- Was the Chocolate factory a contest, a supply chain, marketing or a combined effort?
By: Asad Raza
Wondering if you heard of this somewhere? Yes, it refers to the blockbuster movie Charlie and the Chocolate Factory. The discourse is intended not to undermine the importance of either of the two fields of business, rather it aims at bringing forward arguments in favor of the relative importance of both the areas with regard to a fictional case in order for the reader to map and develop an understanding of the vitality of both departments to the success of a business.
The news of an upcoming event spreads like fire across the jungle downtown, with promotional campaigns full blazing over different mediums including television campaigns, retailers willing to sell Willy Wonka’s chocolate bar by the millions with only a few having the golden ticket passes sealed in the packaging. Till here, it’s done and dusted that it were the marketers who have been quite successful in creating the necessary hype for attracting waves of customers.
Not only is a functioning supply chain vital for the harmony of all departments of a firm, but also to deliver value to the main stakeholder that is, the customer, in the same way that a healthy plant becomes part of a balanced diet
However, could this campaign have grabbed the same attention had the chocolate bars not reached on time at the registered retailers and had a handful of golden tickets not been calculatedly placed by the order entry and management department in the stocks provided to each retailer? That’s where the supply chain comes into play. A marketer may make tall claims, but those would remain only claims until backed by the evidence (timely delivery of the product) which is ensured by the transportation head of a supply chain.
Similarly, moving on in the movie it is depicted that children from the elite as well as a child as poor as Charlie have the ability to buy the chocolate bars, betting on their luck that they might just become the owners of one of the prized tickets. This goes to show that Willy Wonka and his hypothetical team of marketers deserve all applause for positioning the chocolate bar as a commodity for all classes, in other words, for selecting the right target market. But again had the chocolate not been manufactured using good quality plus cost effective methods, it would not be affordable by an unfortunate child nor preferred by a pampered elite-class child. So the sourcing of good quality raw materials at the least cost resulted in a reasonable price of the product.
Once the ticket-possessing children and their guardians enter the factory, at each stage of the competition Willy Wonka acts as a brand ambassador, raising awareness about the quality of the chocolate offerings all around. But it would at the same time be an injustice to ignore the role the Oompa Loompas, or the inventory managers, were playing to maintain the harmony of the processes and taking corrective measures in case of any mishap, which again is a part of Supply Chain Management. Also, an interesting point to note here would be that the Oompa Loompas were actually acquaintances of Willy Wonka with whom he partnered later on, and set an example of a trust-based supplier partnership, based on their value-enhancing performance.
So be it Marketing or Supply Chain behind the success of the contest, one thing is common, seeing it from both angles; that is, to make the end user satisfied is the ultimate objective of both departments which is not possible to achieve without being a passionate marketer or a supply chain expert.
Is Supply Chain a photosynthetic process? Though it the supply chain and photosynthesis belong to different disciplines, it is no exaggeration to say that the supply chain is like photosynthesis, which plays an anchoring role in a plant’s existence.
The dictionary is very candid in describing the ability of an organism or plant to convert light energy into chemical energy acting as fuel for its activities, and naming it “Photosynthesis”. Have you ever observed that a typical supply chain from sourcing of materials up till the delivery of the final product similarly involves conversion of energy and acts as a fuel for the end user?
A plant sources sunlight, oxygen and water as inputs to process to produce outputs. Simple as it seems, a supply chain, right from the procurement up to the transportation of the goods and services, follows a similar pattern. The minute difference comes in the process. Where a plant is self-sufficient and may procure sunlight, water and oxygen for free, a supply chain has to purchase the raw materials from different vendors. However, modern day farming techniques are also employing other sources for light and water, apart from rain and sunlight, such as in the case of greenhouse farming, or even of hydroponics.
A major difference in the two processes is that a plant converts the light energy into chemical energy by itself. However a supply chain is not accountable for converting raw materials into a finished or semi-finished product, rather it provides the raw materials to other departments which further refine them into semi-finished or finished good to be inventoried and then distributed to the assigned destinations.
Photosynthesis is also a means to an end and not the end, in that it results in further activities like producing chlorophyll that is food for the soul of the plant. Supply chain is also the foundation on which the marketing, sales, and ultimately all activities creating satisfied customers, rest upon.
That’s why not only is a functioning supply chain vital for the harmony of all departments of a firm, but also to deliver value to the main stakeholder that is, the customer, in the same way that a healthy plant becomes part of a balanced diet.