PQR COFFEE COMPANY

PQR Coffee Company Limited was established in the 1996 to recreate the ambience and experience of the typical Italian neighborhood Espresso ars! PQR Coffee aims to pro"ide a comfortable place for people to relax and #nwind o"er a c#p of coffee PQR Coffee Company was established as specialty coffee retailer offering fine espresso based be"erages! It places strong emphasis on the $#ality of beans and the process of preparing rich aromatic coffee! %he %PR Coffee Company &an international rand' is in strategic alliance with PQR with ()!(* sta+es in it! %CL is c#rrently the excl#si"e s#pplier of coffee blends to PQR for its entire range of offerings! %his alliance has gi"en %PR access to the "al#e added mar+et thro#gh PQR,s expanding cons#mer base while PQR is benefited by access to %PR,s technical and blend experience on specialty coffee! %he other coffee retailers in India are CafCoffee days and Qwi+ey! Caf- Coffee daysahs aro#nd 1). o#tlets with an ann#al t#rno"er aro#nd Rs /00 Crore! %he following points are highlighted to get a first 1 hand introd#ction of PQR coffee company! In all there are 1(0 o#tlets and corners in India and abroad! %he expected ann#al t#rno"er si Rs!60 Crores2 an increase of /.* o"er last year! 3holly 1 owned o#tlets in India and franchise model for Lan+a and 4#bai o#tlets! It has tie 1 #ps with brands s#ch as %a5 6otels to open coffee corners in their premises! Concentrating on core competence of specialty coffee and hence o#t so#rcing food items2 which are a"ailable at stores as f#sion food with coffee! 7#mero#s "arieties of hot and Cold be"erages li+e Coffee2 %ea2 8oft 4rin+s etc and food items of more (0 "arieties! 9ro#nd .00 employees with emphasis on specialist and professionals! Expansion plan in asian co#ntries li+e China2 :alaysia2 8ingapore2 %hailand2 6ong ;ong and <9E! PQR is among the top 1. coffee companies in the world!

International sales acco#nt for almost 10* of PQR,s b#siness at present!

1.

Briefly explain the SCM operations of PQR. SUPP Y C!A"N OF PQR#

PQR has its o#tlets in al ma5or cities of India li+e 4elhi2 :#mbai2 ;ol+atta2

Chennai2

angalore2 6yderabad2 Chandigarh2 =oa2 P#ne2 9hmedabad2 L#c+now2 aroda2 >aip#r and 4ehrad#n! It has its International

;anp#r2 8himla2 L#dhiana2

?perations at Lan+a and 4#bai!

3e can broadly classify operations of PQR,s s#pply chain into three categories@ 1. $. %. Central 8#pply Chain! Local 8#pply Chain Aoods 8#pply Chain! 1. Central S&pply Chain# PQR has ) regional offices at 4elhi2 :#mbai2 angalore and ;ol+atta! %here is a centraliBed s#pply chain fro 4ry Items2 which ha"e s#fficient shelf

life! %he PQR head office at 4elhi manages s#pply of 1)0 items comprising raw materials2 paper and pac+ing items2 cleaning materials2 croc+eryC c#tlery2 stationery and #niform2 merchandising items etc! %he "endors for these materials are mostly located aro#nd 4elhi and there are more than 100 "endors c#rrently! $. o'al S&pply Chain# Perishable items li+e :il+2 Cream2 Ice Cream2 Ice C#bes and other mil+ based prod#cts are so#rced locally and each city has its own s#pplier base! %. Foo( S&pply Chain# %o foc#s on core competence of pro"iding speciality coffee2 PQR has no +itchen in its o#tlets! 9ll eatables li+e 8andwiches2 ti++a2 pasta2 rolls2 desserts and ice creams etc! are so#rced from o#tside! %he o#tlets pass on the daily sales data to the head office "ia ED:ail!

$.

)i*e a +ia,ra--ati' representation of Str&'t&re of SCM (epart-ent of PQR.

%.

Explain the "nternational S&pply Chain pro'e(&re of PQR Coffee Co-pany.

"nternational S&pply Chain# PQR Coffee Company in its present stat#s has already beg#n its International operations and #nder franchisee model has set #p ) o#tlets each in 4#bai and 8ri Lan+a! PQR has 5oint "ent#re arrangement with a company in 8ri Lan+a and set #p PQR Coffee Lan+a P"t! Ltd! 8imilarly in 4#bai2 it has o#tlets! %he s#pply of dry raw material is done from India to maintain the consistency in $#ality and for this a freight forwarding ser"ice pro"ider is earmar+ed which ta+es care of all iss#es in"ol"ed in offshore transportation whereas local s#ppliers s#pply fresh raw materials and f#sion food items! %he

following few points highlight the feat#res of the international s#pply chain of PQR! PQR has a"ailed an International freight forwarding agent! C#stom clearance and other International %ransaction iss#es are handled by it! It pic+s #p the raw materials from 8afe express ware ho#se at Chennai! 8#pplies are made once in two months to get economies of scale as freight charges are high! :ode of %ransport is ship! Lead time for shipment to Lan+a is / days where as for 4#bai it is 10 days! Certain additional doc#ments are needed@ o Pro forma in"oice! o ?n the basis of this ad"anced payment is made! o In"oice in place of stoc+ transfer challan! o Q#ality Certificates! o 8pecific pac+aging to s#it c#stom re$#irements!