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Fresh Mushrooms: Outward Logistic Study
WeiKFiELD Foods Pvt. Limited, Fresh Mushroom Division, Bakori, Pune.
Yogesh Kamat, MITCOM
Bhagwat Kalurkar, MITCOM
Mrs. Ajeeta Shivdasani
Marketing Manager, FMD, WeikFiELD.
1 2 3 4 5 6 7 8 Introduction Importance and Significance Rationale Objective Hypothesis Research Methodology Other Improvement Opportunities SWOT Analysis 3 4 5 7 8 9 11 12 2 . Title Page No.Index No.
which spans right from compost making to spawn developing to processing. Asian (including Middle East) and African countries. They also defer in colours varying from white. They are high in protein contents and are easier to cook as no cleaning and peeling is necessary. However they have very low– approximately 3 to 5 days .000 sq. Little Caesar. red. most of whom find it tough to make the project a success. Mushrooms fall into category of Fungi and are normally found in pastures. While there are several mushroom farms in the country.unless preserved under controlled refrigerated condition. ft. They all resemble in their appearance but vary in shapes and sizes. levels of oxygen and carbon dioxide are constantly monitored and controlled. The company earns 74% of its revenue from the domestic market. Birla Retail. Its international clients are Dollar Tree Inc. The edible variety is normally used along with other vegetable or meat. Weikfield operates from a position of strength. 3 .shelf life period between their harvesting and consumption . It sells its products under the Weikfield First Choice brand. brown to shiny pastel colours. thanks to its integrated facilities. European. Spencers and Foodworld. etc. it has tied up with food chains and suppliers including Liberty Gold. the company has tied up with restaurants and pizza houses and makes use of its existing distribution and dealer network it has for its earlier products. The products are exported to American. where temperature. Cencosood and Erboristi Lendi among others. Safeway. The 40. In the domestic market. Outside the country. meadows and woodland. Hence it is essential that post harvesting they are cleaned–frozencanned–packed and stored in controlled conditions of temperature and humidity. It operates with two plants located at Pune in Maharashtra and Baddi in Himachal Pradesh which operate at 70% capacity utilisation. Some of its domestic clients include Reliance Fresh.Introduction: Weikfield Products was established in 1956. Miller & Smith. humidity. facility built on a 32-acre plot has seven computer controlled compost making tunnels and 48 air-conditioned mushroom growing rooms. When fresh they taste good. brown.
It is the complete process that starts from raw materials to the final disposal or sale of the finished goods. it is essential that the manufacturers / cultivators take utmost care in preserving the quality and freshness of their “Produce” before they reach the end consumers through the logistic & distribution network. Logistics analysis has been viewed as an important element in the corporate strategy of many organizations.Importance and Significance: Logistics is the one important function in business today. per head per year. For companies. per head per head in the US. goods and services offered to suppliers and customers from the point of origin to the point of destination. 4 . quality and creating value for products and services. or 15 lbs. "Canning involves 40 per cent reduction in weight (due to blanching). An effective and efficient logistics system is created to meet the requirements of the customers for timely responsiveness. per head per year in South East Asian countries. with average consumption as low as 0. manufacturing or project execution can succeed without logistics support. Logistics refers to a process that is associated with flow of information. geography and weight/value ratio. Considering a possibility of pre-consumption storage of 2-3 days at end consumers. as against 4 lbs. depending on business." says Mr. No marketing." The Indian market offers tremendous latent potential. Malhotra. 10 per cent to 35 per cent of gross sales are logistics cost.4 lbs. It hence become imperative that the logistics involved in the supply of Fresh Mushrooms from the point of production / cultivation to the end retailer or customer is such that it ensures optimum quality of product. This loss can be avoided if we are able to sell fresh mushrooms locally. "We are trying to grow the domestic market.
Calcutta. Ahmedabad. Company owned LCV. The three standard types of packing are: o Regular – 200 gms each o Punnet – 200 gms each Regulars – 10 kg (50 packs) Punnets – 8 kg (40 packs) o Bulk – 1. Material is shipped & transported to various destinations as detailed below: Pune: o Daily supply 1.50 MT / day o Types of packing all three o Transportation By road o Delivery frequency Every hour after 0930am o Vehicle used Distributor owned LCV Mumbai: o Daily supply o Types of packing o Transportation o Delivery frequency o Vehicle used 1. 5 .Rationale: After harvesting at each stage the mushrooms are dry cleaned off the soil and packed in three varieties of standard packing. Bangalore & Chennai: o Daily supply Ahmedabad 150 kgs / day Calcutta 200 kgs / day Bangalore 600 kgs / day Chennai 400 kgs / day o Types of packing Regular & Punnet o Transportation By road to Pune airport & Air o Delivery frequency Two hours before flight o Vehicle used Company owned LCV.00 pm.70 MT / day all three By road Shipping at 11.00 kg each.
at times. regarding the timing and quality of the mushrooms which have been delivered. Distributors and retailers have complained. However. This project was hence overtaken to find the possible improvement opportunities. Past observations have revealed inefficiency in the logistics system for Fresh Mushrooms. if any. WeiKFiELD has maintained an image of a consistent high quality and quantity producer of Fresh Mushrooms. 6 . there has been disparity in the quality produced and quality delivered. in the current logistics system.
