THE GLOBAL GREEN

COMPANY
Supply Chain and Logistics Management
OVERVIEW
• Rapidly growing agribusiness exporting preserved vegetables.

• Focus on gherkins for European and American markets.

• Leadership by Debashish, Chief Officer, Global Green Company (GGCL).

• Challenges Identified

• Delays in order delivery.

• High supply chain costs.

• Focus areas: procurement, inbound logistics, wastage, and costs.

• Goals for Improvement

• Enhance overall supply chain efficiency.

• Ensure the ability to meet growth targets without compromising quality or delivery.

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COMPANY
OVERVIEW
ABOUT GLOBAL
GREEN COMPANY

• Global Green Company (GGC) is a part of the Thapar Group in India.

• Thapar Group is one of India's largest conglomerates with a turnover exceeding US$ 2 billion.

• In the early 1990s, agribusiness became an attractive sector in India due to its potential for agricultural exports.

• The Thapar Group entered the agribusiness sector through Global Green Company (GGC).

• GGC processes and markets a wide range of fresh and preserved foods, including fruits, vegetables, and related
products.

• Emphasize that preserved gherkins make up over 90% of GGC's business.

• Prior to GGC's entry, gherkins were not cultivated in this region due to the absence of a market.

• GGC played a vital role in educating and supporting local farmers in various stages of gherkin cultivation, including
seed procurement, sowing, cultivation practices, and harvesting.

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SUPPLY CHAIN • Procurement from Small-Scale Farmers
COMPLEXITY
• Managing a supply chain that relies on thousands of small-
scale farmers for the procurement of gherkins introduces
significant variability and complexity. Ensuring consistent
quality and quantity of raw materials is a constant challenge.

• Logistical Coordination
• The logistical challenge of transporting gherkins from farms
to processing facilities in a timely manner, given the
perishable nature of the product, requires meticulous
planning and coordination.
FORECASTING
AND PL ANNING • Agricultural Forecasting
ACCURACY • GGCL's reliance on agricultural forecasting for crop yield and
quality presents challenges, especially with the high
variability in agricultural production due to factors like
weather conditions, pest infestations, and farming practices.

• Mismatch in Supply and Demand

• The difficulty in accurately forecasting demand and aligning
it with supply, particularly given the long lead times for
agricultural production and international shipping, can lead
to either surplus inventory or stockouts.
CHALLENGES
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 QUALITY • Maintaining High-Quality Standards
CONTROL
• Meeting the stringent quality standards of international
markets, especially in Europe and America, where consumers
and regulations demand high-quality food products, is a
critical challenge.

• Quality of Packaging Materials

• The packaging challenges related to procuring high-quality
packaging materials, such as bottles and caps, which are
essential for preserving the quality of the processed gherkins.

OPERATIONAL • Processing and Bottling Operations

EFFICIENCY
• The need for high operational efficiency in processing and
bottling operations to handle the perishable nature of
gherkins and meet shipping deadlines is a significant
challenge.

• Inventory Management
• Managing inventory levels of both raw materials and finished
goods to balance the lead times for procurement and the
variability in production and demand is a complex task.

CHALLENGES
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M A R K E T E X PA N S I O N
AND
D I V E R S I F I C AT I ON
• Entering Domestic Markets
• As GGCL plans to expand into domestic retail markets,
understanding local consumer preferences and
establishing a distribution network pose new challenges.

• Diversification of Product Portfolio

• Expanding the product portfolio beyond gherkins to include
other preserved foods requires adjustments in supply chain
management, product development, and marketing
strategies.
REGUL ATORY
• International Food Regulations
COMPLIANCE
• Navigating the complex landscape of international food
safety and quality regulations, and ensuring compliance
across different markets, is an ongoing challenge.

