CAMPARI CASE STUDY Andrea Dimichele 4105507 QUESTIONS: * What are the functional areas in the supply chain function and which is the guiding element of the whole function? * What may be the advantages and the disadvantages of a stable production cycle producing batches of large dimensions? * How do Campari’s distribution flows work and which logics do they satisfy? * What is the role of customer service and what do the people involved in this function do? * How does the online auction system work? The functional areas in the supply chain of Campari are: Procurement of materials Production: sites where the products are made and ready to the first delivery, to the distribution center there are 13 all over the world. Logistics and transports: that is probably the guiding element of the whole supply chain. A huge products portfolio let Campari’s group to focus the attention on the distribution process. It is split in two different channels, the modern one (GDO, DO) and the traditional one (wholesalers, liquor stores and ho. e. ca day and night). Certain areas let Campari to distribute its products directly to customers such as disco for spirit segment or directly to restaurants for Wine segment (i. e. Sella ; Mosca). Distribution strategy so is fundamental to GARANTIRE a constant and efficient position and to be close to customers. For this reason Campari group in Italy decide to outsource this process of supply chain. In fact the central distribution center is owned by ‘’Gruppo Zanardo’’. As Donatella
Rampinelli, Customer management director, highlight ‘’ the choice to outsource the distribution process in founded on logics of efficiency and EFFICACIA. Until 1991 distribution process was owned by Campari but this generate very high cost for the company so starting from 1995 they decide to outsource the process (also more focused in GDO channel) and this permit also to maximizing the effect on warehouse management ( stocking, order management, inventory). Export Management: that involve foreign order, management of commercial border and custom paperwork and physical delivery management.
Administrative: that involve administrative and physical paperwork related to import/export, management of warehouses, or the introduction of new products (custom codes and quantification of taxes). Customer management * The advantages of having a stable production cycle producing batches of large dimensions is that it could facilitate planning of production, warehouses, distribution, and order. Standardization of the process. Another could be cost saving in terms of production process, using economies of scale or the fully disponibilita of products in order to maintain customer loyalty.
On the other hand disadvantages are related to higher stock and warehouse costs (also due to taxes) ….. * The distribution process start from the order of the customer, it could be inserted directly from headquarters (fax-mail) or arrive from the SAP CIS through EDI (electronic data interchange) or via CRM (customer relationship management) through the sales force. The process of distribution end with the shipment that could be shipped from production plants directly to customer or passing through distribution centers.
The process of shipment as already said is outsourced in order to reduce transportation costs, in order to obtain better quality and have on time information on the status of deliveries. Obtaining information in real time about the status of the shipment is fundamental in order to be able to inform the customer in real time and also in order to a better planning of next shipment, warehouses and problem solving (returns, substitutions, delays, urgencies, and so on). * Customer service…… How does the online auction system work? *