Logistics and Supply Chain Management Report - Semester 2, 2024

This report provides a comprehensive analysis of the logistics and supply chain management of Cardinale Chocolates. It begins with an overview of the Australian chocolate market, including its size, key participants, and export activities. The report then focuses on the Cardinale family's plans to sell their premium chocolate through online marketing, specifically Amazon. It explores the necessary changes in manufacturing, forecasting future demands using past sales data and industry trends, and the advantages and disadvantages of selling on the Amazon platform. The report also examines the supply chain of big-box retailers and presents a supply chain diagram for Cardinale Chocolates. Finally, it discusses how the company can leverage technology to enhance its supply chain and logistics activities, including the use of software, social media, and modern technologies used by larger chocolate companies. The report concludes by referencing relevant academic sources, providing a well-rounded perspective on the subject.

Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics and Supply chain management
Name of the Student
Name of the University
Author Name

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Week 8
Market size of retail chocolate sales in Australia
Chocolate being one of the most desired and preferred confectionery items in Australia
have a huge market size. At 6.3 kg per capita, Australia has recorded to have one of the highest
chocolate consumption rates in Asia-Pacific, after the United Kingdom and some of the Western
European nations like Switzerland. According to statistics, in the year 2017, the chocolate
factories in Australia have grown by 4 percent, faster than the 3 percent growth in the year 2016
(Minifie 2012). The chief reason behind this growth is the high demand of consumers for
premium quality chocolate. While the majority of the consumers are found to be viewing
chocolates n indulgence, the health-conscious consumers are choosing to consume high cocoa
containing chocolate or moderating their chocolate intake rather than switching their preferences
to any other snacks. The revenue of the chocolate confectionery in Australia in the year 2018 is
2,590 million dollars. According to researchers, the market size of the mentioned industry will
grow annually by 2.7 percent within the time range of 2018 to 2021.
Market growth of Chocolate industry in Australia
Source (Davies and Kitchen 2015)
Main participants of the Australian chocolate industry

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The chief participants of the Australian Chocolate factory include Mondelez International, Mars
Nestle, Kraft Foods, Mars Inc, Hershey Food Corporation, Ferrero Group, Lindt Company and
Unilever Group Strauss Elite. Mondelez International the owner of Cadbury dominates the
chocolate industry of Australia with a share of 55 percent of the total market (Minifie 2012). The
next big player of the Australian Chocolate industry is the Mars Company with a market share of
18 percent. The third major participant of the mentioned industry is Nestle with the market share
of 14 percent.
Identification and description of Australian businesses currently exporting chocolates or
confectionaries into markets outside of Australia
When it comes to Australian Chocolate Companies that export chocolate overseas, Crest
Chocolate Company can be considered as a major exporter of chocolate. The company is a
manufacturer, wholesaler as well as exporters of premium chocolate. The company was
established in the year 1950 and is a Brisbane local, family owned as well as the operated
company. Due to the high quality of its manufactured chocolate, Crest is now the largest
chocolate manufacturing company in Queensland (Gallo, Antolin-Lopez and Montiel 2018).
Another major Australian Chocolate Company that exports their chocolates abroad is the
Kraft Foods Company. The mentioned company's core business includes Dairy foods, cheese,
snacks and beverages. The company exports chocolate chiefly to the US along with other
overseas counties like Switzerland and West European Countries.
Week 9
Differentiation of supply chain on the basis of multiple sales channels

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Considering the fact that the Cardinale family has planned to sell their high-quality premium
chocolate through online marketing, they need to differentiate their supply chain on the basis of
multiple sales.
Changes in manufacturing for selling product through Amazon
Since the Cardinale Chocolate Company is a local company, currently the company
manufactures chocolates only for the local buyers. However, since the Cardinale family is
planning for exposing its product to a vast market, the owners of the company must understand
that Amazon as a selling medium will introduce the company to a huge number of consumers.
Thus there is a high probability that the demand for the chocolate will abruptly increase (Aung
and Chang 2014). Hence the Cardinale Chocolate Company needs to enhance its quantity of
production of the chocolates so that it can cope up with the potential demand of its online
consumers. In order to enhance production, Cardinale Company should invest in advanced
chocolate manufacturing as well as packaging tools. Moreover, the company needs to recruit
more numbers of employees to assist them with the production of chocolate.
Mechanisms for forecasting future demands
In order to forecast the future demands of their chocolates, the owner of the Cardenale industry
should follow the below-mentioned mechanisms
1. Forecasting demands using past sales data
One of the most accurate ways to predict the future sale of the chocolate is to analyze the
previous sales history. From this, it can be understood that which types of chocolates are gaining

