Logistic Supply Chain Management for Cardinale Chocolates Report

This report provides a detailed analysis of the logistic supply chain management of Cardinale Chocolates, focusing on the Australian retail chocolate market. It examines the market size, key industry participants, and the impact of changing consumer preferences, particularly regarding fat and sugar content. The report explores the company's strategies for expansion, including online sales through Amazon, and discusses demand forecasting techniques. It further evaluates the advantages and disadvantages of selling products through Amazon, including supply chain efficiencies and cost considerations. The report outlines the six key steps in the Cardinale Chocolates supply chain, from setting up an online store to global expansion, and identifies the technologies currently employed by the company. It concludes by suggesting technological advancements that could improve the production of healthier chocolate products.

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

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Table of Contents
Introduction......................................................................................................................................2
Answer to Part 1..............................................................................................................................2
Answer to Part 2..............................................................................................................................3
Answer to Part 3..............................................................................................................................3
Answer to Part 4..............................................................................................................................4
Answer to Part 5..............................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
The main depictions of the repot aims to find the various types of the details on the
market size of the retail chocolates which are seen to be based in Australia. The study has been
further able to state the main participants in the industry who are involved in the current export
process outside Australia. The learnings of the study have further evaluated the important
changes which were brought to accommodate the online sales of Amazon. The main
interpretations are further conducive in identifying the mechanisms available in tracking the
forecasting of future demand of Cardinales. The main assessment has been further conducive in
better understating of “Big Box Supply Chain” (Gallo, Antolin-Lopez and Montiel 2018).
Answer to Part 1
The main operators in Australia involved to produce the retail chocolate has been seen to
be facing the trend of changing consumer preferences in the last five years. Some of the different
types of the of the consumer concerns are depicted with the fat and sugar content in the products
which has significantly weakened the demand for the traditional chocolates and confectionary
over a period of time. However, renovations in the technology and composition of the sugar has
brought more players in the market. At present the total value for the retail chocolates in
Australia is depicted close to $ 1435.69 million (Beckett et al. 2017). Some of the important
depictions based on this information has been shown with the table as follows:
Figure: Retail sales value of selected chocolate in Australia in 2015
(Source: Statista.com 2015)

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Some of the main participants of the industry are seen to depicted in form of the
manufacturer who are seen with “Zokoko”, situated in “Emu Heights NSW”, “Bahen & Co” in
“Margaret River, Western Australia”, “Haighs” situated in “Parkside, South Australia” and
“Daintree Estates in Mossman, Queensland”. Some of the of the main exporter of the chocolate
in Australia is identified with exporting chocolate in other countries are seen with Crest
Chocolates which is seen to export chocolate mainly in New Zealand (Store.mintel.com. (2018).
Answer to Part 2
The expansions strategy which company intends to adopt is seen to be based on the
consideration of the various types of the initiatives which should be focused with customer
segments. Firstly, the main concern of the fat content in the chocolates needs to be addressed
with the increasing the production of chocolate which uses low fat milk. The target market for
such consumers will be based on those buyers who are prefer for the various types of the
chocolates which are lower than 200 calories. The health-conscious consumers will be having
more preference such a product. The other customer segments needs be included with the
customer who need to buy a chocolate for birthday or party (Jia et al. 2016).
The changes introduced in the online sales mechanisms needs to be depicted inform of
providing the description of the calorie content along with the various categories of the
information which are generally present in the back side of the product description.
As stated in Economics Discussion (2015), some of the demand forecasting tools
available for Cardinales includes the application of the application of market experiment method.
The company needs to be adopt this technique to ascertain the current and future demand for a
product with this method. This technique will comprise of the forecasting of the information
from the relevant segments of the consumers rather than performing analysis on the whole
market segment.

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Answer to Part 3
The supply chain advantages of the selling of the products across Amazon for Cardinales
has been depicted with non-reliance on a third-party logistics provider. The company will be able
to reduce the cost involved in assigning an additional carrier to transport the chocolates to
different retailers. The supply chain demand forecast will improve as the lead time can be
ascertained from beforehand by the products which have been added in the cart. In addition to
this, the various types the tracking technologies used by Amazon and seamless order movement
reporting from one facility to another will be conducive in better knowing about the product
status. The negative aspects of the supply chain are discerned with the concerns associated to
mishandling of the product and processing charges for the order which needs to be paid to
Amazon. The term Big Box refers to those retailers which occupies large amount of physical
space in offering a wide variety of products to the customers (Staff 20014).
Answer to Part 4
The sales which are made either through the shop or online through Amazon is comprised
of six important steps which ranges from firstly, setting up of the online store at Amazon. The
second step in the sales process is taken into account with the receiving of the order from
customers. The third step of the supply process involves delivery of the order via “Amazon Easy
Ship” and “Fulfillment By Amazon”. The fourth stage in the supply chain process comprises of
receiving the payment from Amazon. This payment is usually depicted to be deposited to the
bank account within 7 days. This is stage where Amazon deducts the process charges for the
order and debits the charges from the seller account, needed to deliver a product to the customer.
The fifth phase allows the bossiness to keep track of their deliveries with “personalized
performance dashboard and customized reports”. The final stage provides the various types of
the options to the customers which are related to the global expansion across international
locations and take the advantage of the international logistics facility of Amazon
(Services.amazon.in. 2018). The diagram that captures all phases of the “Cardinale Chocolates
Supply Chain” is shown below as follows:

