Golden Dairy Farms Pty. Ltd. (GDF) Case Study - Case Study Assignment Help

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Case Study Scenario

Business History  

Golden Dairy Farms Pty. Ltd. (UMC) was founded in 1961 in Berwick, Victoria by Mr Geoff Frost, a former East Gippsland farmer. From humble beginnings as a milk processor for the local dairy farmers, the company has grown into a multi-million dollar mixed-product firm with a strong penetration into the local market and developing export business. The company’s products consist of a large range of milk products (e.g. whole milk, reduced-fat milk, skinny milk, flavoured milk etc.) and a range of specialised milk products including, A2 milk, UHT milk, Lactose-free milk, and Organic milk.  

Every morning, a fleet of stainless steel UMC tanker trucks leaves the factory to collect  50,000 litres of whole milk from selected dairy farms in the area. When the tankers return the milk is pasteurised and homogenised after which it is either packaged or subject to further processing to become skinny milk, flavoured milk, A2 milk, and other products. The second fleet of refrigerated delivery trucks then transports the finished products to the company’s major distributors. 

Current Business Challenges 

To remain competitive in this sector, the new general manager and the other decision-makers of the company are wanting a system that can respond more effectively to the complexities of the changing market place. But due to its reluctance to innovate in previous years, much of the business remains without any data network connectivity and relies on individual standalone systems that do not share data with other departments. Because of this, the majority of exchanges between departments occur over the phone or informally via email, with the formal paperwork following the request 1 or 2 days later.  

With the urban development of new housing estates expanding further out into the outer fringes of the metropolitan area, GDF was fortunately placed to serve some of these new estates.  

One such estate is Serenity Meadows estate which has been growing steadily since 2015. This estate is currently not served by any major supermarket chain yet, but it does have four (4) convenience stores that provide the area with general daily necessities (milk, bread and some other products). Three (3) out of the four (4) stores also provide fuel.

Overview of the local stores:

Coles Express: A combination of a cut down version of the major supermarket with a service station. Coles Petrol offers a very good level of choice and price options for most of its grocery options, they also offer recharging options for most mobile and internet plans. Due to its location (positioned on the main junction point between the estate entry and the freeway to the city), the Coles Petrol is very popular with car commuters and tradespeople. Trading hours 6 am-10 pm.  

BP: This BP service station is seen by the locals as mainly a fuelling point. The level of choice of grocery products is very limited and prices over-inflated. While positioned across the road from the Coles Express facility, its main point of difference is that it’s open 24hrs and has a carwash facility. This makes BP popular with shift workers and weekend car washers.  

Required Improvements  

After some discussion with the board members, the general manager has sought funding and a commitment to substantial changes that should move this company to a  more competitive standing. This consist of developing a new set of processes,  procedures with the support of new technologies, including; 

• Developing a new customer interface for ordering and promotion of new products. Also provides a fault/complaint logging system 

• Provide a stock control system to monitor available products and expiry details. 

• Stock control system needs to integrate into the ordering system 

• Ordering output data needs to be instantly accessible by the dispatch dept. • Automatic assignment of stock to transport options.

• Portable delivery driver system to enable electronic sign-off and e-receipts on delivery of products. 

• Portable delivery driver system provides the most efficient route based on best available data (congestion details, free or toll roads options, etc). Provides the home base (GDF) to dynamically track.

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