Cadbury Supply Chain: Analysis and Strategy - USC Food Marketing

This report provides an overview of Cadbury's supply chain, starting with its market share and infrastructure. It details the roles within the supply chain, from cocoa production in Ghana to the final consumer. A SWOT analysis identifies strengths like expertise and weaknesses such as outdated practices. Key issues include lack of quality checks and customer feedback integration, alongside ethical controversies. Recommendations focus on implementing feedback systems, ensuring transparency, and conducting regular quality checks. The report suggests including customers in the supply chain, using innovative packaging, and optimizing production processes. It concludes by emphasizing that an integrated supply chain management system would improve Cadbury's overall productivity. The document also references the Swiss beer market and the potential of ginger beer, highlighting changing consumer trends and the demand for innovation and variation in the beer market.

 Cadbury is one of the
most beloved names in
the food industry, with a
strong infrastructure
spread out across
numerous countries.
 With a wide range of
products, Cadbury has a
well developed supply
chain which traces the
entire manufacturing
process right from the
supplier to the consumer.
AN OVERVIEW OF
CADBURY
Karjalainen and Moxham 2013. Beg
et al. 2017. Dani 2015.

MARKET SHARE OF
CADBURY

A BRIEF IDEA OF CADBURY’S
SUPPLY CHAIN
Cocoa
productio
n
Harvestin
g of cocoa
Cocoa
processin
g
Manufact
ure of
final
products

The suppliers of
Cadbury would refer
to the cocoa farmers
and harvesters in
Ghana, which is the
major source of raw
materials for the
company
Transportation plays a
key role here. The
harvested products
acquired from Ghana
are transported over
long distances to
different parts of the
world to Cadbury
factories.
The production plan of
Cadbury mainly
comprises processing,
where the two different
kinds of chocolate are
developed, namely milk
chocolate and dark
chocolate.
ROLES IN SUPPLY CHAIN
Smith and Rupp 2015.
Darkwah and Verter

The production of
the company is a
complicated process
involving a number
of steps, which
involve quality tests.
The manufactured
product is then
distributed to the
wholesalers and
retailers which
include third party
stores and Cadbury
owned retailers.
The consumer is the
final step of the
supply chain.

SWOT ANALYSISOF SUPPLY
CHAIN
Years of expertise, clear
understanding of product
flow from supplier to
consumer, top quality
ingredients.
Outdated supply chain
management practices,
lack of quality checks at
every step, lack of
transparency in feedback
system of customers

The chocolate industry is
dynamic in nature, thus
providing Cadbury ample
opportunities for growth in
the future.
Growing consciousness
about health impacts of
chocolate, thus affecting
global sales of Cadbury,
falling market share owing
to recent controversies and
sudden changes in market.
SWOT ANALYSIS OF SUPPLY
CHAIN

LACK OF QUALITY CHECKS
AT EVERY STEP OF THE
PRODUCTION PROCESS
FAILURE TO
INCORPORATE CUSTOMER
FEEDBACK INTO SUPPLY
CHAIN MANAGEMENT
ETHICAL CONTROVERSIES
WHICH HAVE QUESTIONED
THE CREDIBILITY OF THE
COMPANY
KEY ISSUES

RECOMMENDATIONS
(There should be a
proper and well
defined feedback
system allowing
backflow of
information from the
customers.)
(The flow of the product
from the supplier to the
consumer should be
transparent, without any
ambiguities. This would
reduce chances of ethical
issues.)
(Regular quality
checks would have
to be implemented
at every step of the
production process.)

RECOMMENDATIONS
(The customer should
be included as part of
the supply chain.
Direct contact with
the customer would
enhance customer
retention.)
(New innovative
packaging that is
convenient, eco
friendly and
appeals to the
customer should
be included.)
(Optimized and
streamlined processes in
production, removal of
uncertainty and
engagement in supply
chain should be
implemented.)

An example of a
transparent
supply chain…

Flow of product
Flow of
information
Li et al. 2014. Seuring 2013.

To conclude, an integrated, tactical
and structured supply chain
management system would enhance
the overall productivity of the

BIBLIOGRAPHY
 Karjalainen, K. and Moxham, C., 2013. Focus on Fairtrade: Propositions for
integrating Fairtrade and supply chain management research. Journal of
Business Ethics, 116(2), pp.267-282.
 Beg, M.S., Ahmad, S., Jan, K. and Bashir, K., 2017. Status, supply chain and
processing of cocoa-A review. Trends in Food Science & Technology, 66, pp.108-
116.
 Li, D., Wang, X., Chan, H.K. and Manzini, R., 2014. Sustainable food supply chain
management. International Journal of Production Economics, 152(0), pp.1-8.
 Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
 Dani, S., 2015. Food supply chain management and logistics: From farm to fork.
Kogan Page Publishers.
 Seuring, S., 2013. A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), pp.1513-1520.
 Smith, A.D. and Rupp, W.T., 2015. Supply chain integration and innovation in a
global environment: case studies of best business practices. International Journal
of Logistics Systems and Management, 22(3), pp.313-330.
 Darkwah, S.A. and Verter, N., 2014. An empirical analysis of cocoa bean
production in Ghana. European Scientific Journal, ESJ, 10(16).

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