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Coca cola supply

chain

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Executive Summary We have analyzed Coca-Cola India’s supply chain with respect to the following: • Inventory management • Quality management • Vendor management We have detailed out the practices and policies

adopted in the company and highlighted noteworthy practices in this project.

We have described recent trends in operations in the areas chosen. We also have identified a problem the company is facing, analyzed it and have

suggested a solution for the same. Introduction The Coca-Cola Company is the world’s largest beverage company. It is recognized as the world’s most valuable brand.

It markets four of the world’s top five soft drink brands like Diet Coke, Fanta, and Sprite along with water, juices, tea, coffee and energy drinks. It has one of the world’s largest beverage distribution systems spread over 200

countries selling 1. 6 billion servings a day. Coca-Cola India manufactures and markets brands like Coca-Cola, Thums Up, Fanta, Fanta Apple, Limca, Sprite, Mazaa, Minute Maid, Burn, Kinley, Georgia tea and coffee, Nestea and Fanta Fun Taste. The company employs 1, 50, 000 people and has more than 1 million retailers.

It is the largest domestic buyer of sugar and one of the top buyers of mango pulp. It positively impacts Glass, Plastic, Resin manufacturers, Sugar,

Automobiles, and Banking etc. Its mission statement is called the Coca-Cola Promise – “ The Coca-Cola Company exists to benefit and refresh anyone that it touches”. This project report is about Coca-Cola’s supply chain with respect to its inventory, quality and vendor management. Let us first

understand what a supply chain is and also the supply chain components we have chosen to focus on. Supply Chain

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A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. The term Supply Chain Management (SCM) was developed in the 1980s to describe the integration of key business processes ranging from the original suppliers to the end user. The primary objective of SCM is the efficient use of resources like distribution capacity, inventory and labor to fulfill customer demand.

It seeks to meet demand with supply with minimal inventory. Various aspects of SCM are: • Eliminate bottlenecks in supply by liaising with suppliers • Sourcing strategically to balance low cost of material with transportation cost • Implementing JIT or Just In Time to optimize manufacturing flow • Maintaining right mix of location of factories and

warehouses • Vehicle routing analysis • Dynamic programming • Optimizing traditional logistics The success of a supply chain depends on the product design but a product too depends on the supply chain for success. The Supply Chain of Coca-Cola India

In case of Coca-Cola India, at the core of its business is its production and distribution network called the “ Coca-Cola system”. Globally, in the rest of the world, the Coca-Cola system includes the company and its 300 bottling partners. The company manufactures and sells concentrate and beverage bases. The bottlers combine this concentrate or beverage base with

sweetener (depending on the product), water or carbonated water to produce finished beverages. These are packaged in authorized containers

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like cans, refillable glass bottles, non-refillable PET bottles and tetra packs bearing Coca-Cola trademarks.

These finished goods are then sold to whole sellers or retailers. The company also sells powdered beverage mixes like Vitingo and Fanta Fun Taste. Coca- Cola’s beverages reach consumers through its customers like grocers, small retailers, hypermarkets, restaurants, convenience stores as well as other final points of distribution in the Coca-Cola System. What defines the Coca- Cola System and makes it unique among businesses is its ability to create value for its customers and consumers. In India the Coca-Cola System comprises of: A wholly owned subsidiary of the Coca-Cola Company called Coca-Cola India Pvt Ltd which manufactures and sells concentrate and

beverage bases and powdered beverage mixes • A Company owned bottling entity, Hindustan Coca-Cola Beverages Pvt Ltd • 13 authorized bottling

partners of the Coca-Cola company who prepare, package, sell and distribute beverages under certain specified trademarks of the Coca-Cola Company • An extensive distribution system comprising of customers, distributors and retailers Authorized bottlers of the Coca-Cola Company independently develop local markets and distribute beverages to grocers, small retailers, super markets, restaurants and numerous other businesses. These

customers make Coca-Cola Company’s beverages available to consumers across India. The suppliers and business partners of Coca-Cola are vital to its continued success. They provide the raw materials including ingredients, packaging and machinery as well as goods and services. So it is the Company’s duty to hold its suppliers and bottling partners to standards commensurate with its own operations.

