Situation A leading Retail Chain in South India in the Food & near Food categories wanted to build two Distribution Centers (DCs) at strategic locations in Bangalore & Chennai. They approached RK Foodland to provide services which would allow them to design and build these two DCs which will support their future business plans by enabling operational efficiency. Correct space planning coupled with proper storage and material handling solution was key to this assignment. The assignment included a study of business plans and SKU details, arriving at DC space requirement and phasing plan. Solutions Strategy Foodland took a systematic approach towards the project by first conducting detailed discussion to understand the retail business model. This was followed by collecting critical information on SKU profile, order profile, inventory norms, delivery model, proposed ERP system, future expansion plans etc. This critical information was then used to design DC space requirements, storage and handling systems, docking systems and material handling systems. The DC design concept was then further refined to suit site constraints at Bangalore and Chennai. Consequently, a detailed drawing, project management during actual DC construction phase, vendor development and order management followed. Final stage of the assignment included assistance in recruitment, closure of contracts, and handover protocols with regular schedule monitoring. Results
With the advent of 2022, we are all gearing up for changes, as individuals and as organizations. Reformed environmental standards for all industries, COVID-19 management, and the rise of enhanced technologies capable of bolstering supply chains are among the few revolutions we can expect.While many food supply chain experts are contemplating what they want to bring to the new year and what they’re ready to leave behind, here are ten resolutions to assist food brands in developing the supply chains of the future. 1. Plan and Play Smart The pandemic showed us the fragility of the supply chains. Food brands reinvented their business models and went online to serve their customers. They had to find a way that required to address the fluctuations in demand and supply. Supply chains need real-time visibility to plan scenarios, optimize inventories, be pro-active to change and to make decisions. 55.73% of supply chain professionals are willing to invest in production planning and demand forecasting according to research by finance online in 2021. Integrated Demand Planning ensures real-time supply chain planning from sales and operations planning to forecast, demand response. 2. Invest in Employee Safety Workplace health and safety policies help firms grow by retaining productive and qualified employees. It also provides a contingency plan for workforce assurance that can otherwise cause supply chain disruptions. Every organization must prioritize its people in order to maintain consistent growth. According to data provided by the Occupational Safety and Health Administration, employers who establish employee safety programs are able to reduce costs related to injury and workplace illness costs by 20 to 40 percent. The key to ensuring worker safety is to minimize hazards and providing an environment that places high importance to healthy practices and enabling employees to easily avail medical facilities. 3. Gain visibility to strengthen the value chain According to a survey covered by finance online, 40.02% of supply chain professionals want to invest in real-time supply chain visibility. Having visibility across the entire supply chain helps businesses to understand and convey information seamlessly both internally and externally. To achieve 360-degree real-time visibility, extended communication and collaboration network between departments, third-party providers and manufacturers can help firms improve process transparency, make quick decisions, and increase customer satisfaction. Collaboration is the key to strengthen supply chain visibility. 4. Contribute towards a sustainable world Businesses have acknowledged the value of environmentally friendly ecosystems. This means designing biodegradable products and packaging, sourcing resources responsibly from social and humanitarian groups, ensuring minimal waste and environmental impact, reducing mileage, emissions, and carbon footprint through logistics along with operating assets and equipment in an environmentally and worker-friendly manner. Sustainability necessitates cross-partner collaboration and strong visibility. To keep up with the changes, firms need a sustainable partner that can collaborate in building this ecosystem across the supply chain. 5. Introduce automation to the supply chain The food supply chain generates a lot of data that can be used to improve operations and the customer experience. AI is designed to handle complicated processes quickly, such as inventory and route. With AI projecting future demand, food brands can better match demand with capacity, lowering the cost of shortages and overages. Machine Learning can improve demand planning by increasing forecast accuracy. This will help Food brands optimize inventories and minimize safety stock, increasing cash flow.
