Cadbury Pakistan Limited

Introduction:

Cadbury plc is the worlds largest confectionary company. Cadbury came Pakistan in September 1993 the first made product in Pakistan is clair then Cadbury Dairy milk then soft Mint then perk then chowki and in last 5 star, these 6 brand products are boom position in Pakistan. Cadbury Pakistan is U.K based company. At first time one another company Trebore having 49 % share of pure foods. All over the world Cadbury Pakistan purchase Trebore after it Cadbury purchase (acquire) Pure foods. Cadbury sharing is 100 % and now Cadbury has done two Billion sales in Pakistan.

VISION:

Be the Biggest and the Best Confectionery Company.

MISSION:

Creating Brands People Love

VALUES: They are performance driven, values led. Throughout changing times, their constant values have inspired them to be pioneers in business and in corporate responsibility. They help ensure they are proud of their company and are critical to their core purpose of creating brands people love.

Their values are:

Performance

They are passionate about winning. They compete in a tough but fair way. They are ambitious, hardworking and make the most of their abilities. They are prepared to take risks and act with speed.

Quality They put quality and safety at the heart of all of their activities their products, their people, their partnerships and their performance.

Respect They genuinely care for their business and their colleagues. They listen, understand and respond. They are open, friendly and welcoming. They embrace new ideas and diverse customs and cultures.

Integrity

They always strive to do the right thing. Honesty, openness and being straightforward characterize the way they do business. They have clear principles and do what they say they will do.

Responsibility

They take accountability for their social, economic and environmental impact. In this way they aim to make their business, their partners and their communities better for the future.

About Products:

Cadbury Pakistan Limited belongs to the Cadbury group of companies i.e. Cadbury plc. It operates in two categories, the chocolate-based products and the sugarbased products.

Cadbury Pakistan boasts six power brands; Cadbury Dairy Milk, Softmints, Eclairs, 5 Star, Perk and Chocki. In 2005, Cadbury Pakistan received the Global Award for highest Net Sales Value in emerging markets. 2006 proved to be a yet another landmark year for Cadbury Pakistan. Additional equity was injected and one state of the art chocolate moulding line was introduced which led to a doubling in moulding capacity. As a result of the efforts of the company and the Cadbury team in Pakistan, sales have tripled in the last three years. With a promise to bring new products variety and never ending delight for its consumers; Cadbury Pakistan Limited is on its way to grow in the years to come in Pakistan.

Like all other popular edible brands, Cadbury has been rated best in chocolates category on its attribute of Quality which conforms that consumers consider Cadbury as a brand of choice and superior than others available in the market. Next best selected attribute is that of Familiarity which indicates that marketing communications and advertising campaigns are objectively targeted to bear fruit. Affordability is the third most preferred feature by the consumers and indicates that the product is targeted more towards upper middle income group. Availability is found to be the last parameter and it clearly indicates that it needs to / or can be improved considerably.

Cadburys other Departments:

The current manufacturing facility situated at Hub, near Karachi was acquired from a local food manufacturing in 1992. Cadbury Pakistan has a work force of over 600 people in total. Cadbury Pakistan Limited Hub Factory has following functions under operation 1. 2. 3. 4. 5. 6. Q & FS (Quality and Food Safety) Finance Manufacturing Engineering and Asset Care (Reliability) Procurement & Logistics Planning & Projects & New Development 7. Innovation

Current Progress:

Sales Cadbury Pakistan has a work force of over 525 people in total. More than 200 distributors - Cover 50,000 Outlets directly through Distributors - National presence through 4 regional setup 2 sales divisions - Modern Trade Business - Mass markets Modern Trade International accounts are serviced through a separate team, other super stores are covered through common team

Cadbury Pakistan sales force 35 & 7 POs (Pilot officer) in different town of Pakistan, Distributor sales force 500

PROCUREMENT
To define procurement broadly, Procurement is the function that describes the activities and processes to acquire goods and services. Importantly, and distinct from purchasing, procurement involves the activities involved in establishing fundamental requirements, sourcing activities such as market research and vendor evaluation and negotiation of contracts. It can also include the purchasing activities required to order and receive goods.

HISTORY OF PROCUREMENT

In the 1900s, purchasing was recognized as an independent function by many railroad organizations, but in few other industries. Then in World War I, purchasing was regarded as primarily clerical function but didnt receive much importance as yet. During World War II The function increased due to the importance of obtaining raw materials, supplies, and services needed to keep the factories and mines operating. 1950s & 1960s - Purchasing continued to gain stature as the techniques for performing the function became more refined and as the number of trained professionals increased. The emphasis became more managerial. With introduction of major public bodies and intergovernmental organizations, such as United Nations, procurement became a well-recognized science. In the1970s & 1980s - More emphasis was placed on purchasing strategy as the ability to obtain needed items from suppliers at realistic prices increased. In September 1983, Harvard Business Review published a ground-breaking article by Peter Kraljic on purchasing strategy that is widely cited today as the beginning of the transformation of the function from "purchasing," something that is viewed as highly tactical to procurement or supply management,

something that is viewed as very strategic to the business. In 1990s, procurement started to become more integrated into the overall corporate strategy and a broad-based transformation of the business function was ignited, reinforced strongly by the development of supply management software solutions. In the 2000s, the leader of the procurement function within many enterprises is established with the title of Chief Procurement Officer (sometimes called the Head of Procurement). Websites, publications, and events, and that are dedicated solely to the advancement of Chief Procurement Officers and the procurement function arise. The global recession of 2008-2009 places procurement at the foundation of business strategy. In the 2010s, the elevation of the function continues as Chief Procurement Officers are recognized as important business leaders and begin to take on broader operation responsibility.

