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The Supply Chain Management of Cadbury Dairy Milk

Cadbury dairy milk is loved by all. It is one of the most known and best chocolates
consumed globally i.e., in 60 countries. The journey of Cadbury dairy milk starts from
production process and ends to consumption by chocolate lovers. This complete process is in
continuity that almost takes duration of 3-4 months where production process takes larges time.
The main participants in supply chain management of Cadbury dairy milk are production
process, manufacturing process, distribution process and retailing. As chocolate involves milk,
cocoa mass and sugar as its main ingredients, therefore the production process of all the three are
The production process involves greater risk and cost as if it is not up to the requirement,
further process of chocolate manufacturing could not be done. However, the management has
wide availability of choice to choose the best supplier of each of the three i.e., milk, cocoa and
sugar. Cadbury has created long term and strong relationship with each of its supplier. Most
European daily farms supply fresh drinking milk to its consumers and to Cadbury that uses the
milk in the production process. The milk obtained from the cows and is refrigerated for 48 hours.
Then the milk is sent to processing factories that homogenized and pasteurized it and again
refrigerate it.
Later, the milk is condensed and is sent to the Cadbury dairy milks processing
department. The cocoa beans are obtained mainly from Ghana, Africa. Besides this, cocoa is also
obtained from Indonesia, India and the Caribbean where they are grown and harvested. Then the
cocoa pods are removed from beans that are than dried and gathered in a stack. These stacks are

then sent to European region at processing factories that extract cocoa butter/ cocoa mass or
cocoa powder. The sugar is extracted from sugarcane that is harvested in most regions of Europe.
The billets are collected from the harvested sugarcanes and are sent to the processing
factories that provide manufacturing factory of Cadbury with processed sugar. The cocoa mass/
butter/ powder, milk and sugar are received to Cadbury Manufacturing concern in Bournville
where the Cadbury dairy milk is processed and manufactured. At Cadbury Factory sugar and
cocoa is added to condensed milk to make it creamy rich chocolate liquid. Then this liquid is
evaporated by pin mill to get chocolate crumb. The cocoa butter and cocoa liquor is mixed
besides chocolate flavouring. Emulsifiers are added as thick chocolate is required for moulded
blocks. However, the chocolate liquid of thinner consistency is required for covering bars and
Both dark chocolate and milk go through the same production stages which include
conching and tempering to get the gloss and smoothness of Cadbury chocolate. In conching, the
semi-liquid chocolate mixture is beaten and mixed develop to remove volatile flavours and
reduce the particle size viscosity. In tempering, the liquid chocolate is cooled and mixed under
carefully controlled conditions that ensures chocolate crystallises fats are in stable form. For this,
the chocolate liquid goes under sophisticated machinery that is specially developed for tempering
process. This tempered chocolate could be used in different ways to produce products of
different brands.
The tempered chocolate liquid is poured in moulds that are shaken and then cooled.
These moulded blocks are transferred to wrapping plants of high speed. When these chocolates
are cooled down, then they go for packaging. Then these chocolates are packaged together that

are loaded for distribution. The packaged goods are sent to warehouses from where goods they
are distributed locally and internationally in more than 60 countries. The basis of distribution is
on the basis of creation of demand in a particular country or region. When final product i.e.,
Cadbury dairy milk is reached to its destination which include UK and other countries, these are
distributed further to retailers who sells its. The Cadbury dairy milk is sold through
supermarkets, hypermarkets, store, local small shops etc to its final consumers.