Spring Internship Report CCL | PROJECT REPORT ON STUDY OF OUTBOUND SUPPLY CHAIN AT COCA-COLA Submitted By: Prashant Dubey PGDM - 111 Trimester SESSION 2012 - 2014 SHANTI SSS Bt sbs & Shanti Business School, AnmedabadPRASHANT DUBEY — INSIGHT GEEKS. PREFACE fhe PGDM curriculum is designed in such a way that student can grasp maximum knowledge and can get practical exposure to the corporate world in minimum possible time. Business schools of today realize the portance of practical knowledge over the theoretical base. The Spring Internship Program provides an opportunity to the students in understanding the industry with special emphasis on the development of skills application of management theories and techniques. It is a new platform n analyzing and interpreting practical problems through the of learning through practical experience, which incorporates survey and comparative analysis. It gives the student an opportunity to relate the theory with the practice, to test the validity and applicability of hisher 1 life busines: classroom learning against rea tuationsPRASHANT DUBEY — INSIGHT GEEKS. ACKNOWLEDGEMENT I take this opportunity to express my profound gratitude and deep regards to my guide for his exemplary guidance, monitoring and constant encouragement throughout the course of this training. The help and guidance given by him time to time shall carry me a long way in the journey of life on which Iam about to embark Lastly, Iam thankful to staff of HCCBPL for answering my each query regard HCCBPL, Goblej for the valuable information provided by them in their 2 the process of the company. I am obliged to staff members of respective fields. Tam grateful for their cooperation during the period of my as ignment. Lam making this project not only for marks but to also increase my knowledge THANKS AGAIN TO ALL WHO HELPED ME.PRASHANT DUBEY — INSIGHT GEEKS. TABLE OF CONTENT PROCESS OF PRODUCTION > DePRASHANT DUBEY — INSIGHT GEEKS. RIM (ROUTE TO MARKET)PRASHANT DUBEY — INSIGHT GEEKS. INTRODUCTION + LJoined the Hindustan Coca-Cola Beverages Put. Lid — Gujarat, as an intern liter Sucesestully clearing the HA recruitment protocols (Group Discussion and Personal interview) of the company. + Hindustan Coca-Cola Beverages ie a fully owned subsidiary of The Coca-Cola, Company. + Me. T.krishnakumar is the Chief Executive Officer of Hindustan Goca-Goln Boverages Pvt Lid + For the very first two waeks I was placed in the corporate office of the company. where | learned about the corporate environment of the MNC's established in inelis = Attor the experience of two extraordinary weeks, my boss shifled me to the plant @ith an assignment se that | can get the experience of ine life at plant of ihe. Ningustan Goca-Gola Saverages, = The Coca-Cola plant of Quiarat is situated at the village Goblej in Ahmedabad — Kheda highway. 30 km. farfrom Ahmedabad city. + The plant is vory beautitully spread over 52 acres of land, as itis the first Groenfisid plant of India started in MARCH 1598, +The plant ie completely owned by the company and giving employment to the focal public. = The production process of this plant is totally untouched and the combination of tho iw materiale Te Gone on the basis of ie formula "7" which le pre-connied In the programs of the machines. ‘+ As this is the only one plant of Gujarat. its marketing area covers approximately Whole Gujarat but in scuth Gujarat He ternitory Is stopping Gharuch, the ares aor Bharuch comes into the termory of the Thane (Mumbai) plantPRASHANT DUBEY — INSIGHT GEEKS. HISTORY OF THE COCA-COLA [MIRACLE BY DR. JOHN PEMBERTON] The first Coca-Cola recipe was invented in Columbus, Georgia, by John Stith Pemberton, originally in 1885 coca wing was called asa ‘Pemberton's French wine Soca’ As miracle was made. by John Stith, & is assumed that he may have been inspired by the formidable success of Curopean Angelo Marianas, coca wine. Jenn Pembertan concentrated the Goca-Gola fownula ina ines legged brass kettle in 1 backyard. The name was 2 suggestion given by John Pemberion's Book keeper Frank Robinson. ‘The first sales were at Jacob's pharmacy in Atlanta, Georgia, on May 8 1686. It was Iniially Sold as S patent medicine's for five Conte a giase at soda fountains, which were Popular in the united states at the time due te the belle! that carbonated water was good forthe health, Pemberton claimed Coca-Cola cured many diseases, including morphine Addiction. dyspepsia, neurasthenia, headache, and Impotence. Pemberton ran the Hirst Savertisomont for the beverage on May 29 of ihe same year in the Adanta jourmal, For the first sight months only nine drinks wore sold each day. Appeared in 1955. The frat bottling of Coca-Cola occurred in Vicksburg, Mississippi. at the biedenharn candy company in 1897. le propriior was Joeph a biedenharn. The original bottles wore biedenharn bottles, very different trom ihe much later Nobble-skirt GeSign that is now so familiar, Aa a Gandier was tentative about bottling the annk, but the wo entreprenaurs who proposed the idea were so persuasive. However