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Case Study

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Case Study

Food Savories Limited


Food Savories Limited is engaged in the manufacturing of various types of fast food items that are ready-to-eat variety. It has been in the business for the past 12 years. It has its factory as well as the processing unit in Navi Mumbai. The raw materials required are mainly vegetables, chicken which the company procures from either the local vendors, or from various suppliers situated at Nasik, Pune and other districts. The required materials are procured with the help of hired transporters. However, the hired transporters do not care much about the preservation of the goods. Hence, about 20% of the goods are lost due to damage, deterioration, pilferage, etc. Again, the hired transporters are unreliable with regard to their availability as well as prompt delivery schedules.

Food Savories Limited


The companys products are quite popular with the customers who are situated in Mumbai, Navi Mumbai, Pune, etc. However, the company stands to lose the market due to erratic supply schedules which do not cater promptly to the customers. The packaging of the products is attractive, but it does not preserve the product for a long time. The shelf-life is about 5 hours, if the goods are not properly refrigerated. Loss on this account is about 10%. The company has about 10 distribution centres. But there does not seem to be the much coordination between these centres. Logistical information system is not adequate. Due to this, the company is unable to expand its business.

Food Savories Limited


In fact, due to competition, there is fear that the company may stand to lose its existing clientele. Due to mismanagement, the company is unable to meet increase in the demands during festival seasons and holidays. You have joined the company after completing MBA from Pune University in logistics Management. The company management wants you to explain following points.

Food Savories Limited


The objective and importance of logistics The functions of Logistics Ways and means to tackle and counter competitors strategies (Note: Analysis as to why competitors are having a cutting edge. Improvement in the companys performance vis-vis performance in inbound logistics, processing, packaging, storage/warehousing, marketing/sales program.)

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