Name of Authors: Varoon Damodaran Shridhar Joshi Shruti Kaushik Rishab Sapra Prashant Borkar Nityanand Nawalkar Roll

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Title: Radhakrishna Foodland Private Limited (RFPL), an innovative initiative

ABSTRACT Inspite of unfavourable operating conditions for the cold chain Industry in India, RK Foodlands Ltd (henceforth mentioned as RKFL) has managed to sustain success by implementing innovative solutions to meet customer’s needs. RKFL devised new method to improve the supply chain with the objective of maximizing information flow. This has propelled the company to a consistent growth of __%

Introduction In India, the logistics sector supporting the supply chain management, especially of food produce and perishables is in a nascent stage. About 30% of the food produced in this agrarian country is wasted each year, which is adequate to feed countries like Britain for the entire year. The reason for this wastage is that the infrastructure in India is not adequately developed and there are very few market players as this is a very capital intensive industry. With this backdrop, there are a few companies that have survived in this industry despite the multiple challenges. Radhakrishna Foodland Private Limited has been one such company at the helm of the Cold-Chain development in India. Radhakrishna Foodland Private Limited (RFPL) was established in 1988, as a captive outfit for its other group companies’ requirements. They are the industry leader in the Supply Chain Management of Food, Near Food, Agri-Services and Pharmaceuticals. With over 35 years of experience in the Foodservice, Retail, Quick Service Restaurants (QSRs), Distribution and Logistics businesses, RFPL has evolved into a consolidated, single point SCM solutions provider to some of the world’s largest companies in India. In 1994, McDonalds India chose RFPL as its integrated supply chain partner. Since then, RFPL has built on its strengths to establish a leading position in one of the most demanding markets in the world. They

Another objective of this study is to study the solution that RKFL provided to the customer’s need. McDonalds.rishab CONCLUSION Rishab.also cater to some of the world’s most prestigious brands like Subway. frozen / chilled / dry could be delivered together at a time. Ltd RK Foodland: Mr.e. A leading MNC in FMCG snacks segment approached the RFPL to devise new method to improve the supply chain with the objective of maximizing information flow. There was a need for a supply chain solutions system through which all the three types of goods i. without compromising on the integrity of the food product. M/S Vista Processed Foods Pvt. Pepsico. which operates chain of QSR's (quick service restaurants) throughout the country. PURPOSE To study how RFPL managed to be successful in spite of difficult operating environment in the cold chain industry.varoon. THEORETICAL FRAMEWORK Shridhar.Shridhar References: Neeraj Kumar. One of the objectives is to study how RKFL accomplished this task. Sodexho and Cadbury. Manager – Training & Development . Manager – Fresh Produce. Bharti Walmart. RKFL came up with innovative techniques to meet the challenges of the market. HR Mr. Imran Khan. RFPL is the national supply chain partner of McDonalds' Restaurants. Anumod. OBJECTIVES With the cold chain sector making its in-roads in the market.

. The DC (Distribution Center) at Kalamboli. The units had two evaporators which enabled temperature setting for frozen and chilled products at the same time. This resulted in higher transportation cost. stores were delivered Frozen.e. Business Development Managers Mr. Akhil Sawhney. Manager. frozen / chilled / dry could be delivered together at a time. Prior to the development of new technique. There was a need for a supply chain solutions system through which all the three types of goods i. Panvel provides the daily supplies to McDonalds' QSR's across the city of Mumbai. Chilled and Dry goods in separate vehicles. need of a truck carrying multiple temperature products was felt. Prasad Oak. Situation RFPL is the national supply chain partner of McDonalds' Restaurants. They use hub and spoke model of supply chain for the distribution purpose. Solution Against the conventional mode of distribution.Logistics (Mc Donalds Account) Innovation Scenario 1 Present Outbound delivery through multi-temperature vehicles. without compromising on the integrity of the food product.Mr. more manpower in loading / unloading / delivery and inconvenience to McDonald’s outlets which were receiving multiple deliveries and multiple documents. A multi-temperature refrigeration unit was imported and installed in the trucks. which operates chain of QSR's (quick service restaurants) throughout the country.

3. To counter this problem RFPL developed a truck with two single units in such a way that there were two temperature sensitive compartments and one ambient temperature section. 4. These partitions were used as separator walls between two temperature zones. Situation A leading MNC in FMCG snacks segment approached the RFPL to devise new method to imrove the supply chain with the objective of maximizing information flow. The only problem with this type of multi-temperature trucks was that the downtime of these trucks were very high since the technical know-how on repairing of these evaporators is very limited in the country. chilled and ambient products. was known . the status was available on the order w.t. Consolidated delivery of frozen / chilled / dry goods. Once the order was placed. against carrying approximately 150 cases per truck. Truck containers were made with two side doors in addition to the rear door.r. Scenario 2 Present A Leading MNC in FMCG Snacks Order status updates to Sales Team and Distributors. 2. Convenient for the McDonald’s store to receive all the goods at a single time window. the downtime of these trucks was reduced drastically.Partitions were created according to the capacity requirements. One order. With the experience of maintaining single temperature units. Cost saving in transportation and manpower. Assistant Sales Managers (ASM) and the Distributors placed order with the CFA (Central Forwarding Agent) of the MNC as and when required. one invoice and one delivery. The fill rate / quantity received. After the implementation of the multi-temperature trucks the following results were observed: 1. the date and time when the delivery will reach. The side doors are used to unload products without disturbing the products carried in other temperature zones. the multi-temperature trucks carried 500 cases per truck with a mix of frozen.

