WELCOME

CADBURY
From 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

USA

India

China

South Africa

Japan

Brazil

Mexico

UK

France

Turkey

Russia

Australia

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
3 months to 3 years

Long Range

Duration

Usually less than 3 months, maximum of 1 year Job scheduling, worker assignments

More than 3 years

Applicability

Sales and production planning, budgeting

New product development, facilities planning

How is demand forecast determined?

Description
Qualitative Approach Quantitative 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) Involves mathematical techniques Time series models Causal models

Considerations

Involves intuition and experience

Jury of executive opinion Sales force composite Delphi method

Techniques

How is cadbury prepared

Process of chocolate making

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

Internal and External Customers
Inputs
Processes and Operations

Outputs
Cacao varieties Processing Blending Cinching Tempering Storage

Milk Cocoa Palm Oil Other Grocery Products

Delicious Chocolate , Gum and Candy And Beverages

Information on Performance

Source: Krajewski, Ritzman, & Malthora, 2010

Inventory in Cadbury
Before Inventory buffered variability in supply and demand. Planners chased demand due to unreliable stocks. Safety stocks determined by historical values or by spreadsheets using basic statistics After Inventory buffers variability in supply and demand with much less manual intervention Safety stocks determined by algorithms that model the natural uncertainty of demand and supply Reliably defines correct relationship between stock and service level at the item/location level Service-driven inventory solution; maintains and guarantees target customer service level

Used normal distribution.

Inventory management focused

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

Cadburys 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???????

THANQ