Supply Chain & Logistics Solution for Cardinale Chocolates, 2018

This report outlines a logistic supply chain management solution for Cardinale Chocolates, focusing on leveraging Amazon's platform for sales and distribution. The proposed model consists of six stages: creating an online store account, receiving customer orders, shipping orders via Fulfillment by Amazon or Amazon Easy Ship, receiving payments, promoting business expansion, and enabling global expansion. The report also contrasts this online approach with a traditional offline supply chain model involving material procurement, manufacturing, and distribution through both Amazon and in-house stores. The analysis considers the advantages and disadvantages of online sales, emphasizing the potential for global reach and cost savings in transportation while acknowledging processing fees charged by Amazon. The goal is to provide a comprehensive supply chain strategy that allows Cardinale Chocolates to efficiently manage its operations and expand its market presence.

Running head: LOGISTIC SUPPLY CHAIN MANAGEMENT
Logistic Supply Chain Management
Name of Student:
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Author’s Note:

1LOGISTIC SUPPLY CHAIN MANAGEMENT
Answer to weekly portfolio question
As per given scenario, it needs to be discerned that product sales as a result of Amazon
selling, the process needs to be taken into account with formulating a model comprising of six
different stages in Supply chain. As per the figure 1, the first stage comprises of creating an
online store account on Amazon. In this stage Cardinale will register the various products with
listing tools available in the website. Cardinale will be also supported in creating a high-quality
catalogue thereby assisting in having a better advertising using “Amazon Sponsored Products”.
From the second stage itself the company will be able to receive orders from the customers
(Stevens and Johnson 2016). This will allow a wide range of customers to view the products as
the story goes live and Cardinale will have the opportunity to use easy to order dashboard
functionality. This third stage will comprise of shipping of the orders by the terms and conditions
of “Fulfillment by Amazon” and “Amazon Easy Ship”. In addition to this the company will
also have the option to upgrade to an additional store inventory which will allow fulfilment of
centres in picking up the products and directly shipping to the customers (Varoutsa and Scapens
2015). This will also allow the company to save the cost of relying for transportation with an
additional third-party logistics service provider. The fourth stage of the model for selling the
products will involve receiving payments for the orders. In case, the company chooses to opt for
online services, the payment will be deposited directly within seven 7. In this stage Amazon will
deduct a small charge as a processing fee after the sales is made. This is the only aspect of the
selling model where the company is in a disadvantage by opting for online sales rather than
selling through shops. The fifth stage shall comprise of the activities which will promote
expansion of the present selling procedure. This will be ensured by keeping track of account
performance through a customised dashboard and receive 24/7 access in resolving queries. The
sixth stage of the diagram captures the global expansion which will allow Cardinal to deal with
not just the customers based in Australia but also making the products available for sale in the
US and taking advantage of global logistics network of Amazon (Monczka et al. 2015).
As per the figure 2, in case of the offline process the of the supply the first stage will
involve procurement of the material. This will be done by sourcing the suppliers who will be
able to offer best price for sourcing. Post manufacturing process of Cardinale process is seen

2LOGISTIC SUPPLY CHAIN MANAGEMENT
Creating an online store account on Amazon
Receive orders
Order delivery
Getting the payment from Amazon
Domestic expansion of business
Global expansion initiatives
with the distribution which will comprise of both in-house distribution and distribution through
Amazon online store.
Figure 1: Supply chain phases of Cardinale Chocolates through
(Figure: Services.amazon.com.au 2018)

3LOGISTIC SUPPLY CHAIN MANAGEMENT
Procurement of Raw Materials
Sourcing of Suppliers
Cardinale Manufacturing Process
Cardinale Inhouse Store
Distribution Process
Amazon Online Store
Customer
Consumer
Figure 2: Cardinale Chocolates Supply Model
(Figure: Services.amazon.com.au 2018)

4LOGISTIC SUPPLY CHAIN MANAGEMENT
References
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Services.amazon.com.au. (2018). Amazon.com.au: Getting Started with Selling Services on
Amazon. [online] Available at: https://services.amazon.com.au/services/sell-on-amazon/how-it-
works.html?ref=as_au_en_header_howitworks [Accessed 30 May 2018].
Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years on. International
Journal of Physical Distribution & Logistics Management, 46(1), pp.19-42.
Varoutsa, E. and Scapens, R.W., 2015. The governance of inter-organisational relationships
during different supply chain maturity phases. Industrial Marketing Management, 46, pp.68-82.