Section H - State Civil Supplies Value People, Value Their Money

Decision sheet for case : STATE CIVIL SUPPLIES: VALUE PEOPLE, VALUE
THEIR MONEY
HARSHAL MISAL 2227533 SECTION 'H'
V1 02042022
MISSION VISION CORE VALUES

CHRIST is a nurturing ground for an individual’s Excellence and Service Faith in God | Moral Uprightness
holistic development to make effective contribution to Love of Fellow Beings
CHRIST
Deemed to be University
PROBLEM IDENTIFICATION
The protagonist Poonam Shah, a senior Indian administrative service officer at Madhya Pradesh
State Civil Supplies Corporation Limited (MPSCSCL) tried to determine how she might cost-
effectively meet the demands of the fair pricing shops as well as the proper distribution of food grain
to various routes. The corporation was facing some issues pertaining to
● Logistics
● Cost
● Optimization of products
● Supply and demand mismatch
Excellence and Service

CHRIST
TYPES OF OPTIONS
Poonam Shah created a block schematic of the state's current distribution system and thought about
launching a trial programme.
She made the decision to alter the food grain distribution system in two stages.
● Reducing the cost of transportation of wheat between the procurement centres and the issuance
centres
● Issue centres to fair price shops
In order to implement the first option for the corporation to reduce the cost of transportation of wheat
the company can take the following options that can help in mitigating the loss from the procurement
centres and issuance centres.

CHRIST
Proper system for transportation: It was observed that the corporation was facing a huge cost of
Rs. 12 Million on wheat distribution which entailed transportation from procurement centres to issue
centres. The corporation lacked in both benchmarks and proper systems of transporting management.
The main reason of increase in cost of transport charges was due to improper allocation routes to the
transportation department. Due to the improper management of routes the cost of transporting differed
in various routes. The company did not organise on the planning and management of
transportation According to distance and related dangers, different routes had different prices.
Sometimes it was more cost-effective to transfer commodities over longer distances at
cheaper rates than over shorter ones at higher rates. Costs for a specific route had to be calculated
with toll taxes taken into account. There were numerous bids available for transportation between
locations.

CHRIST
Better Quality control: The company did not had good quality control on the products which it was
transporting it from procurement centres and issue centres. Due to this the during the transportation
service it was a delay in the process because of quality inspection due to which the corporation failed
to reach places on time and since the demand was to be fulfilled the cost of routes to reach the
destination was very high in cost, therefore a good quality control setup would help the company
minimise the time for quality inspection and would reach on time.

CHRIST
ANALYSIS
Based on the factual data about the Madhya Pradesh State Civil Supplies Corporation Limited
(MPSCSCL) Another significant worry was the MPSCSCL's employees. The firm had roughly 1,300
employees in total at the time of its founding. There were just 900 workers left. However, the
workload had multiplied fivefold, and the company had a very low level of technology adoption.
Officers and employees lacked the drive to put in extra time to further the corporation's objectives.
They were also dissatisfied with the rewards offered.
The organization has very little of its own working capital. The amount it could spend was 20 million.
5 The MPSCSCL was hence dependent on bank loans. In addition, the government only offered
reimbursements to the corporation rather than loans. The firm had to pay interest on the loans since
it borrowed money from banks. At an interest rate of about 10%, it borrowed about 200 billion each
year, with the interest component totaling about 20 billion. The business had to request repayment
from the government, and even a small delay may lead to sky-high interest rates.

CHRIST
If the government paid the group three months later than expected, the interest would total 4.5 billion
dollars after 90 days, or an average of $50 million every day. As a result, the company typically
operated at a loss

CHRIST
DECISION
The company should focus on the following areas of improvement for better solutions for the
problems which are faced by Poonam Shah at the Madhya Pradesh State Civil Supplies Corporation
Limited (MPSCSCL)
● Proper management team for transportation services.
● Better Quality control measures.
● Proper analysis of demand and supply of goods.
● Better logistical department for optimum supply of products or stock of goods.
● Employee oriented workplace who would contribute to innovation and technology for the
corporation.

Section H - State Civil Supplies Value People, Value Their Money

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Decision sheet for case : STATE CIVIL SUPPLIES: VALUE PEOPLE, VALUE

MISSION VISION CORE VALUES

Excellence and Service

Excellence and Service

Excellence and Service

Excellence and Service

Excellence and Service

Excellence and Service

Excellence and Service

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