Coca-Cola Amatil - Supply Chain Principle - Case Study Example

Supply chain principle: Research Report; A case study of Coca-Cola Amatil Table of Contents Supply chain principle: Research Report; A case study of Coca-Cola Amatil 1 Table of Contents 2 Executive summary 4 Introduction 4 Company’s Overview 4 Vision 4 Mission 5 Values 5 Supply Chain Management Elements 5 Sourcing and purchasing processes/activities 5 Manufacturing processes/activities 6 Ingredient Delivery 6 Washing and Rinsing: 6 Mixing and Blending: 6 Coding: 6 Filling: 7 Labeling: 7 Inspection: 7 Packaging: 7 Warehousing and Delivery: 7 Distribution processes/activities 8 Retailing processes/activities 8 SWOT Analysis 8 Strength 8 Weakness 9 Opportunity 10 Threat 10 Improvement & Recommendation 11 The company’s approach 14 Integrated Quality Management 14 Managing Product & Ingredient Safety in the company Supply Chain 16 Ingredient Safety 17 Discussion and Conclusion 17 Lesson leant from supply chain for coca cola Amatil 19 Bibliography 21 Executive summary The generic supply chain graphic of the coca cola Amatil is similar to any other industry with manufacturing plant, supply, retailers and end clients who play a relevant role. The research examines the coca cola Amatil customized and somehow intricate supply chain structure. As a result of wide nature of the company’s operations and its many production lines, the research will limit t the scope of the project towards the very significant brand produced by coca Amatil which is the coca cola. The company’s supply chain is categorized into many diverse levels. The report chiefly focus on the downstream activities of the product that comprise of associations with diverse bottlers, supply and channels to reach many customers across Australia. Introduction The coca cola Amatil is chosen for research since it is the leading supply chain system in Australia. The company is a beverage retailer, manufacture and the promoter of non alcoholic beverages with more than 500 brands. The company is famously known for its flagship product coca cola. Company’s Overview Coca-Cola Amatil (CCA) is the leading bottlers of non alcoholic ready to drink product in Australia. The company’s diversified portfolio includes the carbonated soft drinks, spring after, energy drinks, fruits juice and many money beverages. The company is listed in Australian Security exchange, nevertheless, the coca cola company has 29% stake in coca cola Amatil. Vision To be the leading working environment To make difference by supporting the sustainable community Bing very efficient and fast moving company Mission To refresh the globe and motivate moment pleasure and hopefulness To develop values and make a difference Values Being already with bravery of shaping the better future Collaborating by leveraging the collective genius Being real in terms of integrity Dedicated in what they do Being divisive and inclusive as the company’s brands Supply Chain Management Elements Sourcing and purchasing processes/activities The raw material used in manufacturing the coca cola products comprise of apple, pineapple juice and other fruits juice concentrates. The raw material as well is inclusive of packaging material. The company buys syrups and concentrate from TCCC and other licensed manufactures. Furthermore, the company buys sweeteners, minerals water and carbon dioxide and other packaging materials. The beverage contract with TCCC provides that the permitted containers, closures, cartons and other packaging materials for the product of TCCC should be bought from manufactures permitted by TCCC (Benton, 2013). Manufacturing processes/activities Coca cola Amatil used many technologies in its production facilities to ensure smooth operations and the manufacture starts with unloading the empty bottlers from trucks with the user of conveyor and others being moved to the depalletizer. Ingredient Delivery The concentrates are shipped from special coca cola manufacturing plant in heavy duty tract. The liquid sweeteners are shipped in special tankers. All the ingredient and food products are warehoused in a clean area and items that require refrigeration’s are kept in a temperature managed area. The bottles and cans that will be filled with coca cola are manufactured elsewhere and shipped to coca cola Amatil manufacturing plant wrap and sip for safety. Labeling. Caron. Cap, carbon dioxide employed to carbonate soft drinks as well as other supplies are produced for coca cola Amatil by other companies. When provided to the company, it is subject to inspection to ensure that every ingredient and material adhere to the high coca cola standards (Chapman, 2016). Washing and Rinsing: Once the ingredient is shipped to the company, they are washed and cleaned Mixing and Blending: Coca cola Amatil concentrate is keenly mixed with sweeteners and other ingredients in big stainless steel mixing plant. Coding: The can are part of the enclosed, managed environment that ensures that they are clean and support the quality in the filling processes. The can travels very fast in the printer which applies the production code for every can. Afterwards, they are robotically turned upside down and rinsed with filtered water prior to the filler. Filling: I the last phase of the manufacturing process, they are re-inverted and filled and the lid is applied at a speed of 1300 on average per minute. The filler is where the syrups from the mixing pant are pooled with clean water from the filtration plant. The liquid is afterwards carbonated TO make the soft drinks with unique sparkle. Labeling: All coca cola cans are printed with a freshness date that is the code that guarantees the drink’s freshness. A last quality check guarantee that the package is correctly filled