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COCA COLA SUPPLY CHAIN MANAGEMENT

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by

Andy Truong

on 11 September 2013

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Transcript of COCA COLA SUPPLY CHAIN MANAGEMENT

COCA COLA SUPPLY CHAIN MANAGEMENT
by Andy Truong, Ali Jaffari, Sang Kyu Chung and Dr. David Hua
Transportation
Operations
Operations management is concerned about Systems and how to make them operate
- Better
- more efficiently
- more effectively
- at a higher level of quality
- at reduced cost
- lower environmental emissions
Operation consists of the jobs or tasks composed of one or more elements or sub tasks, performed typically in one location.
Warehouse Logistics
→ Electric Monorail system, pallet
Racking with over 3000 available pallet locations
→ Pallet flow lanes that are 14 pallets deep, Pallet Live
Storage and an empty pallet handling system
→ total storage capacity of over
36,000 Pallets
→ The facility output capability to process Up to 280,000 cases each day
Inventory Control
and Materials handling
What is inventory Control?
What is operations?

Coca Cola
The Production of Coca Cola company is make-to-Stock:
- High Quantity
- Seasonal forecast
- Mass production
- High Efficiency
- High Effective

Production Strategies and Plan
Strategies :
- Coca Cola Push-based strategy:
- Immediate delivery of off-the-shelf
- Low cost
- Standardized goods


Plan :
-Long-range plans
Coca Cola company plans at macro-level:
- High Capacity
- Broad spread
- Total Production plans

Continuous Process Facilities
Due to production of make-to-stock Coca Cola
Apply continuous process facility layout to:
- High Product Volume
- High Commodity

PRODUCTION PROCESS
1. Inputs
2. Transform
Mixing and Blending the inputs
Washing
Rinsing
Sanitization
Hydro wash 
Filling up
Capping
Labelling and Coding
Quality
Inspection
Coca cola inspects bottles at many points during the process
With refillable bottles
When they are first brought into the plant, they are washed and again after they are filled.
Scanner check
During the process scanner checks the damage of product etc.

Output
Final Product
Packed Coca Cola
Inventory Control is the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply.

At coca cola :
Inventories consist primarily of raw materials and packaging (which includes ingredients and supplies) and finished goods (which include concentrates and syrups in Coca-Cola Company's concentrate operations, and finished beverages in finished product operations). Inventories are valued at the lower of cost or market. Coca-Cola Company determines cost on the basis of the average cost or first-in, first-out methods.
BOTTLING
Everything is robotic; nothing is done by the human hand.
Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world.
What is materials handling?
(raw materials, scrap, semifinished, and finished) to, through, and from productive processes; in warehouses and storage; and in receiving and shipping areas.
The Bottling Process
(materials handling)
200 Countries
400 Shipments
1,000 Deliveries
4,000 Finished Goods
5,000 Ingredients
THE STORY BEHIND COKE
1886
John Pemberton
Jacobs Pharmacy
Frank Robinson
9 glasses of cola a day
back then...
a century later..
produced more than 10bn gallons
from 9 drinks a day to1.7 million servings sold a day
in 2011, coca cola was worth $74 billion
1. Cleaning
2. Bottles are picked up by conveyor belt
3. Outputs into inputs
bags of sugar and caramel coloring
pure water put in bottle by machine then refinded sugar is added to the mix
sugar water ->secret formula
carbon dioxide added to drink to make it fizzy
4. Distributed from bottlers to retailers around the world
independent bottlers produce half of the volume sold
Full transcript