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Copy of Coca Cola - Supply Chain Management

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Jasmine Hudson

on 11 April 2013

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Transcript of Copy of Coca Cola - Supply Chain Management

-Demand forecasting may be used in making pricing decisions, in assessing future capacity requirements, or in making decisions on whether to enter a new market or expand the product market.

- Analyzing the total market demand, which captures the total volume that would be bought by a defined consumer group in a defined geographic area, requires real statistical evidence.

-Statistics Canada is an accurate source of researched data focusing on using geographical areas as well as income and average household consumption of goods and services Forecasting Demand. - In North American where it faces a mature and largely non-expandable total soft drink market, Coca Cola directs most of its marketing energies towards building consumer preferences for Coke, Diet Coke, Sprite and its other products. Customer Service - Coca Cola’s mission is to be the best beverage sales and customer service company worldwide.

- One of the strategic priorities of the company is to grow value of existing brands and expand the product portfolio.

- Coca Cola’s vision also includes being their customers’ most valued supplier, as the strategy priority behind this statement refers to transforming the company’s go-to-market model to improve efficiency and effectiveness.

- Coca Cola believes in delivering executional excellence every day, both internally and externally. Values that Coca Cola also share as a global operating customer service system surround accountability, customer-focused criteria and a team-driven experience which is vital when recruiting top level employees. Inventory Management Integrating a full database system for sales channels, distributors, and retailers.

Utilizing a sales driven-forecast-----incorporated with marketing research and business analysis.

Inventory Turnover formula-----Balancing the inventory level
Inventory Turnover = Cost of Goods Sold/Average Inventory Transportation Establishing bottling plants close to the North America’s major railway transport gateways.

Setting up trucking terminals for providing door-to-door service.

Adopting eco-transport system. Technology: • Packaging in bottles and cans
• Introduction of new machinery
• Investment in real time microbiology analyzer Warehousing: • Provides on-site storage eliminating off site to warehouse cost
• Designed to operate future expansion of the sales on the company
• Linked to 5 bottling plants can receive 200 pallets and despatch 350 pallets every hour
• 68 days inventory on hand and has 5.7927 inventory turns. Inbound Logistics and procurement Present process of purchasing at Coca Cola: Procurement involves buying raw matirials, inputs

Dealing with suppliers, vendors , billing system EBP (Enterprise Buyer Professional) SAP enabled web based platform Automated the indirect procurement process.

Provides direct procurement of indirect goods and management of all facets of the supply chain

Transformed the earlier paper based procurement process online. Overall procurement Process through EBP First -The procurement data is captured in a centralized repository that serves as a reporting source for identifying opportunities and managing risk.

Secondly - Key business processes are implemented, automated and standardized to save time and improve accuracy.

Finally the supplier base are rationalized and simplified to ensure consistent and competitive pricing is obtained. Several initiative are taken to streamline inventory control, storage and material handling The initiatives implemented are optimized such as the location of distribution of facilities to

Minimize shipping times.

material and inventory control systems .

IT systems -

reduce time to send “returns” to suppliers .

warehouse layout and designs to increase efficiency of operations for incoming materials.

These initiatives have dramatically improved Coca Cola’s overall supply chain. Recommendations - Advance the exsisting the SAP - web based software - EBP, by having inhouse R & d team

- More functionalities to be added with proper feedback from suppliers, vendors etc

- Investment on training to be given to suppliers on operating of the software.

- Exploring more business tools to shorten the purchasing process.

- Functionalities within the ERP system to rank suppliers and measure there performance. Tryston Anderson,(Try)
Di Lieu,
Nikhil Bathla (Nick)
Taman Chhabra
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