sealed and labeled well. Inspection: The quality control examinations undertaken by well trained expert are vital part of the manufacturing process for every batch and are distinctive of the focus to detail that s deem appropriate where the likely quality standard is to be upheld (Camerinelli, 2012). Packaging: As the product get out of the manufacturing plant, they are mixed into many diverse packages Warehousing and Delivery: The completed package are piled on delivery pallet and taken to temporary waiting bay pr to a main store waiting shipment to various locations. The store is not fixed because freshness is a significant part of the supplying the ideal likely product to the consumer of the company’s product. Some of the product is transported very fast; nevertheless, they are loaded into coca cola Amatil trucks for supply to the customers across Australia (Cox, 2005). Distribution processes/activities Coca cola employed diverse supply strategies to bring its product the market depending on the product traits, local trade practice and the customer requirement. It delivers easily broken and unpreserved product which is less susceptible to impulse buying. From its manufacturing plant and stores to customers stores as well as retail stores coca cola Amatil employed the third party foodservice e as well as vendors supply to distribute its product to retail outlets across Australia. Retailing processes/activities Coca cola Amatil as made its supply chain improved by creating a collaborative associate with its retailers. The company approached its retailers Analysis of Supply Chain Management SWOT Analysis Strength Implausible marketing strategies Coca cola Amatil normally tries to win people unlike Pepsi Company that constantly changes and target young people. Coca cola target people of every age. The target is as well executed by famous people. Customer trustworthiness With presence of strong product, it is normal for coca cola to have customer loyalty. The product is cited above such as the coca cola and fanta with huge fan who love the product. Due to good taste of the coca cola, presence of substitute turns to be hard for the customer (Eyob, 2012). Distribution network The company has the biggest supply network due to the demand in the market for the company’s product. On the contrary, as a result of triumphant supply network, the company has been in a position to command the superior market dominance (Flynn, 2014). Weakness Water management Coca cola Amatil is experiencing the condemnation as a result of poor water control. Many groups have raised legal proceeding against the company due to their wide usage of water given that water is limited. Also, people put blames to coca cola Amatil for combining the pesticide in the water to clear impurity hence the water control requires to be improved for the coca cola Amatil. Rivalry with Pepsi Pepsi depict a serious threat to coca cola Amatil since company might have been the price leader in the market had it not been for Pepsi. The competition in the tow branding is huge and it will not stop anytime soon Low Product Diversification While Pepsi is having diversified portfolio into snacks, coca cola Amatil is not having diversified product in this segments. The division is ideal income driver for Pepsi. Opportunity Improving the Supply chain The supply chain for coca cola Amatil might be the key expense sink hole with the cost of transporting the good being high. The company's entire business is on the basis of transport and supply. There is likelihood that enhancement in supply chain will lead to increased income due to effective supply chain process that is less costly. The company must ensure that strict survey on the supply chain as well as ensure that it improves in the cost reduction within the supply chain process (Flynn, 2014). Promoting the least selling products In the product portfolio for coca cola Amatil, there are many products that haven’t been accepted in the market very well. The company must focus on the marketing of this product thoroughly. It is comprehended that the coco cola Amatil has incurred a lot of cost in launching the products hence the promotion and growth in sales will lead to improved income to the company. Threat Sourcing of Raw material Water is the bugged threat to coca cola Amatil. The weakness of the company as the alleged use of pesticide or wide sues of water. Nevertheless, the threat is that scarcity of water is growing. With the change in climate and many regions within Australia experiencing the water scarcity, there will be a rise in allegation on high eater consumption by beverage companies with coca Amatil Bering the main consumer of whether in Australia. Where there is water rationing, coca cola Amatil will experience a major breakdown in their income and ability to supply. This might affect it competitor Pepsi also (Handfield, 2006). Indirect challenger Coffee restaurant such as the starbucks and Costa coffee are the growing competitors for coca cola Amatil. These restaurants provide healthy competition to the company’s carbonated drinks. They my not a big threat to the existence of the company in the beverage company but they give a knock to the beverage market. Also, health drinks such as Tropicana and energy drinks such as red bull are having a market share in the beverage market indirectly which depict a threat to the growth in the company income. Improvement & Recommendation The concept of value addition is Important in ensuring the success of the coco coca Amatil since it aids in growing the value of the product and minimizing the waste in the company’s supply chain. We use the SWOT analysis in devise the best alternative for the company’s improvement in supply chain management. Strength Coca