Procurement and Supply Chain Management of Coca Cola Australia

Running head: PROCUREMENT AND SUPPLY CHAIN
Procurement and Supply Chain Management
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PROCUREMENT AND SUPPLY CHAIN
Executive Summary
Coca cola Australia is subsidiary company of Coca Cola beverages which is one of the
largest company in the world headquartered in Atlanta. Coca Cola Australia sources syrup
from Coca Cola Atlanta which is unique ingredient of their products and accordingly sources
various other ingredients such as juices and sweeteners from local Australian suppliers to suit
to local taste preferences of customers of Australia. The company has an effective supply
chain management system which helps in ensuring widespread popularity of products. Coca
Cola Australia also uses various IT tools in the form of Materials Resource Planning to
increase efficiency of their supply chain activities Moreover, there are various inventory
management challenges which are faced such as lack of visibility and difficulty in identifying
demand pattern. Coca Cola uses black book algorithm to avoid negative consequences of bull
whip effect and make their supply chain effective.
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PROCUREMENT AND SUPPLY CHAIN
Contents
Executive Summary...................................................................................................................1
Analysis......................................................................................................................................3
Part A.....................................................................................................................................3
Part B......................................................................................................................................4
Part C......................................................................................................................................5
Part D.....................................................................................................................................6
Part E......................................................................................................................................7
Discussion of Coca Cola Australia’s procurement and supply chain analysis......................8
Improvement Programs..........................................................................................................8
Role of improvement programs in achieving mission, vision and strategic goals.................9
Conclusion..................................................................................................................................9
References................................................................................................................................10
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PROCUREMENT AND SUPPLY CHAIN
Analysis
The mission of Coca cola Australia is to refresh world, inspire moments of optimism and
happiness and create values and make difference.
The vision of Coca Cola is to become a good workplace where employees are motivated to be
their best, offer wide range of quality products which fulfil needs and wants of customers,
nurture strong relationship with customers and suppliers and build mutual and enduring
values. Coca Cola also aspire to be responsible corporate citizen who could build uniqueness
by building and supporting sustainable community along with maximizing shareholder
returns by being largely efficacious, optimal and progressive company.
Strategic goals of Coca Cola are to strengthen category leadership position, improve
productivity and market execution and ensure effective alignment with their partners.
Part A
1. The key product categories which procurement department of Coca Cola Australia has to
manage are sparkling non-alcoholic product, still non-alcoholic and energy drinks.
2. Coca Cola Australia purchases syrups and concentrates from TCCC which holds patent
formula of company which is highly confidential.
3.According to Kraljic (1983) Supply market of Coca Cola Australia is diverse in nature and
has multiple suppliers based across Australia who supply ingredients according to local taste
preferences which are accordingly mixed with original patent syrup of Coca Cola.
4. The supplier selection at Coca Cola Australia is based on complying with values and
expectations by suppliers laid down in the Supplier Guiding Principles of Coca Cola.
Coca Cola Australia manages its suppliers with simple framework which is termed as Partner
for Growth which helps in segmenting their entire supply base and allows to invest time and
effort in an appropriate manner.
5. The key supply related challenges and opportunities for Coca Cola Australia in beverage
industry are:
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