Supply chain management

1. Presented By:
Sijin Pushkaran
S3 MBA
Roll No: 50
Cet school of management
Trivandrum
Mini Project on
Strategic fit of
Café Coffee Day

2. What is Café Coffee
Day?
?

3. • India's largest coffee conglomerate,
Amalgamated Bean Coffee Trading
Company Ltd
• Pioneer of the café culture and the first
to launch the ‘coffee bar’ concept in
India
• Average Footfalls: 200 per café per day

4. • Amalgamated bean coffee trading
company (ABCTC) is a Chikmagalur based
company which grows coffee in its own
estates of 12,000 acres (4249 hectares). It
is the largest producer of arabica beans in
Asia exporting to various countries
including USA, Europe and Japan.
• Café Coffee Day was started as a retail
restaurant arm of ABCTC in 1996.The first
CCD outlet was set up on July 11, 1996,
at Brigade road, Bangalore, Karnataka.

5. •The company is known for being vertical
integrated to cut costs: from owning the
plantations, growing the coffee, making
the coffee machines to making the
furniture for the outlets.
•As of September 2014, there are 1640
outlets across 29 states of India. Cafe
Coffee Day has also recently expanded
outside India with its outlets in Karachi,
Vienna, Dubai and Prague.

6. Café Coffee Day Network
of 1650 cafes across India
185 cafes
64 cafes
172 cafes
191 cafes

7. Hangs out at
cafes/malls
Looking for a good
lifestyle
Looking for a multiplicity of
experiences
Seeks 'feel-good factor' and
expression of identity
through choice of brands
consumed. But is also value
conscious
Likes to be seen at
the right placeSocially Active
Profiling the CCD’ian
Strong voice in
household purchases
Consumption areas: Personal
clothing & accessories, food,
entertainment, consumer
durables
Make consumption
related decisions in
company of friends
Tech Savvy
Influencers: Peer
group, workmates

8. STRATEGIC FIT

9. COMPETITIVE STRATEGY
•Responsive
Café coffee day has always emphasized
on providing quality products, which
consistently meet the needs of their
customers and ensure a value-added
relationship, ensuring total customer
satisfaction.

12. Café Beat
Café Beat reaches more than a million smart, receptive and upwardly mobile
youth of India every month. It is one of the most widely read YOUTH
magazines in the country and is a part of one of the largest Indian retail
youth brands - Café Coffee Day.
Music Cafés provide customers with the choice of playing their favorite
music tracks on the Digital Audio Jukeboxes installed at the café! There are
around 85 cafes with such jukeboxes. 32 cafes also provide customers with
the visual treat of watching their favorite music videos by means of Video
Jukeboxes.
Book Cafés offer the perfect solution to people who think that the coffee
experience is incomplete without browsing through the bestsellers or
reading a classic. CCD’s book corners accentuate the age-old combination of
‘coffee and books’.

13. SUPPLY CHAIN STRATEGY
•In order to provide quality products to the customers at an
affordable price , it mainly focused on cutting down its
operational costs. Premium products were hence made
available .
•Café coffee day gives the market what it wants, not what it
good at.

15. FACILITY
•Company went in for a decentralized
distribution strategy instead of a hub-and-
spoke model, and set up regional hubs in
Delhi, Mumbai and Kolkata. These cities
then linked to the towns in their
neighborhood.

16. INVENTORY
•Had their own coffee plantations spread
across 12,000 acres in chikmangalur.
•Had a single unit in chikmagalur with
70,000 tonnes per annum having the
capacity to maintain a high level of
inventory.

17. Steps to
inventory
management!
• Getting Smart about Inventory.
• Shortening the cash conversion cycle.
• Avoiding inventory shortage.
• Avoid excessive carrying costs for unused
inventory.
• Just In Time Management System (JIT).
• Boosting financial performance.

18. TRANSPORTATION
•Transportation costs are higher and hence
focus on cutting down on the
operational costs.
•Preferred mode of transportation is road
and export through air.
•From Bangalore to main hubs and
warehouses in trucks and then to retail
outlets in vans.

21. • Grows the coffee it serves in its
cafes
• The coffee beans are supplied to
all the cafés from Chikmagalur.
• The eatables at Café Coffee Day
are catered by different vendors:
example: ice creams are catered
by Cream Bell, Milk by Amul and
samosa’s by patsiers' gallery.
• Some of the stock is being
imported, which is stored in a
cold storage in Delhi.
SOURCING
•It is then, distributed to all the
dealers in different parts of the
country.
•Perishable products are supplied
on daily basis while others are
supplied weekly or monthly as per
the demand.
•A proper record is being made of
the inventory supplied.

23. • Web-based ordering
• Electronic order processing system cuts order to
delivery lead time.
• Online inventory tracking process operated with the
use of two supply chain modules: one at the café level
— called the POS (point of sales) module — and
another at the distribution centre level.
• Minimum Response Time
• Ordering and delivery earlier was self service and now
have waiters to take orders.
Information

24. SUGGESTIONS AND RECOMMENDATIONS
 The company is required to maintain safety stock for its
components in order to avoid stock-out conditions &
help in continuous production flow.
 To improve the interiors and décor.
 To have more and more tie-ups.
 Only 50 % or less than 50 % people find Café Coffee
Day quality of service, ambience, pricing and location to
be very good which proves that still Café Coffee Day
need to do lot of homework in order to satisfy its
customers.
 It should introduce a feedback form system in order to
know about the customers satisfaction level.
 Enhancing product visibility and accessibility.

25. A lot more can happen over coffee…