Supply Chains In The Fmcg Sector Commerce Essay

Supply Chains In The Fmcg Sector Commerce EssayThe cadbury is the federation which is in fruition of red-hot chocolates the chief(prenominal) and famous growths of cadbury be cadbury d bloody farm gain out, cadbury gems, cadbury 5 star, cadbury Celebrations, Temptations, and Gems. In take out Food drinks segment, Cadburys main intersection back breaker Bournvita is the all(prenominal)ow foring Malted Food bedevil in the country. Cadbury is one of the biggest confecionary confederation in the conception established in 1783.. The operations of cadbury driveed in india in the year 1948 in the name of cadbury india. At early stage cadbury india was importing the chololates and repacked them before the actual distribustion started to take place. With the popularty and development in contain now cadbury india owned its maunfacturing unit in thane, pune (induri), gwalior(malanpur), baddi(himachal pradesh) and banglore.its main sales office argon located in the untried delhi, mumbai, kolkata, and chennai. The corporeal offices is in mumbai,wheras the cadbury provides 60000 employment opportunities in over 200 countries including india.Components of try filamentFor making delious cadbury dairy take out and new(prenominal) chocolates the ingridents used as followsThe quest incredients atomic number 18 used in the pre sort oution of the decious cadburyto sham the final exam fruit of dairy milk the cadburuy takes the au naturel(p) strong which is shown in the table. To full worry this basic requirement cadbury india takes help of local anaesthetic anesthetic vendors. They do agreemnts or contracts on annual basis and hence local vendors bring out them this keen substantives as per requirements.apart from the chocolate domes which argon extermely important for aromatic degustation for the cadbury dairy milk it is imported The pure variety of the Criollo tree is found mainly in its native Equador and Venezuela. The seeds argon of finer character than those of the Forastero variety.The actual business touch on of cadury dairy milkHarvestingIt is important to foreclose deep brown bean from rotting. To pevent those beans from rotting the fruit is actully opened at a frementation site or at a plantation site.Fermentation aft(prenominal)ward the do of the glean the further procedure starts with the fermentation move .it is a decisive in the crossingion of utmost look of raw hot chocolate.DryingFrist few steps are re totallyy important in the making of the delious cadbury.raw coffee beans conatins lots of wet in it .it is important to remove the all water from the cocoa beans to prevent them from rotting . in the drying dish out, the beans are actually dried in the inhering environment where the beans actuallydried in the open air or a add up soaked ground.CleaningIn this handle cocoa beans goes with the cleaning process in which wood particels, jute fibres , sand and finest dust particels are similarly taken away. To do this process in force(p)ly cadbury uses the vaccum equipment.RoastingRoasting is the actual process which is designed to developed aroma the roasting process is done in the furnace which is 10 feet high above the ground level and where the tempreture is set for the cxxx degree celius.Crushing and sheeling of beansRoasted beans are now broked into medium and fine sized pieces as per the requirement in the crushing machine.Blending It is rattling important part of the produceion process. In this process, beans aare weighed and blended according to the peculiar(a) recipies and requirements. In this process the various kinds of cocoa beans which constitute different taste and flavours are mixed together with each other in compulsory balanced ratios.GrindingIn the process of grinding cocoa beans are progrrounded by the equipment which is mainly designed for the this process . in the process the cocoa beans are fed on the rollers where they are ground i nto a cattle farm which is fine in nature. Because of the heat generation it leads into the imploreure an fricition because of which cocoa cover is formed which approxmetely 50% of the bean. Contain bens is melt in this process which is in thick liquid mixture. Then the cocoa paste is formd with the its infixed stong odour , but during the process of cooling it bitter taste piecemeal sets down. At this stage of cropion, process gets divided into the two sab parts where as in the 1st part paste is taken into large press machine which extract the butter from it . and the 2nd part cosists of blending and down processe during which some part gets converted into cocoa powder.Cocoa powder subsequently the pressing of the cocoa butter cocoa cakes which are left with the 10%-20%proportion of fat. The proportion of fat is depends on the compression intensity. Those cakes are suppress a give and with the various stages passses with the manufacturing dark aromotic chocolate obtained which is generally used in the prepartion of drinks .Rolling This process is completely depends on the design of the rolling mill around which are genrally in three or five which are in verti expecty mounted steel rollers rotate in the opposite way of life with the heavy presuation technique the tiney partices of cocoa and sugar down to size of 30 microns where as 1 micron is equal to 1000th part of a milimeter. promotional cloth of the cadburyCadbury installed the new machinery of 25 crs which gives them the better packging for all cadbury harvest-feast.All cadbury chololates crossing are sealed with theplastic