SUPPLY CHAIN MANAGEMENT IN

COCA COLA INDIA

SUBMITTED BY

SANIYA KHATTARSANYAM PANDEYSHIVANI SHUKLA SIDDHARTH JAIN

JAI CHARORIA

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

• Transportation• Costs • Transportation

• Costs• Inventory Costs• Manufacturing 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 DECISIONSOPERATIONAL DECISIONS

SRATEGIC DECISIONS

These include:Strategic network optimizationStrategic partnerships Product life cycle management Information technology chain operationsWhere-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 planningProduction schedulingDemand planning and forecastingSourcing planning Inbound operationsProduction operationsOutbound operationsManaging 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.

MANUFACTURING PROCESS

Explanation of The Manufacturing ProcessThe 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 KBLCoca-Cola India

Regional BottlersCOBO/FOBO

Customers

Manufactures Concentrate,

Beverage base and Syrup

Manufactures finished Bottles/Cans/Fountain

Syrup

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 well-organized 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 pre-

categorized 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 MDC’s

• 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