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Its suppliers are expected at a minimum to conduct business in an ethical manner and comply with all laws and regulations. Its Supplier Guiding Principles (SGPs) communicate its values and expectations for its bottling partners and business partners. They are the foundation of its commitment to promote the respect of labour laws among its business partners. The SGPs are a requirement for all direct suppliers of goods and services to the Coca- Cola India system and all suppliers of materials that are specifically

authorized by the Coca-Cola Company for use by its suppliers. The SGPs are incorporated by reference in all supplier contracts and many suppliers

receive training to facilitate implementation.

Suppliers are assessed for compliance at least once every three years according to global policy by an authorized external auditing agency. If non- compliance is found the company provides a timeframe and offers expertise for corrective action by the facility. Follow-up assessments of non-compliant facilities are then done as frequently as every six months. Suppliers have offered positive feedback on the SGPs program that it supports the transition of their HR teams from an administrative function to a functional

department. With the implementation of the new labour Contract Law the company has received feedback on the value of offering support and education regarding the relevant laws and compliance.

Suppliers to Coca-Cola Company and Coca-Cola India are required to meet the following standards: • Compliance with local and national laws, rules, regulations and requirements in the manufacture and distribution of Coca- Cola Company’s products and services • Compliance with local and national child labour laws • Prohibition of forced, bonded, prison, military or

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compulsory labour • Compliance with local and national laws on abuse of employees • Compliance with local and national laws on freedom of

association and collective bargaining • Compliance with local and national discrimination laws • Compliance with local and national wages and benefits laws • Compliance with local and national work hours and overtime laws • Compliance with local and national health and safety laws • Compliance with local and national environmental laws The company reserves the right to terminate an agreement with any supplier that cannot demonstrate that they are upholding the SGP requirements. Environmental impact of Coca-Cola’s supply chain Understanding its carbon footprint helped Coca-Cola Company to identify where it can be more efficient and effective in the long run in working across its supply chain to reduce its environmental effect. Supply chain of Coca-Cola in rural markets in India

Coca-Cola plans to supply its brand to villages through bullock carts and cycle rickshaws as a part of its strategy to penetrate the rural market in India. At most places large motorized vehicles like traditional vans and trucks couldn’t be accommodated by rural roads. Thus the move to bullock carts and cycle rickshaws. Rural India represents an important market where every marketer wants to get a foothold. Three-fourths of the country’s population and 41% of the middle class live in rural areas. This segment consumes 70% soaps and 38% of all new 2-wheeler purchases. But

penetration of soft drinks is as low as 10% in rural areas as against 37% in urban areas. Per capita consumption was as low as 2 bottles a year as against 23 bottles in cities. Inventory Management

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Inventory management is the process of efficiently overseeing the constant flow of unit in and out of an existing inventory. It involves transfer of units to prevent the inventory from becoming very high or dwindling too low. It also seeks to control costs from the perspective of the total value of goods and the tax liable to be charged on the value of the inventory. There are 3 aspects to effective inventory management: • Time taken by a supplier to process an order and execute a delivery of materials for inclusion in the total inventory • Calculating buffer stock i. e. additional units beyond the

minimum number required to maintain production levels. This minimizes the chances for interruption in production. Tracking materials used to create finished goods to identify the need to adjust ordering amounts before the raw materials inventory gets too low or too inflated. • Keeping accurate records of finished goods ready for shipment. Production of newly completed goods is posted to inventory totals and shipments of finished goods to

buyers are subtracted. If there is a return policy, a sub-category is made in the finished goods inventory to account for returned goods. Accurate figures on the finished goods inventory makes it easy for sales personnel to know what is available for shipment at any given time. • Inventory management makes it possible to accurately calculate taxes due on each inventory type.

