Supply Chain (Group 9 Case Study) (1,2,3,4)

PRESENTATION
(GROUP 9)
SECTION - 18
GROUP MEMBERS:-
Akashi gupta- 22GSOB1110035
Shivangi kumari- 22GSOB111001
Adarsh kumar- 22GSOB1110033
Roj Yuvraj- 22GSOB1110090
Karishma kumari- 22GSOB1110090
CASE STUDY:1
Desh Metal Industries Ltd.:
Supply Chain Success and
Challenges of the Omega Ceiling
Fan.
Analysis of Desh Metal Industries Ltd. (DMI) and the Ceiling Fan
Market:
Company Overview:
 DMI, established in 1980 by Mr. Shakaur Khan, started as a small

business in Dhaka, Bangladesh, manufacturing 20 ceiling fans per
day.
 DMI has grown significantly, with an annual turnover of around
BDT 200 million and a production target of 0.1 million ceiling
fans per year.
 The company diversified its products, importing desk, table,
stand, and exhaust fans under the brand name Omega through
its subsidiary company, ABC Trading.
Growth and Expansion:
 Between 1990 and 1995, DMI experienced significant growth,

necessitating increased production capacity. The company
procured machinery from India and received the Bangladesh
Standards and Testing Institution (BSTI) certificate of approval.
 DMI acquired additional space and Climax Fan between 1995
and 2000, facilitating further growth.
 To support growth after 2000, DMI secured working capital loans
totaling BDT 100 million from private commercial banks,
enabling the acquisition of heavy machinery and the
establishment of a powder coating plant.
Research and Development (R&D):
 DMI prioritizes research and development, focusing on

manufacturing energy-saving products. The R&D arm employs
10 engineers to innovate products that reduce costs and save
energy.
Product Portfolio and Competitive Edge:
 DMI's Omega Ceiling Fan lineup includes Omega Gold Fan,

Omega Fantastic Fan, Omega Popular, and Omega Super,
catering to various income groups.
 Omega Ceiling Fans consume 10–12 percent less electricity than
standard fans, providing a competitive edge.
 DMI also produces and imports Omega Desk and Table Fans,
offering a diverse product range.
Competitive Landscape:
 DMI faces competition in the ceiling fan market from companies

like Super Star Group, BRB Cable Industries Ltd. (Lovely Fan), and
National Fan Limited.
 Imported fans from companies like GFC Fans, Pak Fans, Wahid
Fans, and Havells Fan are also major players in the market.
Ceiling Fan Market Insights:

 The ceiling fan market in Bangladesh falls under the electrical
industry, a booster sector for Small and Medium Enterprises
(SMEs).
 The electrical sector experiences annual growth of 38–42 percent,
with potential access to the global export market.
 The market is largely driven by lower-priced electric fans, and
quality products at competitive prices dominate the market
share.
Challenges and Concerns:
 The competitive market structure leads to thin profit margins

(under 5 percent) for ceiling fan manufacturers.
 Entry and exit of numerous companies each year, along with
concerns about low-cost production compromising quality, are
challenges in the market.
Conclusion: DMI has successfully navigated challenges, grown its

product portfolio, and established a competitive position in the ceiling
fan market. However, the highly competitive market and slim profit
margins underscore the need for continuous innovation, efficient
operations, and strategic positioning to maintain and enhance its
market share.
Analysis of Production and Distribution, Supply Chain, and

Business Strategies of Desh Metal Industries Ltd. (DMI):
Production Process:
 DMI's production process for ceiling fans involves seven sections:

molding, press, lathe, armature winding, fitting, paint and
packaging, and quality management.
 The molding section uses liquid aluminum molded in machines
from Taiwan, while the press section involves cutting silicon re-
rolling steel sheets with machines from India and Pakistan.
 The production process integrates advanced technology,
emphasizing quality raw materials, stronger motors, capacitors,
and coils to enhance the fan's lifespan.
Distribution and Marketing:
 DMI markets Omega Ceiling Fans through three branches:

