Question: Case Study ABCL Ltd is a leading Fast Food Processing Company operating from Thane. It is involved in the fast-food business since last 10 years

Case Study ABCL Ltd is a leading Fast Food Processing Company operating from Thane. It is involved in the fast-food business since last 10 years and has a tie up with a foreign firm operating in the same field. It handles both vegetable as well as non-vegetable products for which it arranges the required vegetables and chickens from local vegetable vendors and poultry farms as well as from far off places like Nasik, Pune and Aurangabad. It has very good markets in Mumbai, Pune and the surrounding cities. The products are sold in the brand name of Nasta which is very popular brand among the young collegians and office goers. It has its most modern kitchen at New Mumbai to cater to the needs for fresh Nasta. Vegetables and chicken items are transported from the procurement centres of Nasik, Pune, Aurangabad using hired trucks. While transporting vegetables and chickens, there were shortages, damages, and decomposition problems which varies from 10% to 15% and there is inconsistency in the transit time, the reliability of the raw material transporters is very low. Packaging of Nasta is very good and attractive but it is not long-lasting type. However, the quality and taste are the reasons for its popularity. Nasta is sold in three different packs - party, family and individual. Nasta loses its taste and flavour after 8 hours if it is not preserved in refrigeration. Nasta is distributed through 25 distribution centres including three at its main procurement centres of Nasik, Pune and Aurangabad. Logistics Information Network is not up to the mark. The procurement centres directly communicate to the operating centre at Thane. Due to lack of proper co-ordination at different distribution centres, it has started creating problems of stocks, spoilage, pilferage and wastage of raw materials as well as finished goods at certain distribution and procurement centres. Transportation and storage problems are identified as the main culprits for the heavy losses being incurred at some centres. Holidays, festivals, and collegians put a lot of pressure on the existing demand and supply situations of Nasta seasonally, resulting in mismanagement and losses. Entry of multinationals into the market has increased the competition and put a pressure on Nasta. The Managing Director of the company has formed a team consisting of senior executives to suggest a concrete plan to fight the growing competition and overcome problems of transport, storage, and other related problems to increase the market share and margin. The team of senior executives has recommended your name as a Logistics Consultant. You are required to put forward your suggestions for the following: 1. Proper transportation policy to ensure minimum transportation loss of vegetables and poultry products and reduction in the packaging costs. 2. Advice on the company owning its own fleet of transport or buy transportation service 3. Demand forecasting techniques to take care of the seasonality as well as reduction in the inventory, overcoming shortages as well as other related problems. 4. Suggestions for improving Purchases and Distribution policies 5. How storage and transportation excellence can support revenue growth of the ABCL Ltd

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