INTRODUCTION

BEVERAGES

Beverages can be classified in to two segments. This first segment can be done basing
on whether they are milk based products like tea , coffee , flavoured milk , health beverages
(milk, melted and coco) and non milk products such as soft drinks, squashes,concentrates , drink
and mineral water which constitute the second segment.

According to the survey conducted on consumption of beverages. Tea comprises for

90%, filter coffee is of 4%, beverages is of 2%, instant coffee comprises of 2% and carbonated
soft drinks just above 1% of total consumption , squashes , concentrates, mineral water account
for a minute part of consumption.

Soft drink industry is a well known consumer product industry. It has its origin in the
year 1772; in U.S bottled soda was manufactured. By inventing a machine in 1809, that
manufactures carbonated drink, a first patent was recorded in the history of soft drink industry.

Now a days, soft drink industry has grown very extensively and millions of people
consume soft drink every day . Age, Income, Climate are not at all a barrier for consuming soft
drink by the people. This is a reason for the tremendous growth in soft drink market.

Situating has been drastically changed such that tasting a soft drink became very easy
while manufacturing , marketing a soft drink is highly difficult because of the imtense
competitive market where there are different types of competitors.
OBJECTIVES OF THE STUDY :

To Understand efficiency and responsiveness of organization by implementing SCM.

To study about the profile of the organization.

To offer suggestions for improvement of organization through effective SCM

METHODOLOGY

The methodology of collection data ia an important part of the study. The source of data is two
parts.

 Primary data.
 Secondary data.

Primary data

Information of the primary data for the study is collected by personal interactions with the
officers, and persons, of various levels , who are involved in the shipping , production and depot
activities of Hindustan Coca Cola beverages private limited , Hyderabad.

Secondary data

The secondary data is required to study is collected from the annual report published by
Hindustan Coca Cola Beverages Private Limited and also data required for the study is collected
from magazines, newspapers and internet.
TOPIC DISCRIPTION
INTRODUCTION
QUALITY VISION OF COCA-COLA:

At the cocacola company , Quality is more than just something we waste or see or measure or
manage .Quality shows itself in our every action ,it encompasses everything we do .From
processing to packaging to pouring ,anything less than 100% quality is unacceptable. Our
consumers through out the world deserve the best quality beverages we can produce every time.

HISTORY OF COKE

THE EARLY DAYS:

CocaCola was created in 1886 by john pemberton, a pharmacist in Atlanta, Georgia, who sold
the syrup mixed with fountain water as a portion for mental and physical disorders. The formula
changed hands three more times before Asa D.Candler added carbonation and by 2003,
CocaCola was the worlds largest manufacturer, marketer,and distributor of non alcholic
beverages concentrates and syrups, with more than 400 widely recognized beverage brands in
its portfolio. With the bubbles making the difference. Coca-Cola was registered as a trade
mark in 1887 and by 1895, was being sold in every state and territory in the United States. In
1899, it franchised its bottling operations in the U.S growing quickly to reach 370 franchisees by
1910. Headquatered in Atlanta with divisions and local operations in over 200 countries
worldwide, Coca-Cola generated more than 70%of its income outside the united states by 2003
DEFINITIONS :

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the process of planning, implementing and controlling the
operations of the supply chain as efficiently as possible. Supply Chain Management spans all
movement and storage of raw materials, work-in-process inventory, and finished goods from
point-of-origin to point-of-consumption.

Supply chain management (SCM) is the oversight of materials, information, and finances as
they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
Supply chain management involves coordinating and integrating these flows both within and
among companies.

Explanation

Supply Chain Management encompasses the planning and management of all activities involved
in sourcing, procurement, conversion, and logistics management activities. Importantly, it also
includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. In essence, Supply Chain
Management integrates supply and demand management within and across companies.Some
experts distinguish Supply Chain Management and logistics, while others consider the terms to
be interchangeable.

Organizations increasingly find that they must rely on effective supply chains, or
networks, to successfully compete in the global market and networked economy.During the past
decades, globalization, outsourcing and have enabled many organizations, such as Pepsi and
Coco-Cola to successfully operate solid collaborative supply networks in which each specialized
business partner focuses on only a few key strategic activities .

This inter-organizational supply network can be acknowledged as a new form of organization.

However, with the complicated interactions among the players, the network structure fits neither
"market" nor "hierarchy" categories. It is not clear what kind of performance impacts that
different supply network structures could have on firms, and little is known about the
coordination conditions and trade-offs that may exist among the players.

Traditionally, companies in a supply network concentrate on the inputs and outputs of the
processes, with little concern for the internal management working of other individual players.
Therefore, the choice of an internal management control structure is known to impact local firm
performance.

In the 21st century, there have been a few changes in business environment that have
contributed to the development of supply chain networks. First, as an outcome of globalization
and the proliferation of multi-national companies, joint ventures, strategic alliances and business
partnerships, there were found to be significant success factors, following the earlier "Just-In-
Time", "Lean Management" and "Agile Manufacturing" practices.

Second, technological changes, particularly the dramatic fall in incommunication costs,

which are a paramount component of transaction costs, have led to changes in coordination
among the members of the supply chain network .

