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

different.

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 milk’s 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

assortments.

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.