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HINDUSTAN COCA COLA BEVERAGES PVT.

LTD (HCCBPL)

Study of the Supply Chain


Mentor: Mr. R. Dattir

Rajesh Bagrecha (069) Shubhajit Roy (084) Subhash Wagle (089) Somanath (088)
Flows in Supply Chain

Information

Product
HCCBPL Customer
Funds

- A roadmap for the study of the supply chain


A Framework for
Structuring Drivers
Competitive Strategy

Supply Chain
Strategy
Efficiency Responsiveness
Supply chain structure

Logistical Drivers

Facilities Inventory Transportation

Information Sourcing Pricing

Cross Functional Drivers


Coca-Cola in India

• Coca-Cola returned to India in 1993 after a 16 year


hiatus, giving a new thumbs up to the Indian soft drink
market
• In the same year, the Company took over ownership
of the nation’s top soft-drink brand and bottling
network
• Indian operations comprises 50 bottling operations,
25 owned by the Company, with another 25 being
owned by franchisees. That apart, a network of 21
contract packers manufacture a range of products for
the Company
• HCCBPL commenced marketing operations in the
year 1993 and manufacturing activity in the year
1998
Coca-Cola is...

•The Symbol of Quality


•Customer and Consumer Satisfaction
•Responsible Citizen of the World

 This promise drives their supply chain strategy


 Coca Cola strives to deliver high quality product to the point of demand in 24 hour time span
Challenges:
– Logistics Infrastructure
– Unorganized retail sector
– Coordination with widespread customer base
– Able competitors
Products of HCCBPL
• Thums Up (200 ml/ 300 ml)
• Limca (200 ml/ 300 ml)
• Sprite (200 ml/ 300 ml)
• Fanta (200 ml/ 300 ml)
• Coca Cola (200 ml/ 300 ml)
• Kinley soda (200 ml/ 300 ml)
• Kinley mineral water(500 ml / 1000 ml/ 2000 ml)
High
market
penetration
THE CHAIN OF SUPPLY.. and reach

Mineral Water and soft drink bottles


Customer
Suppliers Plant Depot D-56 Retailer
Primary sales Distributor Secondary sales

Raw Materials
Information Flow
Empty bottles

Suppliers
Distribution zones (districts)
Upstream Supply Chain of HCCBPL
Inventory levels (qty /
RM Items Supplier Supplier Location
days of supply)

Renuka Sugar
Sugar Karnataka 300 tons/1 week
(single source)
Non-alcoholic Coca Cola India
Pune 15 days
beverage base (single source)
Hindustan National Sinner (MH),
Glass bottle 1-1.5 lac pcs
Glass Hyderabad
Manakshaya
Crown Daman 3-7 days
L&T

Crates Nilkamal Daman One time buy

NMT packaging,
Cartons Shivam Cartons, Cam Wada, Pune 2-3 days
Enterprises
MIDC supply
Water Nashik 2 days
(single source)
Internal Chain of supply
Other activities at HCCBPL

 Receipts  Dispatches
 Invoicing  House Keeping
 Weighing  Crate Washing & Management
 Quality Check  Transportation related MIS & coordination
 Picking & Staging for Stores  Tracking of costs of transportation
 Batch Making  Negotiating contracts with transporters
 MIS preparation
Automated Chain of Internal Supply
Downstream Supply Chain
• Inventory
– 62 Distributors are contractually bound to carry minimum 3000 cases in lean
season and 5000 cases in peak season & sell predetermined amount in
specified time; not allowed to carry beyond a pre-determined upper limit

• Transportation cost optimization


– Transportation costs are optimized through proper vehicle selection (HCV 16
tons, HCV 9 tons or LCV 6 tons)
– FTL is achieved by consolidation of supplies with the depot (D-56)
– The same vehicle is used for carrying empty bottles back from distributors

• Distributor selection process


– Distributors are selected through a well defined process by cross-functional
team from Coca Cola, India
Cycle view of HCCBPL Supply Chain
Customer
PULL
PROCESSES Customer Order Cycle

Retailer
PUSH / PULL
Replenishment Cycle
PROCESSES
Distributor
PULL
PROCESSES Manufacturing Cycle

Manufacturer
PULL
Procurement Cycle
PROCESSES
Supplier
Supply Chain Coordination
Demand information and
quantity of empty bottles
Sales
available at distributor
Executive

DAS
Coca-Cola,
India, Pune

Invoice, Physical
products and
dispatch information
Sales details, Distributors
inventory and
demand information
N.B: “Best Before Dates” to be given due priority
Forecasting Model
Pyramid forecasting – Done at Corporate office, Pune

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Flow of funds in the chain
 Distributors make advance payments for supply of beverages by
EFT/Cheque in favor of Coca Cola India, Pune

 Retailers buy on credit from distributors and pay in predetermined


time intervals

 HCCBPL pays its suppliers in 20-25 days which is the lead time for
payment processing from Coca Cola India, Pune
Efficient Cash
Flow
Management
Managing seasonal demand
• Seasonal pattern of demand considered during
forecasting
• Workforce added just before peak months
• Transport arrangements planned as per forecast
• Fully machinery utilization in peak months

Peak Capacity Normal capacity UOM


 
4000 cases / shift 2800 cases / shift Case (24 bottles)
CSD Beverages
Case (15 bottles)
Packaged water 3300 cases /shift 2500 cases / shift
Supply Chain metrics for HCCBPL

• KPI – Service Index – target 100 % order fill rate within 24 hours
– Challenges:
• Transport shortages
• Manpower shortages
• Finished goods shortages

• Maintain transportation cost within pre-determined levels (changes based


on fuel prices, toll taxes considered)
Supply Chain Macro processes
SRM ISCM CRM

• Source • Strategic Planning • Market


• Negotiate • Demand planning • Price
• Buy • Supply Planning • Sell
• Design Collaboration • Fulfillment • Order management
• Supply Collaboration

Not under control of HCCBPL

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