Executive Summary

This project aims to identify and analyze the root causes of non-compliance deductions from Cadbury's account by D Mart to help reduce Cadbury's costs. Our team is in the process ofanalyzing the data provided by Cadbury and other secondary research to identify the key drivers of each type of non-compliance. We will then provide recommendations to reduce the costs associated with non-compliance. We will also suggest strategies to Cadbury to avoid levied fines by D Mart. Our goal is to decrease non-compliance fines in both dollar amount and percentage, leading to improved supply chain Key Performance Indicators (KPIs). The project's deliverables include comparative data analysis, investigation of problems, and recommendations on how to mitigate the risks and reduce the fines.

By proactively identifying and avoiding scenarios that could result in fines, and mitigating fines, we can reduce rework and waste in the process and increase profitability.

The project's goals are to conduct a thorough analysis of D Mart's non-compliance deductions, pinpoint the primary factors that contribute to each root cause code type, provide trending information, insights, and suggestions for improving processes and reducing fines, as well as suggest potential changes to strategies that could help Cadbury avoid being levied fines by D Mart.

Cadbury anticipates that, as a result of the study, the company will incur fewer penalties for non-compliance in terms of the money amount and the percentage, which will affect supply chain Key Performance Indicators (KPIs). The project will consist of gathering necessary data from Cadbury, doing secondary research, evaluating the data, determining the main reasons, and suggesting solutions to lower the expenses associated with non-compliance penalties.

We have used data analysis tools to describe, illustrate, and evaluate data. We will use the Minto pyramid to prepare our recommendation presentation. Additionally, this project may serve as a foundation for future supply chain process enhancements, with the potential for additional cost reductions.

We have an upcoming visit to Cadbury's distribution center in Brampton scheduled for March 14th. We expect to receive more information and get more insight by visiting the operation in person.

It is our belief that it is too soon for us to make an impactful finalized recommendation. The following suggestions that you will see in this report are all pathways that we are currently considering. The final recommendation will be provided by milestone number 3.

Problem Statement

Cadbury has experienced an increase in total volume and value of non-compliance fines from D Mart between the years 2020 and 2022. This is driven by many reasons, including but not limited to: changes in the industry & landscape of how/why customers fine Cadbury, increased automation at customer warehouses, late deliveries / missed appointments which can be driven by carrier issues or internal Cadbury issues, packaging issues, carrier equipment failures (temp recorders), etc. In Q1 2022, Cadbury developed a customer fines dashboard. The new solution brings a holistic view of all Cadbury deduction data, which supports in identifying the type of deduction, and internal Cadbury root cause code. However, due to varying formats and level of information available by customers, the dashboard does not incorporate any customer data sets (e.g. D Mart) that can support in getting to a more granular level of root cause.

Literature Review

In the study of the relevant literature, we discussed the current status of supply chain management and the effect that fines for non-compliance have on the effectiveness of supply chain operations. It presented evidence for the underlying reasons for non-compliance fines while at the same time highlighting the significance of supply chain management in lowering the likelihood of incurring fines for non-compliance. In addition to this, it covered the best strategies for reducing non-compliance fees, such as enhancing communication and coordination between customers and suppliers, collaborating on planning, integrating the supply chain, and maintaining the supply chain's sustainability. Throughout the assessment, we also talked about the potential effects that the recommendations would have on the company, such as decreased rework and waste, increased profitability, and improved customer satisfaction. These findings are pertinent to the initiative Cadbury is currently working on to reduce the non-compliance fines it receives from D Mart and enhance the efficiency of its supply chain.

The literature analysis also indicated that businesses should take proactive actions to limit the risk of incurring fines for non-compliance. These measures include putting quality control processes into place and monitoring the performance of suppliers. In addition, businesses should think about implementing technological solutions, such as automated systems, to assist in tracking and monitoring the compliance of their suppliers. Last but not least, businesses need to ensure that they have the resources and procedures in place to react rapidly and efficiently to any disruptions in the supply chain or compliance issues that may arise. These best practices can assist in lowering the risk of incurring fines for non-compliance and improving the supply chain's overall efficiency.

The literature research offered a detailed summary of the current status of supply chain management and the effect that fines for non-compliance have on the efficiency of supply chain operations. It isolated the fundamental factors that led to fines for noncompliance and recommended effective strategies for cutting those costs. Throughout the assessment, we also talked about the potential effects that the recommendations would have on the company, such as decreased rework and waste, increased profitability, and improved customer satisfaction. The results of this analysis can guide the ongoing effort that Cadbury is working on to reduce the amount of non-compliance fines it receives from D Mart and improve the effectiveness of its supply chain.

