Eastern Condiments is a three-part case focused on the challenge of distributing spices in Southern India from 2008-2012. Case (A) describes the strategy and tactics that enabled Eastern Condiments to swiftly dominate the local market in Kerala by 2008, yet had poor results in the adjoining state of Karnataka in 2009-2012. Case (B) describes the new strategy to revive business in Karnataka and its consequences. When the market in Kerala starts to stagnate, it also has to revise strategy in its home market.
Eastern Condiments is a three-part case focused on the challenge of distributing spices in Southern India from 2008-2012. Case (A) describes the strategy and tactics that enabled Eastern Condiments to swiftly dominate the local market in Kerala by 2008, yet had poor results in the adjoining state of Karnataka in 2009-2012. Case (B) describes the new strategy to revive business in Karnataka and its consequences. When the market in Kerala starts to stagnate, it also has to revise strategy in its home market.
Eastern Condiments is a three-part case focused on the challenge of distributing spices in Southern India from 2008-2012. Case (A) describes the strategy and tactics that enabled Eastern Condiments to swiftly dominate the local market in Kerala by 2008, yet had poor results in the adjoining state of Karnataka in 2009-2012. Case (B) describes the new strategy to revive business in Karnataka and its consequences. When the market in Kerala starts to stagnate, it also has to revise strategy in its home market.
APL (Australian Pork Limited) is a not-for-profit company focused on securing a profitable future for the Australian Pork Industry through R&D and export development. The case describes the March 2000 introduction of Airpork chilled Australian pork that is air-freighted into Singapore daily, following the outbreak of the Nipah virus and foot-and-mouth disease in neighboring Malaysia (which supplied most of Singapore's pork requirements). The timing of the case is a year after the launch of the product. The top management are involved in rationalizing the performance of Airpork over the year and developing its future strategy.
This is an MIT Sloan Management Review article. Tremendous variability in orders along the supply chain can plague companies trying to eliminate excess inventory, forecast product demand, and simply make their supply chain more efficient. What causes the bullwhip effect that distorts information as it is transmitted up the chain? The authors identify four major causes: Demand forecast updating, order batching, price fluctuation, and rationing and shortage gaming. The authors suggest several ways in which companies can counteract the bullwhip effect. First, avoid multiple demand forecast updates. Companies can make demand data from downstream available upstream. Or they can bypass the downstream site by selling directly to the consumer. Also, they can improve operational efficiency to reduce highly variable demand and long resupply lead times. Second, break order batches. Companies can use electronic data interchange to reduce the cost of placing orders and place orders more frequently. And they can ship assortments of products in a truckload to counter high transportation costs or use third-party logistics companies to handle shipping. Third, stabilize prices. Manufacturers can reduce the frequency and level of wholesale price discounting to prevent customers from stockpiling. They can also use activity-based costing systems to recognize when companies are buying in bulk. Finally, eliminate gaming in shortage situations. In shortages, suppliers can allocate product based on past sales records rather than on orders, so customers don't exaggerate their orders. They can also eliminate their generous return policies, making it less likely for retailers to cancel orders.