superior and inter-related structures between SC management

 superior and inter-related structures between SC management

Introductio

Firms are facing decline in demand for their goods and the uncertain world supply, which uncovers supply chain constraints. The success of an organization depends on the management capabilities to blend the firm’s complex business matrix. Large corporations like Coca-Cola depend on the world market for supplies. Competitive advantage of Supply Chain is dictated by many variables such as networks and environment. The development of SCs has led firms to find superior and inter-related structures between SC management.

A warehouse Management System is a software application that aids in checking and managing warehouse functions. This system helps in stock receiving, picking and shipping orders, and informs on when restock will take place. Overall objective of this system is to make warehouse management paperless. Companies that use this system are likely to have zero errors, and they fulfill their orders promptly. This essay will highlight procedures in a flow chart of Coca- Cola. The goal of this study is to outline how critical an effective Warehouse Management System works in large corporations and consequently analyze the strengths, weaknesses, bottle-necks and sectors that need improvement.

Background

Coca-Cola is a multimillion American company based in Atlanta Georgia, and was founded in 1892. The firm produces syrup which is sold to bottlers who hold territories globally. The original owner was John Stith Pemberton and later sold to Asa Griggs Chandler who name it. This is a company with a rich history that include major acquisitions.

Brief Explanation

Every business, in the model supply chain, raw materials and finished goods are moved to warehouses and later on to consumers. The diagram above shows Coca-Cola’s process right from acquiring the raw materials to the time the final product is consumed. The process begins with acquiring the materials from suppliers and ends with consumption. This chart does not only focus on warehousing and distribution but on all the logistics that Coca-Cola undertakes to provide quality products.

Critical Discussion

A flow illustration helps in envisioning and enlarging an action into single steps, which offer a chance to survey strengths, weaknesses and bottlenecks that enable the processes go as planned.

Accurate information is generally available to all parties and this synchronization assists all players to make their plans. For example Coca-Cola is able to stock its syrup or produce more as the demand from their strategic partners increases. Information is shared through an automated process, and the information stored there is correct

Each player of the Coca-Cola supply chain attains cost-benefits. Coca-Cola Company only makes its products necessary to meet demand, which permits them to steer clear of unnecessary manufacturing and allocate resources where necessary. Moreover, wholesalers control their storage facilities, work force and transport systems. Retailers control stock since they receive what they deserve.

Another benefit is that there is shared risks. Each time a business trusts another business the more risky it becomes. Thus, every party involved looks out for the interests of their partners because if one fails, all will fail. In turn the consumer benefits from high-end goods.

Furthermore, when Coca-Cola produces high quality products, and delivers to wholesalers on time and consequently to the final end-user, revenues are high and consistent. The stability of the business partnership is gained and it means maximum profitability of the venture.

When a company deals with many wholesalers and retailers, there is a form of stability and predictability in the market. This is possible because a lot of planning is done by each party, and accurate budgets are easily formulated. It is also made viable by the signing of contractual agreements between these partners, which give the terms and pricing.

A company like Coca-Cola has over the years proven its dependability, and buyers on the other hand have become loyal. When customers are constantly and consistently supplied with goods they tend to stick to that company. Buyers rely on the quality of the product or service and value. When a company is dependable, customer loyalty is their stronghold.

Supply Chain Management helps a company to identify problem areas which drive the firm’s profitability down. Supply Chains eliminate blame games among the various departments for failure, for example, the production department might be prompt in manufacturing the goods while dispatch department is slow, which means goods do not get to consumers on time.

In the chart flow diagram, a number of weaknesses can be identified. Firstly, Supply Chain is a complicated process because it involves many departments. Workers are known to resist new things at work places and this supply process may not be received fully. In return the running of a company is derailed.

Being a complicated process Coca-Cola’s Supply Chain requires new employees or train existing workers. It involves a lot of money, which is an expensive affair. Therefore, small companies do not have the capacity to host a Supply Chain Management System because expenses surpass income.

Volatility and complexity do not only generate trouble at a particular point in the supply process. The effects are felt throughout the entire process. If Coke managers do not deal with these problems urgently delays and back-logs are eminent.

Political climate and additional tariffs bring about extension of customs processing duration at the port. Also with increased out-sourcing of products, ports across the globe are congested with ships and trucks that wait for days before been cleared. This delays often lead to increased costs such as storage fees.

The pressure that comes with long over-haul truck jobs is driving many potential drivers from this profession. With lack of people willing to work for these companies delay in raw material or finished goods transportation is rife, which in turn means goods may spoil leading to huge losses.

Today, consumers are well informed and they demand quality products that are easily available in the market. The chart flow does not specify the amount of time it will take for Coca-Cola’s product to reach the end-user. It means the company is offering high quality products at a slower speed.

Furthermore, if Coca-Cola’s in the chart diagram does not adapt new technologies such as e-commerce, it is bound to lose a chunk of its market share. The consumer prefers to make a purchase online unlike the traditional methods whereby one has to visit the shop physically.

Profits are constrained as over-heads come up throughout the supply network. Thus, it is prudent to account for every Dollar at every stage so that costs are minimized. Some major costs in Coca-Cola arise from fuel costs; be it sea, air, road, increases in raw material costs, and complicated global logistics.

Lastly, when retailers are supplied with goods that do not move fast or goods that are not on demand, they are inclined to stop the sale of these products and turn to other suppliers. Uncertainity in raw material availability is also a weakness for Coca-Cola.

Any human process has room for new opportunities and improvements. There are different approaches that help Coca-Cola maximize efficiency and income. First, transparency level is very critical. Marching what is on the software with the physical stock count is essential. Transparency reduces unexplained inventory loss.

Second development is real-time stock control. Traditional methods involved a lot of paper work. With advancement in technology Coca-Cola is able to keep track of available raw material and finished products since the Supply Chain System is flexible and available at the click of a button.

Monitoring vendors is important. A development that Coke Company can keep is a system that shows the performance of a particular vendor and advice accordingly on the areas that need improvement.

Another improvement is that, the company raises cost realization among managers. Each department has a manager who incurs costs, but is not aware of his colleagues expenses. The use of these supply system networks consolidates monetary information that points how spending is taking place.

When a company improves returns management, manufacturers successfully receive the products which they promptly re-process. Many production firms ignore these process because they are constantly trying to move new products from the company. When the goods are handled in a decent manner wastage is reduced.

In conclusion, flow chart helps in setting out Coca-Cola’s journey of ordering raw materials to delivering final product to the end-user. The diagram helps analyze the procedures to point out the strengths, weaknesses, bottle-necks, and areas of improvement. Specific endorsements proposed for Coca-Cola to ensure refinement that brings customer gratification, and to improve quality of product. It is suggested to carry out standardization ventures learn from other players in the industry. Research on competitors to understand how they run their Supply Chain Systems. Finally, improving timely delivery of products to the consumer, and managing external forces to enable Coca-Cola have a competitive advantage in the market.