Analyse Exhibits 3 & 4 and try to build a deeper understanding for the demand of ice

creams in the market and the challenges in meeting this demand.

Kamanth ice cream had a USP of selling ice cream with natural fruit flavours which was well-
appreciated by customers in Mumbai and the surrounding cities. KOI had a very basic two-
stage sales channel structure. There were 125 stores out of which only 4.8% were owned by
the company and others were franchised. KOI had one manufacturing unit in Mumbai itself.
The company saw a steady rise in the growth and decided to expand. Mr. Pai had an idea
about the fact that the existing capacity can deliver the current orders but the problem lies in
the inefficiency in production process.
Challenges in meeting the demand included:
Delay in shipments occurred to n number of reasons such as
Box preparation was the beginning of the packing process and was determined as a crucial
process. Problems in the box preparation system were as follows.
The average worker’s absenteeism was around 20% due to the monotonous nature of work.
Shop floor was always busy with activity, there wasn’t a standardised logistical flow, there
was neither a fixed period for ordering nor a fixed target inventory for the packaging raw
materials, the pouches used in packaging were kept in vacant places instead of a
standardized system which hindered the first-in first-out system and as the production
process for boxes was carried out in the factory’s shed the workers had to deal with the hot
and humid climate of Mumbai.
After we analyse Exhibits 3 and 4 we can see that there is a correlation in the demand for
average boxes per month and delay in shipments. The reasons for the following are stated
above already. The average demand of boxes was increased in the month of April and the
delays started rising in the subsequent months which were May and June. These delays
were a huge problems for both shops and the customers at the receiving end.
According to us, if Mr Pai focused more on reducing the delay caused in the production
process instead of expanding, the company would benefit a lot more as this is one of the key
issues that they were facing.