This will prevent the company from incurring stiff penalties in the event of an independent audit later.

Thus effective inventory management is all about knowing what is on hand, where it is in use and how much finished product results. Common

components of an inventory management system: • Barcode scanner • Wireless barcode scanner • Inventory software which helps create invoices,

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purchase orders, receiving lists, payment receipts and print barcode levels.

Configured to a warehouse, retail or product line, it helps create revenue for the company. • Barcode printer • Barcode label Inventory Management of Coca-Cola The company’s objective is to maintain quality, increase market shares and profitability which imply that enough inventories should be available to enhance continuous production.

It also determines the company’s levels of inventory. Storage space isn’t a problem to its operation as large storage spaces in the premises of the bottling plants. Orders for materials are obtained by request or by direct allocation by the company’s headquarters. The company operates 3 stores • The raw materials stores • The finished goods stores • The spare parts

machinery stores A store manager operationally works together with a production manager as most of the products are used by his department along with the bottling department. The store manager also heads the raw material store. The store manager is responsible to the plant manager and the bottling manager.

The finished goods store is headed by the sales manager. He is assisted by the bottling manager. The bottling manager confirms the total bottles produced. The sales manager comes in when production is completed. The spare parts store is headed by the plant engineer. The raw materials that are stored include: • Sugar: The Company procures more than 250, 000 tonnes of sugar from selected mills. Sugar is stored in bags which are stacked in pallets and are arranged in a way so as to facilitate stock taking. Insecutors are installed in the store to keep off bees and other insects. • Concentrates:

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The concentrates are got from one facility while other concentrates are imported.

They come in syrup form stored in bottles. They are stored at a temperature of 40 to 100 degree Celsius. • Corks: Corks are supplied by cork

manufacturers. They are kept in polythene bags and stored in cases to keep them safe from dust and moisture. Exposure to moisture can bring about rusting. • Mango: The Company purchases more than 50, 000 tonnes of Totapuri and Alphonso mango pulp. • Coffee: Coca-Cola India is the largest buyer of green coffee beans in India at 13, 000 million tonnes. There is a positive correlation between sales and inventory usages. Inventory usage depends on sales. As sales increases, inventory usage should increase too.

Thus, inventory management is a must for the continuity and survival of any profit –motive manufacturing organization. Recommendations for Inventory management • A well built policy to handle idle stock without incurring extra costs • A dynamic inventory policy • Emphasis should be placed on

Economic Order Quantity model to maintain optimum levels of materials in store and minimize costs associated with inventory • Sales and marketing department should keep an eye on the inventory usage and use it in sales forecasting as there is a positive relationship between inventory and sales.

Inventory levels can indicate what level of sales to expect Quality

Management Quality Management aims to assure that an organization or product is consistent.

It has 4 important components: • Quality planning • Quality control • Quality assurance • Quality improvement Quality management focuses on service or

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product quality as well as the means to achieve it. Customers realize that quality is an important attribute of products and services and suppliers realized that quality is an important differentiator between their products and those of their competitors. In the last two decades, this quality gap between competitors has been greatly reduced. This is partly due to outsourcing of manufacture to countries like China and India who have raised their own quality standards to meet international standards like the ISO 9000 series.

Management principles adopted quality management to improve

performance of organizations include: • Customer focus: Organizations should understand, meet and try to exceed customer expectations • Leadership: The management should maintain an internal environment in the organization in which employees become fully involved in achieving the organization’s quality objective. • Involvement of employees: Employees at all levels should use their abilities for the benefit of the organization. •

Process approach: Activities and related resources should be managed in an organization as a process • System approach: All interrelated process should be identified, understood and managed as a system so that the organization can achieve its quality objectives efficiently and effectively. Continual

improvement: This should be one of the permanent quality objectives in an organization • Factual approach to decision making: Decisions based on data analysis and information are always effective • Mutually beneficial supplier relationships: An organization and its suppliers are interdependent so a mutually beneficial relationship between them will enable them to add more value. The above principles form the basis for the quality management