wrapping inside with the foil . they launched a newely hunt promotional sensible transcription which gives high level of resistances from bad environment and prevents the quality of the proceeds.Distribustion startegy of cadburyNo of make outrs2100 distributors with the contract of 45000 retailers across india.Retail outletsshops and supermaketsrestaurants and cafcinemas and theatres theme parks.Installed coolers and vans Cadbury installed a coolers and vans with the it distribustion net. This system helps in the season of the summer as it helps to prevent quality of cadbury. take leave 2Different invovled in the lend arrange of cadburyAll cocoa operation done by cadbury is carried in tamil nadu. Generally cadbry india make a contract with the local framers to supply them a cocoa for the harvestingion of the all cadbury wares.All items used in the production process of cadbury are real destructible in nature it firet be stored for long-life m not even two to three days also if the raw natural is not used in clipping accordingly the product may hae bad and unhealty effects.RISK INVOLVED IN bring home the bacon CHAIN MANAGEMENT AND METHODS TO OVER COME THEM.In todays dynamic world the correctd product of a friendship faces mevery adventures. Supply interpolate management is a genuinely vital process managed by the company . It involves all the process stating from warehousing of the betters process making the product on tap(predicate) to the final consumer. The risk involved or the unexpected events posed to supply bowed stringed instrument are as follows-Risk involved in material intervention handling of perfect goods till the cartridge holder they reach the final consumer is a very critical process. Any miss handling of the product susceptibility damage it and depart lead to loss to the company. If the employee is not efficient in institutionaliseing the goods from one point to another or is not well furnish or lack in chi whoremongereledge in handling the product he evict cause damage to the goods.Risk involved in storage when the goods are ready they need to be stored in ware augurys till the time the distributors john collect them. When the goods are placed in warehouses they need to be counted and stocked. If the stock is not recorded mightily it puke lead to loss to the compan y and female genitalia also lead to conflicts between the distributor and the company. The warehouses where the goods are stored should be according to the requirement of the type of goods manufactured. If the product is spoilable and if the cold storage does not have a power derriere up then if in that respect is a power eff the goods baron get damaged.Risk involved in transportation transportation of the goods is a very important step involved in the supply scope management. When the goods are transporting they are openly exposed to different types of risk such(prenominal) as vehicle accident, robbery, road hazards, and so onRisk involved in demand forecasting when a company invests in a particular(a) product it forecasts what lead be its demand in the food market place. Based on that data it then manufactures a product. Forecasting is a big attempt and hence is also a very big risk. If the forecasting is happens to be right the company enjoys good profit but if the fo recasting fails the company faces heavy losses.Risk involved in material supply To manufacture a product on time it is very important that the raw materials reach the factory on time. If the supplier does not provide the raw materials on time the production process go away stop or be delayed. This involves risk of time. If the rove is not finished on time the distributors might not buy the product and the company leave behind then face very heavy loss. Hence supply of raw materials on time is very important and risky factor in supply chain management.Risk involved in customer helping edifice a good customer relationship is a key to the conquest of the company. If a customer is not satisfied with a product instruction execution and needs to replace or repair it he needs to be provided with a customer care unit. When the customer returns a product the process of reverse logistics starts. If there is inefficiency in tar the customer a good service he might never turn back to th e company again. Hence the service provided to is not satisfactory it faces the risk of losing a worthy customer.Risk involved in furtherance of the product kosher in facial expression of the product is very important. If the product is of spoilable nature and is not properly packed it is exposed to the polluted environment which pot stale the product before reaching the customer. The risk here is to the good depart of the company. For non perishable goods if the goods are not properly packed it might be difficult to divvy up and transport them. If the transporter is not able to handle the goods properly he might damage the product. The risk involved here is companys cost of production.METHODS TO vanquish THESE RISKSInsurance In todays world insurance is standardised a boon to the manufacturers. There are different types of insurance which a manufacturer flock do to distract losses collectible to different factors such as damage or loss in transportation of the goods, w arehousing of the goods, etc. Insurance gives the courage to the manufacturer to take risk in business.Packaging if the product is properly packed the manufacturer bottomland avoid the risk of damage to the product done environment or improper material handling of the finished goods.Efficient man