THE FRESH CONNECTION ROUND 1

AND 2 REFLECTION
Prepared for professor Clyde Walton

10/16/2019

Hetanshi shah, Nhu Huynh, Parth Patel, Rabbani,

Muzzammil Saeed
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1. Overall Strategy of team

Our supply chain team strategies are cost efficient and our

intention is to give products at lowest possible cost because price

is the main factor which customers are always concerned of. So,

we are going to provide best quality at affordable price so that

demand gets high.

We would like to keep working on low – cost provider strategy

but the changes we made was not good enough and is not

working out. So, in the third round we are looking to work on

some thing more specific with proper outline. We are trying our

best to improve ROI and KPI’s with our low-cost strategy. Due to

loss we are going to cut down our expense regarding pallets,

Pallet location and so on. and we are going into loss because our

expense is high, so we are going to get that in control because

we want to go with low – cost strategy and save money.

Group change in ROI

Round 0: -3.96%

Round 1: -10.30%

Round 2: -12.51%
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 VP Sales

Name of VP of Sales: Parth Patel.

Please outline what decisions / changes you made and

why in Round 1.

We get ROI by -10.3%, which was less than even when we started a

company. It was because of I gave a less time period to self-life of

products to the customers, which affect the selling may be due to early

expired date and consumer wants more time to keep that product in

their sides. For another round I will make sure that all the consumers

get enough time to carry their products, I will increase products self-

life for all the buyers.

Please outline what decisions / changes you made and

why in Round 2.

As we go through the production round 2, in my department the

obsolete percentage of some of the products has been increased due

to less self-life in order to customers' needs. Moreover, the service

level of a company is lower to agreed leads to stiff penalties, which

affect the revenue of the company. For the next round, I will make

sure that the service level and self-life of all products match all the

consumers want and get the best implement from them.

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 VP Operation

Name of VP of Operations: Nhu Huynh.

Please outline what decisions / changes you made and

why in Round 1.

We decided to follow the Low-cost strategy for our market share. Our

overflow is actually at 0%, so the line needs to be considered their

performance. We tested it by changing inbound locations from 900 to

850 and outbound locations from 1500 to 1450 to see the difference of

percentage’s ROI. We decreased intake time from 5 days to 4 days to

increase flexible labor. We haven’t use increased speed in round 1

because it actually was not necessary with our operation business.

From those, we evaluated some main factors that have affected to ROI

and we will adjust these factors for the next time.

Please outline what decisions / changes you made and

why in Round 2.

Inbound: We boosted the inbound locations from 850 to 985. Doing

so we increased production line and demand value’s customers from

sale department. Therefore, we decided to increase the shift from 2 to

3 and number of staffs from 5 to 6 employees to gain more productive

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while creating greater profits. In our opinion, doing those changes

makes our company cam improve it better. We are going to change in

Intake time, SMED action. Instead of increasing, we are decreasing

intake time from 5 days to 3 days and use the SMED action to be

responsive to quick changes in demand. Hopefully, our ROI can be

improved better than the first round through this changing.

Additionally, we need to look at developing our preventative

maintenance for the next time.

 VP Purchasing

Name of VP of Purchasing: Hetanshi Shah.

Please outline what decisions / changes you made and

why in Round 1.

We went back in round 1 because we have changed the trade units of

oranges to drum which was not good decision. So, for round 2 we have

decided to fix our mistake.

Please outline what decisions / changes you made and

why in Round 2.

In round 2 rejection percentage for component supplied by supplier

Trio PET PLC is high. Products are getting damaged because of cheap

packing material and the cost of raw materials also got high and due
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to that we went back. So, for upcoming rounds we would need to keep

all this issue in control and also, I am planning to change the

transportation mode of Mango NO8D0 to boat to reduce the delivery

cost and save some amount of money.

 VP Supply Chain

Name of VP of Supply Chain: Rabbani, Muzzammil Saeed.

Please outline what decisions / changes you made and

why in Round 1.

In round one I had the low stock of vitamin C. Lower availability of

components leads to lower production plan adherence. A finished

product cannot, Afterall, be produced if components are not available

in sufficient quantity. To overcome this problem safety stock level was

increased from two weeks to four weeks. Our strategy was Low Cost

Strategy thus providing low cost items to the supplier. Since we were

appreciating high demand from our customers due to our low price, I

was required to have a sufficient stock of Vitamin C to meet the

production demand. Sales were not as per expectation therefore RI

was decreased from -4.0% to -10.3%.

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Please outline what decisions / changes you made and

why in Round 2.

In round two I still had the low stock of Vitamin C and this low level

could have impacted our overall production therefore I further

increased the safety level from two weeks to four weeks. Moreover,

competent stock of Pack 1 Liter and PET bottles were on rise therefore

I reduced the safety stock level to 1.3 weeks and lot size to three

weeks as well. The aim was to avoid having any surplus inventory. In

second week, our low production resulted in less ales and ROI was

further decreased from -10.3% to -12.51%. To overcome a low level

of availability of Vitamin C I might have to increase not only the stock

level but also have to increase the lot size.

Is your overall strategy working? Are you glad you chose

that strategy? Are there any other comments regarding

the decisions you made, what worked well and improved

the ROI and why and what didn’t work well. What do you

plan to do differently next time?

Our group had the low-cost strategy and we were expecting to have

the higher sales due to our low prices in the market for same kind of
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items available from other manufacturers. However, our production

was slow due to which our sales target could not be achieved resulted

in lower ROI. Moreover, our decision to change the trade unit of

Oranges to drum from tank made our component cost skyrocketed

which also affected our ROI. For next round we shall stick with the

low-cost strategy, we have also changed the trade unit of Oranges to

tank which will definitely reduce the component cost and help us to

improve our ROI.