that Candler signed a contract proved to be problematic for the company for decades 10 come. logal matiors were Not helped by the decision of the bottlers to subcontract to Sther companies. in effect, becoming parent bottlers.PRASHANT DUBEY — INSIGHT GEEKS. Digttaz. Te CLC Ui Compary + The Coca-Cola Company is a 120 years old company with its origin from Atlanta, Georgia. Coke was at fist used ae 4 refreahmnent deine + The drink was discovered by Dr. Jehn Pemberton on May 8, 1886. The soft drink was givan the name Coca-Cola by Frank Robinson. + The Coca Cola Company was bought over and incomporated by Asa Grigas Candier, an entrepreneur = The company was then patented in the year 1887 and final was registered in 1893 + Coke sells 1.7 billion drinks @ day and it is the most recognized brand in the word, + The formula of manutacturing Coke lies in Downtown Atlanta on a piece of a paper. + The Coca-Cola Company was founded by Mr. Asa Griggs Candler after he Bought the Brand in 1889 and Incorporated the company in 1892. Muntar Kent Io the currant chanman & chief executive of the company. = The Coca-Cola Company is a beverage company which has several competitors throughout the world. But the leading compeiitors of the company globally are Popsice. Nestle and br. Pepper Snapple Group. + The people of Hong-Kong use Goca-Gola as a medicine tor cough & cold, by Serving ithat then its normal temperature,PRASHANT DUBEY — INSIGHT GEEKS. Dightaze.com syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it In a jug down the street to Jacob's Pharmacy and customers bought the drink tor tive canta at the soda fountain. Dr. Pemberton’s partner and book-keeper, Frank M Facts-O-File Robinson, suggested the name and penned “Coca-Cola” In the unique flowing senipt that Is famous worldwide even today. He suggested that “the two C's would look well in | Fie @@ Cote Compariy, advertising.” ‘The iret newspaper ad for Goca-Gola soon appeared In oan ee “The Atlanta Journal, inviting thirsty citizens to try -the new eSeeditemons maeaecn ard popular woda fountain urinic” By the your 1886, culow cies sis are of Coca-Cola averaged nine drinks per day. The first bevaranes that you arank ore yoar, OF, Pemberton sold 26 gallons of syrup, shipped in iecamioterinelat peed bright rod wooden Kegs. Flod has been a distinctive color Nee mfornne CoceColy associated with the soft drink over since. ssnawasetwcsn Later on Dr. Pemberton never realized the potential of the erent beverage he created. So ne gradually sok! portions of his Greeti one she wor, business to various partners and, just prior to his death i eae aainea ees 7Gee, sctd his remaining interest In Coca-Cola to Ava G. eaeentcng than anerosor (CaneNetian snitepreniour earn Aaleiim By tre Year 460! Fee ee oes waiter acquire complete ownership and control of the Goca-Cola Se ‘ Mr. Candler proceeded to buy additional rights and business, expand consumption of Coca-Cola to every state and they would reach the moon and Within four years, his merchandising flair had helped territory, ek Over 2,000 timesPRASHANT DUBEY — INSIGHT GEEKS. Digttaz. Mr, Candier later on liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Gandler, John Pemberton’s former partner Frank Robingon and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Goca-Gola,” Used In the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Company's incorporation, Mr. Candler announced in his annual report to shareowners that “Coca-Cola is now drunk in every state and territory in the United States.” As demand tor Ceca-Gola increased, the Company quickly outgrew its facilities. A new buliding erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca- In. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world Cola Company was sold to a group of investors for $25 mPRASHANT DUBEY — INSIGHT GEEKS. COCA-COLA SYSTEM IN INDIA Coca-Cola was the leading soft drink brand in India until 1977. when it left the country rather than revealing iis fermula to the Goverment and reduces ls equity stake aa foquired under the Foreign Rogulation Act (FERIA) which govermed the operations of foreign companies In India oca-Gola Gompany re-entered India through its wholly owned subsidiary, Goca- dia Private Limited and retauncnad Coca-Cola in 1998 after the opening up of jan economy to foreign investments In 1981 In India, the Coca-Cola system comprises of two different companies, a wholly owned Subsidiary “of The Goca’Cola. Company namely Coca-Cola india Put Ltd which Manufactures and sails concentrata and beverage bases and powdered. beverage mixes. and) a. Gompany-owned botting entity. named, industan Coca-Cola Beverages Pvt Lid. (As shawn in the following hierarchy) The Cola-Cola Company in India ct Hindustan Coca-Cola Coca-Cola India Beverages Pvt Ltd. ‘There are 13 authorized bottling partners of The Goca-Gola Gempany In India, who are Authorized to prepare, package. sell and distripule beverages Under certain specitiad trademarks of ‘The. Coca-Cola Company. and an extensive distribution systorn Comprising of our customers, distributors