Question

what are some of the best supply chain practices for a beverage manufacturer?

Answer 1

SUPPLY CHAIN MANAGEMENT

Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

  

components of SCM

1. Planning
2. Sourcing
3. Making
4. Delivering
5. Returning
6. Enabling

Supply chain of Coca cola

• Coca cola supply chain divided as parts for good supply chain ;all parts want to be good
• Coca cola company gets in formations from this information they will decide the manufacturing quantity
• For a better supply chain information follow and material follow want to be very efficient and affective  
• According to the information follow and orders they make plans about manufacturing.
• They keep stock in warehouses for the demand and orders then company will distribute the stock for customers

Vision

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Values

Coca-Cola values serve as a compass for our actions and describe how we behave in the world.

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well.

Focus on the Market

• Focus on needs of our consumers, customers and franchise partners
• Get out into the market and listen, observe and learn
• Process a world view
• Focus on execution in the marketplace every day
• Be insatiably curious

Inventory control by coca cola

• The Economic Order Quantity (EOQ) Model
• FIFO

Transport in coca cola

• Use highways to transport product across the land
• Use international airports to transport goods to other countries in the world
• Use deep water ports to ship cargo to other countries in the world

Importance Of Supply Chain Drivers To Coca-Cola Company

Information

• Information is nothing but the customer needs and wants.
• Coca-Cola need fast and accurate flow of information through their supply chain to be competitive in the beverage industry.
• In the Coca-Cola Company, information builds the connection between various stages in SC and allows coordination between stages
• The company use SAP ERP web base software to get real time information from the field.
• They requires information to plan their production, marketing campaign, demand forecasting ,inventory level and optimizing transportation etc.
• Information is the key to successful supply-chain management because no product flows until information flows

mportance of facility

• To void the unnecessary wastage
• To make resources work together
• To maximize value and minimize costs
• To maximize productivity
• To navigates the requirements and mitigates the risk.

Facility in coca cola

• Locations
• Bottling plants are spread world wild
• Warehouses are located in every countries
• Modern technology
• High-tech machinery
• greener bottles (2009)
• Social Networking( facebook , twitter)
• Freestyle Dispensers (allows you to create your own beverage by choosing from over 100 drinks )  
• Online Advertising • Recycling( bottles )
• Is made from responsibly-sourced materials
• Is designed to be effective and safe throughout its life cycle
• Meets market criteria for performance and cost • meets consumer choice and expectations
• Is recovered efficiently after use wherever possible

Sourcing

• Coca-Cola Company manufactures and sells concentrates, beverage bases and syrups to bottling operations(outsourced) and also do the marketing initiatives.
• Their bottling partners manufacture, package, merchandise and distribute the final branded beverages to their customers and vending partners, who then sell their products to consumers.
• Coca-Cola company have more than 250 bottling partners worldwide.
• Considerable amount of Coca-Cola’s supply chain is handled by the out sourced parties.
• Therefore sourcing is very important driver of Coca- Cola’s supply chain

Pricing

• Soft drink industries become more and more competitive since new productions come out from world leading companies such as Coca-Cola, PepsiCo, Dr Pepper Snapple, Nestle, Suntory.
• Price is a key factor that determines market share of Coca-Cola in the industry Inventory CostResponsive ness Inventory Cost Responsive ness
• Thus there is a trade off between price and responsiveness.
• Then Coca-Cola needs to pay more attention toward this trade off to be in game

Strategies Coca-Cola used to manage its supply chain drivers

• Focus on aggressive marketing
• Operating through push strategy- customer order anticipation
• Use A-B-C classification for inventory handling
• SAP enable web base platform

How to improve supply chain drivers

1) Establishing supply chain guiding principles

• Focus on metrics needing no manual intervention
• Focus on metrics to drive profit consistency and metric consistency across the supply chain
• Focus on industry standards that are not Coke specific
• Develop a robust system for reporting hierarchies that change when business changes

2) Installing a three-phase approach

• Proof of concept-Primarily to validate functionality, scalability and flexibility
• Foundation phase-Create a robust foundation for metrics and reporting, a measurement that’s easy to implement out of the box.
• Exploitation phase-Identify long-term metrics and improve them on an ongoing basis 3) Support continuous improvement with an end-to-end view of performance and root- cause analysis

4) Align supply chain strategies with corporate objectives

5) Analyze information to meet customer needs