Industry Group Report: Cadbury Australia Supply Chain Analysis

This report provides an in-depth analysis of Cadbury Australia's global supply chain, focusing on the challenges faced by cocoa farmers and the company's efforts to improve their living conditions through initiatives like the Cocoa Life program. It examines the impact of confectionery manufacturers on farmer income and the issues of lack of education and market knowledge among farmers. The report further explores Cadbury Australia's distribution channels, logistics using 'Toll Group', and the implementation of Total Quality Management (TQM) to enhance customer satisfaction. Key performance indicators such as fill rates and lead time are analyzed to assess supply chain efficiency. The report highlights the importance of TQM in maintaining product quality and brand reputation, while also comparing Cadbury's distribution strategy with competitors like Nestle and Mars. It concludes with an overview of the formulas used to measure fill rates and lead time, providing a comprehensive understanding of Cadbury's supply chain management.

Industry Group Report on
the Global Supply Chain of
Cadbury Australia

For the Cocoa farmers, company had initiated a supply of chain in the form of cad bury to
enhance and run smoothly the living condition of the parties. As per the survey in report, it
examines that farmers are still far away to use the welfare scheme which the company made in
relation to Cocoa Life programs. One of the survey report revealed about the condition of
farmers as confectionery manufactures challenges the company and take actions in strategic way
to affect the income of farmers. This result is that farmers are getting less profits from the
company and at the same time manufactures enjoy the profits at higher level. It also disclosed in
the report that Cocoa farmers who stayed in third world countries only get 1.25 USD per day
which is less to improve their living condition.
Another way for facing the poor living condition of Cocoa farmers is that they have lack
of knowledge about the business activities. The reason behind this condition is that they are
uneducated and have no knowledge about the market rates and they offens agree on that rates
which are decided by the intermediates. This lack of knowledge and market trends result in
maintaining their living condition. With this, Farmer losses the power of bargaining on products
and cannot plan to secure their jobs and unable to deal with the challenging manufactures.
Changes in rates of Cocos is due to bacteria in crops or certainly changes in weather
condition which affects the quality of Cocoa. The volatility of changes in rates causes economic
crisis as the farmers are in need of money and for that sake they have to sell the crops at low
price. This situation forces the farmers to commit such things in need of money and also they
have no proper place to store the cocoa beans. In Farmers community, cases such as child labour
and gender inequalities are the common aspects which affects the society.
Cadbury in Australia distributes their product to public through various distribution
channel. The corporate buyer who prefer the Cadbury products kept their products in
supermarket, stores and HORECA (Hotels, Restaurants and Catering). Supply chain of cadbury
are complex in nature and its distribution process is also complicated for the company. So
Cadbury Australia uses the 'Toll Group' logics to outsource its product in different countries.
This is said to be the one of the largest logistics that Australia company is using to make the
supply chain effective and efficient for the local market.
To improve the performance of the supply chain process in perspective of customer
satisfaction level, Cadbury Australia is using Total Quality Management (TQM), provide order

between the allotted time and fill rates. It helps the customers to measures the performance of
company in respect of supply chain process. Fill rates helps in analysing the quantity of goods
delivered in respect of holding the ordered quantity of goods. Example, if the percentage rates of
cadbury in respect of fill rates are very low in supermarket chain and there is a gap between the
next delivery of order on Cadbury products. It results in loss of sale in super market and also
customers interest are less. As products are not available in the market when they need that
products which result in switching off the interest in Cadbury. At last from the respective of
Cadbury it analyses to be the lost of sale and it affects the relationship with the customer and also
the sales partner are not happy with the supply of products. It results in end of consumers interest
towards the Cadbury. The fill rate is anlysed by using the appropriate formula:
{1-((Order Quantity - Delivered Quantity) / Order Quantity)} * 100
In relation to supply chain management, the concept of having 100% fill rate of order is
not enough in case the order is delivered outside the recommended being fulfilled within the
given time by the customers. They have to analyse the vital order to be fulfilled within the lead
time allotted by customers. To indicate the Key performance of the companies it can be judged
by measuring the capacity of the organisation that how quickly they can fulfil the customers
demand and needs. It also identifies the company management regarding time and speed of
delivering the order to the customers. To measure the fulfilment of lead time, here is the formula:
(Actual Delivery date - Purchase order creation date)
To upgrade customers interest in the product, company using Total Quality Management
to increase the quality of product with less damage. TQM is succeeded by the team effort as it is
the duty of every member to produce the quality products. Thus, TQM helps the management
team to focus on customer satisfaction by improving products at every stage. As due to high
quality products it helps companies to raise the brand name and challenge competitors such as
Nestle, Mars in the market.
While comparing with competitor such as Nestle and Mars they deliver products through
their own distributor while Cadbury uses third party logistics 'Toll Group' to deliver products
across the country.