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popularity and which ones are losing the market (Jia et al. 2016). Moreover, the owners can go
through the Google Analytics data to understand the demand of each of its products.
Analyzing Industry trends and a seasonal increase in Demand
Considering the fact that the demand of the consumers of the Chocolate industry is
continuously changing, the company should keep the track of the current trends in the chocolate
industry. For instance, currently, the demand for yoghurt chocolate has increased among the
health-conscious consumers. Hence, the demand for high-fat premium chocolate produced by the
Cardinal Company will decrease among the health-conscious consumers.
Week 10
Advantages and disadvantages of selling a product using Amazon online platform
Some of the advantages associated with their supply chain and logistics that will be enjoyed by
the Cardinale Chocolate factory are as follows
1. Supply chain management: Considering the fact that the products of the company will be
sold online by Amazon, the Cardinale Company should not waste their time, effort and
money on planning supply chain. This, in turn, will be beneficial for the company
because being a local company, Cardinale would not be able to develop a strong supply
chain. However being a well reputed online platform, the supply chain of Amazon is
strong.
2. Logistic expanse: Since the product will be picked up and delivered to the end consumers
by Amazon, the mentioned company needs not to worry about the inbound and outbound

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logistics (Bosona and Gebresenbet 2013). Moreover, selling its products through Amazon
Online platform will reduce the expenses for logistics for the Cardinale Company.
3. Avoiding Partnership conflict: The mentioned company will be able to avoid conflict
related to supply chain partnership by selling their product online through Amazon
Disadvantages
1. Being a local chocolate producer, the cost of selling products online through a highly
reputed online platform like Amazon can be considered as a major disadvantage for the
company.
2. The company will not be able to directly communicate with the end consumer and
understand their specific requirement if the products are sold offline (Fredendall and Hill
2016). Thus it will be difficult for the company to enhance the quality of their product
keeping accordance with the specific requirements of the consumers.
Understanding of the Big-box supply chain
The supply chain followed by the Big-Box retailers is streamline supply chain. Considering the
fact that big-box retailers like Amazon and Walt mart deal with a huge number of products, the
retailers require huge warehouses to store their products. According to recent data, almost 100
big –box warehouses comprising 60 million square feet, were brought to the market in the past
12 months in Australia.
Week 11
Supply chain diagram of Cardinale Chocolates

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.
Figure 1: (Supply chain diagram of Cardinale Chocolates)
Source (Created by author)
Week 12
Preparation of the
chocolate
Buy raw materials from
local suppliers
For offline selling, the
products are delivered to
the shop
Selecting a specific
selling plan amongst
several selling plans
offered by Amazon
(Dabbene, Gay and
Tortia 2014)
The packaging of the
chocolate
Registering and listing
the products
Finally, shipping the
products to the end
consumers through
Amazon
The product is directly
sold to the end
consumers
For selling the
product abroad, the
products are
parcelled and
shipped to the
consumers

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How might Cardinale Chocolates better use technology to make their supply chain and
logistics activities more efficient?
In case the company is planning to export their chocolates abroad, with the help of Internet-based
software and modern technologies, the company will be able to simplify the supply process and
reduce shipping errors. For this Cardinale chocolates can use the FlashView software to reduce
the digitally organize inventory data, tracking information and monitor the supply chain.
In order to streamline supply chain, the company can use social media platforms. This will help
the company to enhance its consumer base and brand value. Not only that, Cardinale Chocolate
will be able to directly communicate with the consumers and understand its specific
requirements (Saltini and Akkerman 2012).
Technology for enhancing operational efficiency
In this era of modernization, large chocolate companies in Australia that include Kraft foods,
Harshey and Mars uses modern technologies to enhance their organizational efficiency which in
turn, enhances the overall revenue of the company. One of the most popular technologies used in
chocolate factories of Australia is the conch. This machine is used to evenly distribute cocoa
butter into the chocolate within a very short period of time. This, in turn, not only reduces the
cost of recruiting a huge number of employees but also ensure the high quality of the chocolate.
Popular companies like Nestle and Montalez also uses the conche technology for chocolate
production.
Another technology used by the Nestle Company includes product recovery or pigging
technology. With the help of this technology, more than 99.5 percent of the products can be
recovered from the processed pipelines (Afoakwa 2016). Thus wastage of raw materials can be

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prevented by using this technology. The Cardinale company can thus implement the technology
of the above-mentioned organizations to enhance its operational efficiency along with its
revenue.

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Reference List
Afoakwa, E.O., 2016. Chocolate science and technology. John Wiley & Sons.
Aung, M.M. and Chang, Y.S., 2014. Traceability in a food supply chain: Safety and quality
perspectives. Food control, 39, pp.172-184.
Bosona, T. and Gebresenbet, G., 2013. Food traceability as an integral part of logistics
management in food and agricultural supply chain. Food control, 33(1), pp.32-48.
Dabbene, F., Gay, P. and Tortia, C., 2014. Traceability issues in food supply chain management:
A review. Biosystems engineering, 120, pp.65-80.
Davies, T. and Kitchen, B., 2015. Confectionery: Growing and processing cocoa in
Australia. Food Australia, 67(5), pp.28.
Fredendall, L.D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
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.
Minifie, B., 2012. Chocolate, cocoa and confectionery: science and technology. Springer
Science & Business Media.
Saltini, R. and Akkerman, R., 2012. Testing improvements in the chocolate traceability system:
Impact on product recalls and production efficiency. Food Control, 23(1), pp.221-226.

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