Supply Chain Management : Assignment Solved

Running head: SUPPLY CHAIN MANAGEMENT
Supply chain management
Name of Student
Name of University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Background of the organisation.................................................................................................2
Modifications of existing operations..........................................................................................4
Integrated supply chains.........................................................................................................4
Effective resource management.............................................................................................5
Human factors engineering.....................................................................................................6
Industry 4.0/Automation.........................................................................................................7
Systems safety........................................................................................................................8
Justification of choosing the design.......................................................................................8
Benefits and risks of supply chain integration...........................................................................9
Important resource for organisational productivity....................................................................9
Evaluating key perspectives and phases of supply chain management...................................10
Conclusion................................................................................................................................11
Bibliography.............................................................................................................................13

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Introduction
In the modern world, engaging in a proper operational management is important for
gaining success in market. According to Christopher (2016), every organisation need to
understand the factors that are essential for the development of business and setting up the
operations is one of the most important aspects that exist. Therefore, the supply chain
management of an organisation is one of the most important aspects that need to be focused
on for the development and betterment of the business. In this assignment, the organisation
that is in focus is Coca Cola, one of the reputed business organisations in the world best
known for manufacturing soft drinks (Coca-cola.com, 2018).
The operations of the business is analysed along with the integrated supply chain that
exists in the market. The effective human resource management and the factors that relate
human with machines are analysed. At the same time the benefits and risks that Coca Cola
may face while implementing supply chain management is assessed. The most important
resource required for the success of the organisation and increase in its productivity is
suggested in the assignment. The perspectives and phases of supply chain design is evaluated
and considered for the development of the assignment.
Background of the organisation
Coca Cola is a carbonated soft drink manufacturing company that has been in
existence since 8th May 1886 (Coca-cola.com, 2018). The initial introduction of the company
was based on its development of being a patent medicine. However, with its rise in the
market and with the change of ownership of the business, Coca Cola has become one of the
most reputed names in the soft drink manufacturing industry. One of the advantages of Coca
Cola is the fact that the formula for replicating the drink remains a trade secret (Coca-

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cola.com, 2018). This provides an advantage for the company as the original product remains
largely as an advantage.
In terms of operations, the company mostly focuses on customer satisfaction. The
bottles manufactured are distributed to various stores, restaurants and vending machines all
over the world. This provides an opportunity for the company to grow and dominate the
world market. The product strategy used by Coca Cola is the differentiation strategy. It has
been seen that Coca Cola spends about 20% of the revenue on advertisement for
communicating with customers (Coca-cola.com, 2018). The advertisement helps Coca Cola
to position itself in the market in the positive scale. The positioning is done mainly on the
quality and innovation of the company along with a successful marketing strategy so that it
can be a symbol of fun and joy.
Figure 1: Position of Coca Cola
(Source: Coca-cola.com, 2018)

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Modifications of existing operations
Integrated supply chains
According to Monczka et al. (2015), supply chain integration is considered as a
coordination of supply chain processes that helps in the smooth flow of information from
upstream and downstream. This factor is normally caused by the bullwhip effect that
normally occurs due to the existence of external and internal causes. As stated by Jacobs,
Chase and Lummus (2014) some of the external factors include the product volume and mix
change while the internal cause can be new products or promotions. These processes are
mostly associated with the customers and the analysis of Coca Cola suggests that the supply
chain management process have a less impact on the development or loss of its customers in
the industry.
The supply chain forecast of Coca Cola is high as it is one of the most reputed
companies in the world (Coca-cola.com, 2018). However, factors such as cold weather or
lack of political ties between countries may have an adverse effect on the supply of Coca
Cola. It has been seen that Coca Cola is New Zealand is faced with competitors from local
soft drinks and international drinks like Pepsi (Coca-cola.com, 2018). Hence, the strategy of
Coca Cola to prepare for scenario such as bad political allies is being dealt by improving the
supply chain management process and basing the operations on improving the integration.
This also helped the company to improve as it is considered as the third largest brand in the
world behind Apple and Google. The reason for the selection of the integrated supply chain
is based on the popularity of Coca Cola. The reputation of the company requires the
assistance of technology so that the production process is continued at a faster rate. This
can help in building its reputation in New Zealand and hope for gaining a competitive
advantage in the country.

