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Submitted by:-
Group 6
Kunal Kumar Roy - 09927801
Shreyas Ganesh N - 09927808
Shrey Sharan - 09927826
Yask Khemka
Amulya Ratna Case Analysis: Bayer
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-
09927861
09927876
Arun Kumar KG - 09927884
Manoj Vimal Raj S -
Ashish Rijwani -
CropScience
09927887
09927909
Contents
Bayer Crop Science Ltd..............................................................................................3
Few Fast Facts:........................................................................................................3
Distribution & logistics Network..............................................................................3
Pesticide Market:.....................................................................................................4
Inventory:................................................................................................................4
Challenges for Bayer Crop Science.............................................................................4
Forecast Accuracy due to distortion in demand......................................................4
Supply Chain Structure:..............................................................................................5
Seasonality of Demand:.............................................................................................6
Restructuring strategies:............................................................................................6
Restructuring the flow in the chain:........................................................................6
Effects:....................................................................................................................7
This would help:...................................................................................................7
Finding the Correct Demand:...............................................................................7
Reducing the effects of Bullwhip:.........................................................................7
Advancing the Customer ordering point.....................................................................8
Postponement of Differentiation:............................................................................8
Advance Customer Entry Point:...............................................................................8
Analysis of Forecasted Sales Vs Actual Sales:............................................................9
National Level:........................................................................................................9
East Zone:...............................................................................................................9
West Zone:............................................................................................................10
North Zone:...........................................................................................................10
Conclusion:...............................................................................................................11
Conclusion:
Bayer Crop Science Ltd
Pesticide Market:
• Made of insecticide, herbicide & Fungicide
Inventory:
• The company employed FIFO (First-in-First-Out) rule
• Provision for tracking also existed for Aggregate and SKU basis
• The production takes place at only one region (Thane & Ankhleshwar); both
located in West.
Seasonality of Demand:
Restructuring strategies:
• One might argue that amount of food production is increasing but that can be
attributed to
• several other factors like increased irrigation facilities, better crops etc.
Effects:
This would help:
• Reduce average inventory at the Manufacturing centers as well as
warehouses.
• What Bayer crop science comes to know about is the demand at the Dealer
or the distributor level.
• Bayer should collaborate with companies which has rural retail presence
(IFFCO, Kribhco, ITC-e choupal etc). This will help them asses the demand at
the end user level and forecast better.
East Zone:
West Zone:
North Zone:
South Zone:
Conclusion:
The standard deviation for the forecast is more or less within the allowable range,
when we consider the data at national level. But on examining the trend at zonal
level, we can see that the standard deviation is very high in East and North Zone.
Additionally, the transfers within the zone and outside zone are higher in these
zones. Branch returns are also higher here. South and North zones have their
standard deviation within reasonable limits. This suggests that territory level
forecasting is the best suited method. Also, the reasons for the high variability in
East and North should be investigated. The underlying reason might be the policies
of marketing department of these zones.