Harvard Case - The Akshaya Nidhi Foundation - in Aid of Akshaya Patra
"The Akshaya Nidhi Foundation - in Aid of Akshaya Patra" Harvard business case study is written by Anshuman Tripathy, Akshat Raj. It deals with the challenges in the field of Operations Management. The case study is 20 page(s) long and it was first published on : Feb 1, 2019
At Fern Fort University, we recommend a comprehensive strategy for the Akshaya Nidhi Foundation (ANF) to effectively support Akshaya Patra (AP) in expanding its mid-day meal program while ensuring operational efficiency, financial sustainability, and social impact. This strategy involves a multi-pronged approach focused on strengthening supply chain management, leveraging technology and analytics, and fostering strategic partnerships.
2. Background
The Akshaya Patra Foundation (ANF) is a non-profit organization dedicated to providing mid-day meals to underprivileged children in India. Akshaya Patra (AP), a subsidiary of ANF, operates the large-scale food program. The case study highlights AP's challenges in managing its complex supply chain, including sourcing, production, and distribution of meals to over 1.8 million children daily. The organization faces issues with fluctuating demand, inefficient inventory management, and limited technological capabilities.
The main protagonists of the case study are:
- Akshaya Patra Foundation (ANF): The parent organization responsible for fundraising and overall strategy.
- Akshaya Patra (AP): The operational arm responsible for meal production and distribution.
- The Board of Directors: Responsible for overseeing ANF's strategic direction.
- The Management Team: Responsible for implementing ANF's operational strategies.
3. Analysis of the Case Study
This case study can be analyzed through the lens of operations and supply chain management. The key challenges faced by AP are:
1. Supply Chain Complexity: AP's supply chain is highly complex, involving multiple suppliers, production facilities, and distribution channels. This complexity leads to inefficiencies in inventory management, transportation, and logistics.
2. Fluctuating Demand: The demand for meals varies significantly based on school calendars, holidays, and local events. This unpredictability makes it difficult for AP to accurately forecast demand and manage its production capacity.
3. Limited Technological Capabilities: AP's current IT infrastructure and data management systems are inadequate for effectively managing its large-scale operations. This lack of technology hinders data analysis, performance monitoring, and decision-making.
4. Financial Sustainability: AP relies heavily on donations and grants for funding, which can be unpredictable. This lack of stable funding makes it challenging to invest in infrastructure improvements and expand its operations.
5. Social Impact Measurement: While AP focuses on providing meals, it lacks robust systems to measure the impact of its program on children's health, education, and overall well-being.
4. Recommendations
A. Strengthening Supply Chain Management:
- Implement a robust demand forecasting system: Utilize statistical forecasting methods, historical data, and machine learning algorithms to predict demand fluctuations accurately. This will enable AP to optimize production planning, reduce waste, and improve inventory management.
- Adopt a Just-in-Time (JIT) production model: Minimize inventory holding by synchronizing production with demand. This will reduce storage costs, minimize spoilage, and improve operational efficiency.
- Optimize inventory management: Implement a robust inventory management system using Material Requirements Planning (MRP) and Enterprise Resource Planning (ERP) software. This will ensure timely procurement, reduce stockouts, and minimize waste.
- Improve logistics and transportation: Implement a centralized logistics system with optimized routes, efficient vehicle utilization, and real-time tracking. This will reduce transportation costs, improve delivery timeliness, and enhance operational efficiency.
- Develop a strong supplier network: Establish long-term partnerships with reliable suppliers who can provide high-quality ingredients at competitive prices. Implement quality control measures to ensure food safety and hygiene.
B. Leveraging Technology and Analytics:
- Invest in a robust IT infrastructure: Implement a comprehensive Enterprise Resource Planning (ERP) system to manage all aspects of AP's operations, including procurement, production, inventory, distribution, and finance.
- Utilize data analytics: Leverage data collected through the ERP system to analyze operational performance, identify bottlenecks, and optimize processes. Implement data-driven decision-making to improve efficiency and effectiveness.