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Effective resource management
In order to succeed in effective resource management, it is necessary to consider a
framework that helps in the integration of the business. According to Mangan, Lalwani and
Lalwani (2016), the steps to follow the process are simple and work on identifying a long-
term output on the planning of resources. At the same time, a high-level demand forecast also
needs to be considered. Some of the manner in which resources can be managed includes
Enterprise Resource Planning, Materials Requirement Planning, Human Resource Planning
and Knowledge Management among others. These management processes can help in
providing a link between the functions of an organisation and helps in the execution of
detailed plan.
For Coca Cola, the translation of an aggregated plan needs to be such that it ascends
into short-term operational plans (Coca-cola.com, 2018). This can help in conducting a
separation into more detailed pieces. Therefore, the resource management are scheduled as
per the job sequence that exists in a market. For example, in the case of human resource
management Coca Cola ensures that the functions that are adopted help in maximising the
interest of the employees. This is mainly done motivational factors such as extra monetary or
non-monetary benefit for extra sales. A global study that was conducted pointed out that
Coca Cola had been sold over 200 countries in 2013 and had served over 1.8 billion
customers per day. Such the resources allocated had helped in the development of the
company (Coca-cola.com, 2018).

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Figure 2: Framework of resource planning at Coca Cola
(Source: Hugos, 2018)
Human factors engineering
The human factors related to engineering can be considered as a human versus
machine challenge. According to Boonjing, Chanvarasuth and Lertwongsatien (2015), the
analysis takes into consideration factors such as the physical capability, mental capability and
limitation along with speed, accuracy and stamina. It can be well defined that the machines
hold an upper hand over the humans in this regard as it is considered as more superior and
help in reducing the workload. However, as stated by Brandenburg et al. (2014) a harmonious
existence of the humans and machines need to be considered for gaining success in an
organisation. In the case of Coca Cola, it has been seen that the machines and humans work
effectively to solve issues such as poor designing of the bottles, poor communication and
inability to maintain supply chain (Coca-cola.com, 2018). Some of the factors that are taken
into consideration through the interaction between human and machines include:

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 Reduction of human error and increase in the rate of usability
 Increase in the productivity with less down time
 Reduction of support cost with an increase in the reliability of the product
 Reduction in training time and cost by ensuring less human interaction
These factors can help Coca Cola to continue with the dominance in the market and
ensure that a harmonious existence between human and machines exist in the organisation.
This can help in conducting field tests and resolve any technical manuals using system
engineering.
Industry 4.0/Automation
The industry 4.0 denotes the fourth industrial revolution, which can be best
understood by witnessing the dominance of a new level of organisation and control on the
value chain of a life cycle of products. As stated by Bratton and Gold (2017) the basis of
industry 4.0 is the availability of information that is relevant in a real time stimulant after
making connections that are involved in the value chain of products. At the same time, it
possesses the ability to derive value added flow from data. Some of the aspects that are
covered by the industry 4.0 include digitalisation and increased integration of vertical as well
as horizontal value chains along with digitalisation of products and service offering.
In the case of Coca Cola, the application of the industry 4.0 takes into consideration
every aspect with an addition of introducing innovation as a digital business mode (Coca-
cola.com, 2018). The company also follows principles that denote interoperability,
transparency of information, technical assistance and decentralisation of decisions. These
factors together make up for the viability of the business and based on it Coca Cola manages
to stay on top if its game without having to face tough competition from its rivals. It has been

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seen that the rise of the industry 4.0 has been so much in effect that prediction has been made
over an increase of its value within 5 years (Brewster, Chung & Sparrow, 2016).
Systems safety
The systems safety determines the health and safety of the employees while operating
in front of heavy machinery. Marchington et al. (2016) is of the opinion that this includes
identifying processes that are safe in a system and the manner in which it can assure safety
for the employees. The health and safety of the employees are an important consideration that
is required to be made managers. The systems safety can even include a good layout of
productivity. This is mainly because workers can be involved in using machinery after
identifying the safety of the machines in which they are operating (Brewster et al., 2016). In
the case of Coca Cola, the systems safety denotes the reliability of the systems so that it does
not fail.
The systems require in the company are mainly for the production of the bottles and
for bottling the ingredient (Coca-cola.com, 2018). Therefore, it is necessary that quality
management related to the use of the systems be taken into consideration so that consistency
of the products is maintained. For Coca Cola, one of the reasons that it is the most popular
soft drink brand in the world is mainly due to the consistency of its products. The company
has managed to maintain a consistency in its line of work so that it can continue in
dominating the market. As stated by Brewster, Mayrhofer and Morley (2016) systems safety
denotes the assurance received from the supply chain, sustainability, Government as well as
the regulation of changes.
Justification of choosing the design
For Coca Cola to be successful, it needs to apply technical assistance as a design
principle. This is mainly because the technical assistance provides an ability to support the

