MARKETING MANAGEMENT

ASSIGNMENT

Submitted by
M.DIVYA DARSHINI 20COME014
C.NANDHINI DEVI 20COME031
CONTENTS
● Meaning of supply chain management
● Definition of supply chain management
● Objectives of SCM
● Process of SCM
● Functions of SCM
● Components of SCM
● Characteristics of SCM
● Importance of SCM
● Introduction of Cadbury
● Elements of SCM of Cadbury

● Supply chain management of Cadbury

● Manufacturing process of Cadbury
● Conclusion
● Bibliography
 Meaning of supply chain management
● Supply chain management is the management of the flow of goods and services and
includes all processes that transform raw materials into final products.
● It involves the active streamlining of a business's supply-side activities to maximize
customer value and gain a competitive advantage in the marketplace.
● Supply chain management is the practice of coordinating the various activities necessary
to produce and deliver goods and services to a business's customers.
● Examples of supply chain activities can include designing, farming, manufacturing,
packaging, or transporting.
 DEFINITION OF SUPPLY CHAIN MANAGEMENT
“Supply chain management (SCM) is the process of planning, implementing, and controlling
the operations of the supply chain with the purpose to satisfy customer requirements as
efficiently as possible”.

- - Oliver and Webber (1982).

OBJECTIVES OF SUPPLY CHAIN MANAGEMENT
1.To maximize overall value generated:
The higher the SCM profitability, the higher is the success for supply chain. The Supply
chain profitability is the difference between the amount paid by the customer to purchase
a product and the cost incurred by an organization to produce and supply the product to
the customer.

2.Cost quality improvement:

This is another essential objective of SCM. It looks to achieve cost quality balance and
optimization.

3.To look for sources of Cost and Revenue:

Customer is the only source of revenue. Therefore there should be appropriate
management of the flow of information, product or funds. It is a key to the success of
supply chain.
4.Shortening the time to order:
SCM aims to reduce the time required for ordering and fulfilling the same.

5.Delivery optimization:
The SCM aims to meet the demands of the customer for guaranteed delivery of high
quality and low cost with less lead time.

6.Demand fulfilment:
Managing the demand and supply is a key yet challenging task for a company or
management personnel. Its objective is to fulfil customer demand through efficient
resources.

7.Flexibility:
SCM aims for flexibility. A Well managed supply chain provides flexible planning and
better control mechanism.
8.Better Distribution:
SCM aims to ensure improved distribution. It can maximize
the distribution side efficiency. Marketer or distributor can
achieve optimized level distribution by using all resources
that are available properly.

9.Cost Reduction:
It’s another objective of SCM to reduce the system wide
cost of a company to meet service level requirement.
 Supply Chain Management Process

1.Plan: This is the base step where strategies are formulated in regards to logistics facilitating the
fulfilment of consumer demand.
2.Source: The company then finalizes the vendors providing the raw material and various related services
essential for the production and distribution of goods or services.
3.Make: All the manufacturing activities take place in this stage. Other than production, it includes
product designing, packaging, labelling, testing and dispatching.
4.Deliver: This is a crucial stage where the company takes care of its logistics. It involves establishing
networks, receiving orders, warehousing, product pick-up and delivery and accept payments.
5.Return: The logistics management process doesn’t end with product delivery. The customers are
provided with the return, exchange and refund facility in case damaged or inappropriate products are sent.
 Functions of Supply Chain Management
● Purchasing:
The first function of SCM is purchasing. During manufacturing process, raw materials are needed. It
is essential that these materials are procured and delivered on time. Then only the production can begin.
In order to make this happen, coordination with suppliers and delivery companies is needed to avoid
delays.

● Operations:
Forecasting and demand planning is needed before materials are procured as the demand market
shall dictate how many units are to be produced and how much material is needed for production. This
function in SCM is vital as organizations accurately forecast demand to avoid having too little or too
much inventory that would lead to revenue losses. Therefore, forecasting and demand planning should be
tied in with inventory management, production and shipping.

● Logistics:
Logistics is a part of SCM that co-ordinates all planning aspects, purchasing, production, and
transportation aspects to ensure that products reach the end consumer without hindrances. It is essential
to have co-ordination with multiple departments so that products are quickly shipped to customers.
 ● Resource Management:
Resource management ensures that right resources are allocated to the right
activities and that too in an optimized way. It ensures that optimized production
schedule is created to maximize operations efficiency.

● Information workflow:
Sharing information and distribution is that what keeps all other functions of
supply chain management on track. If this information workflow and
communication is poor, it can hurt the entire chain.
 Components of supply chain management

● Strategic Planning: A supply chain is devised over a strategic decision like

whether to self-manage the logistics or take the services of a logistics company.