and retailers.PRASHANT DUBEY — INSIGHT GEEKS. COLA-COLA INDIA PVT. LTD. Coca-Cola India Pvt, Lid. is a Wholly-Owned Subsidiary of The Coca-Cola Company, OSA* While building the concumer franchise for The Coca-Cola Company trademaric, ft also leads world class governance systems for the operations of all partners In Bowlina. Suppliers, diatrioutors and other stakeholders: Manufacture & sells concentrate to bottlers: Brand Management Manages Franchisee Operations Comorate Reputation Management Coca-Cola India Private Limited sells concentrate and beverage only to authorized Boltiers who are authorized to use these to produce dur ponlole of beverages. These Authorized batllers Independently develop local markets" and disiibuic beverages to grocers, small retallors. supermarkets, restauranta and numorous other businesses. In inn. these customers make our beverages available to consumers across India, HINDUSTAN COCA-COLA BEVERAGES PVT. LTD. Hindustan Coca-Cola Beverages Pvt. Lid. - As part of the Bottling Investments Group of ‘The Goca-Coia Company, HECBPL has 22 Betting plants at strategic locations in Vatious states spread across India. "The GIG cover approximately os% af Bauling operations tor tha Coca-Cola System in India. Functions: Company owned bottler, member of the BIG. Distributes & Executes tha marcat Routines & Discipline the keywords of success Corporate CitizenshipPRASHANT DUBEY — INSIGHT GEEKS. BOTTLING NETWORK OF COCA-COLA HCOCBPL has an extensive distribution system spanning more than a million outlets Operating with world clase execution standards, The focus of the system is to develop Strong customer value while delivering preferred choice of refreshment alan arm's length of desire to the consumer. In the network of the Coca-Cola system, Coca-Cola has either of the two bottling Operation done tor the company, 1. COBO — Company Owned Boltling Operations: The company’s owned bottling plants are the 100% subsidiary of HCCEPL. It holds al the rights to manufacture the products as well as to botile the manufactured products, After 1993, when Coca-Cola re-entered the Indian market, it did _a lot of changes in Gxisting system of soft drink market prevailing in India, by aequiring tho major brands And the bottling operations from Parle. Goon Cola & PepsiGe launched im india at the Same ‘timo so_whon Coca-Cola bought the leading beverages products of Parle, the Parle's propertigs wore took over by Pepsico. Alter that the Coca-Cola Company founded some of its own bowling operation in India. In yoar 1997, company did a major Investment of $700 million in India by purchasing other bottling operations, all around, India and introduces new technology in them. These bottling plants are called Company Owned Bolling Operations Company has full ownership and operational right for these types of operations: 2. FORO — Franchise Owned Bottling Operations. Franchise Owned Bottling Operations are the other type of bottling operation for the company to these: the company has given the right to produce the product for the Sempany and to supply with ine tarritory assigned by the company Company has ne Swnership or operational right / control over these,PRASHANT DUBEY — INSIGHT GEEKS. Dighaz. THE PRESENT POSITION OF COCA-COLA INDIA Coca-Cola entered in India in the year 1952 and was first launched in Agra in the year {993. followed by pune in 1996 ald Anmedabad in 1998 in which Goble] was the tiret Plant to be installed. Coca-Cola employs more than 1-75 lakh Indian people with S7 Botting plants throughout the country. Goca Cola in indig is divided ‘into 3 regions Ramely horthern, southern and central. They rank the 1 In the area of producing Concentrated and nen-concentated and they rank 2" in the producing mineral water Gainloy) atter isierl They have market share of 85.4%, Goke mules tne tap No. 1.brand, In the world's top 100 Brands. List of Coca-col products available in Indi Coca-Cola Biot Core. Phuma Up 2 3. Sprite 5. Fanta Orange 6. Fanta Appts Masza fi tes il re tee oes Be NEE brink tae cam a dees Nee acetic Hine taker aon es te hiea oergctat Bi Kinley Soda 22’ Schweppes Soda Water 23’ Schweppes Tonic Water 3a. GEORGIA Gold 25. Nestoa 8 a A @ 6 ewPRASHANT DUBEY — INSIGHT GEEKS. PACKAGES OF THE PRODUCTS The Coca-Cola products are available to its customer in different sizes and packs depending on the beverage, Basically the company manufactures the product and Boltion iin § dittorent kinds of packs. 1. RGB — Rowrable / Refillable Glass Bottles. 