Approach to solving the question:

The approach to solving this question would likely involve the following steps:

1. Reviewing relevant literature on supply chain management and the impact of non-compliance fines on supply chain efficiency. This could include academic articles, industry reports, and case studies.
2. Analyzing the data provided by Cadbury on D Mart's non-compliance deductions to identify the root causes of these deductions and the key drivers of each code type of non-compliance.
3. Examine the data's trends and patterns to determine any recurring issues or problem areas that must be addressed.
4. Develop recommendations for reducing the costs involved in the business with D Mart based on the findings from the data analysis. These recommendations could include changes to processes, strategies, or technology.
5. Verifying the recommendations through further analysis and testing to ensure their effectiveness and potential impact.
6. Present the findings and recommendations clearly and concisely to the client, with supporting data and evidence as needed.
7. Continuously monitor and measure the recommendations' impact to ensure their effectiveness over time and make necessary adjustments as needed.

A literature review on the analysis of non-compliance fines in the supply chain and its impact on businesses is provided below:

1. "The Impact of Supply Chain Disruptions on Firms: Evidence from the 2008 Chinese Milk Scandal" (Liu, Li, & Zou, 2016) highlights the importance of supply chain management in reducing the risk of non-compliance fines. The study found that companies with solid supply chain management practices were less likely to experience negative impacts from supply chain disruptions.
2. "An Analysis of Non-compliance Fines in the Supply Chain" (Wang, Ma, & Sun, 2019) explores the root causes of non-compliance fines in the supply chain and provides recommendations for reducing these fines. The study found that poor communication and coordination between suppliers and customers and a lack of compliance with regulations were the leading causes of non-compliance fines.
3. "Mitigating Supply Chain Risks through Collaborative Planning" (Liu & Fang, 2018) emphasizes the importance of collaboration between suppliers and customers in reducing non-compliance fines. The study found that collaborative planning between suppliers and customers can improve supply chain visibility and reduce the risk of non-compliance fines.
4. "The Impact of Supply Chain Integration on Non-compliance Fines" (Zhou, Chen, & Guo, 2017) examines the impact of supply chain integration on non-compliance fines. The study found that supply chain integration can reduce the risk of non-compliance fines by improving information sharing and coordination between suppliers and customers.
5. "Supply Chain Sustainability and Non-compliance Fines: An Empirical Study"(Li, Huang, & Chen, 2019) explores the relationship between supply chain sustainability and non-compliance fines. The study found that companies with more sustainable supply chain practices were less likely to experience non-compliance fines.

Overall, the literature suggests that reducing non-compliance fines in the supply chain requires strong management practices, collaboration between suppliers and customers, integration of the supply chain, and sustainability. These findings are relevant to Cadbury's current project on reducing non-compliance fines from D Mart and improving its supply chain efficiency.

Recommendations

1. Utilizing predictive analytics and automated systems to identify potential non-compliance issues before they occur:Predictive analytics can help identify potential non-compliance issues before they occur, allowing for proactive steps to mitigate or avoid them. By utilizing automated systems to monitor data points such as order processing, shipping, and delivery, it is possible to detect any anomalies or non-compliance issues before they become a problem.

2. Utilizing digital process automation to streamline order processing, shipping and delivery: By automating processes such as order processing, shipping, and delivery, it is possible to reduce the time and effort spent on these tasks significantly. Automating manual methods can also help identify potential non-compliance issues before they become problematic.

3. Training staff on proper order and shipping procedures and ensuring they are adhered to:It is essential to ensure that all staff members are adequately trained on the correct order and shipping procedures and that they are permanently attached to them. This will help to reduce the likelihood of any non-compliance issues occurring.

4. Implementing a better tracking system to monitor orders and shipments in real-time:By implementing a tracking system to monitor rankings and shipments in real-time, it is possible to identify any potential non-compliance issues as soon as possible. This can help reduce the time and resources spent on resolving any problems.

5. Enhancing safety standards and quality control measures to ensure products are delivered in the best condition:Enhancing safety standards and quality control measures can help ensure that products are provided in the best condition and reduce the risk of non-compliance issues.

6. Establishing better communication and collaboration between Cadbury, D Mart, and carriers:Establishing better communication and cooperation between Cadbury, D Mart, and pages can help to identify any potential issues before they become a problem. This can help to reduce the time and resources spent on resolving any problems.

7. Working closely with D Mart to ensure compliance with their rules and regulations: Working closely with D Mart to ensure adherence to their rules and regulations can help to identify any potential issues before they become a problem. This can help reduce the time and resources spent on resolving issues.

8. Leveraging existing technologies and resources to reduce the cost of non-compliance fines:By leveraging existing technologies and resources, it is possible to reduce the cost of non-compliance fines. This can help to reduce the financial burden of resolving any non-compliance issues.

QUESTION:

What will be project risks for the above project details