● Sourcing: Depending upon the factors such as raw material requirement,

financial capacity, discounts, shortest distance, transportation cost, etc; the
company alliances with suppliers.

● Customer Demand: The consumer requirement is another essential element

which frames the company’s logistics to serve the customers in the best possible
way.

● Inventory Management: The demand shapes the level of stock to be maintained

by the business units. An inaccurate demand forecasting may hinder the
production as well as the supply of goods or services.
● Production: Without manufacturing, there cannot be any circulation of
finished goods. Thus, the production plays a significant role in logistics
planning

● Warehousing: Whether it is a raw material or the finished products, there is a

need for storage which is taken care of under the supply chain management.

● Transportation: Another crucial component is to determine the means of

transportation suitable for sending the goods to the desired destination in the
shortest possible time with safety.

● Return of Goods: When providing the return facility in case of damaged or

unsatisfactory products is inevitable for any business, the supply chain takes
care of the related process in adherence to the company’s return policies.
Characteristics of supply chain management
● Handles Demand and Supply: The supply chain management emphasizes on serving the
consumer demands through the flawless distribution of products or services.
● Cuts Down Operating Cost: With a keen analysis and decisions of the raw material procurement,
plant operations and product distribution, the overall cost can be subsided.
● Enhances Consumer Experience: It ensures the timely delivery of the products at the appropriate
location, along with maintaining the desired quality, return policy and aftersale services.
● Maximizes Profit: When the company has a strong supply chain, it can deliver excellence, thus
diminishing its cost and leveraging the profits.
● Brings Efficiency: The business process, product quality, delivery standards and customer
experience can be embellished through a robust supply chain.
● Develops Value Chain: When every business partner whether the suppliers, distributors or agents
are handpicked, the supply chain turns into a value chain promising perfection each time.
● Limits Fixed Asset Usage: A well-planned logistics optimizes the business process such that the
raw material is available on time and finished goods are immediately dispatched to the sellers’
destination. Thus, the need for multiple warehouses, production units and delivery vehicles have
reduced tremendously.
 SUPPLY CHAIN OF CADBURY

Indroduction
Cadbury was founded in 1824 by John Cadbury in Birmingham, England whosold tea, coffee, and
chocolate. Cadbury and his brother Benjamin founded thebusiness and his sons Richard and George
followed. George built the Bournvilleestate, a model village designed to enhance living standards for the
company'semployees
In 1854 Cadbury received his first Royal Warrant from Queen Victoria. Sin1955 it has held a Royal
Warrant from Elizabeth II. Cadbury merged with J. S.Fry & Sons (1919) and Schweppes (1969), until 2008
known as CadburySchweppes, when the American beverage business was divided as Dr. Pepper Snapple
Group; since 2006, the rights ownership of the Schweppes brand had already varied between different
countries. Cadbury was a permanent
constituent of the FTSE 100 on the London Stock Exchange from the start of
the index in 1984 until Kraft Foods acquired the company in 2010.
 ELEMENTS OF SUPPLY CHAIN OF. CADBURY
A simple supply chain consists of many elements connected together by the
movement of goods through it. The supply chain starts with the customer and
finishes with them.

● Customer
● Planning
● Purchasing
● Inventory
● Production
● Transportation
CUSTOMER:

ONCE THE CONSUMER WANTS TO PURCHASE A PRODUCT WHICH HAS BEEN PROVIDED FOR SALE BY A BUSINESS, THE
CHAIN OF EVENTS BEGINS. THE CUSTOMER MUSTCONTACT THE COMPANY'S SALES DEPARTMENT, WHO WILL REGISTER
THE PURCHASE ORDER FOR A SPECIFIC AMOUNT TO BE SHIPPED ON A PARTICULAR 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 IS COMBINED WITH OTHER ORDERS TRIGGERED BY THECUSTOMER'S SALES ORDER. THE PLANNING
DEPARTMENT WILL CREATE A PRODUCTION PLAN TO. PRODUCE THE PRODUCTS TO MEET THE ORDERS OF THE
CUSTOMER. THE COMPANY WILL THENHAVE TO BUY THE NEEDED RAW MATERIALS TO MANUFACTURE THE PRODUCTS.

PURCHASING:

THE MANUFACTURERS OBTAIN THE RAW MATERIALS, TEST FOR CONSISTENCY ANDACCURACY AND TRANSFER THEM
INTO THE WAREHOUSE. THE RETAILER WOULD THEN GIVE THECLIENT AN INVOICE FOR THE PRODUCTS IT SUPPLIED.
THE RAW MATERIALS ARE PROCESSED UNTIL THE PRODUCTION DEPARTMENT NEEDS THEM.
INVENTORY:

THE MANUFACTURERS OBTAIN THE RAW MATERIALS, TEST FOR CONSISTENCY

ANDACCURACY AND TRANSFER THEM INTO THE WAREHOUSE. THE RETAILER WOULD THEN
GIVE THECLIENT AN INVOICE FOR THE PRODUCTS IT SUPPLIED. THE RAW MATERIALS ARE
PROCESSED UNTIL THE PRODUCTION DEPARTMENT NEEDS THEM.