CHALLENGES
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 SOLUTION
Inventory Management and
Raw Material Procurement
Safety Stock Management
GGCL maintains safety stock of imported bottles to
address large-scale quality rejections, ensuring a
buffer against delays caused by stock-outs of
packaging material
Outbound Logistics
Efficient Container Loading & Delivery Commitment
GGCL arranges full container loads based on shipping
schedules and product availability to optimize
logistics. The shipping line provides a delivery
commitment, and GGCL coordinates logistics
meticulously to meet delivery deadlines.
Greens Inventory Management
Production Planning & Excess Greens Handling
GGCL conducts weekly production planning based on
agricultural forecasts for greens procurement, allowing for
adjustments to address mismatches between procurement and
forecasted grades. Excess greens are refrigerated for up to 48
hours and used in the next day's bottling run, minimizing
waste.
Planning and Forecasting
Sales and Operational Planning & Agri Forecasting
Improvement
GGCL conducts sales and operational planning based on
firm orders and forecasted orders, ensuring alignment
between sales and operations. The company continuously
improves agricultural forecasting techniques to address
high variability in agricultural production.
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 SOLUTION
Agri Forecasting System
Regular Updates & Regular Updates
GGCL leverages feedback from Agri extension
personnel to modify assumptions in the
forecasting system, particularly related to days to
harvest, yield per acre, yield distribution, and
grade percentage. The agri forecast system is
updated weekly based on observations and
feedback, enhancing accuracy.
Agri MIS System
Data-Driven Forecasting & Reporting and Checklist
GGCL's sophisticated MIS captures data at various
stages of greens production, serving as the
foundation for forecasting. The MIS generates various
reports, including budgets, forecasts, and
performance appraisals. It also generates checklists
for data sufficiency, ensuring comprehensive data
collection.
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 RECOMMENDED ACTIONS
SUPPLIER
COLLABORATION
AND EDUCATION
Establish close collaborations with
small-scale farmers and provide
them with education and training
on best agricultural practices. This
can help improve the quality and
quantity of gherkins supplied by
these farmers.
Develop partnerships with local
agricultural extension services to
provide ongoing support and
guidance to farmers.
QUALITY CONTROL
MEASURES
Implement rigorous quality control
processes at every stage of the
supply chain, from farming to
processing. This includes regular
inspections, quality testing, and
adherence to international quality
standards.
Develop clear quality
specifications and communicate
them to both farmers and
suppliers of packaging materials.
ENHANCED
FORECASTING AND
PLANNING
Invest in advanced forecasting
tools and technology to improve
the accuracy of crop yield and
quality forecasts. Consider using
data analytics and historical data
to enhance forecasting
capabilities.
Establish a more agile planning
process that can quickly adjust to
changing conditions and reduce
the risk of inventory imbalances.
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 RECOMMENDED ACTIONS
INVENTORY
MANAGEMENT
Implement efficient inventory
management systems that
balance the lead times for
procurement with the variability in
production and demand. This
includes optimizing safety stock
levels and replenishment
processes.
Utilize demand forecasting to
better align inventory levels with
anticipated customer demand.
LOGISTICS
OPTIMIZATION
Optimize transportation routes and
schedules to minimize transit
times and reduce the risk of
product spoilage. Consider using
refrigerated transport to maintain
product freshness.
Strengthen coordination between
logistics, production, and
procurement teams to ensure
timely and efficient movement of
gherkins.
MARKET RESEARCH
AND CUSTOMER
INSIGHTS
Conduct market research to
understand local consumer
preferences and trends in the
domestic retail market. Tailor
product offerings to meet these
preferences.
Develop a robust distribution
network within domestic markets
to ensure efficient delivery and
availability of GGCL products.
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 RECOMMENDED ACTIONS
REGULATORY
COMPLIANCE
Invest in regulatory compliance
expertise and ensure that GGCL
meets all international food safety
and quality regulations across its
target markets.
Stay updated on changes in
regulations and adapt processes
accordingly to maintain
compliance.
TECHNOLOGY
ADOPTION
Explore the use of technology, such
as Internet of Things (IoT) sensors,
to monitor and track the condition
of gherkins during transportation.
This can help prevent spoilage and
quality issues.
Implement an integrated supply
chain management software
solution to improve visibility,
planning, and coordination across
the supply chain.
CONTINUOUS
IMPROVEMENT
Establish a culture of continuous
improvement within the
organization. Encourage
employees at all levels to identify
and address supply chain
challenges proactively.
Conduct regular reviews and
performance assessments to
identify areas for improvement
and implement corrective actions.
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THANK YOU
Dhruva Ghate

Shivam Todi

Prathamesh Divekar

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