OPPapers.com

Strategic Sourcing

Chapter 1
Introduction

1. Capturing The Trends
Long before your first bite of a mouth-watering, delicious Cadbury chocolate, there is a long and complex logistical chain that must be in place to bring this pro-typical chocolate to you. It may not be immediately apparent to the Cadbury buyer that the ingredients have travelled from other parts of the world.

[pic]
Figure 1. A complex and diverse supply chain of Cadbury Chocolate Bars

The processes involved in making Cadbury Dairy Fruit & Nut, at the factory in Bournville in the United Kingdom, give a good illustration of how strategic sourcing is applied in Cadbury supply chain.

Table 1. Cadbury Sourcing
|Ingredient |Sourced From |
| | |
|Milk |UK, farmer-run company. |
|Raisins |Turkey, a family-owned Turkish processing plant near Izmir, which buys its raisins from around 1,000 small|
| |farmers |
| | |
|Almond |California, USA. |
|Sugar |UK and mainland Europe |
|Cocoa |Ghana, to be specific: Ghanaian government Cocoa Board (COCOBOD) |
| | |...