SUPPLY CHAIN MANAGEMENT IN COCA COLA INDIA

SUBMITTED BY SANIYA KHATTAR SANYAM PANDEY SHIVANI SHUKLA SIDDHARTH JAIN

What is a supply chain?

Supply chain involves all movement and storage of raw material , work-in-process inventory, and finished goods from point of origin to point of consumption.

The Supply Chain

Suppliers Manufacturers Warehouses & Distribution Centers Customers

Material Costs

Transportation Costs Manufacturing Costs

Transportation Costs
Inventory Costs

Transportation Costs

Supply chain management

Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. It also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.

SCM DECISIONS
STRATEGIC DECISIONS OPERATIONAL DECISIONS

SRATEGIC DECISIONS
These include: Strategic network optimization Strategic partnerships Product life cycle management Information technology chain operations Where-to-make and make-buy decisions. Aligning overall organizational strategy with supply strategy It is for long term and needs resource commitment

OPERATIONAL DECISIONS
These include: Daily production and distribution planning Production scheduling Demand planning and forecasting Sourcing planning Inbound operations Production operations Outbound operations Managing non-moving, short-dated inventory

ABOUT COCA COLA INDIA

SUPPLY CHAIN OF COCA COLA INDIA AND ITS MANAGEMENT

The manufacturing unit of KBPL(Kandhari bevrages pvt. Ltd.), situated at Chandigarh, Solan & Fatehgarh Sahib is largest plant and one of the bottling operations owned by the company. It has a total capacity of 1560 bottles per minute consisting of multiserve, RGB, Mazaa & 2 pet lines.

Explanation of The Manufacturing Process

The manufacturing of the products of Coca-Cola involves the following steps: Water passes through the water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water. In the syrup room, the concentrate is blended with the sugar syrup Once both the water and the final syrup are ready, they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product. On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the bottles once used are disposed. The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET bottles), labeled and cased in order to be sent into the warehouse for distribution.

CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

Manufacturing Plant, Fatehgarh Sahib

Sales and Distribution Operations

Distributors

Outlets

Outlets

BUSINESS PLAN MODEL AT KBL

Coca-Cola India
Manufactures Concentrate, Beverage base and Syrup
Manufactures finished Bottles/Cans/Fountain Syrup

Regional Bottlers COBO/FOBO

Customers

Consumers

DISTRIBUTION NETWORK
KBPL has a wide and well-managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when they need it.

A typical distribution chain at KBPL would be: Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock --- Retail Shelf --- Consumer The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and wellorganized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.

Project R.E.D Right Execution daily

The origination of the project R .E .D (Right execution Daily) is from Atlanta. The key concept or the underlying principal behind R.E.D. is the Perfect Operations Management of Coca Cola Product Display. Agency named A.C. Nielsen was recruited on a nationwide scale to measure the performance of the project on a monthly basis. The agency measures the execution of project RED on various parameters.

Jobs of Operation Managers

Proper display of all the products in visicoolers. Checking display racks Standees Flanges and other relevant material to selected and precategorized outlets For keeping a proper check on the Project RED, a team is appointed to see the Proper functioning of the above Operations

Manual distribution center

MDCs are independently owned, low-cost manual operations created to service emerging urban retail markets where classic distribution models are not effective or efficient.

Common characteristics of MDCs

A central point for warehousing of product, with a manageable coverage area and defined customer base (typically about 150 retail outlets). Distribution of product is mostly manual (e.g. by pushcarts) to keep costs at a minimum. Outlets served are typically low-volume with high service frequency requirements and limited cash flow, requiring fast turnaround of stock.

Advantages of MDC
Facilitates delivery in road-poor settings Allows for small drop sizes at retail outlets Provides improved customer service