NITIE, Mumbai

Understanding the problem and Key issues

Product Seasonal Harvest of raw material Perishable nature of raw material and finished product

Problem
Inability to cater to current export demand due to trade bottleneck

Supply Disruption due to protectionism adopted by countries Demand Export dependent Declining demand in wholesale segment due to competition with local/foreign players Plant Management Risk of excess inventory of raw materials/finished goods due to inability to fulfill demand Underutilization of resources and increase in ineffective time due to idleness of labour Centralized processing plant with dependency on strong distribution networks

International issues: Trade dispute with Brazil Impact on distribution costs due to fluctuation in currency rates from country to country

Data required to address Key issues

Lead time and logistics costs for Argentina-Uruguay, Uruguay-Brazil, Argentina-Brazil Location of Warehouses and Distribution Centres in Argentina, Uruguay and Brazil Contribution of Wholesale and Retail in Argentina (domestic) and Foreign Markets (Export) Share in domestic market of Argentina Market share of Competitors in Argentina and Brazil Import duty and tariff structure between Argentina-Uruguay & UruguayBrazil Plant Capacity

Approach to solving the Problem

Objective: To break the impasse in supply of finished product To generate demand of new product in retail segment To utilize full capacity of the processing plant
Availability of raw material after harvest of April-May

Assumptions

Unfulfilled demand of Brazil

Tariff Structure

Short term Approach Find an alternative route to supply existing inventory to fulfill demand of Brazil Long term Approach Select a local player in Brazil for production and distribution of the products in order to fulfill Brazils demand Divert the resources ( utilized to fulfill Brazils demand) to produceg the new product in retail segment of domestic market

Plant Capacity

Market Study

Competitor Analysis