00 pm. Solutions The need was felt for information travel. While the emphasis for a better fill rate was by managing inventory better. what is not coming.t. Since the retail purchase of the products. Every evening at 7. an SMS with the truck number and time of dispatch is sent to the Distributor and ASM. to the order placement to dispatch and delivery status: Ordering and Delivery scheduled on selected days of the week for a distributor based on Distributor sales volume and trend. faster than the product travel. Every order placed during the day would be captured in this report along with the status.00 pm. Every time an order is dispatched from the CFA.only when the delivery reached the customer. SKU level fill rate report is published to all the ASMs. which informed them in advance. They needed a system wherein the status of order with respect to delivery and SKU level quantity is tracked. .r. Following steps were taken to keep complete visibility with Sales Team w. If Distributor/ASM wants to take a substitute against what is not available. the order is revised with the substitute products. giving details on time and quantity of order placed/picked/dispatched/delivered. is driven by impulse..00 am and 8. This affected further commitments from Distributors to the retailers and impacted subsequent orders. Immediately after taking order. the need for the above steps were felt. and what can substitute. An order status report was published every day at 8. manual intervention was required with respect to information recorded outside SAP. Though the whole system worked on SAP. the CFA Order Taker will check the stocks and get back to the Distributor/ASM confirming what is available and what is not. absence of product in the shelf means loss of sales.

RFPL has been successful in understanding all facets of Supply Chain Management Solutions. Overall. helped in pushing up the sales. Other stuff: RK Foodland over the years has found innovative techniques to serve their clients better.Results 1. Transparency of fill rate helped the distributors to push stocks. students have learnt in theory about the various techniques to implement innovation in the industry but practical exposure to these techniques has given us opportunity to better understand the process and challenges to be expected while implementing product and process innovation and how to overcome them. They are . Conclusion We. Transparency of order status enabled the Distributors to commit to retailers on stock delivery timelines. rather than lose sales on what is not available. 2. Their customer centric approach has enabled many businesses in the country such as the quick service restaurant industry to expand across the nation. 4. Fill rate went up from 70% to 95% against the amended orders. which are available as substitutes. 3.

health. Consumer.focused on the Agri-Food. Food Services 2. Agriculture Value Proposition to RFPL Customers: Customer Centricity Their customer service orientation and the ability to anticipate. They were one of the first few companies to focus holistically on all attributes important to business. Pharmacy 5. RFPL is backed by sound pan-India experience in the following sectors: 1. RK Foodland customer service is at the core of their business philosophy. FMCG 4. maintenance and compliance. they have successfully established a leading position in one of the most demanding growth markets in the world. Retail 3. all in a continuous effort to serve the customer better. Retail. Pharma and Food Service sectors and have emerged as the leading end-to-end SCM solutions provider and the preferred partner in the industry. Their understanding of the . With a carefully managed growth strategy and agile adaptation to their customers' needs. hygiene. adapt. their focus is to ensure that they protect the brand by ensuring business continuity and total system integrity and have developed a zero-tolerance approach to quality. evolve and innovate with each customer or situation has enabled them to emerge as the trusted partner to some of the world's most prestigious brands. Brand Protection At RFPL. safety. the environment.

‘Innovation’ is a broad term with many possible interpretations. ensuring that all service level parameters are measured. where we experienced the operations for the McDonalds account first hand. to understand the process in holistic sense. Panvel in the Raigad district of Maharashtra. The capacity for innovation can be defined as ‘the ability to do things alternatively and to continuously reinvent products and services’. Ltd. interviews were conducted with senior managers at Vista Processed Foods Pvt. the formats the customers prefer. reported and reviewed periodically for timely corrective actions. Also.locations customers want to reach. Method: For the purpose of this study. This distribution center and warehouse is on the outskirts of Mumbai. Looking at new ways of organising work and implementing changes in the organisational structure to improve performance should thus be seen as an important form of innovation. The insights given by them were very helpful for the research. along with our interviews with the employees of RFPL from various departments. the group which owns the McDonalds’ Brand. it has become a necessity for companies to continuously reinvent product and . PURPOSE To study the strategies of a company that has developed innovative techniques from the perspective of products/services or processes. which is the global consultant of Hardcastle Restaurants. the group visited the Main Distribution Center at Kalamboli. With highly competitive condition of today’s marketplace. customer’s product range and year round promotional cycles allow them to make sure that customer’s products are always available at a competitive price. The focus for innovation within companies is on product or technology development and cost saving.

.services.

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