Asian Journal of Management Cases, Ahead of Print.
The case highlights a problem faced by Swadisth: a confectionary manufacturing firm. The company could barely sell its products through the traditional distribution network during the nationwide lockdown due to COVID-19. In just 30 days, there was a 90% decline in sales. The manufacturing plants closed, the workers were sitting idle and the costs associated with inventory, workforce and machinery were piling up. The people were not leaving their houses because of the government guidelines and relied on online platforms for purchases. Many competitors shifted their businesses online, and the rest were planning to launch soon. It was time for Swadisth to quickly respond to the market changes to survive the pandemic. Previously, Swadisth distributed its products through a network of manufacturing plants, distributors and retailers located in multiple places. Entry into e-commerce would require changing their supply chain structure and distribution strategies. For this purpose, Mr Keshav Rao (Chief Operating Officer) was tasked to evaluate alternative distribution strategies and present a report to Mr Chaudhary (Managing Director).