The process includes the activities from “Post harvesting till the produce reach the distributors or retail outlets involving delivery of products” However for the sake of complete understand the study has been extended to the cultivation. 7 . production. internal warehousing & handling process cycles before harvesting. Pune and identify opportunities for improvements. if any.Objective: This project study has been undertaken to understand the present logistic process followed at WeikFiELD Fresh Mushroom Division at Bakori.
is not well accepted by Retailers and fails to assist them in enhancing sales. suggested a shift in the deliver timing of the Fresh Mushroom in order to avoid losing a customer base. Null Hupothesis: Ho Shift in the Delivery timing of Fresh Mushroom. This factor was hence adopted for setting a hypothesis and further studies. is well accepted by Retailers and assist them in enhancing sales. 8 . The interaction with the retailers and Distributors in the Pune market.Hypothesis: Based on the observations of the Logistics system. a few improvement opportunities came to knowledge. Alternate Hypothesis: HA Shift in the Delivery timing of Fresh Mushroom. from afternoon to morning. from afternoon to morning.
It was a mix of material of cold storage and fresh stock. the satisfaction on other days was beyond their expectations. the loop-holes and strong points were singled out. we gave the packing requirement for the period of 23rd through 29th May to our harvesting and packing staff at Bakori farms with instructions that the packed material is required at 0800 in the morning.m. Normally this activity starts daily at around 0900 a. can be observed due to availability of the product in the shelf.Research Methodology: 1. The loop-holes need to be plugged and hence give the improvement opportunities. However the material stock was not made available for these out lets – indicating lost opportunity 9 . With the exception of 27th May. Observation also includes the actual responses in the sales at the retailers end. 3. Customer satisfaction or the lack of it. 2. With permission of WF marketing staff. The strong points also need to stress on as they show the factors on which the organization needs to continue delivering. probable solutions and also the feedback post-implementation of corrective interaction. Interview Personal interaction with the concerned personnel from the Distributor’s and retailer’s organization give considerable and valuable inputs regarding problems faced. Pilot Study Direct delivery to Dorabjee’s & Shivaji Market on behalf of Pune distributor. We delivered the same to Dorabjee’s and Shivaji market in our personal vehicle on these days at 0930 immediately on opening of the shops. The workforce at our farms cooperated and handed over the material to us at 0830 a.m. during 3rd week of May 10. Observation Observation of the entire logistics system. This was evident from their responses for more materials.
It needs to be seen whether it was spoiled in storage. a questionnaire would be designed which would indicate the retailer’s and cutromer’s view regarding desired availability timings of the product.30 10. All the above methods would be able to provide the data which can help arrive at a conclusive decision regarding delivery time of Fresh Mushroom to the Pune Market.30 09. 10 .20 09.30 09.00 Feed Back Positive Positive Positive Negative Positive Positive 4. Date 23/05 24/05 26/05 27/05 28/05 29/05 Freshness Punnet 1 Fresh 1 Stock 2 Fresh 1 Fresh 1 Stock 2 Stock 2 Fresh 2 Fresh Regular 1 Fresh 1 Fresh 1 Fresh 1 Stock 1 Fresh 1 Fresh Time of Delivery 09.On 27th May the stock offered was from cold storage & of inferior quality. Questionnaire As the final step in the study.25 09. The questionnaire would provide the necessary data regarding probable rise in the sales / or the absence of it.
Harvesting & Packing work force are ladies and hence packing starts late in the morning to their domestic convenience. daily. Loading above drivers cabins must be prohibited.m. Fixed the location for stamping on poly bags. Awareness Training to cleaning workforce. o Plastic sheet gauge thickness. This activity be done early in the morning to through men or done previous day evening so that delivery to Pune distributors can be made before 0900 a.Other Improvement Opportunities: WF must maintain the lead as consistent quantity producer and take initiative to increase the market share by improving Brand image in other area – like improved packing and convenient delivery schedule. Movement frequency through the warehouse (cold room) door be reduced by batch transfer of material inside room or provide Air curtain at the door to maintain temperature inside cold room. Post harvesting packing place be also with controlled ambience. 11 . Cardboard boxes to be at least 5 ply. Avoid stamping ink leaking inside on to the mushrooms. Vans to have independent engine to run A/C unit while the vehicle is waiting for unloading. Improvement in quality of Poly bags and Punnet trays. Transportation in refrigerated vans. Transportation of material in “Returnable Plastic Crates” to facilitate multi stacking and still avoid transit damage. so that user does not have to search for this information. o Adhesive quality.
12 . Punnet mushrooms. • Aggressive competition may take away the business through improved and attractive packaging.SWOT Analysis Strengths • Brand Image • Large production capacity • Established cultivation process • Production of high quality mushrooms • Well established dealer network • Sound Financial base Weaknesses • Supply short of Demand • Ineffecient packing and transportation systems • Lack of focus on premium product i. • Unless improved.e. Opportunities • Unutilized plant capacity to meet growing market demand • Automation in grading and packaging facilities • Enhanced quality of packaging material • Unfulfilled export market Threats • Inefficient logistics and packaging process may take away the business to competition. Punnet product may lose its Brand premium and related margins.
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