Decision sheet

CASE 5 - STATE CIVIL SUPPLIES

2227524- 1MBA H
HARISH KUMAR M
V1 02042022

MISSION VISION CORE VALUES

CHRIST is a nurturing ground for an individual’s Excellence and Service Faith in God | Moral Uprightness
holistic development to make effective contribution to Love of Fellow Beings
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Deemed to be University

Problem
• Poonam Shah, the main character and a senior Indian administrative service officer
working for Madhya Pradesh State Civil Supplies Corporation Limited (MPSCSCL),
tried to figure out how she could efficiently meet the needs of the fair pricing shops
and the proper distribution of food grain to various routes. The company was dealing
with various problems related to
• ● Cost
• ● Logistics
• ● Optimization of products
• ● Supply and demand mismatch

Excellence and Service

 CHRIST
Deemed to be University

Options
● Poonam Shah thought of starting a trial programme while creating a block diagram of the state's
present distribution system.In two steps, she decided to change the way that grains are
distributed for food.Lowering the cost of transporting wheat between the points of purchase and
the points of issuanceIssues with fair-priced stores are present.
● The following actions may be taken by the firm to assist mitigate the loss from the procurement
centres and issuance centres in order to execute the first choice for the corporation to minimise
the cost of transportation of wheat.

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 CHRIST
Deemed to be University

● System of transportation that is appropriate: It was discovered that the company

was spending a staggering Rs. 12 million on the distribution of wheat, which
required transportation from centres of procurement to centres of distribution.
The company lacked appropriate transport management benchmarks and
processes.The transportation department's transportation expenses increased
mostly as a result of incorrect route allocation. The cost of carrying varied
significantly along different routes as a result of poor route management. The
business did not set up any transportation planning or management systems.
Different routes have varying costs depending on the distance and associated
risks.
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Deemed to be University

● Better Quality Control: When the corporation transported goods from distribution
and procurement centres, it did not exercise effective quality control. Due to this,
the company's transportation service experienced a delay caused by quality
inspection. Since the demand needed to be met, the cost of routes to the
destination was very high. As a result, a good quality control setup would help the
company minimise the time for quality inspection and would enable it to arrive
on time.

Excellence and Service

 CHRIST
Deemed to be University

Analysis
● According to information concerning the Madhya Pradesh State Civil Supplies
Corporation Limited (MPSCSCL), its personnel were a major source of concern.
At the time of its creation, the company employed about 1,300 people in total.
Less than 900 workers remained. However, the firm had a relatively low level of
technological adoption, and the workload had increased by a factor of
five.Officers and staff lacked the motivation to work longer hours to achieve the
corporation's goals.The awards given to them likewise didn't satisfy them.

Excellence and Service

 CHRIST
Deemed to be University

Analysis
● The company's working capital is quite limited. It had a spending cap of 20
million.5 Thus, bank financing were necessary for the MPSCSCL. In addition,
the government did not provide loans to the company; just reimbursements. Since
the company borrowed money from banks, interest had to be paid on the loans. It
borrowed roughly $200 billion each year at an interest rate of about 10%, with
the interest portion coming to about $20 billion. The company had to ask the
government for repayment, and even a minor delay may result in exorbitant
interest rates.

Excellence and Service

 CHRIST
Deemed to be University

Decision
● The following areas for development should be prioritized by the business in order to
provide Poonam Shah at the Madhya Pradesh State Civil Supplies Corporation Limited with
improved answers to her issues (MPSCSCL)A competent management group for the
transportation industry.
● Better quality assurance procedures.
● An accurate study of the supply and demand for commodities.
● A better logistical division for the best product supply or stock of commodities.
● A company that values its employees and encourages innovation and technology adoption

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