The success or failure of a company depends on its business partnerships which include the relationships with its supply chain. The supply chain is a lifeline to the food industry that keeps the businesses up and running. Whenever the food industry faces unprecedented disruptions like COVID-19 or natural disasters like floods, a strong supply chain relationship will prevent a food business from the chaotic obstacles of setting things right by itself. A long-term strategic partnership with a 3PL company helps sort out key issues, including food safety, food product quality, sustainability, new market opportunities, technical information and assistance, and environmental responsibilities. Read on to know why foodservice operators, like Quick Service Restaurants (QSRs), cafes, and cloud kitchens, must prioritize creating a lasting relationship with their supply chain partner and how to achieve it. Factors influencing a strong relationship between a 3PL company and the food industry The supply chain relationship is the backbone of food supply chains. Several factors influence the bond between 3PL companies and foodservice operators, including those mentioned below: Benefits of long-term supply chain partnership According to the University of Tennessee research, a long-term supply chain partnership proves to be highly beneficial even during an economic slowdown. It also opens up new markets and helps in business growth, and a list of other advantages. Check out some of the prominent benefits of having an enduring supply chain partnership. Reduced costs As in any other domain, the food industry looks to reduce costs in every possible way to provide finished products at a fair price to its customers and maintain profitability. A mutually beneficial relationship with a 3PL company can assure the food service operators of an overall low operational cost through wholesale procurement of goods, low wastage due to well-maintained warehouse and inventories, and efficient logistics services. Collaborating with a 3PL partner in the long term helps identify and eliminate processes that incur high costs but provide no value to the company. Efficiency and Optimized processes The HORECA businesses, including Quick Service Restaurants, cloud kitchens, cafes, and FMCG companies, have focused for long only on customer relationships. But now, it has become imperative for these companies to acknowledge the importance of nurturing a healthy supply chain relationship that enables efficiency and optimization of the existing procurement, storage, and logistics processes. It also brings positive outcomes like increased responsiveness to market changes, high ROI, reduced order fulfillment time, and high market share. Reduced waste and increased food safety About 4.5 trillion tonnes of food is produced every year, which is twice as much required to satisfy the world’s food needs, yet millions are left to starve and be malnourished. Hence reducing food wastage and optimizing the food supply chains is one of the most important goals for food-related industries. Foodservice operators are looking to minimize food loss and maintain quality through Food Grade 3PL partners. By developing a mutually beneficial relationship with a 3PL company, food wastage can be drastically reduced at each stage in the supply chain, and the safety of the food products can be maintained at optimal levels. Conclusion Food service operators or HORECA businesses are better equipped to handle disruptions by maintaining a trustworthy supply chain partnership. Choosing a suitable 3PL partner, aligning the mutual objectives and strategies, and analyzing the Key Performance Indicators (KPIs) will allow the companies to face unforeseen obstacles effortlessly. It is high time these businesses begin to nurture a mutually beneficial partnership with 3PL companies to witness positive results in their business growth. RK Foodland is India’s leading supply chain management company with over three decades of rich expertise. We understand your business goals, identify gaps in your existing supply chain, and build strategic partnerships.
