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Cadbury Group 5

Cadbury's dominates the Indian chocolate market with 70% share. It sources materials domestically and distributes through regional hubs, CFAs, stockists and retailers to a consumer base of 60 million. The document discusses Cadbury's supply chain and answers questions on reducing inventory, distribution network changes, evolving logistics for channels, and demand management.

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29 views9 pages

Cadbury Group 5

Cadbury's dominates the Indian chocolate market with 70% share. It sources materials domestically and distributes through regional hubs, CFAs, stockists and retailers to a consumer base of 60 million. The document discusses Cadbury's supply chain and answers questions on reducing inventory, distribution network changes, evolving logistics for channels, and demand management.

Uploaded by

amey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Group - 5

• Cadbury’s Five Star, the country’s first chocolate, was launched in 1968.

• Chocolates contribute to 64 percent of Cadbury’s sales turnover.

• Cadbury’s continues to dominate the chocolate market with about 70 percent market share.

• In malted health drinks, Cadbury’s has a strong presence in Bournvita, which accounts for 43 percent of its
sales turnover in brown drink segment.

• The net profit of the company rose by


41.8 percent to Rs. 520 million in 2000
Manufacturing
• Cadbury’s main manufacturing facilities are Thane (Maharashtra), Gwalior (Madhya Pradesh), Hyderabad
(Andhra Pradesh), and Pune (Maharashtra).

• Cadbury also outsources manufacturing to third parties (vendors) located at Phaeton, Warna, and Nashik in
Maharashtra.

• The raw material is procured from Uttar Pradesh, Gujarat, and Maharashtra.
Supply Chain

• Four regional offices for marketing are located in Mumbai, Delhi,


Kolkata, and Chennai.

• The material is supplied to CFAs from four warehouse hubs


located at Thane, Gwalior, Hyderabad, and Pune.
• There are 27 CFAs located across the country.

• There are four to six depots managed by carrying and forwarding agents (CFAs).

• These CFAs supply the material to 2100 stockists, which in turn serve 4,50,000 retailers.

• The company has a total consumer base of 60 million.


Ques 1- For the reduction of inventory level, what measures should the company adopt, without sacrificing
customer service and market share?

Ans 1-

• ABC analysis and remove all the products falling under C.

• Reorder quantity (Order size and annual requirement) and Balance the forecast with the product delivery
Ques 2- Does Cadbury need to undertake any major changes in its distribution network?

Ans 2- A lot of big changes are not needed as they hold 70% of the market share currently.

• They need to increase their Storage hubs / regional offices from 4 to 8 in various parts of India
• They should develop an App for the retailers to directly order from the company (ITC).
• They need to start setting up their own distribution system. (Long – Short run concept)
Ques 3- Discuss the nature of logistics programs the firm needs to evolve for different channel members.

Ans 3- They have an Intensive distribution system. Our suggestions are:-

• (E-tailing) in the supply chain process.


• Evolve the vending machine concept in India.
• Run small training programs to drive up sales to various retailers with your own team to search for new
retails to include in the supply chain.
• Supply directly to the big supermarkets & big retailers directly
Ques 4- ‘Demand Management is essential for operating a lean supply chain.’ How should Cadbury’s tackle the
issue of demand management for chocolates?

Ans 4-

• They need to have a direct talk with the customer to understand the demand in the market. It will help in
demand forecasting,
• They should start stocking up before the festival season to ease the load on the supply chain.
• Include online website with not just personal it gift but bulk orders also directly from customers.

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