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standards ISO 9001: 2008. Methods of quality management and techniques for quality improvement which cover product, process and people based improvement are: • ISO 9004: 2008 – Guidelines for performance

improvement • ISO 15504-4: 2005 also known as SPICE or software process improvement and capability determination is a set of technical standards documents for the computer software development process and related business anagement functions • QFD or quality function deployment also known as the house of quality approach • Kaizen meaning change for the better in Japanese and continuous improvement in English • Zero defect program one of the inputs in six sigma created by NEC corporation of Japan based upon statistical process control • Six sigma combining methods like statistical process control, design of experiments and failure mode and effect analysis (FMEA) in an overall framework • PDCA plan do check act cycle for quality control. Six sigma’s DMAIC or define, measure, analyze, improve, control is a particular implementation of PDCA • Quality circle – group

approach to improvement • Taguchi methods – statistical oriented methods like quality robustness, quality loss function and target specifications • The Toyota production system – lean manufacturing Kansei engineering – an approach focussing on emotional feedback of customers • TQM total quality improvement – It aims at embedding awareness of quality in all

organizational process • TRIZ – it means theory of problem solving • BPR – Business process reengineering. It aims at clean slate improvements

ignoring existing practices • OQM – Object oriented quality management Each of these approaches and methods has met with success as well as failures. Some of the common differentiators between success and failure include commitment, knowledge and expertise to guide improvement, scope

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of change (big bang type or smaller changes) and adaption to enterprise cultures. Enterprises therefore need to carefully decide which quality improvement methods to adopt. They of course shouldn’t adopt all the above methods. Quality Management of Coca-Cola

Coca-Cola measures key product and package quality by focussing on quality of ingredients and materials and regulating manufacturing, bottling and distribution of Coca-Cola Company products to ensure that those products meet the Company’s requirements as well as consumer expectations in the marketplace. With the expansion of Coca-Cola Company’s beverage portfolio and supplier base to meet the increasing demands of the developing

markets, customer expectations and regulatory scrutiny has risen. The global nature of the Company’s business requires it to ensure consistent quality from concentrate production to bottling and product delivery. To ensure consistency and reliability the Coca-Cola System is governed by the Coca-Cola Operating Requirements i. e. KORE, a new management system that replaced The Coca-Cola Management System (TCCMS) in January 2010.

KORE enables Coca-Cola System to address the changing business landscape while supporting the Company’s growth plans by creating an integrated quality management system which holds all of its operations, system-wide, to the same standards of production and distribution of its beverages. KORE guarantees the highest standards across the entire Coca-Cola system in • Product safety and quality • Occupational safety and health • Environmental standards KORE does so by outlining clear requirements for the policies, specifications and programs that guide the Company’s operations. KORE is

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integrates business & quality objectives and aligns them with consistent metrics to monitor performance.

It also integrates preventive action as a management tool with more rigorous demands when introducing new products and services. It incorporates

HACCP or Hazard Analysis and Critical Control Points into the Company’s system standards. It manages risk in the company, bottling operations and across its supply chain. It defines problem solving methods and tools to drive consistent quality improvements. Ensuring the safety and quality of its

products have always been at the core of its business and is directly linked to the success of the Coca-Cola Company. The company’s Global Product Quality Index rating has consistently reached averages near 94 since 2007 and 94. 3 in 2010. The company’s Global Package Quality Index has

increased since 2007 to reach 92. rating in 2010. Recommendations for Quality management To stay up to date with new regulations, industry best practices and marketplace conditions, Coca-Cola Company consistently should continue reassessing the relevance of its requirements and guidelines in manufacturing as well as throughout the supply chain. The company

should continue refining its requirements to ensure that KORE embodies the most recent and stringent manufacturing processes. To establish a

governance process, each business within the Coca-Cola system should continue implementing, documenting and maintaining a safety and quality system in accordance with KORE requirements.

