Pretzels Supply Chain Case Study

Today’s consumers demand higher quality, variety of products and services for less cost, time and complexity. As a result, FMCG Manufacturers and retailers across the world have recognized that they can no longer afford to operate their businesses in the ‘traditional’ way and actions need to be taken to re-evaluate their strategic direction. Meeting the multichannel consumer’s increasing expectations for speed and convenience is forcing many FMCG players to revamp obsolete supply chains designed for a single-channel world.

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BUSINESS NEED

BUSINESS CHALLENGES

• A European food major has seen a market opportunity in India for Pretzels

(type of baked bread product made from dough most commonly shaped into a twisty knot).

• With more Indians experimenting

• They expect NITIE Graduates to design the Supply Chain strategy model for the production of the new proposed launch of Pretzels.

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Today’s FMCG companies are contending with increasingly difficult external forces, essentially driven by a population of sophisticated consumers demanding ‘more for less’.

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• They would like people to take part in celebrations for a fun loving snack and even more so when they can snag a pretzel for a bargain -- or for free.

• By offering limited-time offers like a free soft pretzel on National Pretzel Day (April 26), it is planning to entice customers to its kiosk or store, generating traffic, inviting feedback and sales of pretzels while boosting visibility of its brand.

The company is planning to position the product to Tier-1 population of Indian Subcontinent.

• As per survey consumers have varied tastes; some prefer it Salty and some to be sweet. Company plans to launch nontraditional flavors such as Regular, honey mustard & onion, Sea Salt and

There is still an uncertainty of the volumes since the response from the Indian consumer is much unknown for Pretzels.

Design the operations strategy and end to end supply chain strategy for this organization keeping below points into consideration:-

2-4% and therefore have a very long shelf life of 6-8 months.

The company has forecasted to produce 1000 tons of pretzels as their exit numbers for FY2016

CGN Global – Confidential

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BACKGROUND

Pretzels are a snack food, which have unique shapes and a hard, shiny outer surface. They are mass produced using primarily automated machinery. First developed in the seventh century, pretzels have been called one of the world’s oldest snack foods. The pretzel market has grown in recent years because pretzels are considered a healthier, fat-free snack.

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1. Cost-Effective procurement of raw material and packaging material

2. Manufacturing Strategy-

a. Placement of right manufacturing facilities to meet the availability of Pretzels- pans India.

b. Capacity and facilities (size, timings, location

3. Demand Planning & Supply management

4. Inventory