cola Amatil is having many values as per the factors that depict an impact on the supply chain for the company. These factors are the customer’s requirements since; the need for customers is the main factor that depicts an effect on the supply chain processes for the company. At times, company has developed the need for their product as well as someone there is just in need of the product in the market.The main notion of this term to how make the supply chain that is efficient and the one that would lead to improved profitability for the company, and one can make their supply chain process a more dependable by ensuring that there is strong association with the suppliers or with the use of technology. As a result, there is value addition to the supply chain processes and the change into the value chain. A product or service might just be valued when it meets the need and expectation of the clients (Handfield, 2006). Coca cola Amatil is therefore having a great value provision in its operations and thus the company must ensure that it appraised the requirement and anticipation of the customers and tailor its product as per the needs. Weakness The objective of the company to ensure that it capitalize on the profits and minimize the waste whilst fulfilling the requirements of the client., it is significant to minimize the waste and to have an efficient supply chain system in order to ensure that the product reach customer on time and also the company enjoys the improved profits. As per the factors explained above, the supply chain layout that would be recommend for coca cola Amatil is that the company initially identify the requirement as well as the taste for their clients which is it get there refreshes immediately with the tasty drinking that they might prefer each time. Subsequent to identification of the needs they are required choose for the dependable suppliers in order to ensure that they might get supply on time for the product at cheap rates. As if the expense of manufacturing is superior then there is no point of selling the product. Since, the clients will it buy the product at high prices. Since it is comprehended that the logistic expense is important supply chain cost drivers, the coca cola Amatil must ensure that it sues the economical packaging transport measures in to minimize the expense of logistic and transport as well as the cost of packaging. Normally, the company must make use of push supply chain plan because have created the taste for the clients and they just need to forecast as well as the supply of the price in the market by controlling the transportation and the logistic expense (Wilson, 2012). Opportunities There has been a growth in the food and beverage industry that led to the growth in the price of the main ingredient in food and beverages market. This depict an effect on the strategy association, cost reduction prices, the supply chain mergers and many other operations factors. In this regards, it lead to cost reduction and restructuring as well as other firms turn to cheap ingredients. Coca cola Amatil being the Australia leading food and Beverage Company, the company exerted more pressures in ensuring that the price is kept low by upholding their brands image and the similar taste for the customers (Eyob, 2012). The coca cola Amatil must compete effectively in the market and to develop a demand for the company product, there is need to creates strategy to set up the vending tools for the coke product after every 600 meters since, this will make customers to create a taste of the product rather than must going to some other product such Pepsi. This sort of strategy aids the company to make the need for the market that has positive effect in the supply chain process fir the coca cola Amatil. The taste for customers is another factor that the need to be taken into consideration in ensuring the supply chain for coca Amatil is effective. Because the company has many different products in the market, it provides the customer with an opportunity of going for their product as per the taste and preference (Jakki J. Mohr, 2009). As the food and beverage industries things go with the predictions, by looking at the taste of the customers, they control their supply chin process, dependability is the very significant factor that depict an effect in the supply chain. The contractor and the supplier have to be dependable on each other. It works on the hypothesis that the supper depict sufficient raw materials to comply with the requirements of the contract on the specified dates while the contractor depict an efficient working plan in order to make use of the resources in an efficient manner devoid of resulting in the leave for big amounts of the resource on the site. Threat The quality and safety of the entire system wide operations must be managed and evaluated against similar standards. The quality control program will ensure that there is an identification and control of risk and drive the enhancement. There is need for strong examination as well as evaluation of the quality attributed of the company’s beverages in the company modern lab in every stages of manufacturing process. This is due diligence that need to be undertaken constantly. The company needs to steadily reexamine the importance of the requirement and standards as well as constantly work to enhance them across the 14company’s supply chain. The company’s approach To attain the steady safety and quality standard, coca cola Amatil need to ensure strong governance practices and existence of complied compliance with relevant polices and standard. The company needs to ensure that it is updated with the regulation, Industry best practice as well as the market place trending and situations. The company just as well