To further support the integrity of its products, compliance to KORE requirements and guidelines should be continued to be monitored

systemwide. Vendor Management A vendor is literally a person that vends or

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sells contingent labour. A vendor can also be a consultant or consulting company or staffing company who can also be called a supplier because they supply the labour or expertise rather than selling it directly. Vendor

Management is a process that allows the establishment of proper

communication channels and information flows between the company and its suppliers. It leads to • Increased efficiency • Reduced costs • Better

customer service • Consistent standards for all suppliers and sub-contractors

• Adoption of best practices

The vendor selection process can be confusing and complicated but following are five steps to select the right vendor: • Analyze business requirements and gain consensus across all stakeholders • Comprehensive vendor search to find the right vendor and also to create a competitive atmosphere

between vendors • Request for quotation from vendor detailing needs and expectations of the company • Proposal evaluation to organize the selection process and lead to a unified vendor selection decision • Negotiating the contract in which both sides will win Vendors play a key role in the success of a company. Using best practices to build a strong relationship with vendors will strengthen the company’s performance in the market. Vendor

management best practices include • Vendor selection: The Company should analyze its business requirements, search for prospective vendors, lead the team in selecting the winning vendor and successfully negotiate a contract. • Scrutinize the prospects: A company shouldn’t get blinded by the glitz of vendors but make sure that the proposed material or service is within the vendor’s area of expertise. Remain flexible: Beware of agreements limiting relationships with other vendors and contracts with severe penalties for

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small incidents. Have a short term contract with renewal option. Choose to agree to conditions of vendor if the issue is small to the company. This shows good faith on the part of the company. • Monitor performance: Don’t assume everything will go according to plan and executed exactly as specified in the contract. The performance of the vendor should be monitored constantly with regards to shipping times, quality of service, order completion, call answer time etc. • Communicate constantly: Don’t assume the vendor knows the company’s business intimately.

A well established and well maintained line of communication will avoid misunderstandings and proactively address issues before they become

problems’ Vendor management allows a company to build a relationship with its suppliers and service providers that will strengthen both businesses. It means to constantly work with vendors to come to agreements that will mutually benefit both businesses. • Sharing information with vendors is important for successful vendor management. This may include limited forecast information, new product launches, changes in design and

expansion or relocation changes. • Balance competition and commitment:

The Company should always try and get competitive bids and also get the commitment of vendors to assist and support the company. Allow vendors to assist in strategize: The vendor can make a product better and cheaper for the company. They are experts in their area. So their expertise can be tapped into to give the company a competitive advantage. • Changing vendors too often will cost money in the long run and impact quality so a long term relationship based on trust, preferential treatment and access to expert knowledge is desirable. • Understand the vendor’s business: if a

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company pressurizes the vendor to cut costs either they will go out of

business or quality will suffer. So a company needs to contribute knowledge and resources so that the vendor can serve it better. Negotiate a win-win agreement: Negotiations should be in good faith and the final agreement should help both sides. Strong arm tactics work will only work for so long before one party walks away from the deal. • Value addition: Vendor

management isn’t just about getting the lowest price but also getting quality for the money that is paid. The company should continually measure and monitor its vendor’s performance. The required standards should be clearly spelt out in the contract. So action can be taken when vendor’s performance falls below expectations. The company should state its expectations in terms that are measurable and quantifiable.

SRM or supplier relationship management means managing the company’s interactions and affairs with suppliers. It includes best practices,

communication, negotiations, methodologies and software to establish and maintain relationship with a supplier. Benefits include lower costs, higher quality, better forecasting and less tension. SRM can be simplified using software designed for this specific purpose. A company that has been procuring for a long time will have a database of vendors that contain correct, incorrect and outdated data. The level of inaccuracy is multiplied if the company has a number of geographically separate purchasing

departments.

