NiteFoodie is a medium sized American fast food chain based on the west coast. The client offers a variety of foods and serves around 20 million consumers each year through its 60 restaurants.
The company had entered food truck business two years ago and expanded aggressively to gain market share. Due to the fast paced growth processes in the company did not evolve for large scale services. The company faced low margins in its packaged food distribution and found that there was scope for significant improvement.
The company needed a solution to optimize food pack distribution to reduce costs. Perceptive Analytics analyzed processes and developed a tool that optimally distributed the food packages required among the carriers. The whole exercise resulted in annual savings of nearly 17%.
This report draws attention to the need to recalibrate bank branch networks as the role of branches is changing from being a major transactional channel to a point of interaction. We analyzed existing branch locations of 8 national banks: Citibank, Chase Bank, Bank of America, US Bank, Wells Fargo, TD Bank, Capital One and Fifth Third Bank in major cities such as Chicago, New York, Dallas, Los Angeles, San Francisco, and Boston.
To evaluate branch location strategy of banks, we collected data on market shares of these banks in respective cities. Branch-wise location information in each of these cities was also obtained from the Federal Deposit Insurance Corporation (FDIC)’s Summary of Deposits (SOD) database. We collected data on demographic variables such as neighborhood information, number of households, and mean income per household for all the cities.
Using the market share data and p-median model we suggested the number of branches and branch locations that a bank should have in a particular city. Then we compared our proposed network with the existing branch network. Findings suggest that some of the banks need drastic changes in their branch locations, for example Citibank in San Francisco has scope to increase the number of branches by 30%. While TD Bank is over represented in New York and can reduce its branches by 33%. These changes will help these banks to improve profitability in the long-run.
This report draws attention to the poor performance of Indian economy during the last few years. To study the effectiveness of India’s economic policy, we sampled relevant macroeconomic variables for India over the last 30 years. Data reflected anti-growth conditions. The average bank lending rate during the period of our study has been 14.32% and inflation has been consistently around 8%. Income disparity in India increased over the studied period. According to World Bank data in 2009 India ranked 78th in the list of 134 countries.
We compared India’s monetary policy with other high GDP economies such as USA, UK, Italy, Switzerland and developing economies like China and Brazil. Most of the developed countries managed to maintain low-interest–low-inflation combination for most of the years following 1990.
We suggest that high interest rate policy is incorrect for India. Low interest rates have a stimulating effect on the economy because they make it more attractive to borrow and invest. Increased investments in profitable ventures will lead to increase in output and employment. Therefore lower interest rates can help achieve faster sustainable-inclusive growth.
GreatSoft, Inc. is a hi-tech company based in Silicon Valley. The company’s operations were growing and wanted to track the cash flows. The CFO of the company wanted to project future cash requirements to de-risk the company and forecast funding needs.
A comprehensive financial model with revenue model, hiring, and various cost assumptions was built. The model performed scenario analysis at various levels of sales and inventories to estimate liquidity position.
The tool enabled the client to deliver insights to the management helping it to make strategic decisions faster and with greater reliability. Management was able to perform what-if analysis and analyze a number of scenarios. This saved precious management time.
Insta Variety is in the business of providing cloud based identity and access management solutions. They needed a financial model to present to investors in order to raise capital.
We built a financial model that seamlessly integrated the historical figures and the forecast. Cash flows under various alternatives were projected to effectively demonstrate the prospects of the business to the investors.
With the help of the model the client was able to effectively demonstrate strength of the business to investors. The client could negotiate to give away just as much equity as necessary. Investors used the model and conducted a what-if analysis to view the various business scenarios and were convinced of the strength of the business. A deal was made and foundations for a healthy partnership were laid.
CLASP is an international non-profit organization striving to improve environmental and energy performance of appliances and related systems. It provides an online tool to calculate street light design parameters. The client wanted to update this tool to add more flexibility in terms of an additional method of calculation, VBA implementation of the formulas and greater choice of selection parameters.
We revamped the tool with VBA macros and implemented an additional method of calculating design parameters. The updated tool involves complex scientific calculations to obtain the results and provides more criteria to facilitate analysis. We have also improved the design of the tool for better user experience.
The upgraded tool equips the users with more options for designing the street lighting. The additional method of calculation provides greater insight into the design choice. It also provides better visual experience in terms of illustration as the users choose various configurations.
Heli, Inc. is a helicopter services provider based in Canada. The company’s pilots undergo a number of trainings at regular intervals. The Operations Manager of the company wanted an automated way to monitor and track the training activity of the pilots.
A comprehensive application with built-in automation for streamlining the pilot training process was built. It includes an intuitive dashboard, which offers a one-glance depiction of current training status for each of the pilots. An easy-to-use interface facilitates updation of training activity details, and pilot information. The application also sends email notifications automatically to the pilots as and when trainings are due.
The tool provided the client an easy way to monitor and track the training activity of the pilots so that trainings are scheduled and conducted on time. This greatly increased operational efficiency of the client apart from the timely compliance with the safety standards and regulations.
The client is the CFO of a mid-sized electronics company engaged in activities related to home video use. With the company slated to make investments in the next financial year, the CFO needed to prepare credit requirements for the coming year. Historically, 60% of the company’s financing requirements were met by credit line from a bank. Realizing this, the CFO wanted to analyze the cash flows to predict credit line requirements and renegotiate the terms for a new credit line.
Route Optimization Case Study
The client is a logistics company with around 250 branches and operating around 300 trucks. The client has a traditional hub and spoke network with 10 transshipments. The routing and scheduling of the trucks was decentralized at each branch creating a repetition of services on the same routes. The challenge for the company was to develop a process that can be centrally monitored to make the routing of the trucks more easily accessible to the top management.
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