2) PET — Pinstic Bottles 5. GAN — Aluminum Cans (Tins) 5. BIS” Beverages In Bag RGB — These bottles are the glass bottles which are available in the size of 200ml & 300 mi. The consumer can buy these bottles trom ihe retailer but once the beverage is Consumed by the consumer the bottle is to be relumed to the retailer and tne amount ald to the retailer ie only for tho beverage. The rotallor will later on roturn tho bottle to fhe manutacturer and the bottle will be reused alter certain cleaning procedures: PET — These are the plastic bottles made from Polyethylene terephthalate. The plastic bottlos aro much liked by the consumers as they don't have to raturn the bottle to the Fotaller. The consumer can Duy the bottles trom the retailer and drink ® at any proferred CAN — These are the aluminum cane which can be easily seen in the market. The casts Sf these cans are higher than the normal PET and AG battles. TETRA — Those are the special packs Used for the juices only, The CSD are not Available in these packs. BIB — These are the bags which are not available to the consumers, these bags are Used for the fountain machines at the mall, heaters, etc. ft contains tho boverages only without the CO2. The carbon dioxide is later added when iis being served 10 Ine Customer in glass.PRASHANT DUBEY — INSIGHT GEEKS. COMPETITORS OF COCA-COLA IN INDIA gets a tough competition through the other global leaders as well as the domestic Companies. The leading Compotitor of Coca-Cola in the country is PepsiCo, But beside: Pepsico the other competitors are Parle & Or. Pepper Snapple Group which ts establishing in India. Coca-Cola's product Thumsup (India) gets a tough competition with the Pept the thumsup is becoming the generic name for cola in India. The huge demand tor thumaup inthe Indian market fe giving a tough campatition to the Papel. The, advertisoment of the thumsup is liked by many of the youngsters and the claim of thumsup for a strong cola attracts the youngster towards it. as compared to Pepal thumeup is a mild soft drink which is not as strong as thumeup. The Coca-Cola's brand product Coca Gola ie not 99 much liked In the country and has a limited market, 90 the maintained in the country. But the company Is trying its best to popularize the Goca-PRASHANT DUBEY — INSIGHT GEEKS. Digttaz. The soft drink market all over the world has been witnessing a neck to neck battle between the two major players, Coca-Cola and Pepsi since the very beginning. The thirst quenchers are trying hard to have the major chunk of the pie of carbonated salt drink market. Both the players aro spending. their onergios in building capacity. infrastructure, promotional activities atc. Coca-Cola has bean eaming most of its bread and butter through beverage sales; Pepsi has a multi products portfolio with some Portion trom the same business. LIST OF COMPETITORS AND THEIR PRODUCTS. Coca-Cola In Pepsico india Parle Agro Dr. Pepper Snapple ‘Coca-Cola Pepsi - RC Cola Diet Coke Diet Pepsi = = Thumsup. Dukes Cola = = Sprite Mountain Dew - = Burn Gatorade - = Limea 7up = : MM 100% Juice Trapicana Saint Juice = Maaza slice Froati - Fanta Mirindal = 2 Nestea Lipton, = - MM Nimbu Fresh Nimbooz LM - Kintey Aquafina Bailey = Kinley Soda Leher = = Schweppes Tonic Dukes Tonic - -PRASHANT DUBEY — INSIGHT GEEKS. HCCBPL PLANT AT GOBLES The Goblej plant of Hindustan Coca-Cola Beverages Pvt Lid is situated in kheda district of Gujarat. The plant is spread in a 52 acre land and it is the largest plant of the company in the County. It became the largest plant of the country in the year 2012 When it installed its 10” production line. By now here are total 17 production line and out Of them 10 are active. "The Second plant after goble| plant is the plant of Thane — WADA, Mumbai, Which has 8 production lines. In Goble) plant there are 14 bottling lines out of which 3 are RGB (Returnable Glass Bottle) nes, 5 are PET (Plastic Bottle) lines. 1 Io Teta Pack line another 1 BIB (Beverages in Bag) line which makes a total of 10 lines. The 11" line is the JAR line for Kinley Water which is currently inactive. Geside 11 production fines the plant also has the 3 warehouses: out of which 1 Is used to store juices and the other 2 are used to Store rest of the products. ‘The Goble] plant also takes care for the demand of in Rajasthan & Madhya Pradesh. These states also has HCCEPL plants, but due to the bad water facilitios they are not able to fulfill the demand of the consumers in the statePRASHANT DUBEY — INSIGHT GEEKS. Digttaz. DISTRIBUTION CHANNEL HCCBPL has a wide and well managed network of salesmen appointed tor taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such @ way that the demands of customers are fultilled at the right place and the right time when It is needed by them. A typical distribution chain ALHCCBPL would be:PRASHANT DUBEY — INSIGHT GEEKS. Digttaz. ‘The customers of the company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by hin on a dally basis. A detailed and well organized distribution system contributes to the Stticiency of the salesmen. It alao leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm The finished goods manufactured at the goblej plant are sent to 3 different locations: Distribution Center: The distribution center is the warehouse located at a distance of 2.2.5 KM away from tho goble| plant. The products are distributed to the distributors from DG. Once the product is manufactured at the plant, itis dispatched te the OG after certain days whenever a demand Is raised by the distributor, Inter-unit: These are the other COBO / FOBO plants located in the other states