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Group6 SectionA MFFVL

Maharaja Fresh Fruits & Vegetables Ltd. exports fruits and vegetables to importers and wholesalers in the UK and Middle East. It faces high costs and bureaucracy due to its functional structure and lack of process owners. The company is evaluating options like an ERP system, merging supply chain and sales & marketing, and establishing a region-based network to improve efficiency and meet critical success factors of timely delivery, order quality, and cost. A new model is proposed with regional order intake, central planning, and performance metrics to drive organizational and individual accountability. Recommendations include designating process owners, forming cross-functional teams, improving quality standards, and collaborating with more certified farmers.

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AparnaSingh
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216 views

Group6 SectionA MFFVL

Maharaja Fresh Fruits & Vegetables Ltd. exports fruits and vegetables to importers and wholesalers in the UK and Middle East. It faces high costs and bureaucracy due to its functional structure and lack of process owners. The company is evaluating options like an ERP system, merging supply chain and sales & marketing, and establishing a region-based network to improve efficiency and meet critical success factors of timely delivery, order quality, and cost. A new model is proposed with regional order intake, central planning, and performance metrics to drive organizational and individual accountability. Recommendations include designating process owners, forming cross-functional teams, improving quality standards, and collaborating with more certified farmers.

Uploaded by

AparnaSingh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Maharaja Fresh Fruits &

Vegetables Ltd.
SECTION A , GROUP 6
H1 5 0 29, KR I S HNA A DI T YA G U N DI MEDA
H1 5 0 39, PA R UL S HA R MA
H1 5 0 42, P R I YA NK A VA S NA NI
H1 5 0 56, UTSAV KU M A R S I N GH

SITUATIONAL ANALYSIS
Strategy

Customers: Importers &


Wholesalers in UK &
Middle East

Competitors:
Unorganized Sector
Collaborators:
EurepGAP certified
farmers & Andhra
Government

Structure

To enhance profitability by having a focused


differentiation strategy, catering to fruits
and vegetable exports to foreign markets.

Functional
Hierarchical
Bureaucratic

System
Customer 1
Order 1

Outsourcing

Customer 2
Order 2

Order 1 + 2

Farmer 2

S&M
Exports

Farmer 3
SCM

Order 1

Farmer 1

Order 2

Total
Produce

PROBLEM STATEMENT
Farmer 1
Customer

SLA

MFFVL

Farmer 2

Farmer 3
High Margins (29.4%)
Contract
Costs include:
Transportation
Packaging
Contracts
High Operating Costs

1
2

3
High Bureaucratic costs
Extra time spent to track
orders

Unorganized Sector
Auction
Wholesaler
Shopkeeper
High Margins Quality
Costs include:
Transportation
Storage
Low Operating Costs

No Process Owners
No defined process
owners
SCM- a line-department
takes care of planning of
orders. (no central dept.)

Farmer 1
Farmer 2
Farmer 3

Sell at defined price

CRITICAL SUCCESS FACTORS


1 Timely Delivery

2 Total Order Quality


3 Operational Efficiency
4 Cost

Options and Evaluation


Decision Criteria

Initiative

Structure to build Efficiency

Suggested Options

Timely
Delivery

ERP System

Only if
successful

Merge SCM + S&M - Divide orders placed into items and distributed

Manage certainty in weather

Network to be followed

Manage orders from regions based on weather patterns


Region based Network ( Collecting orders + Supply chain Integration)

Functional Structure

Appraisal

Organisational Level
Individual Level

Order Operational
Quality Efficiency

Cost

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

Yes

Yes
Yes

Yes

New Model Proposed | Action Plan


Key Points:
Region wise Order intake +
Central planning department
Order Breakup at entry level
Trend analysis of weather
Performance at organisational
level to adhere to Time
Quality parameters as MBE at
individual level

Customer 1
Order 1

Outsourcing

Customer 2
Order 2
SCM + S&M
+ Support
Order 1
Item 1
Item 2

Order 2
Item 1
Item 2

Item1

Farmer 1

Item2

Farmer 2

Item3

Farmer 3

Total
Produce

RECOMMENDATIONS
Remove the bureaucracy from the structure and system by designating process owners for all parts of
supply chain | Centralized system
Merge different functions to make cross functional teams looking after specific geographies
Make quality teams product specific and geography specific for better quality standards
Try and add more farmers with certification and gradually backward integration by collaborating with
farmers

ADDITIONAL ISSUES
Introduction of food security bill -> subsidy when withdrawn and market open for outside competition
The people dealing with farmers take their side when it comes to quality of products
Seasonality of products and small product portfolio

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