nationwide marketing through dealers and wholesale
distributors, retail distribution, and government tenders and
institutional sales.
 The marketing department is divided into five regions: Dhaka,
Bogra, Khulna, Sylhet, and Chittagong.
Supply Chain Materials:
 DMI's supply chain involves around 120 items, with most raw
materials (54.5 percent) procured through wholesalers, direct
importers, and local raw material producers.
 Major items like re-rolling silicon steel sheet and copper wire are
imported from Japan and Korea, while bearings and capacitors
are imported from China and Thailand.
 DMI's ability to import major items independently allows the
company to control quality and industry standards.
Business Strategies:
 DMI aims to develop into a complete electronics brand, offering

home and factory solutions with a focus on high-quality, low-
priced products.
 The company utilizes economies of scale and efficient supply
chain management to manufacture high-quality products at low
prices.
 DMI implements a "knocked down" packing process to minimize
damage during transportation and offers a slight trade discount
for bulk purchases.
 The company follows a strict cash-on-sales rule and provides
discounts during the winter season to manage inventory and
production costs.
Challenges:
 Challenges for DMI include limited government support,

inadequate infrastructure, high import duties on raw materials,
and taxes, leading to a double VAT and tax payment.
 The company emphasizes the need for reduced import duties on
raw materials, strict government laws to prevent corrupt
practices, and support for innovation and technical
advancements.
 Energy shortages in Bangladesh are addressed by DMI through
investments in developing energy-saving products.
Conclusion: DMI's production and distribution processes, supply

chain management, and business strategies have positioned the
company as a major player in the ceiling fan market. The emphasis on
quality, efficient operations, and strategic pricing strategies contribute
to DMI's success despite challenges in the industry and the broader
business environment.
CASE STUDY:2
Amazon Rx:-Growing From
Books to Pharmacy
The provided text discusses Amazon's entry into the pharmaceutical
market, focusing on its acquisition of PillPack and potential strategies
for growth in the pharmacy business. Here's a summary of the key
points:
1. Amazon's Entry into Pharmaceuticals:

