scm hccbpl sc study gr3 secb
TRANSCRIPT
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Study of the Supply Chain
Rajesh Bagrecha (069) Shubhajit Roy (084) Subhash Wagle (089) Somanath (088)
HINDUSTAN COCA COLA BEVERAGES PVT. LTD (HCCBPL)
Mentor: Mr. R. Dattir
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Flows in Supply Chain
Customer
Information
Product
Funds
- A roadmap for the study of the supply chain
HCCBPLHCCBPL
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A Framework for Structuring Drivers
Competitive Strategy
Supply Chain Strategy
Efficiency Responsiveness
Facilities Inventory Transportation
Information
Supply chain structure
Cross Functional Drivers
Sourcing Pricing
Logistical Drivers
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• Coca-Cola returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market
• In the same year, the Company took over ownership of the nation’s top soft-drink brand and bottling network
• Indian operations comprises 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers manufacture a range of products for the Company
Coca-Cola in India
• HCCBPL commenced marketing operations in the year 1993 and manufacturing activity in the year 1998
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This promise drives their supply chain strategy Coca Cola strives to deliver high quality product to the point of demand in 24 hour time span
Challenges: – Logistics Infrastructure– Unorganized retail sector– Coordination with widespread customer base– Able competitors
Coca-Cola is...
•The Symbol of Quality •Customer and Consumer Satisfaction•Responsible Citizen of the World
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Products of HCCBPL
• Thums Up (200 ml/ 300 ml)• Limca (200 ml/ 300 ml)• Sprite (200 ml/ 300 ml)• Fanta (200 ml/ 300 ml)• Coca Cola (200 ml/ 300 ml)• Kinley soda (200 ml/ 300 ml)• Kinley mineral water(500 ml / 1000 ml/ 2000 ml)
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Information FlowRaw Materials
Mineral Water and soft drink bottles
Suppliers Plant
Customer
RetailerDistributor
Depot D-56
THE CHAIN OF SUPPLY..
Empty bottles
Primary sales Secondary sales
High market
penetration and reach
Suppliers
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Distribution zones (districts)
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Upstream Supply Chain of HCCBPL
RM Items Supplier Supplier Location Inventory levels (qty / days of supply)
Sugar Renuka Sugar (single source) Karnataka 300 tons/1 week
Non-alcoholic beverage base
Coca Cola India (single source) Pune 15 days
Glass bottle Hindustan National Glass
Sinner (MH), Hyderabad 1-1.5 lac pcs
Crown ManakshayaL&T Daman 3-7 days
Crates Nilkamal Daman One time buy
CartonsNMT packaging,
Shivam Cartons, Cam Enterprises
Wada, Pune 2-3 days
Water MIDC supply (single source) Nashik 2 days
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Internal Chain of supply
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Receipts Invoicing Weighing Quality Check Picking & Staging for Stores Batch Making
Other activities at HCCBPL
Dispatches House Keeping Crate Washing & Management Transportation related MIS & coordination Tracking of costs of transportation Negotiating contracts with transporters MIS preparation
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Automated Chain of Internal Supply
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Downstream Supply Chain• Inventory
– 62 Distributors are contractually bound to carry minimum 3000 cases in lean season and 5000 cases in peak season & sell predetermined amount in specified time; not allowed to carry beyond a pre-determined upper limit
• Transportation cost optimization– Transportation costs are optimized through proper vehicle selection (HCV 16
tons, HCV 9 tons or LCV 6 tons)– FTL is achieved by consolidation of supplies with the depot (D-56)– The same vehicle is used for carrying empty bottles back from distributors
• Distributor selection process– Distributors are selected through a well defined process by cross-functional
team from Coca Cola, India
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Cycle view of HCCBPL Supply Chain
Customer Order Cycle
Replenishment Cycle
Manufacturing Cycle
Procurement Cycle
Customer
Retailer
Distributor
Manufacturer
Supplier
PULL PROCESSES
PULL PROCESSES
PUSH / PULL PROCESSES
PULL PROCESSES
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Supply Chain Coordination
Distributors
Coca-Cola, India, Pune
DAS
Sales Executive
Invoice, Physical products and
dispatch informationSales details,
inventory and demand information
Demand information and quantity of empty bottles
available at distributor
N.B: “Best Before Dates” to be given due priority
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Forecasting Model
Pyramid forecasting – Done at Corporate office, Pune
Rolled up fo
reca
st
Forced down adjustment
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Flow of funds in the chain Distributors make advance payments for supply of beverages by
EFT/Cheque in favor of Coca Cola India, Pune
Retailers buy on credit from distributors and pay in predetermined time intervals
HCCBPL pays its suppliers in 20-25 days which is the lead time for payment processing from Coca Cola India, Pune
Efficient Cash Flow
Management
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Managing seasonal demand
• Seasonal pattern of demand considered during forecasting
• Workforce added just before peak months• Transport arrangements planned as per forecast• Fully machinery utilization in peak months
Peak Capacity Normal capacity UOM
CSD Beverages4000 cases / shift 2800 cases / shift Case (24 bottles)
Packaged water 3300 cases /shift 2500 cases / shiftCase (15 bottles)
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Supply Chain metrics for HCCBPL
• KPI – Service Index – target 100 % order fill rate within 24 hours– Challenges:
• Transport shortages• Manpower shortages• Finished goods shortages
• Maintain transportation cost within pre-determined levels (changes based on fuel prices, toll taxes considered)
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Supply Chain Macro processes
• Source• Negotiate• Buy• Design Collaboration• Supply Collaboration
SRM ISCM CRM
• Strategic Planning• Demand planning• Supply Planning• Fulfillment
• Market• Price• Sell• Order management
Not under control of HCCBPL
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