Supply Chain Management

Nos. Names Roll Nos.

1. Mohammed Saad Shaikh 96

2. Nazmuddin Farooqui 106
3. Preeti Gupta 126
4. Sandeep Shetty 146
5. Survi Agarwal 166
CONTENTS
 SCM – Concept

 Objectives of SCM

 Benefits of SCM

 SCM of Coca Cola

Supply Chain Management
Is the process of planning, implementing and
controlling the operations of the supply chain
The purpose  is to satisfy the customer's requirement
as efficiently as possible.
It spans all  movement and storage of raw materials,
Work-in-process, inventory and finished goods from
the point of origin to the point of consumption.
 Supply Chain
Supplier Manufacturer Distributor Retailer Customer

Consists of all parties involved, directly or indirectly, in fulfilling a

customer request
 OBJECTIVE OF SUPPLY CHAIN IS TO
MAXIMIZE PROFIT

RIGHT PRODUCTS

RIGHT QUANTITIES

AT THE RIGHT

MOMENT

AT MINIMAL COST

 Benefits of SCM
1. Achieving the best delivery performance.
2. Reduction in inventory.
3. Accuracy in forecast.
4. Faster fulfillment of cycle time.
5. Lower supply chain cost.
6. Improvement in overall production
7. Capacity utilization.
Entered Indian Market in 1993
The Company has shaken up the Indian carbonated
drinks market greatly, giving consumers the pleasure
of world-class drinks
Creating Enormous Job Opportunities
A Healthy Growth to The Indian Economy
Brands
COCA-COLA
THUMS UP
SPRITE
FANTA
LIMCA
MINUTE MAID PULPY ORANGE
MAAZA
KINLEY
Distribution Network
HCCBPL has a wide and well managed network of
salesmen
Appointed for taking up the responsibility of
distribution of products to diverse parts of the cities
The customers of the Company are divided into
different categories and different routes, and every
salesman is assigned to one particular route
Route to be followed by salesman on a daily basis.
Contd..
A detailed and well organized distribution system
contributes to the efficiency of the salesmen.
It also leads to low costs, higher sales and higher
efficiency thereby leading to higher profits to the
firm.
The distribution channels are constructed in such a
way that the demand of customers is fulfilled at the
right place and the right time when it is needed by
them.
MANUFACTURING PROCESS AT HCCBPL (HINDUSTAN COCA-COLA BEVERAGES Pvt. Ltd.)
Manufacturing sites is at Wada, it takes four hours
from the plant to warehouse
Three warehouses in Mumbai :
 Bhandup Depot
 Ray Road
 Suraksha Depot
Distributes its products in 2 ways
Direct route Indirect route
Where company supply Where coco cola
its product in market by products are supplied to
company route or its its distributors
agent route by company appointed in different
owned delivery vans areas.
Then it is distributed in
the market by
distributors owned
tempo or vehicle
DEPARTMENTS INVOLVED IN THE
DISTRIBUTION PROCESS
Distribution Department:
- It appoints distributors and establishes a distribution network, processes approved
sale orders and prepares invoices, arranges logistics and ship products, co-ordinates
with distributors for collections and monitors distribution stocks and their set-up.
 
Finance Department:
- It checks credit limits and approves sales orders in compliance with the credit
policy followed by the firm, records collections from distributors, periodically
reconciles outstanding balances from distributors, obtains balance confirmation
from distributors and follows up outstanding balances.

Shipping or Warehousing Department:

- It dispatches goods as per approved by order, ensures that stocks are dispatched on
a FIFO basis, ensures physical control over load out area and updates warehouse
stock records in a timely manner.
Distribution Channel of HCCBPL
Pre-Sellers
Target given to pre-sellers - 5000 bottles if sold Rs 5000
Commission
1 Truck Driver with 2 loaders –(Order punch- 9am to 6
pm)
Outlet code and order Quantity is given
Once the New Bottles are replaced the retailers give
RETAIL INVOICE and money to the distributor who in
return bills the quantity
Every evening they submit invoice copy and money
30 pre-sellers approx per ware house
Reverse Logistics
In the case of pilferage and waste a Replacement
Form is given to the retailer who writes down the
issues and sends back to the company
The Company replaces within a week
 The various routes formulated by HCCBPL
for distribution of products

Key Accounts
Future Consumption
Immediate Consumption
General
The various routes formulated by HCCBPL
for distribution of products
Key Accounts:
The customers in this category collectively contribute a large chunk of the total
sales of the Company.
It basically consists of organizations that buy large quantities of a product in one
single transaction.
The Company provides goods to these customers on credit, payments being made
by them after a certain period of time i.e. either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

Future Consumption:
This route consists of outlets of Coca-Cola products, wherein a considerable amount
of stock is kept in order to use for future consumption.
The stock does not exhaust within a day or two, instead as and when required stocks
are stacked up by them so as to avoid shortage or non-availability of the product.
Examples: Departmental stores, Super markets etc.
Contd…
Immediate Consumption:
The outlets in this route are those which require stocks on a daily
basis.
The stocks of products in these outlets are not stored for future use
instead, are exhausted on the same day and might run a little into the
next day i.e. the products are consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions
etc. (canteen)
General:
Under this route, all the outlets that come in a particular area or an
area along with its neighbouring areas are catered to.
The consumption period is not taken into consideration in this
particular route.
The key account holders are –
 Mc Donalds
 Fame
 Cinemax
As they majorly sell Coca Cola Products they get huge
Discount 10 to 20 %
 Pricing
Box SKU Rs. MRP Cost Price Margin for Container
Retailers Type

Coca Cola, Thumbs Up, Sprite, Fanta, Maaza

24 200 ml 188 9 7.83 1.17 Glass
24 330 ml 258 12 10.75 1.25 Glass
24 600 ml 526 24 21.91 2.08 Plastic
12 1.25 ltr 356 33 29.66 3.33 Plastic
9 2 ltr 502 60 55.77 4.22 Plastic
Maaza
24 600 ml 526 30 21.91 8.08 Plastic
12 1 ltr 602 55 50.16 4.83 Plastic
Box SKU Rs. MRP Cost Price Margin for Container
Retailers Type

Kinley Water
24 500 ml 205 10 8.54 1.45 Platic
12 1 ltr 177 15 14.75 0.25 Plastic
Kinley Soda
24 200 ml 84 4 3.5 0.5 Glass
24 330 ml 146 7 6.08 0.91 Glass
24 600 ml 284 13 11.8 1.16 Plastic
The Coca-Cola system: Some key
statistics…
• sells over 1 billion servings of our beverages daily
in over 200 countries.
• produces in over 860 facilities located in over 150
countries.
• employs more than 300,000 people.
• is targeting assessments at over 10,000 supplier
facilities globally.