Situation Stores were delivered Frozen, Chilled and Dry goods in separate vehicles. This resulted in higher transportation cost, more manpower in loading/ unloading/ delivery, and inconvenience to McDonald’s stores which were receiving multiple deliveries and multiple documents. There was a need for a supply chain solutions system through which all the three types of goods i.e. Frozen / Chilled / Dry could be delivered together at a time, without compromising on the integrity of the food product. Solutions Strategy Against the conventional single temperature trucks, need of a truck carrying multiple temperature products was felt. To make it happen, the following was done: Results
Situation Assistant Sales Managers (ASM) and the Distributors placed order with the CFA as and when required. Once the order is placed, the status is available on the order w.r.t. the date and time when the delivery will reach and the fill rate / quantity received, was known only when the delivery reached the customer. This affected further commitments from Distributors to the retailers and impacted subsequent orders. Since the retail purchase of the products, is driven by impulse, absence of product in the shelf means loss of sales. They needed a system wherein the status of order with respect to delivery and SKU level quantity is tracked. Solutions Strategy The need was felt for information travel, faster than the product travel. Though the whole system worked on SAP, manual intervention was required with respect to information recorded outside SAP. Following steps were taken to keep complete visibility with Sales Team w.r.t. to the order placement to dispatch and delivery status: Results
Situation There are multiple warehouses (Distribution Centers) located in India and there exist common suppliers for each product. Also, these suppliers are located across the country. Warehouses order as per their requirement. Since the per trip loads are not enough to send a dedicated truck from supplier to each warehouse, receiving on-time deliveries and food safety of the products was a challenge. This had affected inventory holding in warehouses leading to higher inventory carrying cost, high inventory days, threat of stock-out situation and in-transit damages, safety of food items in transit and higher inbound cost. The need to transport products in a cost effective manner and ensure on-time availability without compromising on the integrity of the food products, was identified. Solutions Strategy Ensure consolidation of stock at the nearest warehouse and move full truck-loads. To make it happen following steps were taken: Results
https://youtu.be/Aport31dmlM Food Supply Chain Leadership Forum’ is an initiative by Radhakrishna Foodland aimed at creating an exclusive engagement platform for food service and food brands operating across categories and channels in the Indian food supply chain ecosystem. The theme for this event is ‘Growth Imperatives for Young Food Brands’. Join us for some interesting and enlightening discussions around:• Building and scaling a food brand – experiences from a QSR startup and a young plant-based protein brand• What are their top supply chain pain points and possible solutions?• How leading brands have organized their supply chains to accelerate growth? Igniting these conversations will be our esteemed guests:• Mr. Sachid Madan (Ex-CEO – ITC Frozen Foods) – Industry veteran and mentor to food brands across growth maturity• Mr. Rajat Bawa (Co-Founder – Burgrill) – Young start-up creating a strong presence in fast growing QSR segment• Mr. Gaurav Sharma (Co-Founder – Greenest Foods) – Building plant-based food portfolio for retail and food service• Mr. Deepak Soni (Chief Growth Officer – RK Foodland) – Enabling supply chain outcomes for food and food service brands
The demand-driven supply chain, or demand-driven supply network, is a combination of technology and processes that detect and respond to real-time demand across a network of consumers, suppliers, and employees. This has been significantly enabled by the increased use of new technologies brought about by the Internet of Things (IoT). While traditional supply chain inventories and services are provided based on forecasted demand and historical sales patterns; in a demand-driven supply chain, the companies that comprise the supply chain collaborate to shape market demand by sharing and collaborating information, thereby avoiding time lags in information flow and avoiding the bullwhip effect across the supply chain. A demand-driven supply chain is one that is focused on the demand generated by consumer data and feeds this data to the supply base, hence increasing inventory availability through a demand-pull strategy. The DDSC planning process is driven by customer needs. It implements a tactic known as ‘demand-pull.’ This helps the market to work more effectively with other supply chain players by sharing new information. Below are five key anchors to a demand-driven supply chain: Anchor 1: Evolving Consumer Demand in India Today’s customer environment is more dynamic than ever before. Technology innovations driving substantial shifts in customer behavior challenge organizations across the food service industry. The supply chain of yesterday was linear, sequential, and static. It is now dynamic, multi-directional, and evolving. To achieve their goals, supply chain leaders must make decisions quickly enough to keep up with the market. In this continuously changing market, planning teams need to refocus their efforts on the unique demands of individual customers. Food trends are influencing traditional Indian cuisines. To appeal to health-conscious consumers, food manufacturers have altered their menus to include healthful options. Some restaurants now serve nutritious meals, plant-based meat, and organic food. Internet and smartphone usage will raise the demand for specialized foods. Web-based ordering and the usage of AI and IoT in order are altering the market. These advancements have revolutionized home delivery by bringing food to the consumer’s door faster. According to Research and Markets, the Indian online food delivery industry is expected to reach US$ 21.41 billion by 2026, up from US$ 4.66 billion in 2020. This changing landscape, along with forthcoming trends and India’s growth trajectory, is propelling the foodservices business forward. This growth rate is projected to continue, driven by consumers and foodservices businesses. By being able to quickly identify shifting consumer sentiments and how demand might respond, food brands can increase profitability, lead time, and margins. So, in this continuously changing industry, professionals can refocus their efforts on the unique demands of individual customers in order to scale across the country. Anchor 2: Decision-Driven Integrated Planning To compete in a rising market and maintain business processes, companies must connect their supply chain planning in an integrated manner from start to finish. Traditionally, organizations have relied solely on past data, limiting their ability to adapt to future disturbances. Finally, food manufacturers can manage their supply chains holistically, with real-time insight across the network. Integrated planning enables a dynamic, collaborative S&OP process to sense and drive demand. By utilizing the rolling forecasts feature within the value chain, food brands can predict demand two months in advance and can accordingly prepare and plan for it. Anticipating consumer desires, when they desire it, and where they desire it can be difficult for many firms. Gaining end-to-end visibility across the supply chain enables food brands to detect customer demand signals. To aid demand planners in planning more quickly, accurately, and precisely, predictive planning based on statistical functions might be beneficial. This is accomplished by analyzing historical data and forecasting future demand, providing the planner with a variety of statistical methodologies from which to pick. Anchor 3: Supplier Relationship Management More complex supply chains necessitate precise, measurable techniques to evaluate each provider. Supplier Relationship Management (SRM) helps determine how suppliers contribute to or detract from a company. SRM aims to increase efficiencies and value for all stakeholders. It identifies essential suppliers and lays the groundwork for buyer-supplier engagement. Finding suppliers who share the same goals as food brands might result in improved overall efficiency. Suppliers will better grasp business requirements with open and effective communication. This knowledge helps avoid supply chain delays and makes debugging difficulties easier. SRM aims to increase a company’s value and profitability. SRM can improve supply chain performance, reduce wholesale prices, and increase efficiencies. It can also assist reduce risk, improving administrative and onboarding efficiency. To compete in the marketplace, the entire supply chain operations process needs to focus on improvements that needs be measured by key performance indicators like SIFOT. Supplier in full and on time – SIFOT is fundamental in running a supply chain effectively. It allows food brands to gauge the performance of a supplier by understanding what percentage of their supplier deliveries are being delivered in full. Anchor 4: Enhanced Supply Chain Execution Supply chain execution is the daily implementation of the supply chain plan. It comprises managing inventory levels, taking orders, planning and executing work orders, picking and packing orders, and scheduling shipments. Execution may also include revising the strategy to address changing demand or a supply chain challenges. Efficient supply chain execution ensures order fulfilment and increases customer satisfaction. It also helps businesses gain a competitive advantage by attracting new customers and increasing revenue. Complexity increases when it comes to food brands and their challenges. A production strategy is developed in conjunction with supply chain execution but supply chain professionals must act quickly. To pull it off in a timely manner for order fulfilment, companies need to employ technology like warehouse management, transportation management, planning and forecasting, supplier management, order management, and more to help them make better decisions. Anchor 5: Supply Chain Visibility Supply and demand changes require companies to obtain visibility into this complicated network of customers, suppliers, and logistics providers. Enhanced supply chain visibility is critical in a demand-driven supply chain. Companies require visibility from the supplier dock to the customer door to know what is going on and...