power if the employees involved in the manufacturing, transporting and handling of the product have sound knowledge about the intact process they are indulged in the risk of unnecessary damage to the product is avoided.Efficient machinery machinery is a vital part in manufacturing and handling the goods. If the manufacturer keeps updated machines he can finish the production on time and avoid any risk of hurting the relation with the distributor or damaging its good give.Proper training system demand forecasting is done from all the data that is collected through information system. If the information received is proper and up to date the risk of wrong judgment is avoided. Hence the co mpany is less prone to losses.NEW TECHNOLOGIES USED BY CADBURYAfter the pesticide facial expression that happened with Cadbury it went through allot of changes in supply change process of the product. The new technologies it used are as follows-New package form after this incident took place the company in the year 2004 announced that the packaging of its dairy milk chocolate exit be completely changed. It utter that the chocolates entrust be now packed in a wrapper which is said to be impenetrable.Direction to the consumer the company now states all the information on the wrapper of the product that lead lead to its contamination. It specifically states the negligible temperature needs to be honored for the beat results.Use of new bundle the company uses new software such as the SKEP solutions by DynaSys and other software named SAP in 1999, these software help the company in providing supply chain planning solutions to the company.Use of better storage facilities due to the perishable nature of the product the company has now focused on its storage. Now even during the transportation of the chocolates from the factory to the distributors the transportation is done in cold storage vans. This avoids any risk of the product getting harmed in any way.Supply chain meshworkSupply chain internet is very important part of any business.supply chain management essentially means the provision of the product to the ultimate consumer.cadbury is the market leader in supply of the chololates in india as well as in abroad. We depart launge our product for the first time in the indian markets to be on a safer side we forget distribute our product at very local and regional area. We can design a supply chain network our product as follows.If we neediness to distribute our product on lacal level then we can design our supply chain network as described as above. Here the total network of supply chain network can be described. The chain will start with the process of manufacturing of chololates of different falvours basically vanilla, strawbery and chololate falvour. As we eneterd in the business newely to cut down the cost of supply chain we will established the call centres at regional level.by doing this we can avoid the caryforwarding agents which will help us to maintain our costs. After establishing the call centres at regional level we will do promotional activity to promote our chololatesat local level. Here comes the uphold part of our supply chain network and that is retailers . retailers will play the close to important part here as they will give us call when they want to place a coiffure with us. By doing this we can avoid the wholesalers in our network. As everyone know chocolate is a very delecate item in nature which very perishable in nature. By establilng the call centres we already avoided the carrying forwarding agents and with the help of the retailers we avoided the wholesalers, here we benefited in two waysby avoidi ng the carrying forward agents and wholesalers we avoid the miss handling of our product by which the the quality of chocolate will remain constant untill it reaches to the final cutomers.It will save our cost in the manufacturing ,and in supplying the finished goods as retailers will give us raise we will prepare the chocolate according to their demand by taking this into consideration we can handle the roll management in effect and losses occurred because of the perishability of raw material can be avoide in some percentage which will benefited to us.After placing the battle array by the retailers out of the 20% of the total payment retailers will pay advance payment online .this will gives us assuratey in the golf-club placement also it will provides clear payment information of any retailer and it will give transprency in the mode of payment. After placing the order and the all manufacturing process the second most important part comes into sketch and that is the distribust ion part. As we already removed the barrier of the caryforwarding agents and the wholesalers we can distribute our product very easily to the retailers. To do distribustion effectively we will hire the GATI transpoters to distribute our product to retailers. We will do the conttrats with these transporters on anually basis .GATI have a wide distribustion network which will help us in dispersion we can a hire a specially designed vans with the air see to iting technology which help to reatin the quality of our product untill it reaches to the ulimate customer. At the time of order placing retailers will give us all information regarding the preservation of goods and with the help gati we can establish a deep and wide network of distribution by which we can deliver a better product in low cost in early time. Aftre reaching to the retailers we will provide them a refigerator facility which will help to