A Review of Cadburys Supply Chain

A Review of Cadburys Supply bowed stringed instrument of mountains Literature Review Man of Dairy Milk and Money. Elaine Watson Article Summary * This article begins by highlighting how Cadburys have had their fair sh ar of problems * Salmonella outbreak in 2006 * Decision to close Somerdale grind and switch production to Poland. * grind issues in Sheffield river quite liter solelyy flowing with the factory. * But as the article highlights, the firm has a strong and strategically placed egress chain. Areas of belligerent Advantage * Factory Network They recently built a new factory in Poland.They have an established meshwork with two other factories there, and a gum plant. * Cost effective Supply Chain By strategically placing the factories in Poland they were fitted to achieved cost savings in two gravestone beas * Cheaper wages (despite the fact that they atomic number 18 increasing). * A reduction in labour by 15%, which resulted in boosting operating margins from 10% to the mid-teens. * continuative of Supply Chain Cadburys treat the supply chain as a whole It is precise easy to think in hurt of manufacturing, logistics, sales, purchasing and so on. But their objective must all be aligned.They ensure that work groups are formed compiling of resources from across the protestent running(a) teams. This ensures that every project/group is focused on achieving their main goal of guest satisfaction, and are able to consider this from every part of the manufacturing process. * Global Benchmarking Weve got lots of pick up performance indicators in terms of quality, safety, do level, and the environment, but for manufacturing we use OEE. Cadburys highlight the importance of spoil management owing to the fact that painful materials have dramatically increased in prices over recent years (Cocoa for ex international amperele has increased from ? ,000/t to ? 1,600/t. * Environmental responsibilities Cadburys aim to reduce their carbon footprint by 50% by 2020. * Manufacturing willpower Manufacturing is a core out competency for Cadburys. There are arguments in favour of keeping this in suffer in terms of economic and intellectual ones. Bournville is the core plant here they have 1,000-1,200 staff as well as sophisticated machinery producing 100,000t of chocolate products a year. This factory further produces 1m creme eggs a day. * Outsourcing Cadburys outsource two of their products * Snaps this involves unusual technology. * Green & Blacks.Literature Review Ethical Supply Chains The refreshful Black? Lisa Brown. Article Summary * This article highlights the importance of sustainable supply chain management, and likens the rate of lay down up to The New Black. Therefore this article is centered around how Cadburys manage a sustainable supply chain in order to gain a competitive advantage. * Cadburys are an example of a firm who have successfully implemented such ethical considerations into their supply chain. In 20 09 they announced that the cocoa drinks and dairy milk chocolate would be fair-trade certified in British and Irish marts.This mark ensures that the farmers are paid a fair price, and that crops are farmed under sustainable conditions (putting a gimpy to child labour). * Advantages of Sustainable Supply Chain Management (SSCM) * Changing consumer attitudes The article paints a view of a consumer who is no long-run concerned by product quality and other tangible aspects, but quite an is concerned with the integrity of supply bondage (and will often spend more money on those products that appeal to their good code). This view is personified through with(predicate) Browns comment that pressure to donate, volunteer, buy common by organic, recycle, reduce carbon emissions.Brown further states, Customers often feel a sense of intrinsic trueness and emotional attachment to the products they purchase * The price of non acting sustainably the article compares Cadburys success to a clothing retailer who has received criticism for their use of sweatshops in Asia. * warlike Advantage Supply chains have become the new black, a trendy way of connecting with the consciousness of consumers (particularly generation Y) and achieving differentiation from those companies/products not willing or able to keep up. * How is this hanging consumer attitude affecting the industry? * Competitive Advantage Transparency of supply chains in a society where publicly accessible culture is just a click away and a good reputation is priceless, ensuring integrity of supply chains is on way to create a competitive advantage. * Product differentiation Products are no longer differentiated by rudimentary characteristics such as colour and price. Values are a key part of the customer decision. * Declaration of interests Companies must ensure that companies they are partnering with are also keeping inside the guidelines. Ethics ahead of profits Customers nowadays will pay more money for i tems that appeal to their moral consciousness. Thus, firms need to walk the walk rather than just talking the walk. Literature Review Reconfiguring Three Companies nether one Umbrella. Alan Robinson. Article Summary * This article identifies how