This document outlines the operations management framework for Aibono. It discusses the 4 pillars of operations - quality, speed, cost, and flexibility. It also outlines the 4 key objectives of Aibono's operations as customer satisfaction, partner satisfaction, investor satisfaction, and employee satisfaction. The document then discusses linking corporate and sales strategies with operations planning and various inputs and outputs to the operations planning process.

1. Operations Management
Framework for AIBONO

2. 4 Pillar's of Aibono
Operations
Quality
- Setting Benchmarks for the Industry
- Consistency in the quality
Speed
- Seed to farm
- Farm to plate
Cost
- Low cost of operations
- Wastage Reduction
Flexibility
- Variety
- Dynamic volume
4 Key Objectives of
Aibono Operations
Customer Satisfaction
- Unparalleled service levels
- Value for money
Partner Satisfaction
- Farmers
- Vendors/Knowledge partners
Investor Satisfaction
- Return on investment
- Sustainable development
Employee Satisfaction
- Right work culture and environment
- Opportunities for growth and development

3. Linking Corporate Strategy/Sales
Strategy with Operations (S&OP)
Sales Strategy
What products?
When?
Where?
How many?
Seedling
production
Which Seedlings?
When?
How many?
Farming
Which plants?
When?
Where?
How many?
Transportation
Which mode of
transport?
Where?
When?
How many?
Storage
What type of
storage?
Where?
How much time?
How much
capacity?

4. Demand & Supply Challenges to be
addressed by S&OP
u Poor Coordination of Demand & Supply – Lost sales, Excess inventory of
perishable and Super perishable items.
u Wrong communication channels disrupting the operations
u Unreliable Data - Inability to arrive at right metrics and benchmarks
u System development issues- Wrong design of technological solutions
u Wrong budgeting and coordination with Finance
u Hurdles in change management to support innovations, new product lines.
u Ineffective utilization of resources

5. S&OP Key immediate benefits
u Forecast Error Reduction
u Inventory Optimization
u SKU Rationalization
u Service level increment
u Better work environment
u Operational flexibility

6. S&OP Inputs
u Market Intelligence
u Demand Forecast
u Actual sales Data
u Capacity of seedling production
u Capacity of Farming
u Seedling to produce Data
u New plants information
u New processes/process changes
u Workforce strength and skillsets
S&OP Outputs
u Sales Plan
u Farming Plan
u Seedling plan
u Inventory plan
u Backlog plan
u Purchasing plan
u Budgeting
u Workforce plan

7. Planning Components – Fixed
Expenses
Storage
- CC Numbers
- CC Capacity
- FC Numbers
- FC Capacity
- Processing machines
- Reefer units
- Storage racks & shelves
- Manpower
Logistics
- Attached Reefer Vehicles
- Attached Normal Vehicles
- Material handling
equipment.
- Transportation racks &
shelves
- Tracking and
communication devices
Germination
- Plant capacity
- Temperature, humidity
control mechanisms
- Germination trays
- Manpower
Farming
- IOT Devices at farm
- Farming support machineries

8. Planning Components – Variable
Expenses
Storage
- Labour
- Power Consumption
- Consumables
- On-call resources to
manage peak seasons.
- Shift management
- Waste management
Logistics
- On-call Reefer Vehicles
- On-call Normal Vehicles
- Loading/Unloading
- Detention/holding
charges
Germination
- Raw materials
- Consumables
- Power consumption
Farming
- Ad-Hoc labour expenses
- On-call machinery

9. Measurements
Service Metrics
- On time deliveries
- Fill rates
- Quality/Rejections
- Pricing of non-
commoditized items
- Customer complaints
/Escalations
Functional Metrics
- Farmer reliability
- Forecast Errors
- Logistics cost
- Primary/Secondary/scrap
sale ratios.
- Backorder expedite
efficiency
Financial Metrics
- ROI
- ROCE
- Asset utilization
- Cash to Cash Cycle

10. KPIs
u Inventory and product availability
- Stock-out %
- % of orders completed
- % back order
u Damage & Perishability
- Number of returns to Total orders
- Value of returns to Total sales
u WH, FC
- Min, Max, Avg time to process inbound
- Min, Max, Avg time to process outbound
- On time In-full rate
u Order Management
- Min, Max, Avg time to process order
entry
- % of order documents with errors

11. Customer Satisfaction
Customer Value Ratio
- Quality, time and flexibility against the selling price.
Relative Customer Order Response time
- Analyze the variance in response time across customers and product mix.
Customer perception of Flexibility and customizability
- A feedback based mechanism to measure the same
Number of customer contact points.
- This is required to ensure no miscommunications as well as faster issue resolutions

12. Process/IT Initiatives to smoothen operations
(Following a DMAIC process)
Define
- What is the business case
- Current state mapping
- Future state mapping
- Deliverables and due
date
Measure
- What are the key metrics
- Availability and reliability
of data
- Measuring Progress
- Measuring success
Analyze
- Improvement
opportunities
- Root causes and
opportunities
- Resource requirements
- Cost benefit Analysis
- Understanding Change
management involved
- Major obstacles in
implementation
Improve
- Splitting the project to
activities
- Implementing
Solutions/Project
Management
- Reintegration of sub
projects
Control
- Risk, Quality, Cost
- Changes to the plan
- Measure as per the
planned metrics and
identify changes.

13. Supply Chain Logistics Decision Matrix
Decision item Strategic Tactical Operational
Facility Location Engagement model, Control
matrix
Number, Size & Location of
WHs, FCs, Germination centers
Temporary resources
Inventories Location plans and service
level policies
Safety stock levels Re-order Levels
Purchases Strategic Procurement, Terms
and conditions
Vendor management,
contracts, forward buying
Expediting
Suppliers/Field teams
Order Management System design for order entry
and order management
Back-order
Management
Transportation Mode selection,
Engagement model
Contracts, Service level
agreements.
Network, Route
Optimization
Customer Support Setting the escalation matrix
and process
Setting Priority Rules and
conditions
Expediting deliveries

14. Returns & Wastage Management of
Super Perishables
u Assess issues with reverse logistics.
u Investigate product failure
u Knowledge, know-how capture
u Assess cost of reverse management against value
u Introduce policies, standards and guidelines
u Implement systems and pricing algorithms.
u Ensure proper disposal with local body guidelines.

15. Vendor (Farmer) Management
u Setting the right Farmer onboarding criteria
u Turning the relationship to strategic
u Involving the right personnel from both teams
u Assessing the relationship with existing farmers
u Focus on areas of disagreement
u Supplement existing metrices to evaluate progress
u Complete handhold on technical assistance
u Engage ethical business practices

16. Quick Observations from FC visit
u Shift management
u Uniforms/Protective gears (Masks, gloves, footwear)
u SKU coding in product stickers
u Perishability information in stickers (based on batch/date management)
u Calibration frequency of weighing machines
u Manual handling of GRN and documents.
u Measure the distribution of temperature & Humidity and prepare storage
zones based on the product characteristics.

17. Further Points to Explore
u Packaging Technology & Development.
u Forecasting techniques and tools.
u Knowledge Management
u Lean initiatives
u Forward/backward integrations/segregations
u Organizational structure for better management
u National / International level expansions
u Hiring/grooming strategies