of the country. As Goble) plant is the country’s largest plant so it able to manufacture as much fs quantity that it can also supply the FG to the other states. The water facility in other States like Rajasthan, Madhya Pradesh, ote. is not that good so to cover up the demand Of the customers in that state the Coca-Cola transit products to the other states too. The Goble| plant earns a small margin of profit when it transits the products to other parts of the country, Intra-unit: These are the depots of the company; the depots are set up by the company so that the products are directly distributed to the retailer, So a depot located in Bangalore, Dein, otc. can order for the products from tho goble} plant when the demandPRASHANT DUBEY — INSIGHT GEEKS. SUPPLY CHAIN PROCESS The Supply chain management (SCM) Is the management of a network of Interconnected businesses involved in the provision of product and service packages: required by the end customers ina supply chain. 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. There are 2 types of Supply chain management, INBOUND & OUTBOUND. Distribution means supply of goods from company to its ultimate user. Alter manutacturing the product the important work for the company is to provide its goods to Re ultimate user at the right time. OUTBOUND LOGISTICS PROCESS Once the product is manufactured on the production line, itis picked up by the forklift and the forklift takes it to the warehouse whore it is kept, So when the order for that Product arises the product is dispatched in to the market. The outbound logistics process is carried over by the trucks, through trucks the products are taken out of the Warehouse and distributed In differant locations.PRASHANT DUBEY — INSIGHT GEEKS. PROCESS OF PRODUCTION > DC Following is the complete process slarting from production till dispatching the products 1 10. n First of all the production planning is given to the production department. The products are manufactured according to the production planning. Al the time of production, the person from quality assurance department pickup up any 2-3 bottles of the product from the production line and take It tor testing, Once the product is manutactured. It Is taken to the warehouse. but until the quality department approves the batch no. of the product the product Is kept at the status of “Finished Good on Hold! Alter getting the approval from the QA department the FG is allowed to move out of the product. When the FG is to be moved out to DG or inter-unit, the Sales Order is created for that FG. ‘The Forklifts bring the FG out of the warehouse and load the goods on the truck. The checker verifies the upload, by taking care that the FG uploaded are as per the So. Once the FG is uploaded on the truck the checker fills the form of the goods loaded and later on the security guard verifies the form as well as the loaded goods. Alter all the above procedure, the bill for the truck is prepared by the billing department ‘Once the bill is prepared the truck is allowed to move out of the plant.PRASHANT DUBEY — INSIGHT GEEKS. Dighaz. BILLING PROCESS ‘The Billing process is a simple process which has only 2 stages for the local distribution, but for the inter-unit vehicles It is necessary 10 prepare the road permits so that the trucks can cross the border of the state. 1. When the driver arrives at the billing unit / department, the very first step is to prepare the L/R (lorry receipt) of the truck. 2. Once the LA is prepared, the L/R, SO and the form prepared by the checker is to be submitted to the billing department. 3. The process of billing Is done in the ERP system of the coca cola which is named a5 "MFGPRO" system prepared by the QAD technologies. 4. The billing department prepares the bill on the basis of the SO number mentioned in the SO document. 5. Im the first process, the truck details and the quantity leaded on the truck are entered in to the system. 6. Sometime it happens that the truck loaded has the less no. of quantities then it was mentioned in the SO, so the user on the system has to reduce the number of the quantities in the SO. and the deducted quantity is then again available for the other SO.PRASHANT DUBEY — INSIGHT GEEKS. Digttaz. 7. The user can reduce the number of quantity but he cannot increase the quantities, so it has to be taken care that the loaded quantity should be equal to the quantity mentioned in the SO. 8. Till then the 50% of the bill is created, the next step is to enter the freight details depending on the truck / transporter. 98. Once the freight details are entered for the truck, the printout of the bill is taken fut and given to the truck diver. 10.