Logistics and Supply Chain Management Assessment 3

Logistics and Supply
Chain Management
Assessment 3 - Develop a Proposal that Captures the
Development
and Implementation of a Logistics and Supply Chain Structure for
Australian Chocolate Industry

Part 1- Week 9: Market size for
chocolate manufacturing in
Australia Consumer demand is shifting more towards premium and healthier chocolates
 The annualized growth rate for the industry will be 2.2%
 The total estimated value for the industry will reach to $6.1 billion over the next
five years

Companies that are the main participants
 Nestle Australia Ltd, Mars Australia Pty Ltd and Mondelez Australia Holdings Pty Ltd
 Others include Ferrero Australia Pty Ltd
 Nestle will enjoy a revenue growth over the five years by 1.6%
 Mars will also be in positive growth
 The growth will be by 1.5% over the same period
 However, Mondelez will be losing on the benefits
 Will witness a drop in revenue by 1.9% over the five years

Examining the competitive
landscape
 The industry is majorly occupied by industry’s major players
 They occupy a total of 40% of the entire chocolate industry in
Australia
 The key success factors (CSFs) in years to come will be
marketing of differentiated products, economies of scale,
economies of scope, guaranteed supply of key inputs, ability to
pass on cost increases and establishment of export markets

Identifying 3-4 critical success factors
(CSFs) for this industry
1. The marketing of differentiated products
2. Economies of scale
3. Guaranteed supply of key inputs

Describing the CSFs
Marketing of Differentiated Products:
 Needs to produce differentiated products
 Must promote the change with differentiated marketing activities
Economies of Scale:

Firms like Nestle will have the benefits from economies of scale as it
offers products to mass market
Guaranteed Supply of Key Inputs:
 Effective contracts need to be established with key suppliers
 Helpful in avoiding supply volatility and receiving assistance in production planning