Devondale Milk Underperformance Analysis

This assignment analyzes the factors contributing to the underperformance of Devondale milk. It examines the impact of processing time, weather conditions, chemical properties, and stiff market competition. The analysis suggests solutions for improvement, including optimized supply chain management, targeted marketing strategies, and product innovation.

PROJECT OF
UNDERPERFORMANCE OF DEVONDALE MILK PRODUCT
ASSESSMENT NO. –
ASSESSMENT TITLE – SUPPLY CHAIN MANAGEMENT REPORT OF DEVONDALE
MILK
STUDENT NAME:-
STUDENT ID:-
EMAIL-
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Table of Contents
Introduction of Product 3
Supply chain management 3
Roles & Responsibilities 3
Evaluation of Supply Chain 4
Challenges & Opportunities 4
SWOT Analysis 5
Recommendations 5
Use of relevant supply chain theory 6
Evolution of research 6
Conclusion 6
References 7
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Introduction of product
This report is the summary presentation of identifying underperformance of Devondale milk
product which is one of the largest dairy milk food providers in Australia. They are also one the
largest exporter of milk products. They deliver their products to food chains, consumers;
restaurants and several other food corners (Christopher, 2016).They have number of farmers and
suppliers associated with them for their daily production. However currently in 2016-17, the
milk product of the Devondale is underperforming as per expected growth and the company has
failed to raise expected profits.
The supply chain management in Devondale milk product
The supply chain management in Devondale milk product is not that complex to understand. The
following are the main members of supply chain management in milk industry with their roles
and responsibilities:-
 Roles & Responsibilities:-
Farmers: - The farmers are most important key members of dairy product supply chain
as they grow healthy crops to feed to cow which in return provide quality milk to them.
Milk transportation: - This milk produced by cows is transported to production units
with the help of containers and trucks.
Processing & Packing: - The milk gathered in 2nd process is furthered processed for
production and then finished milk product is packed for sending to distributors and
warehouses.
Distribution & Sales: - The milk product is then transported to distributors on order
based which is further sold to customers. This is the final process of supply chain in
Devondale milk products.
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FARMERS MILK
TRANSPORTATION
DISTRIBUTION &
SALES PROCESSING &
PACKING
Evaluation of Supply Chain:-
The flowchart illustrated above indicates that the milk product is originally produced by the
farmers (Monczka et al., 2015). This is moved through the specialized milk transportation that
transfers the product to the processing and packaging centre after which it moves towards the
final distribution and sales which enables the product to reach the final consumer.
The supply chain of the Devondale milk products is very effective in nature (Stadtler, 2015).
Everybody in the organization is performing its role really well keeping in view the market
demand and company requirements.
Challenges &Opportunities:
Strength: - The strength of supply chain of Devondale milk is highly commitment
towards their work. All the departments are working with each other to provide best
product to the consumers.
Weakness/ barriers:- As the stated product is totally dependent on farmers and milk, so
due to weather, seasonal changes, daily change in price of milk, poor handling of finished
product, the production level of Devondale milk has decrease (Seuring, 2013). Easy
available of alike product at lower cost could also be one of the major weakness of the
said product.
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Opportunities: - Devondale product has played an important role in providing
opportunities to so many classes of the society be it farmers, cattle feeder, transporters,
labour class, marketing class (Ross,2015).Every working class mentioned above is
directly involved in the making the product successful.
Threats: -Following are the threats to Devondale milk product:-
a) Increase in prices of milk.
b) Alternate of milk product/similar other company product.
c) Dependency on farmers and cows.
SWOT ANALYSIS
STRENGTHS WEAKNESSES
Largest milk product supplier Dependency on cows and farmers
Effective local supply chain Fluctuation in daily prices
Experienced logistic department. Change in weather
OPPURTUNITIES THREATS
Satisfied Customer base Competitive firms
No. of products and flavours Perishable item
Large capital resources Similar product
Recommendations:
Strength: - The traditional strength of milk product is that it is consumed almost every day by
vast population of all age groups. So, the company should focus more on providing high quality
milk product to its customers at lowest prices(Gerber & Tempio,2013). It should focus on
producing unique flavour, specialized product rather than jumping into all types of milk product.
Weakness: - The major weakness of milk product can be poor hygiene in preparation of milk
product or poor handling of finished product. (Kaipia & Loikkan, 2013). To eradicate this
weakness, the company should take care of all the resources related to handling and preparing of
Devondale milk product(Monczka et al., 2015). The company should try to produce unique
product to create monopoly of their product in the market.
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Opportunities: - Devondale milk has provided so many employment opportunities to so many
people in Australia. Farmers, cattle feeders, transporters, small food chain retailers all are
making money with sale of this milk product.
Minimizing threats
Few of the threats which can be included in this point are explained below:-
Increase in milk prices: The Devondale product is very much affected due to this factor. The
increase in input cost of milk has hampered the industry a lot.
Dependency on farmers & contracted cows: The Company should think of purchasing their
own cattle and cows for their milk needs
Alternate milk product: The Company should bring uniqueness in their product taste inorder to
make sure that their product recipe is not copied by any other firm. (Kamal & El Aal, 2013)
 Use of relevant supply chain theory:
Supply chain theory is a continuous process of flow of goods and services from point of origin
to end user includes all the processes like procurement of raw material, production, packing and
sale of finished goods (Seuring, 2013).
Evidence of research
Definition & Explanation along with Marketing Performance: The supply chain can be a
great use in order to make marketing strategies (Stadtler, 2015). Data can be collected through
mails, surveys, internet which can be used by the Board in making marketing strategy of the
Devondale milk (Monczka et al., 2015). The supply chain performance is directly linked with the
performance of an organization (Stadtler, 2015). Based on the data collected, the management
can build future strategies for success of product.
Conclusion
The Devondale milk product is under performing due to its chemical properties and its nature as
the processing time from origin of product to its consumption is very less and important. The
weather of the region also effects the chemical composition of this product. The stiff competition
in market also resulted in declining the sale of said product. The company should also think to
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advertise themselves using social media and other media platforms in order to reach more
customers and wide areas. The company should focus on providing high quality product to
consumers and bring new products in the market in order to survive.
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References
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Gerber, P.J., Steinfeld, H., Henderson, B., Mottet, A., Opio, C., Dijkman, J., Falcucci, A. and
Tempio, G., 2013. Tackling climate change through livestock: a global assessment of emissions
and mitigation opportunities. Food and Agriculture Organization of the United Nations (FAO).
Kaipia, R., Dukovska-Popovska, I. and Loikkanen, L., 2013. Creating sustainable fresh food
supply chains through waste reduction. International journal of physical distribution & logistics
management, 43(3), pp.262-276.
Kamal, R.M., Bayoumi, M.A. and El Aal, S.F.A., 2013. MRSA detection in raw milk, some
dairy products and hands of dairy workers in Egypt, a mini-survey. Food Control, 33(1), pp.49-
53.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Ross, D.F., 2015. Distribution Planning and control: managing in the era of supply chain
management. Springer.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), pp.1513-1520.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.
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