Transport and Distribution Management Assignment
Added on 2020-04-13
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1Running Head: Transport and Distribution ManagementTransport and Distribution ManagementInstitution Lecturer StudentCourse Date
2Transport and Distribution ManagementIntroductionCoca-Cola Company is one of the greatest known global beverage manufacturing companies with operation in over two hundred countries across the world. The company through its manufacturing plants produces over four hundred daily shipments and it is responsible for over 1000 points of deliveries, the creation of 4,000 finished products as well as over 5,000 thousand packaging materials and ingredients. The company operates in various countries with operations that require heavy logistical operations leading the company to seek a suitable way of delivery without incurring unnecessary extra costs [ CITATION Cocnd \l 1033 ].Up to until, 2009, Coca-Cola had no a specific standardized transportation management system. This presented a major challenge to its logistical operations and further affected their vision 2020on business strategy goals. The challenges further arose from company’s inability to determine a suitable supply and chain management partner who would manage the company’s logistics activities to the expected level. The company needed to understand the logistics costs involving an external operator, in their bid to increase their level of inventory and continuous increase in the sales every year; according to their business objectives.Coca-Cola, therefore, started their projects and in the year 2009, they brought on board Future Logistics Optimization; Oracle’s supply management partner to support full implementation by early 2010 [ CITATION Flond \l 1033 ]. Through their association, Flo managed to develop a lasting fully integrated operations system. The system included the use of electronic data in reporting activities and freight payments. This was made successful by 2011, and to date, the company manages inbounds and the outbound through the online system. The company standardized its operations and in the year 2012, they selected Oracle Transportation Management which is responsible for managing all the inbound supplies between the plants and their networks.
3Transport and Distribution ManagementIncoterms Selection and ConsiderationThe extent of the Coca-Cola operations across the globe means that the company has a diversified system of trading terms. The company operates within a wide range of countries under separate management. Sometimes the regional manufacturing plants are responsible for themanagement of all the logistical procedures and policies depending on the country of operation. Being a global company, Coca-Cola has to cope with extreme variation in international laws and the trading policies that are used in the countries of operations.Therefore, on the factor of Incoterms considerations, Coca-Cola has applied different strategies depending on the country of operation and also depending on the choice of the supply partners orcarriers. For instance, the division of the Coca-Cola Company depending on the region, such as the Coca-Cola HBC for Europe and Coca-Cola Sabco for Africa means that the distribution needs of the company sometimes are solved within the market sphere of the specific countries. The selection of the Incoterms addresses the business terms of the company towards its buyers and suppliers [ CITATION Coe10 \l 1033 ].Coca-Cola Company practices a variety of Incoterms, but the commonly practiced in the line of their transportation activities include Delivery Duty Paid (ADP), which involves the company paying all the charges involved in delivering the goods to the buyer (distributors). Secondly, the company uses EXW-Ex Works. In this case, after the production process, the registered distributors take the full responsibility of the product from the company. Then lastly, the company also applies the Carriage Paid To (APT), whereby the company pays for the freight charges and all the carriage charges to the point of destination. From this point, the distributors and suppliers take charge of the products. There is, however, other Incoterms that a company might put to use including the Carriage & Insurance Paid To (CIP).
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