engages with the standard in setting the industry organizations. The company’s strict manufacturing and supply policy, requirement and specification need to be controlled through the company’s integrated quality controlled programs. Integrated Quality Management The current integrated quality management system must be improved in order to ensure that the company system addresses the changing business situations whilst providing support the company’s strategic expansion plans by creation of the integrated quality management program. This is because; the programs will hold the company’s system broad operations to similar standards for the manufacturing and supply of the company’s product. The system will therefore lead to improved standards in terms of product safety and quality, occupational safety As well as healthy and ecological standard across the company’s system by delineating the apparent requirement for the policy, specification a well as program that provide manual form the company’s operations (Benton, 2013). With support from leadership throughout the company system, the improved quality integrated system will incorporate the business as well as the quality aims and align them with the steady metric to control the performance, integrates the hazard assessment as we;; as critical control points into the company’s system and control the risk in the company, bottling operations as well as across the supply chain. The improved integrated quality management system will define problem-solving approach as well as tools for driving steady quality with enhancement. To ensure that the company keep up with the current standards, industry best practices, the company need to steadily reexamine the importance of its equipment and guidelines not merely in the manufacturing plant but through the all supply chain process. The company must improve its requirements guarantee that the integrated quality standard is personified in the very current tight manufacturing procedures (Eyob, 2012). To determine a governance procedure, every business with the coco cola Amatil system implements, records as well as upheld the safety and quality system as per the integrated quality management system. Adherence with the controlled system wide is important to ensure support of the integrity of the company’s product Managing Product & Ingredient Safety in the company Supply Chain The company must drive efficient product safety and quality adherence through unannounced examinations of the manufacturing plant in Australia. The examination aids in ensuring that the manufacturing plant across the company’s system is audit ready and updated as well as is operating as per the integrated quality management system standards. The company must appreciate that quality risks is not same and thus it must appraise the risk to centre on the company’s system assets in which they might develop the most effect (Flynn, 2014). The company’s supplier management program must be designed to recognize as well as evaluate the lily supplier risk. It provides safety and records that the suppliers are in capacity of steadily provision the company’s plant with ingredients as well as poackiagng material that is in compliance with the company’s strong requirement. The main focuses areas of the program must to be guarantee the corrective actions that must be taken on time. This will hence reduce or get rid of risk that might lead to issues with the constant supply. The coca cola Amatil programs must therefore be conclusive of the needs of yearly risk appraisal of every supply point as well as the time to time appraisal of the supplier performance and facilities on risk levels. The company needs to ensure that its supplies attain the certification under the recognized worldwide food safety initiatives standards. Through suppler development and capacity creations plans like the GFSI worldwide marketing plans, the company will constantly strengthen the quality as well as food safety assurance procedure of the company’s supply basis. Making sure that the safety and quality if the company’s product must be the core of its business as well as directly connected to the triumphant of the coca cola Amatil Company. The company’s worldwide product quality index rating must be more than 94 whilst the company worried packaging quality index must remain steady at 92 rating (Ayers, 2003). Ingredient Safety IN making sure that the safety and quality of the company’s product is established by the company, there is need for ensuring hat the every ingredient used is keenly examined for their safety and quality as well as it must be supplied by dependable, trustworthy suppliers. The company must abide to law on health, safety as well as product labeling in the countries that it supplies the product starting from Australia. Each ingredient used in every product must adhere to these standards. The company must be dedicated to provision of transparent nutrition information concerning the product to its customers in order to ensure that they can make beverage options that fits their living style (Eyob, 2012). Discussion and Conclusion From this report, it can be concluded that the key constituent of the supply, chain for coca cola Amatil is explained in detailed and it is stated that the company is a worldwide brand in the food and beverage market across Australia. It is evident that there are many transformations in the supply chain processes for coca cola Amatil. As the business operations of the company is entirely depending on the need for the product in the market as well as to comply with the demand, the company need to ensure that have an efficient supply chain system. To have an efficiently supply chain system the company need to ensure that to look into many value