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Phase 1: Setting up store on Amazon
Phase 2: Receiving orders from customers
Phase 3: Delivery of the orders
Phase 4: Receiving payment from Amazon
Phase 5: Growing the business
Phase 6: Global expansion of the business

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Figure: Six Phases of the Cardinale Chocolates Supply Chain
(Source: As created by the Author)
Answer to Part 5
The present technologies incorporated by Cardinale in the past five years has focused on
mass production. In addition to this, the initiatives taken by the company are based on an attempt
to introduce healthier products. The use of the present technology has been conducive for the
organization to put a limit to the number of potential customer switching to substitute such as
yogurt (Machálková et al. 2017). At present Cardinale Chocolates needs to introduce better
technology which will be able to product the chocolates even with the use of low fat milk. This
technology will be conducive in adding to the exact sweetness which was attained by the
company before with use of regular milk (Afoakwa 2016).
Conclusion
The main interpretation of the discourse on the the main participants of the industry are
seen to depicted in form of the manufacturer who are seen with “Zokoko”, situated in “Emu
Heights NSW”, “Bahen & Co” in “Margaret River, Western Australia”, “Haighs” situated in
“Parkside, South Australia” and “Daintree Estates in Mossman, Queensland”. Some of the
demand forecasting tools available for Cardinales includes the application of the application of
market experiment method. This technique will comprise of the forecasting of the information
from the relevant segments of the consumers rather than performing analysis on the whole
market segment. Some of the main supply chain advantages of the selling of the products across
Amazon for Cardinales has been depicted with non-reliance on a third-party logistics provider
and seamless tracking of the product till it reaches the final consumer.

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References
Afoakwa, E.O., 2016. Chocolate science and technology. John Wiley & Sons.
Beckett, S.T., Fowler, M.S. and Ziegler, G.R. eds., 2017. Beckett's Industrial Chocolate
Manufacture and Use. John Wiley & Sons.
Economics Discussion. (2015). Techniques of Demand Forecasting (Survey and Statistical
Methods). [online] Available at:
http://www.economicsdiscussion.net/demand-forecasting/techniques-of-demand-forecasting-
survey-and-statistical-methods/3611 [Accessed 12 May 2018].
Gallo, P.J., Antolin-Lopez, R. and Montiel, I., 2018. Associative Sustainable Business Models:
Cases in the bean-to-bar chocolate industry. Journal of Cleaner Production, 174, pp.905-916.
Jia, F., Wang, X., Mustafee, N. and Hao, L., 2016. Investigating the feasibility of supply chain-
centric business models in 3D chocolate printing: A simulation study. Technological
Forecasting and Social Change, 102, pp.202-213.
Machálková, L., Hřivna, L., Ruban, A., Sapáková, E. and Rumíšková, V., 2017. Effect of Recipe
and Production Technology of Chocolate Products on Their Quality During Storage. Acta
Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(1), pp.91-98.
Retail sales value of selected chocolate in Australia in 2015, c. (2018). Chocolate: retail sales
value Australia 2015 | Statistic. [online] Statista. Available at:
https://www.statista.com/statistics/716628/chocolate-retail-sales-australia/ [Accessed 12 May
2018].
Services.amazon.in. (2018). Sell on Amazon| How to Sell on Amazon. [online] Available at:
https://services.amazon.in/services/sell-on-amazon/how-it-works.html [Accessed 12 May 2018].
Staff, I. (20014). Big Box Retailer. [online] Investopedia. Available at:
https://www.investopedia.com/terms/b/big_box_retailer.asp [Accessed 12 May 2018].
Store.mintel.com. (2018). Chocolate Confectionery in Australia (2017) – Market Sizes - Market
size data - retail sales value - sales volume. [online] Available at:

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https://store.mintel.com/chocolate-confectionery-in-australia-2017-market-sizes [Accessed 12
May 2018].