machinery, equipment, materials etc. all are acquired, but processing only starts after customer’s order.
• In case of Customized food delivery chain ATO will be applicableSource: Supply Chain Management Course Material by Prof.
Suhas Rane
Extensions of
Dry & FlyBusiness
Two kind of product
portfolios
In case of expansion of the Dry & Fly food, two types of product portfolios can be developed.
• Make – To – Order will be taken ahead as separate entity, with longer customer lead time available.
• Assemble – To – Order segment will provide semi customized food delivery at customer’s location
Make – To – Order
• In make to order portfolio we need to Incorporate online order/payment service and direct delivery of cooked – dehydrated – packaged food products at customer’s address whether the delivery is to be made in New York, (abroad)
• The benefits are: I. Reduced production waste, II. Less work in progressIII. Reduced inventory holding costsIV. Better customer lead times and flexibility to
adjust to consumer demand changesV. Improved cash flow. As soon as an order is
placed, production line starts to produce exact quantities following predetermined time constraints.
VI. Higher margins
Make To Order Process Model
Design, Machinery, Packaging
Components All are ready
Customer Order Placed
Dehydration & packaging of
food
Ready to be dispatched or picked up by
customer
Direct Shipping to
addressCustomer Pick
up
CUSTOMER PLACING ORDER
Assemble – To – Order
Food Delivery Service
Processes Involved in Assemble to order:• Development of a online platform, a
Application which will act as customer interphase for placing order.
• A bank tie up for prevailing online payment option to customers
• Vertical Integration of Kitchen with chefs & cooks, delivery service ( Personnel & Vehicles), a online portal/platform for customers, maintenance of raw material inventory.
• Establishment of a efficient supply chain which is cost affective to cope up with shorter lead time
ATO Supply ChainRaw
Material Inventory
Kitchen WIP Packaged Food
Ready To Dispatch
Raw Material Supplier
Front OfficeManaging
Orders and deliveries
Delivery at 10 am
Customer Order online and app
Order at 9:00 am
Home & Location Specific Delivery Service to Customers
Two Way Information flow
Sit and EatKolhapur
One of a Kind Service • A service based on customer’s demand and
desire, order whatever you are yearning for, we will deliver it at your doorstep or you can come and grab your desired meal.
Source: https://sitneatkolhapur.wordpress.com/
Outsourcing
o Satvita Foods had outsourced a kitchen which prepares the customized food as per the order by Satvita’s customer requirements.
o Here Advantages to Satvita Food is:• No need of Raw material inventory
management.• As some items are perishable they don’t
have to worry about stocking quantities.• Reduced expenses and risks• Customization with perfection
Agile Supply Chain
In case of Customized Food Delivering Service:• Low Volume• Highly Customized product• Demand Driven• Localized Configuration• Flexible & responsive as per customer requirement
Procurement || Manufacturing || Delivery
Lead Time Gap
Customer Order Cycle
Order Fulfillment
Logistic Lead Time
THANK YOU
Submitted to:Prof. Dr. Suhas Rane
Course: Supply Chain ManagementWoxsen School of Business
Submitted by:Chirag Sharma (PGID:1521024)Jonty Basetia (PGID:1521023)Suraj Roy (PGID:1521020)
References:• Article from Times of India (Times
Group)• Images from various sources
(Google)• Cover Pic (Anil Bora)• Guidance: Prof. Dr. Suhas Rane