PRODUCTION:

THE RAW MATERIALS ARE MOVED INVENTORY TO THE MANUFACTURING AREA BASED
ON A PRODUCTION PLAN. THE FINISHED GOODS ORDERED BY THE CUSTOMER ARE
MANUFACTURED USING THE SUPPLIERS 'RAW MATERIALS PURCHASED. UPON
COMPLETIONAND TESTING OF THE GOODS, THEY ARE PLACED BACK IN THE WAREHOUSE
UNTIL DISTRIBUTION TO THE CUSTOMER.

TRANSPORTATION:

WHEN THE FINISHED PRODUCT ARRIVES IN THE WAREHOUSE, THESHIPPING

DEPARTMENT DETERMINES THE MOST EFFICIENT METHOD TO SHIP THE PRODUCTS SO
THAT THEY ARE DELIVERED ON OR BEFORE THE DATE SPECIFIED BY THE CUSTOMER.
 SUPPLY CHAIN MANAGEMENT OF CADBURY
Organizations have implemented supply chain management systems andassociated technologies to ensure that the
supply chain works as effectively aspossible and achieves the highest level of customer satisfaction at the lowestexpense.
Supply Chain Management has three types of operations that willconcentrate on the different sections of the company:
strategic; tactical; andoperational

Strategic:

At this stage, company management will look at high-level strategicdecisions about the whole organization, such as the
size and location ofmanufacturing sites, supplier relationships, manufacturing goods and consumermarkets.

Tactical:

Tactical decisions concentrate on taking cost-benefit steps such asusing industry best practices, developing a buying
plan with preferred suppliers,collaborating with logistics firms to improve cost-effective transport anddesigning
warehouse strategies to minimize inventory storage costs.
Operational:

Decisions at this level are made on a daily basis in companieswhich affect how
the products move along the supply chain. Operationaldecisions involve making
changes to the production schedule, purchasingagreements with suppliers,
taking orders from customers and moving productsin warehous
.
 MANUFACTURING PROCESS OF CADBURY
● Supply Chain Management of Cadbury Dairy Milk is enjoyed by everyone.It
is one of the most well-known and popular chocolates eaten worldwide.
● The journey of Cadbury milk begins with the manufacturing process and
finishes with the intake of chocolate lovers.
● The full cycle takes about 3-4 months in continuity, where the
manufacturing process takes a long time.The key players in the supply chain
management of Cadbury milk are the production process, the manufacturing
process, the distribution process and the retailing process. Because chocolate
requires milk, cocoa and sugar as its key ingredients, the method of
production of all three is also different.
Packing:

Value is also added when the chocolate is packaged to help it to stay fresh. For Cadbury this
means that the sales would increase because the packaging helps to sell the product, and also
keep the product in the condition it’s meant to be in (cool,dry,fresh,etc). Packaged goods are
delivered to warehouses from which goods are sold locally and globally in more than 60
countries. The basis of distribution is focused on the development of demand in a specific
country or region. Once the finished product, i.e. Cadbury milk, hits its target, which includes
the United Kingdom and other countries, it is then sold to stores selling its milk. Cadbury
milk is distributed to its final customers by supermarkets, hypermarkets, restaurants, local
small shops, etc.

Distribution:

Cadbury’s distribution channels include the manufacturing warehouses where the chocolate
production takes place. The first distribution channel is manufacturer, then wholesaler, then
retailer such as for example; ASDA, Sanisbury’s, Newsagents shops and other convenience
stores. Then it is the consumer which is the end result of the channels of distribution for
Cadbury’s.
 CONCLUSION

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, thing that sets them apart is their advertising agency. They
always
come up with new ideas and innovation. They normally use emotional appeal to
induce their consumer and they have different campaigns for different age groups
that keeps hem ahead from their competitors also the value added at each stage of
production is made to be more appealing for the customers to buy as the quality of
the product is mproved. Adding value has a positive impact for Cadbury, because it
aims to attract more & more customers to buy the chocolate that is produced.
 BIBLIOGRAPHY
● http://learnersdestination.com/supply-chain-management-scm/#Importance
● https://enterslice.com/learning/objectives-and-functions-of-supply-chain-management/
amp/
● https://drive.google.com/file/d/1IXPvRFdiZ2xTKgMZeX0rdipaXbl3aadt/
view?usp=drivesdk