Demand Planning at Coca-Cola: What’s the Secret Formula? If only it were that simple to sell 1.7 billion servings of sugared water a day. But, like just about every big corporation with a complex, global supply chain, Coca-Cola battles constantly to align its various disciplines and their diverging priorities. “Plants want to run as much as possible. Sales wants to sell more. Marketing assumes huge successes. Logistics and procurement are on their own. Finance is saying no to everything,” said Rob Haddock, group director of planning with Coca-Cola Refreshments (CCR). Sound familiar? To be sure, The Coca-Cola Company has sought to streamline and simplify a supply chain that historically was fragmented by its very nature, with production and bottling carried out by separate entities. CCR was formed in 2010, when Coca-Cola acquired the North American business of CocaCola Enterprises, its largest bottler. The sales and operations side was branded as CCR, which also took in the majority of The Coca-Cola Company’s U.S. and Canadian businesses. In the process, the company began paring back the number of bottling operations, both owned and independent. The 353 ownerships that existed at the time of CCR’s formation have been gradually reduced to 100 plants and 76 ownerships, Haddock told the San Francisco Roundtable of the Council of Supply Chain Management Professionals, at a recent meeting of the group in the Bay Area. (There were more than 1,000 bottling plants in 1960, Haddock noted. The formation of Coca-Cola Enterprises in 1982 marked the beginning of the company's efforts to get that number down. Today, the Coca-Cola production and distribution network consists of 742 facilities, and more than 650 distribution centers. The company is still working to “clean up” the system so that individual units have more contiguous territory, Haddock said. Complicating matters is the huge number of products that are sold under the banner of Coca-Cola and its subsidiaries. “Coke” itself comes in multiple flavors, with and without caffeine and sugar. But the entire line comprises some 3,500 products. And the company is hardly immune to the trend of SKU proliferation. “It’s been total chaos since the introduction of Diet Coke in 1989,” Haddock joked. Or was it a joke? Your report must include, the following: • The importance of forecasting to Coca-Cola; time horizon frequency of forecast efficiency and productivity of personnel. Argue which forecasting method and technique would be best suited to Coca-Cola, between: Quantitative forecasting or Qualitative forecasting Analyse the value of collective planning, forecasting and replenishment (CPFR) in relation to Coca-Cola Strategy and planning Demand and supply management. Execution Analysis.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Demand Planning at Coca-Cola: What’s the Secret Formula?
If only it were that simple to sell 1.7 billion servings of sugared water a day. But, like just about
every big corporation with a complex, global supply chain, Coca-Cola battles constantly to align its
various disciplines and their diverging priorities.
“Plants want to run as much as possible. Sales wants to sell more. Marketing assumes huge
successes. Logistics and procurement are on their own. Finance is saying no to everything,” said
Rob Haddock, group director of planning with Coca-Cola Refreshments (CCR). Sound familiar?
To be sure, The Coca-Cola Company has sought to streamline and simplify a supply chain that
historically was fragmented by its very nature, with production and bottling carried out by separate
entities. CCR was formed in 2010, when Coca-Cola acquired the North American business of CocaCola Enterprises, its largest bottler. The sales and operations side was branded as CCR, which also
took in the majority of The Coca-Cola Company’s U.S. and Canadian businesses.
In the process, the company began paring back the number of bottling operations, both owned and
independent. The 353 ownerships that existed at the time of CCR’s formation have been gradually
reduced to 100 plants and 76 ownerships, Haddock told the San Francisco Roundtable of the Council
of
were more than 1,000 bottling plants in 1960, Haddock noted. The formation of Coca-Cola
Enterprises in 1982 marked the beginning of the company's efforts to get that number down.
Today, the Coca-Cola production and distribution network consists of 742 facilities, and more than
650 distribution centers. The company is still working to “clean up” the system so that individual
units have more contiguous territory, Haddock said.
Complicating matters is the huge number of products that are sold under the banner of Coca-Cola
and its subsidiaries. “Coke” itself comes in multiple flavors, with and without caffeine and sugar.
But the entire line comprises some 3,500 products. And the company is hardly immune to the trend
of SKU proliferation. “It’s been total chaos since the introduction of Diet Coke in 1989,” Haddock
joked. Or was it a joke?
Your report must include, the following:
• The importance of
time horizon
frequency of forecast
efficiency and productivity of personnel.
- Argue which forecasting method and technique would be best suited to Coca-Cola, between:
Quantitative forecasting or Qualitative forecasting
Analyse the value of collective planning, forecasting and replenishment (CPFR) in relation
to Coca-Cola
Strategy and planning
Demand and supply management.
Execution
Analysis.
Step by step
Solved in 5 steps
