Question

Explain Ferrero Rocher Nutella role in  Sourcing, Operations and Inventory Management related to Supply Chain’s Value Sustainability ?

Answer 1

Role of Fererro Richer and Nutella related to supply chain's value sustainability is as below:

1. Sourcing: One of the major ingredients of these chocolates is cocoa. Cocoa is sourced majorly from African nations such as Ghana, Namibia etc. Hence these chocolate factories have tie ups with local farmers and trading companies in Africa to source cocoa at cheap rates in order to manufacture chocolates.

2. Operations: Operations in chocolate manufacturing include checking of efficient running of machines, manpower efficiency, procedures getting followed, license renewal if required etc. Good operations are only ensured when preventive policies are in place which take care of last moment changes.

3. Inventory management: Inventory management of chocolates is based on the demand and supply analysis. The chocolate manufacturing companies do a proper demand forecasting through forecasting techniques and manage their inventory based on the upcoming demand and available stock.