(For the vehicies of iner-unit it Is required to prepare the read permit otherwise the vehicle will not be allowed to enter in to the other state) 11.Then the truck can leave the plant. FREIGHT CALCULATION The Freight department is completely different from the bill 19 department. This department maintains the freight of the trucks with the coordination with the transporter. The Freight of the truck is calculated on the basis of tonnage (woighd of the truck. Kilometers to be vavelled and the charge asked by the transporter for the truck. Each wansporter provides their truck on the different rates. It Is the job of the freight department to collect the dotails of the freight from the afferent transporters and enter thom in to the system. So at the time of preparation of bill when the user will enter the name of the transporter the freight will be automatically applicable There are 9 different types of freight 1. Fixed — The fixed rate is applicable for the trucks which are owned by the company or which are taken over on a contract of a specific poriod of time. For example: If a tuck is taken from the tansporter at a price of 12 lakhs for month then a fixed charge is applicable for that truck. It doesn’t matter that what is the weight of the goods loaded on the truck or how many trips does the truck has completedPRASHANT DUBEY — INSIGHT GEEKS. Dighaz. 2. Variable — The variable rate is applicable when the rate Is not fixed for that Vehicle. The fixed and variable charges are applicable on the trucks of 2 ways. which means that the truck will come back to the plant after the delivery is dene. 8. Tonnage — The tonnage charge is applicable when the freight is calculated on the basis of the weightage of the truck and the truck is a one way truck Le. the truck will not return after delivering the gods.PRASHANT DUBEY — INSIGHT GEEKS. RTM (ROUTE TO MARKET) The route to market process ie divided In to 2 processes Distribution and Fleet Management. DISTRIBUTION PROCESS The distribution process is the process which starts from getting the order from the distributors tll delivering the goods to the distributors. This completo process comes: Under the distribution process. Coca cola Gujarat is currently having 303 distibutors throughout the state 1. The very first step in the distribution process Is to collect the order trom the distributors. 2. To do the above process. the company has hired the sales team, it is the job of every sais person to coordinate with the distributor and get the order. 3. Each distributor has their PDP (Permanent Dispatch Plan), Le. there are some fixed days like Wednesday, Friday & Sunday. Se on these specific days the sales Person will got the order trom the distributorPRASHANT DUBEY — INSIGHT GEEKS. 4. As shown in the above figure, the sales agent contacts the distributor. But in the rea where the distributor is not allocated, over there the sales agent goes to ach retailer and gets the order personally. BY CONTACTING DISTRIBUTOR 1. In the area where the company has its distributor. the sales agent gets the order And submits the ordor details 10 its head department. 2. The department will enter the order details in the KOMPASS software and that application will get the complete details of the order like total amount, no. of cases, weight. ote. 93. “The total weight of the order should be according to the required norms, because of the weight of the order is too less than the company will not be able to load the truck and send It to distributor, as they will face loss on that truck. 4. The solution for the above problem is thal, If the woight Is low as per required, the agent club the orders of 2 nearby distributor so that the truck can be loaded land no loss is beard by the company. 6. So once the order is confirmed trom the distributor, the total amount is informed to the distributor and the distributor has to deposit that amount in the company's Account then only the goods will be dispatched. 6. The distributor has to tile the RTGS (Fleal time gross settlement) fer the quick gettlement of the order. 7. Once the payment IS confirmed, the order is displayed in the system of distribution center,PRASHANT DUBEY — INSIGHT GEEKS. Digttaze.com 8. The job of the DG ie te canfirm the order and dispatch the required order to the distributor. BY CONTACTING DIRECTLY RETAILER 1. In the areas where the company does net have any distributor, at that place the company has ils own depot ‘The sales agent from the depot has to visit the retailer to get the order. Each sales person ia allocated an area which lo called PUP (Permanent Joumey Plan). The sales person has to move as per thelr journey plan se that no retaller is missed out 4. The sales person has been given BLACKBERRY mobile phones in which they hhave to take the order: the mobile phones are directly linked to the system of the depots. 5. So when the retailers gives the order to the sales person the sales person enters the dotalla in the BLAGKGERRY and that order ie directly visible In the aystem. By the 7 PM in the evening the process of taking the order stops. Now the next process is to get tho dotails from the system at the depot, it is gathered by the respective person and then the next day the delivery Is made to the retailer. 8. The retailer has to pay at the spot when the goads are being delivered; no RTGS takes place for the Fetal en xo MILK ROUTE DISTRIBUTION 1. Milk route distribution is the 3" process through which the goods are delivered to the retailers. 