BMT1069 Supply Chain Planning and Control Assignment Sample 2024
Introduction
Supply Chain Planning and Control (SCP) has been considered as a kind of forward-looking process, which has coordinated assets for optimizing seamless delivery of products, services, and data between supplier and customer via business (Ashraf et. al. 2020). Throughout this study, the supply chain/distribution network of Coca-Cola has been reviewed with literature review, issues, mitigation control altogether.
Part A – Literature Review
Critical Issues faced by Supply Chains
In a business organization, Supply Chain Management (SCM) has been considered as a multi-faceted and moving part with involved key stakeholders. A good SCM framework of a company has helped a lot to boost its overall productivity and profitability (Smith, Xiong & Medlin 2021). Many valued aspects of SCM like cost-effectiveness in logistics or transport, sustainable development measures, and others have played pivotal roles to boost the level of organizational performance with a diverse range of benefits and positive outcomes.
However, it has also been seen that the SCM framework of an organization might face a range of issues or challenges nowadays. Those challenges have involved limited capacity, which staggers the whole distribution mechanism. As stated by Smith, Xiong, & Medlin, (2021), other issues like lack of production, limited warehouse space, poor inventory management, lack of drivers, and others might hamper the distribution system of a company with adverse effects.
Apart from that several external and internal pressures of the company might not allow every company to perform this action in domestic and international business operations.
In the company, it has been seen that mainly due to lack of production of storage cans, the entire distribution system has been staggered with negative outcomes. This issue has also been raised due to lack of proper inventory management practices in the same company. As mentioned by Sangode & METRE (2019), other issues in SCM have also been identified as scarcity of raw materials of production, increased level of freight prices, hard to forecast demands, port congestion, lack of digital transformation, and others.
Issues of Distribution Systems and/or Logistics Networks
In both domestic as well as international business operations, modem days’ business organizations have been facing issues or challenges within their distribution systems and logistics networks. Regarding those above-mentioned issues of SCM in a company, these issues have been connected properly. In detail, it has been found that logistics collaboration for a business organization has been considered as one of the most serious issues.
As most business organizations have been trying to make cooperative decisions for achieving high levels of sustainability in core business operations, these challenges have risen at the same time.
Apart from that, it has also been seen that a single company in the modern market scenario might be able to dominate the market by optimizing their logistics network as well as distribution systems easily (Linnander et. al. 2017). This phenomenon might ensure an effect on other companies in the same logistics system with adverse effects.
On the other hand, it has also been observed that in the field of international business operations, mainly due to lack of global business knowledge, poor scalability, and compatibility in core business operations, a company’s logistics or distribution network must be hampered.
As reported by Abdullah et. al. (2017), in contrast to this, in the sense of regional or domestic business organizations, poor naming, lack of proper process synchronization, lack of resource management facilities, poor security measures, and fault tolerance have affected the logistics or distribution network system of a business organization badly. Furthermore, counterfeiting, theft of goods, manual processes, and other issues have also risen.
Literature Gap
In this current study, the most important literature gap has been identified that this study is only based on supply chain mechanisms of the business organizations. Though, this study has covered necessary and important aspects of SCM like distribution system as well as logistics network, a broad range of core business operations has been avoided at the same point (Abdullah et. al. 2017).
In detail, it can also be said that if this study will encompass other business areas like sustainability management, operational along with strategic management, it has been able to gather sufficient knowledge in terms of supply chain management (SCM) accordingly.
Future Scope
For future researchers as well as readers, this study might acquire a huge chance of improvement with plausible findings and outcomes. In detail, it can also be said that if this study will cover other business areas including operational and strategy management, it becomes possible to gain a diverse range of positive insights related to the key concept of supply chain management (SCM), and its core operations accordingly (Roespinoedji et. al. 2019).
It has also been said that this study must also show and be aware of a range of modern day’s business organizations in terms of improving SCM infrastructure with effectiveness embodied with successful avoidance of pitfalls and loopholes.
Part B – Distribution Network of Coca Cola
In this segment of current study, distribution system for demand side of SCM on behalf of Coca Cola has been presented below:
As observed from the above graphical presentation, it has been said that Coca-Cola has mainly distributed its product ranges with high differentiation. For making available all products to its valued consumers, the company has partnered with various third parties like independent bottling partners, and some company-owned bottling partners to distribute its products in the market (Coca-colacompany.com, 2021).