Supply chain management flows can be divided into three main flows:

 The product flow

 The information flow
 The finances flow
Components of Supply Chain Management

The SCM components are the third element of the four-square circulation framework. The level
of integration and management of a business process link is a function of the number and level,
ranging from low to high, of components. Consequently, adding more management components
or increasing the level of each component can increase the level of integration of the business
process. The literature on business process reengineering, buyer-supplier relationships and SCM
suggests various possible components that must receive managerial attention when managing
supply relationships. The following components are:

 Planning and control

 Work structure
 Organization structure
 Product flow facility structure
 Information flow facility structure
 Management methods
 Power and leadership structure
 Risk and reward structure
 Culture and attitude

Objectives of Supply Chain Management

 To minimize total supply chain cost to meet fixed and given demand, where the total
cost is composed of raw material and other acquisition costs, inbound transportation
costs, facility investment costs, direct and indirect manufacturing costs, direct and
indirect distribution center costs, inventory holding costs, interfaculty transportation
costs, and outbound transportation costs.
 Total cost minimization is an inappropriate and timid objective, while firms should seek
to maximize net revenue which is gross revenues minus total cost.
 Greater efficiency , lower cost
 Enhance flexibility ; agilit
  BIBLIOGRAPHY:
Web sites:

 www.coca-colaindia.com
 www2.coca-cola.com/heritage
 www.coca-colaindia.com/about_us/abo_coca_cola_india_int.html
 www.wikepedia.com.

Books Referred:

 Supply Chain Management (Strategy, Planning, and Operation), Second Edition by Sunil
Chopra, Peter Meindi and John T. Mentzer.
 Marketing Management (A South Asian Perspective) Twelfth Edition by Philip Kotler,
Kevin Lane Keller, Abraham Koshy, and Mithileshwar Jha...
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SCM Benefits

The supply chain is a highly complex area. As a result, it can be a source of great efficiency and
cost-savings gains. Companies are realizing that more than ever, supply chain excellence drives
competitive advantage, customer relationships and shareholder value.

1. Improved SCM staff and task productivity – automate various SCM tasks – from plan-
to-produce, source-to-settle and order-to-cash processes – and improve business
processes, leading to increased productivity benefits. Typical productivity improvements
include savings in sourcing, supplier management, production planning and analysis,
production management, production staff, change order processing and management,
quality control and analysis, sales order entry and processing, promotions management,
fulfillment, and transportation and logistics.

2. Increased inventory turns/reduced days in inventory (inventory and inventory carry

cost) – more accurately forecast and source the amount of inventory needed, leading to
an increase in inventory turns and reduction in days in inventory. This leads to a one time
inventory reduction and ongoing carry cost reduction on the saved inventory.

3. Reduced days sales outstanding (days in accounts receivable reduction) – reduce

accounts receivable collections with better visibility into the AR process, aging and
extension of credit, helping to reduce days sales outstanding.

4. Reduced inventory scrap – reduce scrap write-downs with better quality control and
planning/forecasting.

5. Reduced cost of goods sold (COGS) – reduce cost of goods sold with various
improvements such as more effective sourcing of raw materials, tracking of work-in-
process, reductions in production quality, issues and planning, increases in production
efficiency and reduction in production overhead.

6. Improved strategic sourcing – strategically source direct and indirect materials and
better manage vendors, leading to material cost savings.
 DEPOT ACTIVITIES:

LOAD OUT ISSUED To market with M/C.

Billing, collection, outlet wise

transaction

Empties qty, brekages, Vehicle moves to Load in with declaration

etc………, are noted in unloading bay of fulls and empties at
ECIS Empties check (empties yard). the security gate.
updation ECIS
UPDATION

FULLS YARD here fulls Updating of loading sheet Load out based on
qty,brekage,lekage etc…,
FCIS UPDATION with fills for net load by orders form
shipping

Order input to road net from

handheld
Quick settlement in Cash remittance by
salesman through cash Dynamicrouting,
detail form (CDF)
loadout requistion for vehicle.

Sales man shortage/average for the

day preparation of check outslip by
Stock loaded into the
shipping
vehicles by the Load sheet preparation by
incharge based on the shipping for next days
ceck out slip load out

Outlet wise order upload to handheld.

Load sheet uploaded to hand held with

outlets.
DISTRIBUTION CHANNEL

The Coca Cola maintains a systematic distribution channels

The depot had three types of vehicles they are

A)LMV B) HMV C) TURBO

a). LIGHT MOTOR VEHICLE :-

its capacity is 4oo cases.

It is generally used for city market distribution.

It is the main distribution channel for the Coca Cola in the cities.

This distribution channel starts from the depot to the outlets.

This vehicles are utilized with maximum potential with the help of the ROADNET FUNCTION.

b). HEAVY MOTOR VEHICLE :-

its capacity is 650 cases.

It is generally used for plant to upcountry operations.

They are also used for supply of stock to the other depots.

They carry the pet bottles and the tins.

c.) TURBO VEHICLES :-

their capacity is 1100 cases.

They usually carry palletized cases.

They form the distribution channel from the plants to depots.

This channel is mainly used by annual maintenance contract.

This channel is also known as milk routes.

Conclusion

The Supply chain Management is a huge process where communication plays an important role
connected with every department in the company. So this flow of information from department

to department effectively and efficiently makes the SCM successful.

 CONTENT

. INTRODUCTION

. OBJECTIVES

. METHODOLOGY

.TOPIC DISCRIPTION

- INTRODUCTION

- DEFINITION

- COMPONENTS & OBJECTIVES

- DEPORTMENT ACTIVITIES

- MOVEMENT OF RGB STOCK

- SCM BENEFITS

- CONCLUSION

- BIBILOGRAPHY
SUPPLY

CHAIN
MANAGEMENT