2. In the above 2 processes the sales agent has to contact the distributor or retailer, but the process of milk route distribution Is completely different. 9. In this process, @ truck filled with almost all the products leaves the depot and go fon its journey, then it stops at each shop on A selected route and ask for the order. It the retailer gives the order then the person provides the order at the spat and the retailer pays the amount at the spotPRASHANT DUBEY — INSIGHT GEEKS. FLEET MANAGEMENT Fleet management is the second process of the RTM, the shipping department has to manage the fleet by ordering the trucks fram the transporter. ‘The requirement of Trucks. Ig changed on the daily basis, depending on the order given by the distributor or retailer. So the company cannot hire a fixed number of tucks for the period, So to enhance the process and make it cost effective the shipping department coordinates with the transporter and orders the trucks. It Is to be taken care that the trucks arrives in the time at the DG, because of that won't be done then there will be delay in delivering the goods to the distributor.PRASHANT DUBEY — INSIGHT GEEKS. SWOT ANALYSIS STRENGTHS: STRONG DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network la formed on the basia of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets open-bay three wheelers to 10-tonne trucks that can navigate through narrow alleyways, Of Indian cities STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limea, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The fed and white Coca Gola ts one of the very few things that are recognized by people all aver the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. LARGE SCALE OF PRODUCTION: As Goca-Gola is the leader of the soft drink Beverages In the country. the level of production is much higher as compared to the lovel of production of the competitors. So as the volume of production will increase the cost of the product can be decreased. This will give a tough competition to the competitor. 27 CONSECUTIVE QUARTERS OF GROWTH: The Coca-Cola India has filed the 27" consecutive quarters of grawth which meana that the company iain stage of earning prottt trom the last 27 financial quarters which le very good tor a company. This can Boost the performance of the company and demolivate the competitors 100.PRASHANT DUBEY — INSIGHT GEEKS. Dightaze.com SWOT Analysis WEAKNESS: NEGATIVE PUBLICITY: Many of the health conscious people in India consider the carbonated soft drinks as a health destroyer which affects the health of the person. It @ffect to the bones of the human boing. In India sometimes the CSD are referred to the Sollet cleaners”. So as Coca Cola Is the country’s biggest brand in this category, It has to face the consequences.PRASHANT DUBEY — INSIGHT GEEKS. Digttaz. CONTROVERSIES: In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manutacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT. malathion and chlorpyrifos- pesticides that can contribute to cancer and.a breakdown of the immune system. SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company's operations are carried out on a small scale and due to Government restrictions and “red. tapiem’, ihe Company finds it very difficult to invest in technological advancements and achieve economies of scale OPPORTUNITIES. LARGE DOMESTIC MARKETS: The domestic market for the products of the Company Is very high as compared to any other soft drink manufacturer, Coca-Cola India claims a 58% share of the soft drinks market; this includes a 42% share of the cola market Other Products account for 16% market share, chiefly led by Limea. Coca-Gola amounts for 74% of the beverage market, ACQISITIONS: As the Coca-Cola is acquiring the Indian beverage market on a large basis many other domestic companies are dying. So to increase the number of brands. in the company's portiolio there is an opportunity for the company by acquiring the popular brands of the other companies and increase the percentage of market ownership. EXPORT POTENTIAL: The Company can come up with new products which are not manutactured abroad, like Maaza etc and export them to foreign nations. It can come Up with strategies to oliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and itis yet another opportunity to broaden fulure prospects and cater to the global markets rather than just domestic market GROWING BOTTLED WATER MARKET: The bottled water market in India is ncreasing day by day, but the market is slill captured by the other leaders in the market Ke Bislon, Aquatina, and the other small domestic players. So the Coca-Cola can try ls best to acquire the market through ite product KINLEY.PRASHANT DUBEY — INSIGHT GEEKS. Dightaze.com HIGHER INCOME AMONG PEOPLE: Development of India as a whole has led to an Increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their Income. The beverage industry can take Advantage of such a situation and enhance their sales THREATS: INTENSE COMPETITION: The