Inventory and Supply Chain Management Case Study

Pages: 3 (844 words)  ·  Style: APA  ·  Bibliography Sources: 3  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management

Inventory and Supply Chain Management: Coca-Cola's Approach to Collaborative, Planning, Forecasting & Replenishment Strategies

The significant accomplishments of the Coca-Cola Bottling Co. Consolidated in Charlotte, N.C. (CCBCC) clearly illustrates best practices in the areas of demand management, demand planning, strong sales & operations planning (S&OP) and collaborative planning, forecasting and replenishment (CPFR). The results are anchored in measurable results, further illustrating the accuracy, profitability and process gains the company has been able to achieve. In conjunction with these accomplishments, the CCBCC has also successfully developed a Demand Driven Supply Network (DDSN) that is capable of responding to unique order requirements in a fraction of the time possible with more traditionally designed systems and workflows. A DDSN is capable of working in conjunction with CPFR systems to further accelerate order accuracy, profitability and on-time, or perfect order performance (Crampton-Thomas, 2006).

Analysis of CCBCC Performance

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The supply chain operations throughout the CCBCC are comparable in scale to those of smaller bottlers and beverage retailers as this regional bottler of Coca-Cola distributes 13,000 stocking units (SKUs) to over 200,000 customers across 11 Southeastern states. Annually CCBCC delivers up to 125 million cases of products each year through 60 different distribution centers. The scope of the operations had grown so large that scalability of existing operations was beginning to slow down growth. With 60 warehouses and continued growth occurring, the supply chain management team had the decision of whether to add between 10 to 15 additional warehouses at a price of approximately $5M each. The lack of scalability in existing operations signaled that the existing demand management, forecasting and supply chain management processes were not exponentially increasing due to greater collaboration. The CCBCC operations needed an entirely new framework for scaling beyond traditional distributed order management and supply chain processes, a point inferred from the article on CCBCC.

Case Study on Inventory and Supply Chain Management Assignment

Instead what was needed was a more collaborative planning and forecasting approach to provided for greater demand management workflows, greater precision of the distributed order management, pricing, sourcing and supply chain processes, which are all components of a DDSN framework (Crampton-Thomas, 2006). With the greater level of collaboration, communication and demand management with suppliers and distributors companies can often exponentially increase their performance on the perfect order metric (Novack, Thomas, 2004). The CCBCC is successfully doing this today through the combination of core components of their CPFR strategy, implemented through a series of enterprise software applications and major shifts in processes and programs internally. The result continues to an acceleration of the company's performance based on the core… [END OF PREVIEW] . . . READ MORE

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Inventory and Supply Chain Management.  (2012, March 11).  Retrieved June 2, 2020, from https://www.essaytown.com/subjects/paper/inventory-supply-chain-management/50785

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"Inventory and Supply Chain Management."  Essaytown.com.  March 11, 2012.  Accessed June 2, 2020.
https://www.essaytown.com/subjects/paper/inventory-supply-chain-management/50785.