SUPPLY CHAIN

MANAGEMENT

GROUP 5

ANANTHAKRISHNAN S (1311077)

DHIVYA LAKSHMAN (1311086)

KARTHIK ARUMUGHAM (1311299)

MANISH KUMAR S(1311305)

SHANTHA KUMAR T (1311402)

Au Bon Pain
Introduction
Fast casual bakery and cafe chain
Started in 1978. Headquartered in Boston, Massachusetts
385 cafes worldwide (United States, India, South Korea
and Thailand)
Corners and crossroads, college campuses, transportation
centers, shopping malls and hospitals
Indian Franchisee - Spencer Retail Ltd. owned by RPSanjiv Goenka Group
31 outlets 29 in Bangalore and 2 in Kolkata
Plans to open around 120 outlets in India by 2015
The size of an average stores ranges from 850 sq.ft. to
1,800 sq. ft
Average sales per order Rs 200-Rs250
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Au Bon Pain
Vision, Values and Responsibilities
RPG-Sanjeev Goenka Group
Vision: Inclusive Growth fired by free-spirited Entrepreneurship
Values: Customer Happiness, Credibility, Humaneness, Speed,
Risk Taking, Execution Excellence
Responsibilities: development plan, Hire Staff, Store appearance,
Customer Service
Au Bon Pain Cafes
Vision: Taste the goodness!
Values: Flavorful, healthful, fresh delicacies, Contemporary,
colorful, comfortable environment

Responsibilities: Supply chain development, ordering system, advertisements

Au Bon Pain
Marketing and Strategy
Market penetration by using the power of ripple effect
through social media and concentrates in establishing
the brand image by Public Relations
Marketing off-beat offers and campaigns like inviting
people to narrate their experience on social media
Market Competitors
Cafe Coffee Day (CCD): 1300 outlets in twenty states of India.
Set for 2000 outlets by end of 2014
Barista Lavazza: More than 225 outlets in India
Costa Coffee: 100 outlets in major metros in India
Tata Starbucks: Indian Operations in 2011 -> 34 outlets in 5
major cities

Carpet bombing strategy Economies of scale

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Objective
To study and analyze the Supply Chain of Au Bon Pain,
contemplate its operations, logistics, IT and strategy
To recommend some futuristic
changes for the supply chain

implementable

Au Bon Pain
IIMB outlet and its practices
Focus on creating brand awareness among
student masses than concentrating on margins
10% of sales is paid to IIMB
On an average the discount is 45% on the total
menu costs
Total number of input SKUs to be around 800
147 Output SKUs with
90 items having smaller shelf lives
57 items having longer shelf lives
Working hours of the store 9 am to 2am with 8
store workers and one store manager
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Au Bon Pain
Traditional Retail Supply Chain Structure

Information Flow
Information

Information

RM supplier

Carrier

Warehouse &
Production
plant

Carrier

Retail
Outlets (29
bakeries in
Bangalore)

Customer

Material Flow

Source: An Analysis of Current Supply Chain Best Practices in the Retail Industry with Case Studies of Wal-Mart and Amazon.com,Chiles and Dau, Georgia Tech

Au Bou Pain
Value stream of Supply chain

Au Bon Pain
Supply chain

Sourcing and
Procurement

Production

Planning
and
Distribution

Logistics

Fulfilment
and
Customer
Service

Logistics and Customer Service form important entities in ABPs supply chain
Transportation and fulfillment of requirement during stock-out are prominent
for not to lose on potential customers
GPS in the delivery vans and Centralized IT system are some suggestive actions
9

Au Bon Pain
Day to Day Operations & Data Sharing,
IT, Manufacturing & Sourcing
Day to Day Operations
Forecasting done on a daily basis depending of the sales data for
each day of the week
Store Manager takes the average sales of the last three weeks of
the day -> Also takes into consideration of factors such as
holidays, campus events, etc
Special discounts are offered two hours before closing of outlet to
reduce wastage and minimize cost of overstocking

Data Sharing, IT, Manufacturing and Sourcing

Point of Sales data not shared Across ABP outlets in same town
Manufacturing at Yeshwanthpur, Blore which is the CDC
Shawman software is used for POS and MMS
Ingredients

Prices(exclusive
of taxes)

Units sold/day

Gross
amount/day

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Au Bon Pain
Outlet Locations

Au Bon Pain
Inbound Logistics
Yeshwanthpur
Distribution Center
18.7km

Fortis
Outlet
1.19km

18.82 km

EGL
Outlet
4.52 km

IIMB
Koramangala
Outlet 10.1
Outlet
Perishable-daily; Dry-weekly
Delivery check 15 minutes
A delivery van 4/5 outlets
Rs14/Km; 3rd party logistics

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Au Bon Pain
Proposed Structure with IT
Retail
Outlets (29
bakeries in
Bangalore)

Information Flow

Information

Information

RM supplier

Carrier

Warehouse &
Production
plant

Carrier

Retail
Outlets (29
bakeries in
Bangalore)

Customer

Information

Material Flow

Retail
Outlets (29
bakeries in
Bangalore)

Source: An Analysis of Current Supply Chain Best Practices in the Retail Industry with Case Studies of Wal-Mart and Amazon.com,Chiles and Dau, Georgia Tech

13

Au Bon Pain
Recommendations
Route optimization using GPS to reduce transportation costs
Centralized IT system for quick replenishment
CCTVs can be used to detect pilferage
Continuous Product Innovation

Open more stores to achieve economies of scale

Staff to be trained in menu, suggestive selling and up-selling

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