Question: SCM 325 Case study ABCL. Ltd is a leading Fast Food Processing Company operating from Thane, It is involved in the fast food business since

 SCM 325 Case study ABCL. Ltd is a leading Fast Food

SCM 325 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, theft 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 review company's logistics and to come up with recommendations so as to increase the customer satisfaction and profit margin. Questions: 1. What is your opinion about the Logistics Management of ABCL Limited? Are they doing well or not? Justify your answer with valid points you observed from this case study. 2. What are your suggestions to improve their Logistics processes

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