One of the fastest-growing sectors in India and the world is the QSR sector. In the years 2021-2025, the Indian market for Quick Service Restaurants (QSR) is expected to develop at a CAGR of over 18%, according to a report by Research and Markets. Multiple causes, including urbanisation, food delivery service expansion, the rise of working professionals and millennials alike, and an increase in disposable income, are fuelling a boom in the fast-food industry. As a result, this is the most competitive restaurant-style due to the large a number of new entries and aspirations. The QSRs also face a variety of issues in their business. External factors like food inflation and agriculture reliance on the monsoon affect the business. Demonetisation also had a negative impact on the firm, resulting in lower revenues. The Indian market is very fragmented. Several local firms compete with larger international firms. This reduces system standardisation and increases dietary variability. So, the buyer demands more choice everywhere. The businesses sell the same cuisine at varying prices. This reduces client loyalty. Then there are internal business concerns like supply chain, logistics, and warehousing. Training of manpower is vital; it is a major concern due to the high attrition rate in this industry. Inefficient employees produce system inefficiencies. If the company is well-known, then this sector requires greater attention. The supply chain is critical to a QSR’s success. A better supply chain means more value for the company. But the QSR supply chain in India is highly fragmented which means there are many middlemen involved leading to wastage of resources. The supply chain is becoming increasingly important in today’s competitive QSR industry. To compete effectively, QSR brands try to establish formidable supply chains. Traceability Nowadays, many consumers demand traceability, wondering exactly where all products and ingredients come from. Having trustworthy data on food goods throughout the supply chain is crucial now more than ever. Every step of the food supply chain should be tracked and communicated to ensure quality, product integrity, brand integrity, and consumer loyalty. Lack of transparency and traceability in the supply chain can expose it to undue risk given the fact India witnesses nearly 5-15 % (About USD13 Bn in value) wastage in fruits and vegetables annually. It can harm a QSR brand’s reputation, resulting in lower sales and profits. It can also cause legal issues that delay product launches. Traditional monitoring mechanisms and human inspections are often to blame for food supply chain traceability. A communication breakdown occurs owing to errors and omissions. In the event of contamination, traceability may allow for targeted recalls. Transparency, traceability, and trust in the food industry have long proven difficult. The supply chain data can give producers, suppliers, distributors, retailers, and consumers with trustworthy product and ingredient origin information. Inventory visibility is improved and stock-outs are avoided, which is critical when giving limited-time promotions. Managers can take action if a QSR store uses too much of a limited ingredient. It also helps with internal shrink and inventory loss statistics. Temperature-Controlled Supply Chain Fresh, frozen food is becoming an essential menu item for many QSRs. Temperature changes can affect the shelf life, flavour, and sensory experience of refrigerated foods. With a well-constructed temperature-controlled supply chain, QSR businesses may improve their ability to maintain product quality and reduce losses. Through real-time monitoring and historical analytics of the cold supply chain, including crucial environmental factors for products, a temperature-controlled supply chain assists QSR companies in reducing spoiling costs. A well-maintained cold chain leads to enhanced product quality, safer delivery, and predictive maintenance. Having a well-designed temperature-controlled supply chain enables the QSR industry to quickly identify and address temperature and humidity issues in the cold chain—before they escalate into larger problems. By partnering with a third-party supply chain specialist who specializes in cold chain management, QSR brands can monitor and manage the cold supply chain more effectively in real-time, distribute products more safely and efficiently, improve delivery quality while decreasing costs, and increase customer satisfaction. Data-driven Forecasting With technological improvements enhancing the supply chain, QSRs can invest in solutions that bolster supply chain activities such as demand forecasting. A data-driven forecast generates demand predictions based on historical data, economic trends, and market analysis, allowing for more efficient inventory planning and the avoidance of losses. A data-driven demand estimate might mean the difference between profit and loss for a quick-service restaurant brand. Accurate forecasting that takes events, promotions, and other sales-related aspects into consideration is critical to avoiding losses, especially for QSRs that operate on razor-thin margins. With precise projections, operators at a quick-service restaurant (QSR) can generate data-driven predictive orders, which are critical for inventory management. An accurate forecasting system reduces capital retained on a restaurant shelf, improves bargaining positions with suppliers, allows for space reduction or reallocation inside a restaurant, and reduces waste. Supply chain professionals with excellent technological skills can help QSRs by predicting labour, ordering, and production needs. This estimate is based on POS transaction data and a complex algorithm that considers seasonality, events, promotions, and other factors. With new technologies, operators can adjust projections to account for both positive and negative consequences, such as increased sales activity due to neighbouring sports events, boosting forecast accuracy. Inventory Management Technological advances in inventory management systems provide better food tracking. With efficient inventory management, QSR businesses may improve food safety and reduce health hazards. Accelerate the placing of food products on shelves, ensuring that they are still fresh for customers, and optimise transit and packing methods to save money. Inventory management systems can also connect to the QSR supply chain for real-time product information. In the event of a problem, they may track specific shipments. A large amount of data is being shared, which can shed light on safety, delivery, and overstock concerns. Finding the correct inventory management technology can also assist QSR brands in more successfully balancing their supply. If they have a surplus of inventory, they run the danger of it going bad and being thrown away. However, if...