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human beings and take informed decisions requiring urgent solutions. The benefit derived
by Coca Cola in this case includes reduction of the work effort of the employees so that
safety at the work place can be ensured and the productivity of the employees improves
(Coca-cola.com, 2018).
Benefits and risks of supply chain integration
According to Ericson (2015), one of the benefits of supply chain integration is that it
enhances the communication and coordination between the members involved in the supply
chain integration. This can help Coca Cola to continue with a more effective technique in the
supply chain management. However, Rega and Lenci (2015) pointed out that one of the
hindsight to the supply chain integration is that with the systems related to one another,
failure of one system can lead to the failure of the entire process. Coca Cola can use the
supply chain integration as a manner to shorten the cycle time.
This can help the process to be more flexible as well as responsive. At the same time
as pointed out by Schönsleben (2016) risks of being hacked in exists as the protection of the
supply chain management programs are not safe. Hence, Coca Cola may lose valuable
information about its functions to the rivals. At the same time, the inventory required for the
supply chain management is reduced (Dubey et al., 2017). At the same time, Coca Cola needs
to be aware that competitive advantage be gained effectively as the market involves big
named organisations rather than small organisations.
Important resource for organisational productivity
The most important resource for Coca Cola is the chemicals used for the
manufacturing of the soft drinks. The chemicals along with the other ingredients make the
soft drink a fan favourite among the target customers (Coca-cola.com, 2018). In New

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Zealand, the ingredients used can be of significance, as the company need to be aware of the
needs and demands of the people residing in the country. Hence, the resource management
tool that can be used for increasing the organisational productivity includes time management
tool. This can help in manufacturing the ingredients quickly and provide an opportunity for
the company to excel in the market (Coca-cola.com, 2018).
Evaluating key perspectives and phases of supply chain management
The key phrases to supply chain management include:
Key phases Implications
Plan (Strategic level) It is necessary for Coca Cola to
maintain a proper strategy so that it can
continue with its growth in the market
of New Zealand (Coca-cola.com,
2018). For this choices in supply chain
needs to be made
Source (Tactical level) According to Waters and Rinsler
(2014), the choice of suppliers is
important as it helps in understanding
the best possible source of distributing
the products. In the case of Coca Cola
the suppliers need to be the vendors
that are associated with restaurants and
shops (Coca-cola.com, 2018)
Make (Operational level) According to Wolf (2014), the selection
needs to be based on the components

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and machinery along with the
managing of resources. Coca Cola need
to identify the best possible source that
can help it to continue with its
development and ensure that safety of
the workers are maintained in a proper
manner (Coca-cola.com, 2018)
Deliver (Execution level) Formentini and Taticchi (2016) pointed
out that this involves providing
logistics to the customers. Coca Cola
need to ensure that the products are
delivered to the customers by using the
supply chain techniques and reach the
target customers all over New Zealand.
Table 1: Phases of supply chain management
(Source: Created by author)
Conclusion
Therefore, it can be concluded that in order to develop a proper supply chain it is
necessary that every organisation maintain its resources. Effective supply chain management
can help in the growth and development of an organisation and provide companies with an
opportunity for growth. Each of the factors that are associated with supply chain management
provides an understanding of the competitive advantage that exists in a market. Coca Cola is
one of the most reputed companies in the world in terms of manufacturing soft drinks. Hence,

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the supply chain management that is implemented in the organisation normally promote the
idea of identifying the necessary factors associated with the market.
Although various risks exist during the integration of supply chain management, the
benefits that are derived from application of the supply chain management compel Coca Cola
to integrate its activities with its functions. The application of resource management tool can
help in the development of Coca Cola and the products. Hence, overall the benefit is that
Coca Cola can maintain its dominance in the New Zealand market and become one of the
most favoured drinks in the country. The integration of supply chain management can help it
to expand its business in the country as it is in other countries.

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