Académique Documents
Professionnel Documents
Culture Documents
Team Members:
AHMAD KHUZAIMI BIN AZIZ 818581
SHARANYA RAMASAMY 822484
SHARMILA DEVI SUBRAMANIAM 822511
SHRI BRINDASHINI THANAPAL 822512
TIROSHA GOVINDASAMY 822513
K.MOGANAMBAL A/P KRISHNAN 822712
Executive Summary
- to discuss on the SCM of the selected company and how does supply chain
has changed the business entity to a larger perspective in the global
expansion.
- We have chosen Coca Cola Company to be discussed and greater views on
the solutions that can be done for this emerging world of Supply Chain
regardless of the boundary, which has been set by the company itself.
- Our studies will be included on the main problems faced by Coca Cola
company in developing and sustaining their Supply Chain Management as
well as giving some opinions on the solutions that can made from time to
time basis.
- It has five elementary studies, which includes the Situational Analysis of Coca
Cola, major issues faced by the company, alternative solutions in helping
them, recommendations on the solution given and how to implement all
this.
- This study can help to understand better in Supply Chain Management and
how does it work for a global company which operates from decades with
plenty improvement and high growth rate
Introduction
Net profit
Customer
(2017): 426
Charter: 94.2%
million (euro)
Details
• Possible issues that may arise are controlling over the partner business
model and ensuring the partner is meeting their demand request.
• The current bottling partner company is over 200 company across the
globe; as it is very hard to micro manage them to meet the demand.
What Coca Cola did, they hold major ownership and acquiring certain
percentage in the bottling company interest and heavily control or
perhaps monitor their performance. They are now moving towards
another approach beginning 2017 and we are agreeable to their
approach.
• The current model, Coca Cola is returning the ownership to the bottling
company and implementing franchising process to their bottling partner.
• These moves ensure the franchise-bottling firm to meet Coca Cola
demand, allowing Coca Cola to utilize their capital (from ownership of
share percentage) to internal operation cost, and make sure Coca Cola
maintain low CAPEX utilization model within their business. They need to
however set a standard where the franchising company need to adhere
and meet the demand required to ensure it does not affect business
efficiency.
Digitalization and investing in IT infrastructure
• Coca Cola is taking digitalization and investing in IT infrastructure process as one of their
main priority move in pushing the company forward. Digitalization has allowed their
customer and employee to experience a different level of efficiency and effectiveness.
• Digital infra allows the company to operate fast, assist them in many things that otherwise
need to be done manually and which the workers now can utilize their time to do more
things. Implementing this strategy is aimed for the company to be closer to their customer,
and exponentially increase the company performance.
• Its allows visibility in product movement, customer now can quickly access to their various
kind of product line up and put order and give Coca Cola mode to give impactful advertising
mode.
• Nevertheless, the possible issues that may arise due to this move would be big expenditure
to be allocated to maintain and to continuously develop the digital platform and software.
• As the IT things is quickly changing, the cost that would be incurred and that may be re-
incurred back is within a short period i.e. time factor or obsolete of IT and technology.
Changing the mind-set of every employee i.e. 62,000, in implementing and operating the
digital/IT things is another challenge. In addition, it would be costly as well as it is a fight
against time to implement it within the company.
• The implementation need to be done fast as to avoid the company from lapse in term of
implementing the system than the rest.
Healthy beverage issue
• Coca cola investing in improving their beverage quality, beverages line-
up, and awareness of their customer towards healthier lifestyle.
• The possible opinion that circling for every consumer especially with
regard to heathy product is whether the product is safe and healthy to
consume.
• Coca cola identifying this issue very well, while many other rivals also
producing same product nature, instead Coca Cola is introducing
healthier product line up for their consumer i.e. coca cola diet, coca
cola zero sugar.
• This set them different from their rival. Some consumer has perception
over ‘not a healthy diet to consume Coca Cola as it has high volume of
sugar’, but the company offered another segment to win this market.
Coca Cola is continuously improving their product quality and quantity,
as well as educate consumer on their brand quality.
• These initiatives are aimed to bring market confidence towards their
product and to continue support their brands.
• A couple of Coca Cola initiative as well may give a different perception
in the eye of the consumer on how Coca Cola really care about the
healthy issue. Initiative like promoting recycling and partnership with
few parties to provide sustainable water perhaps is actually to bring
consumer confidence in Coca Cola aim to deliver best, healthier
product to their customer via their various beverages product in the
market.
Predicting the launch and early stage demand
• In the expansion of technology management, Coca Cola
should use the data analytical information to generate sales
performance in a broader way to take up the demand rate.
Since its operating globally, the data performances should
be accurate to forecast the sales load in the presence of
supply chain network.
• With the sales demand data or forecasted data, Coca cola
can predict their distribution channels and apply operation
and maintenance scheme to keep their inventory in control.
Information Sharing
• Coca Cola could improve the transparency of different level s of their supply chain. The transparency
of the supply chain has been getting more important as internet becomes more accessible.
Consumers want to know more about the process and ingredients of the products as they are
worried for the safety and quality of the product. They are also more concerned on what impact
does the manufacturing of the product do to the environment.