WELCOME

CADBURYFrom

Ramyarayee

Manasa

Supriya

Origin of Cadbury

• Cadbury is the brain child of John Cadbury

• Starting in form of grocery business in Birmingham in 1824

• In 1853, Cadbury became the confectioner to the British Crown.

• In 1860, Richard and George took command and expand it further.

• Today Cadbury operate Globally

John Cadbury

Location Planning

Location

• Traditionally Focus area of Location : Near Canal links, Rail & main Roads

• Kraft has similar motives and also does the same for their office buildings. They locate them near public transport and save on items such as parking facilities and security.

Location

• Cadbury is a British company and bases many of its operations in Britain. This area has some of the highest wage rates.

• Now that Kraft has bought the company, they are strategically looking to phase out many operations in Britain for cheaper areas of labor such as Eastern Europe and overseas countries.

Product and Major Brands Three kinds of confectionery: Chocolate (55%), Gum(14%) and Candy(31%)

13 focused Brands 12 focus markets 7 focus customers

Turkey

Brazil

India

ChinaSouth Africa

Japan

USA

Mexico UK

France

Russia Australia

DEMAND FORECASTING

A demand forecast is the prediction of what will happen to your company's existing product sales.

It would be best to determine the demand forecast using a multi-functional approach. Estimate of expected demand over a specified future period. Also called forecast demand.

Cont…

Determination of the demand forecasts is done through the following steps:

•  Determine the use of the forecast

•  Select the items to be forecast

•  Determine the time horizon of the forecast

•  Select the forecasting model(s)

•  Gather the data

•  Make the forecast

•  Validate and implement results

The time horizon of the forecast is classified as follows:

Short Range

Medium Range

Long Range

Duration Usually less than 3 months, maximum of 1 year

3 months to 3 years

More than 3 years

Applicability

Job scheduling, worker assignments

Sales and production planning, budgeting

New product development, facilities planning

How is demand forecast determined?Description Qualitative

ApproachQuantitative Approach

Applicability Used when situation is vague & little data exist (e.g., new products and technologies)

Used when situation is stable & historical data exist

(e.g. existing products, current technology)

Considerations Involves intuition and experience

Involves mathematical techniques

Techniques Jury of executive opinion

Sales force composite

Delphi method

Consumer market survey

Time series models

Causal models

Process of chocolate making

How is cadbury prepared

HOW IS CADBURY CHOCOLATE MADE?

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is why, up to the 18th century some native tribes ate only the sweetish flesh of the cocoa fruit..• Firstly Harvesting is done Followed by Fermentation• Drying • Cleaning • Roasting • Crushing • Blending • Grinding 

Core Processes to delivery the Final Product

•Cacao varieties•Processing •Blending•Cinching•Tempering•Storage

Processes and OperationsInputs Outputs

Internal and External Customers

Information on Performance

•Milk•Cocoa•Palm Oil•Other Grocery Products

Delicious Chocolate, Gum and Candy And Beverages

Source: Krajewski, Ritzman, & Malthora, 2010

Inventory in Cadbury

Before After

Inventory buffered variability in supply anddemand. Planners chased demand due tounreliable stocks.

Inventory buffers variability in supply anddemand with much less manualintervention

Safety stocks determined by historical valuesor by spreadsheets using basic statistics

Safety stocks determined by algorithmsthat model the natural uncertainty ofdemand and supply

Used normal distribution. Reliably defines correct relationshipbetween stock and service level at theitem/location level

Inventory management focused “Service-driven” inventory solution;maintains and guarantees targetcustomer service level

Capacity Planning in Cadbury

• Three broad classes of Capacity Planning– Lead strategy:

It is adding capacity in anticipation of an increase in demand– Lag strategy :

It refers to adding capacity only after the organization is running at full capacity or beyond due to increase in demand– Match strategy:

It is adding capacity in small amounts in response to changing demand in the market

Capacity Planning in Cadbury

• Cadbury Way

Lead strategy Match strategy

Cadbury’s Market Position and Competitive Environment

Participates in the Global Competitive Marketplace

Competitive Advantages

• Wide Product Range• Good Price• International Business• Good Availability• Cadbury has well adjusted itself to Indian

customers.

Questions…???????

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