Answer 1
1. What is the market size for retail chocolates sales in Australia? Which companies are the main participants in the industry? Identify and describe any Australian businesses currently exporting chocolates or confectionaries into markets outside of Australia?
2.Will the supply chain for the new expanded business need to be differentiated on the basis of multiple sales channels / customer segments? What changes to manufacturing will need to be made to accommodate online sales through Amazon? What mechanisms are available for the Cardinales to forecast future demand?
3. From a supply chain and logistics perspective what might be the benefits and disadvantages of selling their products using the Amazon online platform? What is your understanding of the term “Big Box Supply Chain
4 On the basis that all sales are now being made either through the shop or online through Amazon, construct a diagram that captures all phases of the Cardinale Chocolates Supply Chain.
5 How might Cardinale Chocolates better use technology to make their supply chain and logistics activities more efficient? Illustrate your answer with examples of how other organisations were able to use technology to enhance operational efficiency.
The main depictions of the repot aims to find the various types of the details on the market size of the retail chocolates which are seen to be based in Australia. The study has been further able to state the main participants in the industry who are involved in the current export process outside Australia. The learnings of the study have further evaluated the important changes which were brought to accommodate the online sales of Amazon. The main interpretations are further conducive in identifying the mechanisms available in tracking the forecasting of future demand of Cardinales. The main assessment has been further conducive in better understating of “Big Box Supply Chain” (Gallo, Antolin-Lopez and Montiel 2018).
The main operators in Australia involved to produce the retail chocolate has been seen to be facing the trend of changing consumer preferences in the last five years. Some of the different types of the of the consumer concerns are depicted with the fat and sugar content in the products which has significantly weakened the demand for the traditional chocolates and confectionary over a period of time. However, renovations in the technology and composition of the sugar has brought more players in the market. At present the total value for the retail chocolates in Australia is depicted close to $ 1435.69 million (Beckett et al. 2017). Some of the important depictions based on this information has been shown with the table as follows:
Answer 2
Figure: Retail sales value of selected chocolate in Australia in 2015
(Source: Statista.com 2015)
Some of the main participants of the industry are seen to depicted in form of the manufacturer who are seen with “Zokoko”, situated in “Emu Heights NSW”, “Bahen & Co” in “Margaret River, Western Australia”, “Haighs” situated in “Parkside, South Australia” and “Daintree Estates in Mossman, Queensland”. Some of the of the main exporter of the chocolate in Australia is identified with exporting chocolate in other countries are seen with Crest Chocolates which is seen to export chocolate mainly in New Zealand (Store.mintel.com. (2018).
The expansions strategy which company intends to adopt is seen to be based on the consideration of the various types of the initiatives which should be focused with customer segments. Firstly, the main concern of the fat content in the chocolates needs to be addressed with the increasing the production of chocolate which uses low fat milk. The target market for such consumers will be based on those buyers who are prefer for the various types of the chocolates which are lower than 200 calories. The health-conscious consumers will be having more preference such a product. The other customer segments needs be included with the customer who need to buy a chocolate for birthday or party (Jia et al. 2016).
The changes introduced in the online sales mechanisms needs to be depicted inform of providing the description of the calorie content along with the various categories of the information which are generally present in the back side of the product description.
As stated in Economics Discussion (2015), some of the demand forecasting tools available for Cardinales includes the application of the application of market experiment method. The company needs to be adopt this technique to ascertain the current and future demand for a product with this method. This technique will comprise of the forecasting of the information from the relevant segments of the consumers rather than performing analysis on the whole market segment.
The supply chain advantages of the selling of the products across Amazon for Cardinales has been depicted with non-reliance on a third-party logistics provider. The company will be able to reduce the cost involved in assigning an additional carrier to transport the chocolates to different retailers. The supply chain demand forecast will improve as the lead time can be ascertained from beforehand by the products which have been added in the cart. In addition to this, the various types the tracking technologies used by Amazon and seamless order movement reporting from one facility to another will be conducive in better knowing about the product status. The negative aspects of the supply chain are discerned with the concerns associated to mishandling of the product and processing charges for the order which needs to be paid to Amazon. The term Big Box refers to those retailers which occupies large amount of physical space in offering a wide variety of products to the customers (Staff 20014).