Companies and supply chain partners can create a highly competitive environment, by working closely together. The selection of the right partner is crucial as changing providers are cumbersome, costly and requires significant effort and can lead to costly inefficiencies. But how does one identify that the SCM partners are capable of such collaborations and possess the horsepower needed to push the organization forward? The choice is routinely based on factors such as cost, volume, and location, but assessing supply chain partnership performance is gaining strategic importance. 1. How is the operational performance of the SCM partner? SCM partners must have proper demand, sourcing and procurement, production, and logistics process management. Supply chain partners must be evaluated on the supply chain KPIs. “On time In Full (OTIF)” deliveries help to measure the efficiency and accuracy of delivery or logistics in the supply chain. It facilitates better collaboration with customers, ensures reliability of delivery and gain customer loyalty. The “Order fill rates” determines how one is managing the inventory levels efficiently to avoid stock-outs. Line item fill rates (LIFR) and inventory days are other essential indicators of how well the business can meet customer demands. 2. How is their technological competence? Higher technical Competence is crucial while looking for right SCM partners for continuous improvements, network optimization, demand and supply efficiency, flow of information, visibility, and data-driven analysis. For instance, a leading retailer adopted high-tech consolidation centers that utilized automated technology to enable increased volume and improve on-time-in-full delivery performance. With world-class logistic technology, the facility plans to be the most efficient consolidation center in the retailer’s supply chain. Partnering with Supply chain players with concrete IT infrastructure enables companies to gain an edge in the market and increase performance efficiency. 3. Do they provide integrated end-to-end services? An integrated framework is essential to tie the whole network together to reduce perennial supply chain challenges such as functional silos, poor transparency of knowledge and information and the inadequate formation of relationships. Supply chain partners providing Integrated services creates value through end-to-end supply chain solutions rather than a collection of functions which operate separately. 4. Do they foster innovation? Like all parts of business, new technologies, new processes, and new ways of thinking will make SCM partners stronger, more efficient, and more powerful. When supply chain partners are attuned in this way, they are much more effective at discovering and applying innovations that enhance competitiveness. The right supply chain partner must breed innovation right from streamlining processes, identifying new opportunities, and creating better ways to accomplish tasks for better partnerships. An e-commerce giant announced that the company was developing a drone-based delivery system that would be delivering products in locations within 10 miles of its distribution centers within just 30 minutes or less and would self-destruct during flight, if required, to keep people safe. The firm is doing everything possible to leverage latest supply chain innovations to maintain its place as the clear market leader. 5. How strong is their learning dimension? It is essential to choose supply chain partners who are adaptable and compatible in every aspect of business. Exploration, assimilation, and learning will assure a smooth functioning supply chain. Selecting partners with the ability and willingness to learn, and who want to create synergies will have a positive impact on performance measures and being a more market‐focused supply chain. 6. What are their organization values, culture, and strategies? How compatible the two organizations are in terms of fair dealing norms such as transparency in sharing production and scheduling data, flexibility, mutuality, or openness, can definitively help working relationships to endure. It helps to tightly align with the business strategy, making decisions that will accelerate growth and performance. It is essential that SCM partners understand the values, cultures, and strategies of companies for long term relationships. With over 30 years of experience, we at Radhakrishna Foodland possess a range of procurement and supply chain solutions to help enterprises in achieving their business objectives. Through our end-to-end supply chain services, we help companies to optimize their core expertise associated with the development of the products and create value for themselves, their vendors, and their end customers. Our Integrated Information Systems provide customized and design specific requirements to our customers and cater to every retail needs. We constantly innovate our solutions for better adapting to the ever-changing ecosystem we operate in and enhance customer satisfaction. Our data driven, software-based demand planning, forecasting and order management solutions offer a standardized platform to centrally consolidate all supply chain operations. Our results and solution-based attitude empowers our customers to swiftly improve their top & bottom line and establish a footprint in high consumption locations in India.