addition concept in order that make the plant comply with the growing demand for the product in the market. Because the company is performing well, they still need to ensure that it is updated with the change in technology and business situation as well as select their suppliers who might supply material on time based pon some specific quantity and quality on the provide locality (Camerinelli, 2012). It is very significant for the company to comprehend the procedure of the procurement to choose a dependable supplier. They furthermore need to identify the many risk entailed in the procumbent processes of supply chain in order to minimize them and earn more income (Flynn, 2014). Lastly, the company just ensure that they corporate social responsibility to undertake and the nature they that they should take care of and make the plan to get rid of waste of water. Green matters are an important role in the growth of Coca Amatil. The company need to publish the water steward replenish report which point out that the water is an important part of the globe since, 2/3 of the population across the word lives in waters. Since the price of water is growing as well as it is significant constituent of the supply chain for coca cola Amatil. The four main best practice that the company need to take into consideration to control the water risk lie the start at home, preserve the water, water, Human resource recommend the valve aerators to ensure that insight on preserving water, also, comprehending the risk since high risk for a company such as the coca cola Amatil, even at times they have experienced the water shortages or issues with water management.. to minimize the risk , the company donates their water risk geospatial information supply matters to the worldwide resource institution’s channel record which will enable numerous corporations and investors to create the water risk mapping with very comprehensive and resolutions (Eyob, 2012). The operation risk is another main threat that may affect the supply chain for coca cola Amatil since, the company has a big operations as well as with the latest technology but nothing is correct in this real life and machines are subject to breakdowns at anytime, because the company has taken many prentice steps but still there are some risk associated with the failure or breakdowns of the machine or change in technology with speed time might depict an effect on the supply chain management for coca cola Amatil. The demand risk is unpredicted and it’s very high. It is completely depended on the possibility of the clients. Where the customer’s likes the product, then the demand will go high and makes more profits and vide versa. in this regards, this is biggest risk unlike other risk experienced by coca cola Amatil since the key function of the company is to ensure that the number of clients is maintained and ensure that the customers grows in number each year. As a result, the company must ensure that the speed of the demand to enjoy the increased profits. There is economic risk that might depict an effect on the supply chain of coca cola Amatil since, any sort of economic change, labor cost, exchange rates, the effect of inflation or the change in customer policy might depict an impact on the supply chain process for coca cola Amatil. To overcome this threat, the company just takes the correct measures as well as the general risk controlling strategies (Jakki J. Mohr, 2009). Lesson leant from supply chain for coca cola Amatil My conclusion is that the supply chain management is important part of the operations for coca cola Amatil. With regards to the use of the supply chain strategy, a company might choose a good and dependable supplier and manage the risk associated with the supply chain management since. Coco cola Amatil need to ensure that it care of environment matters. In order for the coca Amatil to compete in the market, that must ensure that a normal check on their supply chain management and ensure that it improves the process with the change in technology and business situation across the globe. To capture a competitive advantage, the coca cola Amatil must ensure that innovation is on a top niche in order to explore new products and diversifying other food and beverage market to minimize the risk as a result of fierce competition and the change in business situation in Australia and across the globe. Conclusion and Recommendation In conclusion, this report introduces the H& M supply chain in Australia by highlighting the key elements in the supply chain from design to retailers. The key findings are found after using SWOT method are: H&M strengths in its sustainable supply chain management and strategic supplier partnership; however the quality control process is their weakness part. Moreover, the company would have more chances for further developments if H&M has improved its reverse logistics and lead time reduction. The product complexity issue and muti-channel revolution are main threats to the company. Four recommendations to H&M are given by using GAP analysis on weakness, opportunities and threats. Firstly, by implementing comprehensive quality checking procedure and trained quality checking team, the company can solve the quality control problem. Secondly, by managing the product complexity at the plan and design stage, the company can solve the product complexity issue. Thirdly, H&M can invest more on technology and infrastructure to improve the reverse logistics. Fourthly, by using airfreight and near shore sourcing strategy to reduce the lead time and increase the supply chain competitiveness. Bibliography Ayers, J. (2003) Supply Chain Project Management: A Structured Collaborative. Benton, W. 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