Company is facing a tough competition trom its leading competitors in the country. The competitors are trying thelr best to convince the Youngsters by advertising @ lot with the popular actors of the flim industry. This can Increase the share of the competitor in the market IMPORTED PRODUCTS: As India ic developing at a fast pace, the per capita income has increased over the years and a majority of the people ara educated, the export levels have gone high. People understand trade to a large extent and the demand tor foreign goods has increased over the years. If consumers shift onto Imported beverages: rather than have beverages manufactured within the country, It could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. DEPENDENCE ON BOTTLING PARTNER: The Company is much dependent on its FOBO (bottling pariner) so the company cannot success without the proper coordination of its bottling pariner TAX AND REGULATORY SECTOR: The tax system in India Is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity Is mentioned on the license and overy time the production capacity needs to be increased, the license poses. a problem. Renewing or updating a license every now and then is dificult. Therefore, this can limit the growth of the Company and pose problems.PRASHANT DUBEY — INSIGHT GEEKS. TARGET / TASKS ‘The task for the Internship was to optimize the transportation system from plant to DC. The Goca-Gola goble| has recently opened the DC which is approx. 2 kilometer away from the plant. The company wanis to dispatch the at least 60-100 thousand of cases, per day from plant to DC, but due to certain issues this was not happening. The Company has hired 12 tucks which can carry of 21 tons of goods alone time. The tuck works for all the three shifts. So my task was to analyze the problem which is depleting to achieve the target and help the company to achieve the target of the no. of trips made by tuck ina single shift ACHIEVEMENTS | eared lot things in these 45 days of internship. Starting from the excel functions which are commonly Used all most all the leading firms to the shipping and supply chain process of one of the world leading beverages company. The very first two weeks of the Internship gave me tha experience of the corporate environment and the remaining days at the plant gave me the experience of the lite at_a plant of any company. The plant environment is completely opposite to the corporate environment. learned the excel functions like VLOOKUP, GONCATENATE, HLGOKUP, ete. which wil surely help in future. Learning of the supply chain management of such a big company gave me the practical experience of the supply chain functions of the company.PRASHANT DUBEY — INSIGHT GEEKS. FINDINGS Following are the few points which can help to Improve the transportation system: 1. The SO's should be kept prepared in advance, because it happens that in the morning the trucks are loaded and standing at the gato, but due to ne SO available for that truck the truck le not able te leave the plant. 2. The location of shipping unit should be changed and bring it back to the warehouse, the reason Is that by the time the truck loading Is confirmed and the driver Is tying the ropes, the bill can get prepared and the truck can then directly leave the plant 3. The billing for ompty trucks should be bringing out of the billing department, itis a fasy process which can be done by the security guard also, requires no system. 4. Increase in the no. of the billing person, there should be a person who can delegate the job of billing in-charge lo ensure the quick functionality of billing 5. Tho checkars should ensure the quick loading of the FG on the trucks, Sometimes it happens that a single forklift go to warehouse and brings the FG, after lining them up the, the same forklift loads them on the truck. This process 6. In the morning if no truck is available at the bay, then a preloading should be set ear ine loading bay. So that when the trick will arrive, loading can be directly 7. The lunch time for the forklift drivers as wall as the truck drivers should be the same. After the specified period of time the truck driver should net be allowed to take break. If the truck drivers are at DC at the time of lunch, then the lunch Should be provided over there. 8. Sometime it happens that the driver does not deliver the SO and yellow form tor the L/R on time, ne keeps on sitting In his vehicle. So a person should take care that as soon as the tuck comes near the billing area, he should collect the form and get it for Biting purpose. & dinner alternatively. So that if one driver is having ite lunch then the other driver can complete one trp and when he comes back the other driver can do his trip, land by the time both would ave taken their lunch. 10. Sometime it happens that the loading bay Is empty and the truck is standing near the gate, so thie le to be Informed to the driver that if he wants to go for lunch then he should leave the truck at the loading bay so that by the time the truck is loaded he would have taken the lunch.