GAMEPLAN Season 10

– Case Study

PRESENTED BY
NAVEEN THAKUR
ABHISHEK PRAKASH
Excellentia Name Role
Jon CEO
Stainless
Adriana VP – Sales
 Europe based stainless steel Malcolm VP – Manufacturing
manufacturing company
 Production capacity of 7.8 MTPA Paul VP – Production
 Product Mix: HR Sheets and HR
Planning & Control
Coils, HRAP sheets and HRAP
coils,CR Sheets and CR Coils
Ovidiu VP – Logistics
,CRAP Sheets and CRAP Coils ,
Slit Coils
Alexandra VP – Sourcing &
Procurement
Cristina VP – Finance
Company Assessment

 Revenue has dropped by 11% compared to

last year
 Fall in gross profit margin of 3%
indicating decrease in efficiency
 Asset turnover ratio is lower from the
industry average
 Lower inventory turnover ratio signifying
week sales or high inventory 
 Operating at 65-70% capacity utilization
 Challenges

Finance &
Sales Logistics Sourcing
manufacturing
• Order book position • High Receivables • Logistics costs going • Managing market and
skewed towards month • Shortfall in working over-budget operational risks
end capital • Skewed production • Fluctuation in the raw
• Delay in commercial • Sudden requests for orders material prices
clearance for domestic additional funds and • Finance team’s
orders over-budgeting stringent guidelines
• Finance team’s • Order book position
stringent guidelines skewed towards month
• Erratic price end
fluctuations associated
with Nickel
• High manufacturing
lead times
• Quality diversion
Key Issues

Issue Priority Impact

Sales skew (More orders at end of the month) High • High lead time
• Logistics costs over-budgeting
• Quality diversion
• Extra cost incurred at the end of the month

Nickel price fluctuations High • Over-budgeting

• Not able to meet demands
• No hedging strategy

High receivables Medium • Shortfall of working capital

• Effect on company operations

Budget Constraints Low • Lower sales

• Over-budgeting
 Solution

Increasing capacity
utilization

Nickel Price
Sales skew
Fluctuations

Explore other
Use fortnight Use hybrid of push markets for constant Using pull logistic
production method pull strategy supply and stable strategy
prices

Segregate loyal Explore markets Instead of

Sales rep should Order book to be Use actual demand Explore markets
customers and use with high supply of forecasting demand
not accept huge maintained on for production which can reduce
push strategy only nickel for better try using actual
contracts at the end fortnight basis rather than forecast lead time
for this segment pricing demand to order
of the month to for non regular
meet target quantities and keep
customers
an inventory
Recommendations

Using Hybrid logistic strategy for

demand estimation
• Use actual demand for production rather than
forecast for non regular customers
• Use forecasting estimates only for loyal
customers
• This strategy will remove sales skew as sales • Fixed Nickel prices can make pricing more
reps. Are not forced to push at the end of the
month
• Overbudgeting issues of logistics can be
minimized as production is more scattered
Strategy for Nickel price fluctuation
• Fixing price of Nickel through internal
budgeting and buying foreword contracts
(max up to 1 month) at that price
• Exploring other markets like SA and China to
ensure stable prices
transparent
• Stable prices can also help in decreasing lead
time for nickel accuisition
Thank You