Answer 3
The sales which are made either through the shop or online through Amazon is comprised of six important steps which ranges from firstly, setting up of the online store at Amazon. The second step in the sales process is taken into account with the receiving of the order from customers. The third step of the supply process involves delivery of the order via “Amazon Easy Ship” and “Fulfillment By Amazon”. The fourth stage in the supply chain process comprises of receiving the payment from Amazon. This payment is usually depicted to be deposited to the bank account within 7 days. This is stage where Amazon deducts the process charges for the order and debits the charges from the seller account, needed to deliver a product to the customer. The fifth phase allows the bossiness to keep track of their deliveries with “personalized performance dashboard and customized reports”. The final stage provides the various types of the options to the customers which are related to the global expansion across international locations and take the advantage of the international logistics facility of Amazon (Services.amazon.in. 2018). The diagram that captures all phases of the “Cardinale Chocolates Supply Chain” is shown below as follows
The present technologies incorporated by Cardinale in the past five years has focused on mass production. In addition to this, the initiatives taken by the company are based on an attempt to introduce healthier products. The use of the present technology has been conducive for the organization to put a limit to the number of potential customer switching to substitute such as yogurt (Machálková et al. 2017). At present Cardinale Chocolates needs to introduce better technology which will be able to product the chocolates even with the use of low fat milk. This technology will be conducive in adding to the exact sweetness which was attained by the company before with use of regular milk (Afoakwa 2016).
Conclusion
The main interpretation of the discourse on the the main participants of the industry are seen to depicted in form of the manufacturer who are seen with “Zokoko”, situated in “Emu Heights NSW”, “Bahen & Co” in “Margaret River, Western Australia”, “Haighs” situated in “Parkside, South Australia” and “Daintree Estates in Mossman, Queensland”. Some of the demand forecasting tools available for Cardinales includes the application of the application of market experiment method. This technique will comprise of the forecasting of the information from the relevant segments of the consumers rather than performing analysis on the whole market segment. Some of the main supply chain advantages of the selling of the products across Amazon for Cardinales has been depicted with non-reliance on a third-party logistics provider and seamless tracking of the product till it reaches the final consumer.
References
Afoakwa, E.O., 2016. Chocolate science and technology. John Wiley & Sons.
Beckett, S.T., Fowler, M.S. and Ziegler, G.R. eds., 2017. Beckett’s Industrial Chocolate Manufacture and Use. John Wiley & Sons.
Economics Discussion. (2015). Techniques of Demand Forecasting (Survey and Statistical Methods). [online] Available at: https://www.economicsdiscussion.net/demand-forecasting/techniques-of-demand-forecasting-survey-and-statistical-methods/3611 [Accessed 12 May 2018].
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Jia, F., Wang, X., Mustafee, N. and Hao, L., 2016. Investigating the feasibility of supply chain-centric business models in 3D chocolate printing: A simulation study. Technological Forecasting and Social Change, 102, pp.202-213.
Machálková, L., H?ivna, L., Ruban, A., Sapáková, E. and Rumíšková, V., 2017. Effect of Recipe and Production Technology of Chocolate Products on Their Quality During Storage. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(1), pp.91-98.
Retail sales value of selected chocolate in Australia in 2015, c. (2018). Chocolate: retail sales value Australia 2015 | Statistic. [online] Statista. Available at: https://www.statista.com/statistics/716628/chocolate-retail-sales-australia/ [Accessed 12 May 2018].
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Staff, I. (20014). Big Box Retailer. [online] Investopedia. Available at: https://www.investopedia.com/terms/b/big_box_retailer.asp [Accessed 12 May 2018].
Store.mintel.com. (2018). Chocolate Confectionery in Australia (2017) – Market Sizes – Market size data – retail sales value – sales volume. [online] Available at: https://store.mintel.com/chocolate-confectionery-in-australia-2017-market-sizes [Accessed 12 May 2018].