The data should be updated to reflect current vendor data and rationalized to eliminate duplicate, correct and incorrect data. This allows for accurate

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rebates, discounts and other incentives to encourage companies to pay their bills in time. Companies should take these incentives. A company should track over delivery, under delivery, quality and performance of vendors.

Companies need to hire purchasing professionals with knowledge of the business they are purchasing for, analytical skills, negotiation sills and interpersonal skills. Reducing the number of vendor means reduction in processing costs so this is another important principle of vendor.

Centralized purchasing helps a company review its total purchasing and select vendors that can provide a majority of items at low costs. Making a vendor a partner rather than just another vendor will ensure that the company’s orders are on time. With the introduction of ERP software i. e.

Enterprise Resource planning software, companies are able to integrate their purchasing departments into their supply chain to take advantage of real time data. Companies should adopt workflow techniques within their ERP systems to automate approvals and payments, thus saving time. The International Organization for Standardization (ISO) has developed a set of tandards, practices, terminologies and requirements which demonstrate that the products and services are of high quality. There are three different levels of certifications • 9001 • 9002 • 9003 A vendor with ISO 9001 certification demonstrates its commitment to quality and service. It means that business objectives constantly get fed into its process and work practices which

enable a company to maximize its assets. It helps a company to raise its performance higher than competitors who aren’t using management

systems. Certification also helps to measure performance and manage risk.

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It will boost a company’s brand reputation and can be used as a promotional tool.

It sends a message that the company is committed to high standards and continual improvement. It leads to increased sales, higher return on assets and greater profitability. It leads to improvement in quality of products and services and reduction in waste and customer complaints. It will highlight skill shortages sooner and uncover teamwork issues as well as motivate employees through improved communication. ISO 9001 ensues the needs of customers are being considered and met. Vendor Management of Coca-Cola Coca-Cola uses the partnership model to structure relationships with

vendors. They work together to develop improvement opportunities. The partnership model allows each side to gain knowledge of the business drivers of each other.

Goal setting is an ongoing part of the quarterly business reviews. This topic has been extensively dealt with under the heading “ The Supply Chain of Coca-Cola India” on page 3. Recommendations for Vendor management Vendor management can affect the firm’s financial performance as measured by economic value added or EVA. It can impact sales, cost of goods sold, total expenses, inventory investment, other current assets and the investment in fixed assets. Vendor management can lead to higher sales volume by improving the quality of materials and the service obtained from suppliers. Thus the following will lead to increased sales: • High quality products from vendors Improved service from vendors to enable the

company to provide better service to customers • Better planning and fewer

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expediting of materials • Lower costs for direct materials • Improvement in vendor’s order fulfilment • Improvement in on time delivery performance to lower safety stock needs for purchased materials inventory, in-process inventory and finished goods inventories. • Improved asset utilization and rationalization (warehousing and plant facilities) • Improved investment planning and deployment Analysis Coca-Cola’s Quality Management problem in India In India there is widespread concern that the water used to produce coke contains high levels of pesticide and other harmful chemicals.

It has also been accused of using huge amount of water leading to the drying up of aquifers and forcing farmers to migrate. In 2003 a Delhi based NGO, Centre for Science and Environment or CSE said that aerated drinks of Companies like PepsiCo and Coca-Cola contain toxins like lindane, DDT, malathion and chlorpyrifos which causes cancer and breaks down the immune system. CSE found that Coca-Cola’s soft drink products had 30 times the level of pesticide permitted under EU regulations. Coca-Cola has responded that its plants filter water to remove potential contaminants and that its products are tested for pesticides and meet minimum health

standards before they are distributed.

