Supply Chain Management of Cadbury : Cadbury plc is a British confectionery company, the industry's second-largest globally after the combined Mars-Wrigley.[2] Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge, London Borough of Hillingdon, England and formerly listed on the London Stock Exchange, Cadbury was acquired by Kraft Foods in February 2010, after integration the combined Cadbury and Kraft companies became the largest confectionery company in the world again.

The company was an ever-present constituent of the FTSE 100 from the index's 1984 inception until its 2010 takeover.[3][4]

The firm was known as "Cadbury Schweppes plc" from 1969 until a May 2008 demerger, which saw the separation of its global confectionery business from its U.S. beverage unit, which has been renamed Dr Pepper Snapple Group Inc.[5]

Elements of the Supply Chain

A simple supply chain is made up of several elements that are linked by the movement of products along it. The supply chain starts and ends with the customer.

*

Customer: The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the production facility.
*

Planning: The requirement triggered by the customer’s sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the customer’s orders. To manufacture the products the company will then have to purchase the raw materials needed.
*

Purchasing: The purchasing department receives a list of raw materials and services required by the production department to complete the customer’s orders. The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the required date.
*

Inventory: The raw materials are received from the suppliers, checked for quality and accuracy and moved into the warehouse. The supplier will then send an invoice to the company for the items they delivered. The raw materials are stored until they are required by the production department.
*

Production: Based on a production plan, the raw materials are moved inventory to the production area. The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. After the items have been completed and tested, they are stored back in the warehouse prior to delivery to the customer.
*

Transportation: When the finished product arrives in the warehouse, the shipping department determines the most efficient method to ship the products so that they are delivered on or before the date specified by the customer. When the goods are received by the customer, the company will send an invoice for the delivered products.

Supply Chain Management

To ensure that the supply chain is operating as efficient as possible and generating the highest level of customer satisfaction at the lowest cost, companies have adopted Supply Chain Management processes and associated technology. Supply Chain Management has three levels of activities that different parts of the company will focus on: strategic; tactical; and operational.

*

Strategic: At this level, company management will be looking to high level strategic decisions concerning the whole organization, such as the size and location of manufacturing sites, partnerships with suppliers, products to be manufactured and sales markets.
*

Tactical: Tactical decisions focus on adopting measures that will produce cost benefits such as using industry best practices, developing a purchasing strategy with favored suppliers, working with logistics companies to develop cost effect transportation and developing warehouse strategies to reduce the cost of storing inventory.
*

Operational: Decisions at this level are made each day in businesses that affect how the products move along the supply chain. Operational decisions involve making schedule changes to production, purchasing agreements with suppliers, taking orders from customers and moving products in the warehouse.

Supply Chain Management Technology

If a company expects to achieve benefits from their supply chain management process, they will require some level of investment in technology. The backbone for many large companies has been the vastly expensive Enterprise Resource Planning (ERP) suites, such as SAP and Oracle.

Since the wide adoption of Internet technologies, all businesses can take advantage of Web-based software and Internet communications. Instant communication between vendors and customers allows for timely updates of information, which is key in management of the supply chain.

In 1993, Cadbury France decided to adopt the SKEP® solutions by DynaSys. On every step of the company’s external growth, the reliability of the DynaSys solutions has been confirmed compared to other systems on the market, but also at every technological turn taken by the production management field. The latest example: during the adoption of the integrated software SAP in 1999, when Cadbury France decided to adopt SKEP® by DynaSys for Supply Chain Planning. ’In the process industry with finite capacities, we have to plan under the constraint of quite detailed modelling of our production lines. SKEP® and its interface certified by SAP constitute the ideal tactical alternative to the global Supply Chain Planning solutions, in order to carry out what-if scenarios under constraints, but without becoming involved in huge, long and costly projects’, estimates Bruno Berton, Supply Chain Director at CadburyFrance.


The challenges


With the acquisition of Hollywood , Cadbury France decided to create a centralised planning cell. From a technical and functional point of view, the DynaSys solutions have gone much further than the simple planning of several production lines. ‘With the DynaSys solutions we have moved without any problem from one-site management, with a single family of products, to a complex environment with four production sites, a warehouse, co-manufacturing, outsourced packaging and various sub-contracting purchases, all that with a high level of customer service‘, summarises Paul Courtet, Systems & Networks Manager and witness of this progress as well as of the very first steps of the corporate planning.

The same applies to the transfer of production from one industrial site to another. The anticipation of the stocks needed, going with the changes of the item codes between both sites as well as a detailed management of the production capacities (progressive load of the machines and precise transfer of manpower to other production lines) are constraints used by the Cadbury France team in order to reach its main objective: a high quality customer service level.

Easy to implement

Without minimizing the importance of these unfixed strategic simulations allowing quick decision-making when faced with unexpected events, the most interesting aspect of this project has been the implementation managed internally from A to Z by Emmanuel Fermaut, "Process and Project Development" Support Manager, and by the Planning team. The Cadbury France Supply Chain team has assimilated the transferred knowledge and has been able to use it successfully very quickly!

‘Indeed the fact that at any level we have hardly needed support from DynaSys to deploy SKEP® is a positive sign’, confirms Emmanuel Fermaut. ‘The strong point of a modelling tool is how easy it is to use by taking into account the organisation of the company and of its production processes.’


'‘In 1999, when our system for computer integrated manufacturing management was not passing the year 2000 and as SAP users hardly began talking about advanced planning on APO, the decision to carry on with DynaSys and the stage crossed by parameterising SKEP®, based on the description of the processes on each site, have reinforced our idea to go further into the use of data centralisation’.'

Paul Courtet, Systems & Networks Manager at Cadbury France


Measurement of the Supply Chain performanc

In 2002, the Cadbury France team got interested in the multi-dimensional analysis potential of SKEP® eXtended Scoring, the solution for Supply Chain performance measurement by DynaSys.

At the beginning, the Scoring Project was only intended to follow up the reliability of sales forecasts and demand management at a weekly bucket. Nowadays SKEP® eXtended Scoring allows the implementation of performance indicators for the whole logistics decision chain called "Supply Chain KPI’s" (Key Performance Indicators) of Cadbury France. SKEP® eXtended Scoring is a tailor-made solution for all Supply Chain decision-makers: in fact it enables to check at any time the used capacity compared to the forecasted load or to know instantaneously the forecast inventory level.

SKEP® eXtended Scoring targets immediately the respect of the stock policy and possible stock-outs by a manipulation of the multi-dimensional analysis cubes which allow information display at different levels of the customers-items hierarchy.


Proven benefits

Implemented in 1993 at Cadbury, that is to say for already 10 years, the assisted planning with the SKEP® solution by DynaSys has permitted significant profits within one half-year (since September 1993):



* Reduction of backward and forward inventory levels without compromising the quality of the service.
* Saving of a refrigerating warehouse, representing a profit of € 76,500.
* Better growth management.
* Reduction of the finished products inventories by 5 days.
* Quick return on investment.



Integration to theIT system


SKEP® eXtended Integration, the Data Hub used for the automatic feed of the DynaSys Data Warehouse with data flows, is the pillar of the Business Mapping SAP/R3 (certified SAP interface). It allows the storage of data originated from and destined for several softwares involved in Supply Chain Planning.
 
Last edited by a moderator:
Cadbury has dominated market and it is closely followed by nestle. Cadbury has everything inclined and synchronized. Their marketing strategy, Supply chain, their market capital but, i thing that sets them apart is their advertising agency. They always come up with new ideas and innovation. They normally use emotional appeal t induce their consumer and they have different campaigns for different age groups that keeps them ahead from their competitors.
 
Top