11th December 2012Introduction Supply chain management (SCM) is a combination of processes involved in transforming raw materials in to finished products and services. SCM helps firms to balance the relationship between profitability and satisfaction of consumer needs. When a company’s sections work together firms are able to increase revenues, regulate costs and meet consumer needs. Cadbury is a multinational company that produces Cadbury Milk Chocolates. The process of supply chain in producing Cadbury Milk Chocolates should be efficient, affordable and able to offer high quality products and services to customers. A supply chain combines raw materials, suppliers and manufacturers of different components and retailers.
This kind of vertical integration and new product timing creates product competitiveness. Vertical integration helps to reduce market uncertainties. This is achieved by controlling distribution channels that are involved in production of new products. Vertical integration creates effectiveness and efficiency. However, it creates an “inward” internally focussed company (Wailgum 2008). This tends to make the company to focus on maximisation of its products by copying them across various business lines. The aim of this study is to analyse the supply-chain management processes involved in the Confectionary industry.
The main product to be involved in this study is the bar of Cadburys Milk Chocolate. This product is made from real chocolate. Some of its ingredients are cocoa, butter cream dairy milk and palm oil. The value adding processes in the supply chain and the nature of the transforming processes in the chain are also examined. The paper has also studied where and how inventory is managed and the role that technology plays in the supply chain.
Lastly, the paper examines the risks involved in the chain and the impact of supply chain on the environment. The Supply Chain and the linkages between products, suppliers, manufacturers and retailers in the chain Source: (Beamon 1998)Supply Chain involves several processes that link products, suppliers, manufacturers and retailers. This makes it necessary for companies to manage all the resources involved in meeting consumer needs. Suppliers start the supply chain by providing the raw materials necessary in the production process. The manufactures form the second level of the chain by buy the suppliers’ produce.
The retailers form the third level of the supply chain. There may be more than one level of retailers. The consumers are the last in the supply chain. Production Planning and Inventory Control Process: businesses aim at responding to consumer needs by introducing new products into the market. This creates the need for involving various suppliers and consumers in the development of a new product. Production planning entails design and management of the manufacturing process (Beamon 1998). For example, the production of Cadburys involves coordination of the procurement and production departments.
Suppliers provide raw materials involved in production of Cadburys Milk Chocolates. Some of the suppliers are the farmers and milk creameries who supply fresh milk, cocoa, palm oil and other products. This process also entails inventory control which designs and manages the storage policies and procedures for converting raw materials to final products. The final products can be transported to the retailers directly or they can be stored in distribution facilities. The distribution facilities eventually transport products to retailers. The management of inventory, transportation and delivery of final product is essential in this stage (Beamon 1998).