- Develop a mobile application: Create a mobile application for real-time communication with kitchen staff, delivery personnel, and beneficiaries. This will facilitate efficient communication, track meal delivery, and provide feedback mechanisms.
- Implement a Geographic Information System (GIS): Use GIS technology to map meal distribution routes, optimize delivery networks, and identify areas with high demand. This will improve efficiency and ensure timely delivery of meals.
C. Fostering Strategic Partnerships:
- Collaborate with local governments: Partner with government agencies to leverage existing infrastructure, streamline logistics, and ensure access to resources.
- Engage with corporate sponsors: Seek partnerships with corporations to secure funding, access technology, and promote the program.
- Develop a strong volunteer network: Recruit and train volunteers to assist with meal preparation, distribution, and administrative tasks. This will reduce operational costs and create a sense of community involvement.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with ANF's core mission of providing nutritious meals to underprivileged children while ensuring operational efficiency and sustainability.
- External customers and internal clients: The recommendations address the needs of external customers (children and their families) and internal clients (kitchen staff, delivery personnel, and management).
- Competitors: The recommendations aim to position AP as a leader in the mid-day meal program by leveraging technology, optimizing operations, and fostering strategic partnerships.
- Attractiveness ' quantitative measures: The recommendations are expected to improve operational efficiency, reduce costs, and increase the reach of the program, leading to a positive impact on the organization's financial sustainability and social impact.
- Assumptions: The recommendations assume that ANF has the resources and commitment to implement these changes and that the necessary technology and expertise are available.
6. Conclusion
By implementing these recommendations, ANF can significantly improve the efficiency and effectiveness of its mid-day meal program. This will enable the organization to reach more children, enhance its social impact, and achieve long-term financial sustainability.
7. Discussion
Other Alternatives:
- Outsourcing production: Outsourcing meal production to external caterers could reduce operational costs and improve efficiency. However, this could compromise quality control and create challenges in managing logistics.
- Focusing on smaller-scale operations: Focusing on smaller-scale operations with a more localized approach could reduce logistical complexity. However, this would limit the program's reach and potential impact.
Risks and Key Assumptions:
- Funding challenges: Securing sufficient funding to implement these recommendations is crucial.
- Technology adoption: Successful implementation of technology requires a robust IT infrastructure and skilled personnel.
- Change management: Overcoming resistance to change and ensuring smooth implementation of new systems and processes is essential.
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and resources required for each recommendation.
- Secure funding: Identify potential funding sources and develop a fundraising plan.
- Build capacity: Recruit and train staff with expertise in supply chain management, technology, and data analytics.
- Pilot test: Implement pilot programs for specific recommendations to evaluate their effectiveness before full-scale implementation.
- Monitor and evaluate: Establish performance indicators and track progress towards achieving the desired outcomes.
By taking these steps, ANF can transform its mid-day meal program into a model of operational excellence, social impact, and sustainable growth.
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Case Description
Akshaya Patra was founded by ISKCON (religious foundation) in 2000. It started by serving Mid-Day Meals to about 1,500 students in 5 government schools. By 2017, it was serving ~ 1.7 million children in 33 locations across 11 states in India. Akshaya Patra had built state-of-the-art "mega-kitchens" along with a well-developed food supply chain. The meals were prepared in a hygienic environment but, to ensure safety and taste, a quality check was also carried out for every batch, before dispatching the same for consumption. However, the exponential growth was a cause of concern. The cost of meal preparation after reimbursement by the government kept increasing, but the donations that had helped bridge this gap in the past were not keeping pace. In addition, the organization had set an ambitious "Mission 2020" to reach 5 million children daily by 2020. It was this challenge of scaling up that forced Akshaya Patra to look at various options and led to the setting up of Akshaya Nidhi, a for-profit organization in support of Akshaya Patra. Over a period of 3 years, Akshaya Nidhi had grown steadily and entered various businesses. In such a scenario Vinay, CEO, Akshaya Nidhi, was wondering about the appropriate path forward, that is, which opportunities to pursue, and the related organization structure that was needed to support the same.
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