 Jeff Bezos founded Amazon in 1994 with a focus on selling
books online.
 In 2018, Amazon acquired PillPack, an online pharmacy, for
about USD 1 billion.
 PillPack specializes in sorting and delivering medications to
patients, offering convenience for those with chronic
conditions.
2. Amazon's Interest in Pharmaceuticals:
 Amazon's interest in the pharmacy market is not new; it
previously owned a significant stake in online medicine
retailer drugstore.com in 1999.
 The pharmaceutical industry's potential for profit, with
major companies like Eli Lilly and Pfizer making substantial
profits, is a significant motivation for Amazon's entry.
3. Market Potential and Accessibility:
 The pharmaceutical industry is highly profitable, with
significant revenue and profit margins.
 Increased access to medication, especially in rural areas, is a
potential benefit of online pharmacies.
4. Challenges in the Pharmaceutical Supply Chain:
 The U.S. pharmaceutical supply chain involves
manufacturers, wholesalers, and retail pharmacies.
 Amazon needs to navigate the complexities of the
pharmaceutical supply chain, including relationships with
wholesalers and pharmacies.
5. Advantages of Amazon in Pharmaceuticals:
 Amazon's acquisition of Whole Foods in 2017 provided
physical locations that could be used for brick-and-mortar
pharmacies.
 Existing presence in over-the-counter medications and
partnerships with healthcare-related companies strengthen
Amazon's position.
6. Amazon's Competitive Edge:
 The "Amazon effect" has influenced major chain
pharmacies like CVS and Walgreens to make strategic
moves.
 Amazon's reputation, capital, and global recognition
position it as a strong competitor in the pharmacy industry.
7. Current State of PillPack and Future Strategies:
 As of the provided information, Amazon has not made
significant moves with PillPack, but it has quietly laid the
foundation.
 Potential strategies include leveraging fast delivery
resources, using drones (Amazon Prime Air) for medication
delivery, integrating Alexa for prescription management,
and partnering with healthcare organizations.
8. Cautionary Notes:
 Despite Amazon's resources, the success of its ventures is
not guaranteed, as seen with the closure of Amazon
Restaurants and other failed projects.
 Amazon's history indicates that not all projects achieve
significant success.
9. Summary:
 Amazon's move into the pharmaceutical field represents a
strategic expansion into healthcare.
 The company's substantial resources and diverse strategies
position it as a formidable player in the complex
pharmaceutical industry.
CASE STUDY 4
Forecasting Ticket Demand for the
Super Bowl
This passage discusses the challenges and unexpected outcomes in
forecasting ticket demand and prices for the 2015 Super Bowl. The
Super Bowl, a highly anticipated sporting event, often experiences
fluctuations in ticket prices on the secondary market.
In the lead-up to the 2015 Super Bowl between the New England
Patriots and the Seattle Seahawks, the ticket prices on the secondary
market, including platforms like StubHub and Craigslist, escalated far
above face value. Even the NFL Ticket Exchange, the official resale
website, had no tickets available for less than $9,000. This unexpected
surge in prices surprised both the NFL and ticket brokers.
The typical arc for Super Bowl ticket prices involves an initial high
before the conference championships, a spike after the teams are
determined, and a drop as the game approaches. However, predicting
prices becomes challenging when determining the teams in the final
game. In the case of the 2015 Super Bowl, predictions of lower prices
due to "success fatigue" for the participating teams did not come true.
Contrary to expectations, ticket prices continued to rise as the game
approached. Prices that were initially $1,900 to $2,900 increased
significantly, reaching an average of $9,484.37. Several factors
contributed to this surge. The game being held indoors reduced the
risk associated with weather conditions, unlike the previous year's
outdoor game in New Jersey. Additionally, StubHub accused a few
large ticket sellers of colluding to manipulate prices, controlling most
of the ticket inventory and keeping prices artificially high.
The result was a lack of tickets for sale on the secondary market,
leaving sports fans without access. However, it was the ticket brokers
who suffered the most significant losses. The failure to accurately
forecast ticket prices led to a short squeeze, where brokers, expecting
a price rise, were forced to pay maximum prices for tickets and then
struggled to sell them at reduced prices just before the game. This
scenario resulted in a few insiders making high profits while the
majority of ticket brokers incurred substantial losses.
CASE-5
Nokia supply chain
managment
The situation you're referring to outlines the impact of a
fire at a Philips plant in 2000, which significantly
affected the supply chain of semiconductor chips crucial
for mobile phone production, particularly for Ericsson
and Nokia. While Nokia swiftly managed the disruption
by actively seeking alternative sources, Ericsson faced
delays and market share loss due to unpreparedness.
Nokia, a leader in cell phone sales at that time, had a

strong brand presence and had strategically evolved
from various industries into a dominant force in mobile
technology. Ericsson, on the other hand, excelled in
network sales but faced challenges in handset
manufacturing, particularly during the semiconductor
supply chain disruption.
The incident reflects the critical importance of an uninterrupted

supply chain in an industry driven by rapidly evolving technology

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PRESENTATION

 DMI, established in 1980 by Mr. Shakaur Khan, started as a small

Growth and Expansion:

 Between 1990 and 1995, DMI experienced significant growth,

Research and Development (R&D):

 DMI prioritizes research and development, focusing on

Product Portfolio and Competitive Edge:

 DMI's Omega Ceiling Fan lineup includes Omega Gold Fan,

 DMI faces competition in the ceiling fan market from companies

Ceiling Fan Market Insights:

Challenges and Concerns:

 The competitive market structure leads to thin profit margins

Conclusion: DMI has successfully navigated challenges, grown its

Analysis of Production and Distribution, Supply Chain, and

 DMI's production process for ceiling fans involves seven sections:

Distribution and Marketing:

 DMI markets Omega Ceiling Fans through three branches:

Supply Chain Materials:

 DMI aims to develop into a complete electronics brand, offering

 Challenges for DMI include limited government support,

Conclusion: DMI's production and distribution processes, supply

1. Amazon's Entry into Pharmaceuticals:

Nokia, a leader in cell phone sales at that time, had a

The incident reflects the critical importance of an uninterrupted

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