the Cadburys supply chain ensures that network benefits are realized and capitals costs are reduced. In essence it portrays how Cadburys creates a competitive advantage through three of their products Schweppes, Motts and Snapple. Competitive Advantages structured Supply Chain The three companies have an integrated supply chain, which provides the succeeding(a) benefits * Continual realignment and readjustment of products means that they never duplicate efforts. * Owing to constant changes in product lines (with them acquiring other lines and products), they continually review their locations and distribution channels. They ensure that they are always maximizing efficiency (hence their run for from Somerdale to join their other factories in Poland). * Synergies between brands Brands work together.For example a group with a mount up manufacturing knowledge, Motts, was opposite with a new manufacturing company, Snapple. Motts ran the Snapple manufacturing activities. * Analytical Tools They use advanced supply chain uninflected tools such as VA-basis Insight and its SAILS. This is supply chain network modeling software (similar to those shown in the picture below). Source Ernst & Young Power and utilities Network Modeling Overview. This provides them with the following benefits * Ability to strategically go down up plants and locations (network modeling). They are able to constantly reevaluate their market in order to reduce duplicate and reduce carbon emissions (which saves costs and promotes their sustainable supply chain management image). * Ability to analyse crave seasonality to ensure that their brans have the capacity to execute customer demand throughout the year (their products are super seasonal e. g. Cadburys creme eggs). * Mature stock and inventory level management systems gives an idea as to where they should target additional capabilities. * Reduces capital costs Products are sold to market at varying stages in supply chain * Motts and Snapple sell ready to go products that can be sold to the end customer. * Whilst Dr. pepper and carbonate drinks just sell the ingredients. * Range of outlets Cadbury sell their products in a range of outlets in order to meet their customer base. For example, Convenience stores, supermarkets and drug chains etc. * Variety of Production Methods * Outsourcing Cadburys Schweppes brand is outsourced to Hersheys in America. * Franchise Cadburys franchise Dr Pepper and 7Up.Those who buy the franchise get rights to the product, the concentration and the packaging. * employ of distributors Snapples Beverages use distributors to reach their market. Synthesis The assimilation of each of the articles that I have researched demonstrate that Cadbur ys watch over their Supply Chain as being a key area in which they can create a competitive advantage. Their main advantages are achieved in the following areas * Make-buy/Outsourcing Decision Cadburys assess the market and their areas of strength to ensure that what they are producing satisfies the customers needs.This is both cost effective and logical in terms of fulfilling the customer requirements. * Factory/Distribution Outlets Networking Intelligent network software is used to ensure the network that supports their supply chain is cost efficient and reduces duplication. This can be seen from their move to Poland, thus creating synergies. This also increased their operating margin. * Integrated Supply Chain Owing to the number of product lines that Cadburys own (often through M&S activities), the Cadburys supply chain is configured to enhance brand cooperation and coordination.This can be seen through a number of examples listed in the examples above * E. g. 1. For example a group with a mature manufacturing knowledge, Motts, was paired with a new manufacturing company, Snapple. Motts ran the Snapple manufacturing activities. * E. g. 2. Different departments are bought together a matrix manner in order to ensure that projects and work takes into account the view of the whole manufacturing process. This ensures that their objective is always in the read/write head of projects and is accounted for through all different functions views. Sustainable Supply Chain Management (SSCM) They are able to differ from competitors in a number of ways. The benefits achieved through their morally appealing supply chain activities are * Competitive Advantage * Product differentiation * Declaration of interests * Ethics ahead of profits * Manufacturing Ownership Manufacturing is a core competency for Cadburys. There are arguments in favour of keeping this in house in terms of economic and intellectual ones.Bournville is the core plant here they have 1,000-1,200 staff as well as sophisticated machinery producing 100,000t of chocolate products a year. This factory further produces 1m creme eggs a day. * Global Benchmarking Weve got lots of key performance indicators in terms of quality, safety, service level, and the environment, but for manufacturing we use OEE. Cadburys highlight the importance of waste management owing to the fact that raw materials have dramatically increased in prices over recent years (Cocoa for example has increased from ? 1,000/t to ? 1,600/t.