BASIC PROCUREMENT PROCESS

In its most basic form, procurement is nothing more than the steps that are used in the acquisition of goods and services. From this perspective, all consumers participate in the process of procurement. Whether for business or for the home, there are progressive steps that we all follow as we work toward procuring those items that we desire. Here is some information about the steps of procurement, and how they ultimately lead us to the satisfaction of our needs and desires. The first step in the process of procurement is the recognition; there is a need or want for a particular good or service. Before there is a chance for the acquisition of goods, there has to be the desire to actually gain possession of something in particular. Without recognizing the want or need, there is no reason to pursue any of the following steps that ultimately lead to a purchase. In short, if there is no desire, there will be no procurement.

Once the need or want has been recognized, it is important to qualify the specifics of what will lead to satisfaction. For example, the want or need may be new SKU. Further thought may yield the fact that a new chocolate would be suitable and viable for an SKU. From there, it is a matter of determining what flavor, size and packaging would be desired for the chocolate, as well as determining an approximate amount of money that the consumer is willing to pay for it. With a solid vision of what is desired, it is possible to move on to the third step in the process of procurement. Step three involves the evaluation of potential suppliers. This will involve getting to know more about vendors who can supply goods or services that will meet all the specifications, including the price range. This may involve taking bids on a project, negotiating prices, or accepting proposals. Over time, one or two suppliers are likely to stand out from all other vendors. Once the final decision is made between the two remaining suppliers, the time has arrived to move on to the final stage of the procurement process. The last step involves taking possession of the desired good or service, ensuring that the item is in compliance with all the claims made by the supplier, and rendering payment according to the terms worked out with the supplier. In some cases, it may be possible to engage in the acquisition of services and goods prior to supplying payment. At other times, payment may be necessary before taking possession. With both scenarios, the consumer usually has a short period where it is possible to reverse the acquisition and move on to another option. One of the basic rules of procurement is that in the end, it is important to think in terms of the total cost of ownership. This includes not only the purchase price, but also time and resources that are expended in the pursuit of the ownership. By understanding the steps involved with procurement, it is possible to get a better understanding of the real cost involved with attaining any good or service.

E-PROCUREMENT
E-Procurement is more than just a system for making purchases online. A properly implemented system can connect companies and their business processes directly with suppliers while managing all interactions between them. This includes management of correspondence, bids, questions and answers, previous pricing, and multiple emails sent to multiple participants.

A good e-procurement system helps a firm organize its interactions with its most crucial suppliers. It provides those who use it with a set of built-in monitoring tools to help control costs and assure maximum supplier performance. It provides an organized way to keep an open line of communication with potential suppliers during a business process. The system allows managers to confirm pricing, and leverage previous agreements to assure each new price quote is more competitive than the last.

Benefits of Adopting an E-Procurement System

E-Procurement helps with the decision-making process by keeping relevant information neatly organized and time-stamped. Most are template-driven which makes all transactions standardized and trackable. Keeping track of all bids means leveraging your knowledge to obtain better pricing. Companies can focus on their most lucrative trading partners and contracts. Well-managed e-procurement helps reduce inventory levels. Knowing product numbers, bid prices and contact points can help businesses close a deal while other suppliers are struggling to gather their relevant data. E-Procurement systems that allow multiple access levels and permissions help managers organize administrative users by roles, groups, or tasks. Procurement managers do not need to be as highly trained or paid because such systems are standardized and easy to learn.

VALUE ADDED FEATURES OF E-PROCUREMENT

Every company is looking to lower costs and increase profitability. Each year, company management devises new initiatives to cut costs and boost productivity. However, one area that is often overlooked by company management is the purchasing department. The purchasing department is usually in charge of purchasing direct goods (fall into the cost of goods sold) and indirect goods (other areas like office supplies, computers, etc). The efficiency and effectiveness of a purchasing department is often difficult to quantify. However, it is worthwhile for companies to examine purchasing departments since cost savings in the purchasing department translate directly to the bottom line.

New purchasing software equipped with advanced RFQ, automated bid submission, and automated negotiation has made it possible to realize significant cost savings from the purchasing department. While E-procurement can offer companies a lot of tangible benefits, it takes specific knowledge of software and the purchasing process to maximize these benefits for the company.

Spend Analysis: A knowledgeable partner will help you obtain detailed supply management goals and objectives and provide detailed vies of current and projected spend. Once current spend has been analyzed, a knowledgeable partner can help develop actionable strategies to support goals. Technology can then be used to develop capabilities to manage and analyze spend going forward.

Market Analysis: If a company is going to purchase particular type goods in the open market, the buyer / partner will need to understand the market dynamics. This means having knowledge of the average prices, key suppliers, drivers of value. This will also determine which procurement methodology will be used to purchase the goods. For example, if there is only one or two suppliers of a particular item in the world, an auction event will not work.

Supplier Sourcing: One of the biggest problems that buyers face in setting up automated procurement events is supplier participation. For large procurement events, the addition of an additional supplier will enable the buyer to obtain a much better price. This calls for expertise in supplier sourcing and requires the ability to locate new, qualified suppliers.

RFQ creation: The way that an RFQ is worded can often have a strong impact on how a procurement event unfolds. Each RFQ should contain enough information for a supplier to make a bid. Depending on the type of item, this will include delivery terms, payment terms, and specifications. An experienced RFQ creator will know what suppliers are looking for and will understand the key drivers of price.

Supplier Invitation: The decision of which suppliers to invite has a profound impact on the way a procurement event progresses. Generally, the more suppliers participate, the better that the event will work.

Event Structuring: To maximize the value of powerful, feature rich purchasing software, knowledge of how to structure the procurement event will be necessary. This includes knowing what information to show suppliers during the event, the type of logic to use for the event.