maaintain the lower tempreture which will help ful in retaination of quality of o ur product . companionship bear upon Order processing the basic and important part in any supply chain management. It is a highly automated area and broad in nature. Order processing is nothing but it is all about geeting order from customers , checking the order status which is made by customers .basically it is a process where option the order and making it availble to the customers.checking of inventorying status, customer credit, invocing and accounts reciviable falls under the order processing. It is a key area of customer attention if order processing of the any organisation is effective in nature it will earn a positive impact on the customers perception of service and it will create a favorable response in the form of statisfaction. As we are dealing perisable item that is chocolate we decided to distribute our product at very local and regional level to maintain the quality matters. Here retailers and customers will feel very statisfied about our product as will make cho colates as per the demand made by the retailers and in the long run customers. By establishing the exculsive call center service for our retailers we can establish a close realtionship with the every retailers by doing this wee will come to know about the customers expectations about our product and also the suggestions wemwill helps us to modify our startegy. As chocolates will be made by an order it will decidedly reduce ourr inventory cost as all raw material which are infallible in production process it si a perishable in nature the loss occurred by inventory will less then other orgaisations.by avoiding the wholesaler and carry forwarding agents we already arrive atd the succcess as a loss occurred by mishandling will be less. With the expert avdvancement we will change our order processing system. We can use soap methods of order processing like EDI (electronic data incharge ) EFT (electronic funds ecstasy) the whole process of the order processing will be faster, Easie r, and efffective because of this whole system we gain the customer attention and retantion also. Because of this whole new development in order processing which we going to adopt will help us to maintain our timing factor which will create a favorable response. pickings into the considertion of the new technollogy Of EDI we will achieve following benefitsPaperwork will be trim because of which filling process will be easy .Accracy will be improved because of reduction in the manual processing.Speed of order contagious disease and other data will be increased.Opportunity for proactive contribustion by purchasing because less time is spent on clerical task. nurture will be availble at any point of time.Workload will be reduced and accuracy will be incresed of other departments because of linking through this process and other services like bar coding inventory and electronic funds transfer.Reduced inventory cost because of improved accuracy. stock-taking mangement Inventory basical ly broods of the Stores inventory which is consists of the raw material used in production process ,spares and other components.Work in process which is consist with the semi finished goods lying mostly on factory floor. finish goods consists of the goods which are lying in the store prior to despatch for sale.For the effective inventory manangement go regarding our our product it is in truth very important for us to take care of raw material as requird raw material of our product is very perishable in nature .so we will control the stor inventory by ordering whole that quantity of raw material which is actually require for the production process. We will acquired our raw material from the local vendors which will be near to our production unit. This will helps us in time management and it will also helps us to avoid the qualitative loss occurred during the transformation of the raw material to the fifnshed goods. To mange inventory control effectively and taking the risk facto r into the consideration we will order totally 2% more of the total requirement of the raw material. This will helps us to insured the loss occurred during te second stage that is work in process. After completion of all production process the finshed goods will be sent to the gati transporters .by doing this three stage inventory control we can achieve the following benefitsWe will get the time leadWe can analyisis the delivery time We can eliminate the low trunover/ obselete items.We can analyisis the customer demand and the its characteristics.Successful plaaning in the demand forecasting by predetermined logic.Re-enginerring inventory mangement practices which also includes the warehousing and transpotation.Inventory mangement also include the delivery of the goods at right time at right place to the right person.if we want get succedd in the inventory mangement we should adopt the certain advance routes of distribustion.like we can take the management party orders where we can supply our chocolates to the management institues where integrated programmes are arranged by doing this we can actually reach to the customers. neutralize housing Warehousing is also an important part of the any logistic sysytem.ware housing is important because it provides a desired level of customer service at lowest possible of total cost . warehousing can be defined as that part of the firms logistics system which stores the products here product means the raw material, parts, goods in process, finished goods at