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Research Project Starbucks Assignment

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Logistics and Supply Chain Management

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Introduction

 

The chocolate and confectionary manufacturers are facing a lot of problems because of the changing preferences of the customers. The customers became more health conscious and this shown a great effort on the products confectionary products. The main aim of the manufacturers as of now is to provide the premium chocolates to the customers and stop them from switching to substitutes.

Weekly Portfolio Questions

 

 

 

 

Week 8

 

Australian market has a huge demand for the chocolates and confectionaries. The CAGR for the chocolates in Australian market is projected to grow by 7% during the years 2018-2023. The high demand for the confectionary products is the main reason for this increase in the CAGR. The high consumption of milk and dairy products, increase in the number of foreign players in the industry of chocolate are the major reasons for the progress in the chocolate market in Australia. Based on the type of chocolates the chocolate market has been divided into various types. The revenue of the chocolates and confectionary industry in 2018 is 2,590 million USD. In an international perspective it has been stated that the major revenue for the chocolate industry is from US only.

The major industries that are operating in Australian chocolate and confectionary market are

·   Mars Inc

·   Kraft Foods

·   Hershey Food Corporations

·   Nestley

·   Ferrero Group

·   Shirin Asal Company

·   Strauss Elite

·   Unilever Group

·   Cadbury

These are the major companies that are present in the industry. These companies are striving to provide the chocolates that are loved by all the age groups. Because of the cholesterol and fat issues there is a slight decline in the chocolate and confectionary market but luckily the manufacturers are trying something different and are experimenting a lot to provide the users with healthy chocolates. They just want to stop the consumers to switch to any healthy alternatives and that is the reason why they are preparing the premium chocolates for the consumers.

There are some major brands in Australia who are supplying their products to other countries. Some of such brands are

·  Kennedy and Wilson-the after dinner ducks are one of its kind and became very famous

·   Zokoko-these dark chocolates made with organic cocoa got appreciation from all over the world.

·   Bahen & Co.-These elegantly packed chocolates are perfect for every occasion.

·   Haighs Chocolates-

·   Daintree Estates

All these chocolate companies have huge following in Australia and thus have expanded their markets globally. The great thing here is that people from all around the world are in love with these chocolates. The premium chocolates made by these companies became the right choice for any occasion and gained a lot of following among the different sets of audience. They have extended the market for Australian chocolates and got a lot of revenue.

Week 9

There is no need to differentiate the supply chain as this will affect the authenticity of the products (Cooper et al. 2010). Instead of trying this Cardinales should work on improving the quality of the products. Most of the companies have different supply chains for offline as well as online stores which is why some errors have been identified in the products sold by online eCommerce websites. So it is very important to take care of the supply chain and the way it is implemented here. In order to deliver similar quality products for both online and offline stores it is important to have the same supply chain. Most of the companies try to compromise on the quality of the products when it comes to online store but providing same quality products in online stores too will help in gaining good reputation for Cardinales. The supply chain should not be differentiated on any basis because it will affect the quality.

Some changes must be made in the manufacturing unit to accommodate the online sales in Amazon. As the company is involving with largest eCommerce website it has to make certain changes in accordance to the requirements. The units they manufacture on per day basis should be increased and the products must be manufactured in very bulk quantity than they usually do (Carter and Ellram, 2012). This is an important requirement for the eCommerce website as they buy the stock in larger quantities and also gets a huge discount on the products so Cardinales should take care about the discount too as this discount may become a burden on them. So from starting when they are buying the raw materials they have to buy it in bulk quantity to reduce the cost and the machinery should also be improved to deliver huge quantity of products at once.

The online stores sell the products very quickly once they become familiar so the one thing that Cardinales should do at starting is to provide a little bit more discount to the Amazon as they will promote the brand more. After getting popularity the price can be increased slightly. When the consumers are attracted to the brand and got enough interest into it then they will be ready to pay some extra amount for the product so there is no need to worry about the profits as the return of investment will be very high as the time passes by.

Week 10

There are advantages as well as disadvantages when it comes to using online stores to sell your products.

Advantages

No Geographic Limitation

By opting the eCommerce stores the companies can sell their products to any place in the world without any limitation. Usually Cardinales is famous in Western Sydney and even most of the places in Australia don’t know about the Cardinales chocolates even they have awesome taste and are mouth watering. But when the company opts for online marketing the products can be sold to any place of the world without any limitation.

Transparency in the Product Information

The online stores are very transparent when it comes to giving the customers with required information (Cooper et al. 2010). They provide the consumers with complete information about the products which usual offline stores can’t do. In this way the features of the Cardinales chocolates and the raw material used in them are provided to the customer and according to that the customers can buy the chocolates.

Reduces the Man Power

The man power of online retail stores is very less when compared to the offline retail stores. This is very helpful and a lot of amount as well as time are saved for the companies.

Higher Requirement of Logistics

The logistics and courier plays a huge part in this online business and they are very important to conduct the business. The demand for logistics department has been increased a lot in a decade but this lead to them charging more price than what they use to charge.

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