Channels like warehouses, direct routes, indirect routes, markets, and distributors have also played pivotal roles in terms of fulfilling demand side of its SCM accordingly.
Supply Chain Network in Design
In this design in terms of the demand side of SCM on behalf of Coca-Cola, several entities have presented. Those core entities have consisted of plant, warehouse, as well as distributors. In addition to this, it has also been found that there is also other or indirect options altogether (Thakur, 2021). Those are direct routes, indirect routes, and the most important one, markets in the same place.
Now, it is important to say that in this designed distribution network of SCM of Coca-Cola, this SCM network must determine positive links among all entities. In this way, it has also been able to ensure a seamless flow of distribution of the company’s beverage products in the market effectively.
As mentioned by Brownlee, Dmytriyev & Elias (2017), it has also been said that with the help derived from a more detailed supply chain network, it becomes possible to ensure seamless SCM mechanisms with a flow of products and services.
Supported Models and Methods of Designed Network
Based on the designed distribution network of Coca Cola, following models and methods have been applied –
- Resource-Based View (RBV): This theory has stipulated seamless design of SCM based on available business resources. This theory has also been applied for gaining sustainable competitive advantage (SCA) in the market.
- Continuous Flow Model: On the demand side of SCM of Coca-Cola, this model must rely a lot upon enhanced supply as well as demand stability. In that designed network, it must ensure a steady cadence with continuous flow of business information and goods (Jones & Comfort 2018). As a mature SCM model, this must help a lot to fulfill customer demands and satisfaction with little effort in business.
- Transaction Cost Analysis (TCA): Based on this theory, Coca-Cola has been able to ensure a cost-effective business environment across manufacturing and sales in the market. According to Kshetri, (2021), depending on sufficient means of available information knowledge of business, it has also determined successful trade arrangements with high benefits and productivity altogether.
In final words, it can also be said that other models and methods like fast chain model, efficient chain, agile and flexible models have also been highly prioritized with a diverse range of positive outcomes and benefits.
Issues in Supply Chain network
In this case, based on the above literature review section, the most important issue that Coca-Cola has faced within its SCM is water scarcity, high level of plastic bottle wastage, and the most important one, high rates of competitors presenting in the market. Regarding this matter, it can also be said that due to these issues, the organization might become unable to manage sustainable business operations with higher benefits and positive results (Theguardian.com, 2021).
Apart from that, due to the high level of negative environmental impact, its core supply chain network has also been staggered with high cost, poor level of customer satisfaction, and other issues or challenges at the same point.
On the other hand, due to high competition in the market and increased cost of raw materials, Coca-Cola’s core business operations have been hampered with negative results. As indicated by Raj, Biswas & Srivastava (2018), any kind of complexities within the supply chain might induce multiple channels in the market with less productivity and profitability.
Key Network elements with Characteristics and Limitations
The major components of that distribution supply chain network of Coca Cola have been depicted below with key features and limitations –
- The distribution network must ensure proper Planning, as it helps to finalize product delivery in the market with prominent business strategies.
- As per Information, this network of the company must ensure continuous flow of business information leading towards high consumer satisfaction and demands.
- As per Source, this network of Coca Cola has played a pivotal role within SCM equipped with a systematic range of products and services at the right place with available raw materials.
- There must also be a need for proper Inventorymanagement practice, which must help a lot to fulfill customer demands in the market (Fan & Stevenson 2018). However, due to inventory, sometimes, outsourcing creates issues.
- In the sense of Production, as the most important aspect, it must enable a seamless SCM framework with good management and final preparation.
In favor of that implemented distribution network design on behalf of Coca-Cola, a specific dataset must be required. In addition to this, it has been suggested that the time management scenario within the company’s core business operations should be improved to avail positive outcomes and benefits in business.
As advocated by Deng & Jiang (2019), it has also been said that the time required for manufacturing products, bottling, and transfer from plant to warehouses should be managed. Then, with the help of effective and efficient communication, the whole process of product distribution in the market via indirect and direct routes becomes easier to handle thereafter.
Solution Methods in Designed Model
Here have been demonstrated some feasible solution methods, which must become appropriate for solving supply chain issues presented in Coca Cola as follows:
- By concentrating key business operations, both domestic, as well as international SCM activities, can be managed. Its authorized bottling partners have played pivotal roles with higher benefits.
- The key approach in terms of Finished Product Operations in Coca-Cola must support a lot to ensure flawless business proceedings from the initial stage of bottling, sales, and distribution in a sparkling business manner (Macdonald al. 2018). Besides, local and international distributors have also played active roles to disseminate products in the market.