Coca-Cola’s India operations have come under intense scrutiny as many communities are experiencing water shortages as well as contaminated ground water and soil allegedly due to Coca-Cola’s bottling operations. In 2004 local officials in Kerala shut down a $16 million coke bottling plant blaming it for a drastic decline in quality and quantity of water available to local farmers and villagers. In 2005 the Kerala HC noted that the wells were continuing to dry up even after the bottling plant had been shut down. A

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study requested by the court found that although the plant had aggravated the water scarcity situation, the most significant factor was lack of rainfall.

In Plachimada, Coca-Cola was accused of creating problems for communities by creating severe water shortages, polluting the groundwater and soil and destroying plants by draining them out completely. The plant used 9 lakh litres, 3 lakh litres for its drinks and 6 lakh litres to clean bottles and

machinery. Farmers say their problems began after the bottling plant was set up there in 1999. The case is in the SC. In Varanasi a coke bottling plant has been accused of polluting groundwater by releasing sewage water into surrounding land. Coke confirmed a drainage problem but said it built a pipeline to correct it. An environmental activist, Vandana shiva stated it takes 9 litres of water to manufacture 1 litre of coke but Coca-Cola says it is 3. 2 litres. In addition to the above problems, it has been alleged that the packaging used in Coca-Cola’s products has a significant environmental impact but the company strongly opposes attempts to introduce

mechanisms like container deposit legislation. Recommendation The company needs to keep the level of contaminants in its drinks below the level permitted by European Standards. It should give greater importance to water stewardship, sustainable packaging, energy management, climate protection and solid waste management. It should create rainwater

harvesting potential equivalent to the amount of groundwater used for its operations in India.

Coca-Cola has made progress in reducing the weight of its packaging which has helped not only avoiding using virgin materials but also reducing carbon

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has reduced the size of the plastic twist off on sparkling beverages and has reduced the weight of its cans, PET or polyethylene Terephthalate bottles and glass bottles. It has also reduced the secondary packaging by

eliminating cardboard sidewalls on corrugated trays. It has also unveiled a new packaging innovation- a plastic bottle made partially from plants. The plant bottle is fully recyclable. It is made by turning sugarcane and molasses into a key component.

Manufacturing the bottle is environmentally efficient with 25% less carbon emissions than petroleum based PET. Conclusion Thus at the core of its business in India is the supply chain management of Coca-Cola called The Coca-Cola system. Its inventory system is capable of managing quarter of a million tonnes of sugar in its warehouses, 13 mt of coffee beans as well as mango pulp and oranges while producing nearly 2 billion servings a day. Its quality management system KORE ensures consistency and reliability. KORE guarantees the highest standards across the entire Coca-Cola system in product safety and quality, occupational safety and health and

environmental standards.

In India the Coca-Cola India has 13 authorized bottling partners who prepare, package, sell and distribute beverages under certain specified trademarks of the Coca-Cola Company. They provide the raw materials including

ingredients, packaging and machinery as well as goods and services. So it is the Company’s duty to hold these vendors and bottling partners to standards commensurate with its own operations. It is operations management along its supply chain that makes Coca-Cola the world’s largest beverage

company. References http://en. wikipedia. org/wiki/Supply_chain http://www.

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barcodesinc. com/articles/what-is-inventory-mangement. htm http://www.

nventorymanagement. com/ http://operationstech. about.

com/od/vendormanagement/Working_With_Your_Vendors_and_Suppliers.

htm http://www. coca-colaindia. com/ourcompany/company. html http://en.

wikipedia. org/wiki/Criticism_of_Coca-Cola#India_secret_formula_ban

http://www. igd. com/index. asp? id= 1= 1= 5= 153= 71= 1476 http://www.

krepublishers. com/02-Journals/JSS/JSS-23-0-000-10-Web/JSS-23-2-000-10- Abst-PDF/JSS-23-2-135-10-704-Adeyemi-S-L/JSS-23-2-135-10-704-Adeyemi-S- L-Tt. pdf http://www. thecoca-colacompany.

com/citizenship/pdf/india_env_rpt. pdf “ Supply chain management:

processes, partnerships, performance” By Douglas M. Lambert

References

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