THE AKSHAYA PATRA

FOUNDATION - A SUPPLY
CHAIN STUDY
Submitted by Section 2 Group 4
Venkatesh Parimella 1311108
Abhilash Mulakala 1311142
Visweswar Animela 1311149
B Kiran Maruthi 1311154
Gyanendra Singh 1311160
Ravi Kiran Gottipamula 1311395


AGENDA
Introduction
Scale of Operations
Supply Chain
Value Chain
Vasanthapura Kitchen
Cost Breakup Analysis
Issues
Recommendations


INTRODUCTION- AKSHAYA PATRA
Akshaya Patra is a Non Profit Organization headquartered in Bangalore
The organization strives to fight issues like hunger and malnutrition in India
Introduced the Mid-Day Meal Scheme in the Government schools and
Government aided schools
In partnership with the Government of India and its respective State
Governments, and support from many businesses, philanthropic donors and
well-wishers
Envisioned in 2000, the organization started by catering to 1500 children
across 5 schools
Mission : To Feed 5 Million children by 2020
Vision : No child in India shall be deprived of Education because of Hunger



Source: http://www.akshayapatra.org/vision-and-mission,
http://www.akshayapatra.org/about-us


SCALE OF OPERATIONS
Source: Redesigning Midday Meal Logistics for the
Akshaya Patra Foundation: OR at Work in Feeding
Hungry School Children by B. Mahadevan, S. Sivakumar,
D. Dinesh Kumar, K. Ganeshram


Current Reach:
1.4 Million
children
23 locations
10 states
24 Kitchens
Raw Material
Suppliers
Akshaya Patra
District
Warehouse
Self Help
Groups- School
Kitchen
(1247)
Schools
SUPPLY CHAIN
Raw Material
Suppliers
Akshaya
Patra Kitchen
(9532)
Schools
Centralized Kitchen (20)
De-centralized Kitchen
(2)
Local Mandi
Suppliers
VALUE CHAIN
Procurement
Food
Preparation
Distribution
Rice
Dal /
Pulses
Groceries
Vegetables
& Fruits
Milk & Milk
Products
Storage
Pre-
processing
Cooking
Packaging
Self Owned
Fleet
Delivery to
Schools
VASANTHAPURA KITCHEN
Rice
Dal / Pulses
Groceries
Vegetables &
Fruits
Milk & Milk
Products
Kitchen Storage
Kitchen Cold
Storage
Procurement
District Level
Procurement
Procured One Day before
Monthly
Silos
Caters to 568 schools with around 99K+ children
VASANTHAPURA KITCHEN
3-tier kitchens based on gravity
flow
Pre-Processing
& Food
Preparation
Day -1; 10:00
PM
Day 0; 2:30 AM to 7
AM
Day 0; 8:30 AM
onwards
VASANTHAPURA DISTRIBUTION
A Self Owned Fleet of 35
delivery vans of varying
capacities, having 3 tier racks
for the 3 types of containers
Loading done in a LIFO
pattern
Caters to around 568 schools
with 99,326 children
On an average the schools
are 17km away
Vasanthapura fleet covers
1400km/day
Uses Route Optimization
Softwares

COST BREAKUP ANALYSIS
Particulars Cost (%)

Direct costs 73%
Cost of food 56%
Distribution Expenses 17%
Indirect costs 14%
Administration Expenses 6%
Fund raising and communication expenses 1%
Apportionment of HO expenses 7%
Notional costs 13%
Depreciation 13%

Cost per meal INR 6 to 8
Less subsidy received INR 4 to 6
Cost borne by TAPF INR 2 to 4
Source: Exhibit 13: Expentidure Details of TAPF, Akshaya Patra, Gandhinagar:Supply Chain Challenges by Shravanti Mitra,
G Raghuram, and Atanu Ghosh
PROBLEM 1- FINANCIAL SUSTAINABILITY &
IDLE CAPACITY
Net loss during financial year 2013
Operating income is just positive
Expansion plans has to be kept on hold to maintain
sustainability
Government Subsidy and funding from other
sources insufficient
Government cash subsidy receivables payment
takes around 60-120 days
Abridged Income & Expenditure
Statement ( ` in Lakhs)
2012-13 2011-12
Total Income 15,888.17 13,626.27
Total Expenditure 17,347.32 13,420.52
Excess of Income
over Expenditure
(1,459.15) 205.75
PROBLEM

SOLUTION
Total capacity utilization of cooking equipment
is around 8 hours daily
Idle capacity can be outsourced to vendors for
usage by them
Idle capacity can be used to prepare food and
sell through network of vendors
Existing human resources and economies of
scale can be leveraged
This will cross subsidize the existing operations
Challenges:
Legal and regulatory issues
Perception of donors might change
Rajajinag
ar
Kitchen
Vasanthpur
a Kitchen
Bangalor
e East
30 kms
43 kms
PROBLEM 2 KITCHEN TO HANDLE
BANGALORE EAST

Heavy traffic restricts Vasanthapura
kitchens reach
Cook to eat time increases due to
the distance which is further
accentuated by traffic congestions
Need to cater to schools in and
around Bangalore East

PROBLEM

SOLUTION
New kitchen in Bangalore East to
cater to this region
Quality of food maintained as
cook to eat time reduced
More number of schools reached
in Bangalore East
A step towards reaching 5 million
children
PROBLEM 3 GROWTH WITH LOW
INVESTMENT
Need for Expansion Target of
reaching 5 million students by 2020
through MDM
Cooking-to-consumption time > 6 hours
if existing kitchens are used
High Capital expenditure if new
kitchens installed for more schools
Budget constraints - Not many
corporate donors
Hub and spoke
model
Kitchen
Mini
Kitchen
3
1
4
2
Mini
Kitchen
3

1

4

2

Mini
Kitchen
3
1
4
2
Mini
Kitchen
Mini
Kitchen
Mini
Kitchen
Product Postponement strategy with Hub
and spoke model
Transferred to mini kitchen after
preprocessing of food cleaning, cutting
and sorting into necessary quantities
SOLUTION
FEASIBILITY - ADVANTAGES OF
HUB AND SPOKE MODEL
High flexibility cooking closer to consumption centre
High quality food Cooking to consumption time is very less
Capital expenditure required is very less
Better capacity utilization in existing kitchens Machinery idle time can be
used
Vans idle after delivery can be used for transport from kitchen to Mini Kitchen
Logistic savings delivery from Mini Kitchen to school can be given to third
party
More corporate donors Smaller investment and closer to businesses
More women can be employed through Self Help Groups (SHG)
Additional fixed costs Machinery, labour
Losing on economies of scale More cooking costs
Biogas usage may not be possible Cost per meal will increase

Challenges
Thank You