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Operations Case Study
Operations Case Study
impact DairyDelight's market standing in Jaipur. The challenges are two-fold: a noticeable shift
among consumers and businesses towards rival brands like Saras, coupled with a growing
preference for local dairy producers due to DairyDelight's extended lead times for deliveries
from the current processing plant in Bassi.
DairyDelight, a dairy cooperative founded in 1946, has been instrumental in transforming the
Indian dairy industry. With an annual turnover of $6.5 billion in 2022 and a commanding 60%
market share, DairyDelight operates as a cooperative owned by the very milk producers who
supply their produce. This unique structure has contributed to DairyDelight's status as the largest
FMCG company in India, with over 60,000 employees and a vast network of over 600,000 retail
outlets across the country.
The dairy industry in India, deeply ingrained in societal practices, has a rich history dating back
8000 years. Operation Flood, a groundbreaking initiative spearheaded by Dr. Verghese Kurien
and popularly known as the White Revolution, propelled India to become the world's largest
milk producer. With over 300 million cattle, India currently produces more than 187 million
tonnes of milk, leading both in production and consumption globally since 1997.
DairyDelight's supply chain, characterized by its cooperative nature, involves farmers, village
cooperative societies, chilling units, processing unions, and depots. Leveraging technology,
DairyDelight has digitized significant aspects of its supply chain, enabling seamless operations
and transparent transactions. However, the focus now shifts to addressing the challenges faced
in Jaipur.
Jaipur, a significant market for DairyDelight, is witnessing a decline in its market share. The
critical issue lies in the location of the processing plant in Bassi, situated in the southwestern
corner of the district. The extended transportation times to Jaipur and other towns, coupled with
the impracticality of the current distribution system, necessitate a strategic overhaul.
In a pivotal meeting, Mathur proposes two major changes: relocating the processing plant to
Jaipur and establishing a central distribution center in the city. The rationale behind this decision
is to enhance responsiveness to market demands, reduce transportation costs, and streamline
operations. This move is expected to not only address the immediate challenges in Jaipur but
also position DairyDelight for sustained growth in the region.
The complexities lie in determining optimal distribution routes and locations for additional
distribution centers to serve other cities and towns effectively. Mathur is confident that this
strategic shift will not only alleviate the current challenges but also position DairyDelight for
increased production capacity and improved market presence.
The central question remains: How can DairyDelight effectively navigate the distribution
challenges in Jaipur and its surrounding areas to reclaim market share and fortify its position in
the ever-evolving dairy industry? The answers lie in strategic decisions, logistical optimizations,
and a forward-looking approach to meet the dynamic demands of the market.
Tasks to be submitted:
1. Effectively address the distribution challenges in Jaipur and neighboring areas
2. Regaining its market share and strengthen its position in the dynamic dairy industry
These questions are not exhaustive and you are encouraged to provide futuristic
projections as per your understanding of the problem
Relevant and feasible points will garner brownie points
EXHIBITS
DairyDelight: 1946
Established
GCMMF: 1973
Jamwa Kishangarh
Bagru Baskhoh Bassi Chaksu Chomu Govindgarh Jaipur Ramgarh Jobner Renwal Kotputli Manoharpur Phulera Sambhar Shahpura Viratnagar
Bagru 0 86.3 71.9 63.6 56.4 69.6 28.4 55.7 28 54.4 133 78.8 39.4 44.7 88 114
Baskhoh 86.3 0 14.5 40.8 84.8 98 41.4 59.9 85.2 110 148 93.6 97.6 102 104 143
Bassi 71.9 14.5 0 39.3 61.4 74.5 30.3 26.5 75.4 97.3 129 73.9 97.2 97.9 83.9 107
Chaksu 63.6 40.8 39.3 0 81 94.2 41.8 57.9 85.2 110 148 93.6 97.6 102 104 129
Chomu 56.4 84.8 61.4 81 0 13.1 32.3 50.3 51.1 40.5 89 36.7 72.2 76.3 46.6 69.7
Govindgarh 69.6 98 74.5 94.2 13.1 0 45.4 62.8 51.9 38.6 87.9 49.1 70.2 74.4 44.7 84.5
Jaipur 28.4 41.4 30.3 41.8 32.3 45.4 0 27.5 46.3 65 108 53.8 61.1 68.7 63.7 89.1
Jamwa
Ramgarh 55.7 59.9 26.5 57.9 50.3 62.8 27.5 0 69 91 94.8 40.2 87.4 91.5 50.1 61.7
Jobner 28 85.2 75.4 85.2 51.1 51.9 46.3 69 0 25.1 142 87 18.4 22.5 97 122
Kishangarh
Renwal 54.4 110 97.3 110 40.5 38.6 65 91 25.1 0 132 77 43.5 43.3 87 112
Kotputli 133 148 129 148 89 87.9 108 94.8 142 132 0 54.6 160 164 46.1 43.2
Manoharpur 78.8 93.6 73.9 93.6 36.7 49.1 53.8 40.2 87 77 54.6 0 106 110 9.9 33.4
Phulera 39.4 97.6 97.2 97.6 72.2 70.2 61.1 87.4 18.4 43.5 160 106 0 7.7 116 145
Sambhar 44.7 102 97.9 102 76.3 74.4 68.7 91.5 22.5 43.3 164 110 7.7 0 119 145
Shahpura 88 104 83.9 104 46.6 44.7 63.7 50.1 97 87 46.1 9.9 116 119 0 26.8
Viratnagar 114 143 107 129 69.7 84.5 89.1 61.7 122 112 43.2 33.4 145 145 26.8 0