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Team Deepan Sarkar
Bullseye
Shailesh J. Mehta School of
Management
Noopur Parikh
Charandeep Rana
Innovation &
Current Scenario Category Savings Supply & Service Supplier Relationship
Productivity
Copra Production and Cultivation Copra Collection from Collection Center (in MT)
Area PROBLEMS TO
SOLVE
Category Savings
Long term supply
assurance
Service Delivery
Supplier
Area under cultivation increased till The seasonal variation in copra collection is the same
Relationship
2013-14 with rapid decline for the 3 years Management
afterwards The trend shows that the overall collection is falling Delivery on
Production reached a peak in 1022- every year Innovation
12 with a gradual decline Marico needs to be prepared for reduction in Copra Transaction
Copra Productivity
afterwards and Prices collections
Customers
Productivity
Coconut Collection
Farmers Centers
Retailers
Microsoft Word
Document
Marico
Distributor Executive Summary
Factory
Raw Materials
Production per hectare peaked other than Copra Problem Areas
during 2010-11 followed by
considerable decline Marico Supply Chain 2
Prices show an overall steady rise
Innovation &
Current Scenario Category Savings Supply & Service Supplier Relationship
Productivity
Catego
Type Problem Solution Savings
ry
Inconsistency of Indian
Facilitate the loan application
monsoon Copra prices will
process for the farmers to get loans
60% coconut production in reduce resulting in
for irrigation from banks
Apr-July saving in
Procurem Partner with Government and
Yield per hectare is purchasing costs
ent research institutions for improved
decreasing Hedging will
farming techniques
Sellers can easily take protect from future
Engage in futures contracts for
positions expecting rise in price shocks
Copra procurement
prices
Faster stock
Set up small trade centers in other
movement will
Trade center is a 50 sq. km places to remove the control of
reduce logistics
area at Kaveri, Tamil Nadu central procurement
Logistics cost
Only 40% procured directly Increase the direct procurement
Significant
from farmers from farmers by paying slightly
reduction of middle
above the market rate
men costs
Promote innovative value
Cost savings mostly through
Value
enhancements through better deals
one to one negotiations and enhancement will
and incentives
Packag reverse auctions and not cost more but
RFQ process should be made more
ing Procurem through innovation enable greater
transparent with more emphasis on
Materi ent Key supplier Yash with future savings
value innovation
Improvedmaximum
al volumes are not Transparent RFQ
Research will lead
switching to transparent
to up to Distribute
50% increase in per
procurement hectare
among coconut
process will reduce
production due to pentagonal plantation multiple suppliers
techniques i.e. to reduce
more supplier
trees per hectare andcosts 3
models hidden
Innovation &
Current Scenario Category Savings Supply & Service Supplier Relationship
Productivity
Streamline and Engage in futures Marico should go for open tenders
standardise the contract with with no special benefits for existing
purchase of goods suppliers to hedge suppliers
and services against fluctuating Transpar Price should be on a long term effect
Gain greater prices ent RFQ basis and not just the current
Suppliers
Suppliers
Factory
Copra
From Towards
traditional Knowledg
Black- e Based
Box relationship
model
COMMODITIZE COLLABORATIV
D E
Equal citizenship, no
Each party maximizing HIG PRICE SENSITIVITY LOW fighting for antiquated
its profit H status quo
Unwillingness of suppliers Results in innovation and
to switch to transparent LO WILLINGNESS TO DISCLOSE HIGH productive efforts for
cost models problem solution
W
No personalized Can become locus of
interaction between
NARRO RELATIONSHIP SCOPE BROA value creation, value
supplier and company W D jointly being created