- Finally, it has also been seen that Coca-Cola’s key bottling partners and third-parties have played significant roles in terms of concentrating within packaged water (Wang al. 2018). In this way, it has also been able to improve the key business procedures of packaging and labeling hygienically.
Part C – Presentation (Report)
- Supply chain management (SCM) has been considered as the systematic management of the flow of products and services.
- SCM in a business organization must help to transform raw materials into final products
- Against issues of scarcity of raw materials and lack of resources in Coca Cola a plausible distribution network has been designed (Coca-colahellenic.com, 2021)
- Its distribution network must support enhanced demand-side management of SCM profitably
SN: In modern days’ business organizations, enhanced SCM framework must help to distribute products to valued customers in the market seamlessly. As Coca-Cola has been facing some issues across its supply chain network, its plausible distribution network has been highly prioritized.
Explanation of Supply Chain network
- Supply chain network of a company must ensure seamless product delivery among the company, suppliers, and customers with a range of benefits
- Designed supply chain or distribution network of Coca Cola must support to deliver of beverage products to valued customers with positive links with core suppliers in the market (Theguardian.com, 2021)
- Key entities within Coca Cola’s supply chain network have included plant, warehouse, as well as key distributors in the specific market segment (Dong and Kouvelis, 2020)
- Indirect parties involved within Coca-Cola’s supply chain management (SCM) system or network are suppliers, customers, and involved key stakeholders or investors altogether.
- Both direct, as well as indirect routes have played pivotal roles to shape Coca-Cola’s SCM framework with a diverse range of positive outcomes and benefits altogether (Coca-colacompany.com, 2021).
SN: It is important to say that, within that newly designed supply chain or distribution network of Coca-Cola, for distributing products in the market from plant to market via warehouse, indirect and direct routes have played major roles. Besides, the distributors have also supported a lot to disseminate the exquisite range of beverage products of the company embodied with high levels of productivity and profitability altogether.
Apart from that some supply chain models and methods including RBV, TCA, and continuous flow model have also contributed a lot in terms of shaping good and productive supply chain management (SCM) framework with a diverse range of positive outcomes and benefits altogether.
It has also been said that against key issues of supply chain networks in the company, some key elements have also been applied successfully with emerging benefits.
Those key elements have consisted of proper means of planning, information, sourcing, inventory, production, and others. In final words, it has also been said that Coca-Cola’s required data set infrastructure embodied with big data has also been required to induce proper and systematic planning in terms of time management, resource availability, as well as good inventory management perspective at one place.
Communication concentrated key business operations, finished product management practices, along with the company’s bottling partners have tried a lot to nurture its supply chain network and distribution channels with a range of benefits and desired outcomes.
Rationale of Supply Chain network
- The key reason behind such successful design of supply chain network or distribution channel on behalf of Coca Cola is to ensure its high levels of productivity and profitability (Smith, Xiong & Medlin 2021)
- Its effective and efficient supply chain network must help a lot in terms of assessing Coca-Cola’s key business policies and programs (Ashraf al. 2020).
- It has helped a lot to achieve corporate business goals for accomplishing long-term strategic business purposes at the same time.
SN: It has also been said that the designed distribution network of Coca-Cola must help a lot in terms of nourishing its core business units with huge benefits. In addition to this, for ensuring seamless business functional areas also, this improved supply chain network has impacted successful and effective network design. Furthermore, with the key business purpose of balancing service levels against production and purchasing expenditures, this must cost-effectively ensure high productivity and profitability.
- Supply chain management (SCM) framework with its effectiveness have played significant role in a company to boost productivity and profitability
- Efficient supply chain network must enable to design of a successful distribution mechanism or network of Coca Cola with better relationships with suppliers and enhanced level of customer satisfaction
- Against key SCM issues of scarcity of resources, improper time management, lack of proper inventory management practices, these approaches have been highlighted the most
SN: It can be concluded that Coca-Cola, its well-organized SCM network, and distribution channels have played pivotal roles to spread its exquisite beverage product range in the market. Besides, key SCM elements and models have also been supported a lot.
Conclusion
It can be concluded that in modern days’ business organizations, effective and efficient SCM framework has helped a lot to boost productivity and profitability. Besides, a good supply chain network must shape the productive distribution channel and mechanism of Coca-Cola by eradicating its issues in the same field.
References
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