the between point of origin and the point of consumption , and provides informationto the management on the status condition on the items which are stored .warehousing of the product has occurred becauseTo achieve the transpotation economies and production economies.To maintain the witness of supply.To envision the changing market condition.Helps to provide customers with a mix of products insteaded of a single product on each order.It helps in provision of evanesc ent storage of materials to be dispossed or recycled.In our case ware house is extremely important as all raw material required for the production process is highly perisable in nature . not only the raw material but our finished good is also perishable in nature. In the production process also it ie really important to maintai the particular tempreture of the product .to retain the tempreture which is directly related to the qulaity we will designed the cold storage warehoousing system where our raw materials and the finished goods will be stored.TRANSPORTATION since the business of our product is limited till the local level and is done on a small shield I would not spend much of my capital on any high grade transport company. There are many small transport dealers with whom I can get into a short contract.Even though my business is of small scale it is still very important that my goods are transported on time without damage. Hence I will choose the best local transporter for my goods who is efficient in his work. uninterrupted transport of goods will help my business and goodwill to grow.MATERIAL HANDLING material handling is a process which involves procuring raw materials to convert it into finished goods. The raw materials that I would require to manufacture my chocolates would be milk, cocoa and sugar.Milk is a perishable product it cannot be bought in bulk and stored for a long fulfilment of time. Hence I would need to find a supplier who can provide me milk on daily basis. It can be from dairys like the modern dairy in pune or diliwaala. Who has the capacity to provide milk according to our demand.Since mine is a small company the capital available is also limited hence I would choose the supplier for cocoa and sugar through bidding method. The supplier that would provide me my raw materials at the lowest cost I will do business with him.Although cocoa and sugar are perishable products they can be stored for more than a week hence placing the order for raw materials becomes easy.The main customers for local chocolates are the small retailers or the kiraana shops. I would appoint agents who can sell my products to these shops and if there is any problem with the product, i.e. if they find it stale or expired they can return the product to my agents who will then later submit the returned product to the company. The kirana shop owner can adjust the amount at the time of next order.INFORMATION SYSTEM since my company has a small scale business it will be difficult for me to heir large look companies. Hence my key information tool would be local market survey and mouth to mouth information system.For the information of raw materials suppliers I can search it online or through local market networking. acquire information or feedback from the customers can also be very utilitarian for the growth of my company. Since my capital limited I cannot set up a call center for the customers but I can open a P.O. BOX number where the custom ers can write their suggestions or queries.Information for the labors required for the company can be attained from the local contractors or thekedars. Who can also help in providing laborers on daily basis.Logistics in packagingIt is important that the packaging of product should statisfy the provisions of the law .It is important that it should meet the requirement of the carriers who transport the goods.It should be kept in mind the material handling equipment used for the moving product in the logistics chain.In case of the of our product we should be extremely careful because of the perishability of the product. To retain our quality of the our product we will used the following pacaking system,The final prouct will be first of all wrapped into the aluminum foil idea . with the protection of the foil paper we will be secured from the qualitative loss which can be ooccured during the transfer of the goods .After wrapping with the aluminium foil next ppackaging procedure will b e start with the wrapping up the paper around the aluminium foil which help in protection. The next wrapping procedure will be of the plasctic paper which will be of high desnsity and approved by the government laws. The fianl packaing of the product will contain all the infoarmation of the company and the product . the manufacturing process and the raw material used ,the manufacturing as well as expiry date and other information like quantitative valuate of the raw materialand other infoarmation.Conclusion and recommendationsConclusionsSupply chain mangement is the most imporatnt part in the business. From this assignment we understood the inbound and outbound logistics of the chain mangement.we also understood how actually cadbury is made in the factory their distribustion startegy .RecommendationsIf cadbury wants to spread their market and want to get connected with thethier customers so they can actually take order from management institutes for the monthly parties which genera lly occurred in the monh end. Apart from it cadury can actually introduced various falvours in th cadury dairy milk falvour.