Coca Cola Amatil: Integrated Supply Chain Management Report Analysis

This report provides a comprehensive analysis of Coca Cola Amatil's integrated supply chain, focusing on its operational performance, logistics, and financial aspects. It begins with an executive summary highlighting the company's growth and recent revenue challenges linked to supply chain management issues. The report then delves into the existing situation, examining the supply chain network's material, information, and financial flows. It presents a flowchart of the product distribution process and the organizational structure. The report also assesses the current performance of the supply chain, including health, safety, and financial metrics, and discusses logistics within the business context. A SWOT analysis is conducted to identify the company's strengths, weaknesses, opportunities, and threats. Major issues and problems are identified, followed by recommended solutions and justification for these recommendations. The report concludes with a summary of findings and plans for implementation, offering insights into Coca Cola Amatil's supply chain management and strategies for future improvements.

Running head: INTEGRATED SUPPLY CHAIN
Integrated Supply Chain - Coca Cola Amatil case study
Name of the student:
Name of the Student:
Author note

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Executive summary:
Coca Cola Amatil, the bottling partner of the worldwide renowned beverage producer Coca Cola
in Australia. According to the annual report of the brand it has been seen that it has been facing
steady growth rate, however, in recent days there has been fall in the revenue for the firm due to
the ongoing issues with the supply chain management of the firm. This is report is aimed to
discuss management process of the Coca Cola Amatil while analysing the existing situation of
the firm. Through the SWOT analysis, this report is aimed to provide details regarding the
performance of the firm and in addition it will provide recommendation to maintain its
competitive advantage over the other nations.
From the discussion it has been found that the Coca Cola Amatil has well established supply
chain throughout the countries in the Asia pacific region, however, there are issues within and
from the external factors of the firm. The study also entailed that the firm has been suffering
from the driver causality, thus it has provided various recommendation, which are meant to aid
the organization for better future with reduced fatality. To conclude it has been stated that the
firm is in good condition, however, it need to enhance its capability while mitigating the issue for
better future and higher sustainability in the coming days.

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Table of Contents
Introduction:....................................................................................................................................3
Analysis of the existing situation:....................................................................................................4
Current Performance of Supply chain:............................................................................................7
Logistics in the Business Context:.................................................................................................10
SWOT analysis:.............................................................................................................................11
Major issues and problems:...........................................................................................................13
Recommend Solution and Justification:........................................................................................14
Implementation of Recommended Solution:.................................................................................14
Conclusion:....................................................................................................................................15
References:....................................................................................................................................16

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Introduction:
Coca Cola Amatil, the bottling partner of the worldwide renowned beverage producer
Coca Cola in Australia is one of the growing firm, which is known for its superior supply chain
management (Burgin et al. 2016). According to the annual report of the brand it has been seen
that it has been facing steady growth rate, however, in recent days there has been fall in the
revenue for the firm due to the ongoing issues with the supply chain management of the firm
(Corea 2016). The firm specifically operates in the Asia-Pacific region which provides service
specifically to the six regions, which are New Zealand, Fiji, Samoa, Papua New Guinea,
Indonesia and largely in the Australia (Wilson 2017). The firm possess diversified portfolio of
production, which is accounted for the production of the products like soft drinks, fruit juice,
flavoured milk, tea, coffee, spring water and many more. Presently there are more than 14,700
people are employed in the six countries where it is presently serving actively and it offers more
than 200 products to their consumers (Ashley 2017). As per the statistics, the brand has been
performing well while demonstrating diversity and strength of their portfolio. According to the
performance of the firm it can be seen that it has enhanced its Earnings per Share by 2.2% during
the year 2006 to 2017 that showcase the potential of the brand to become one of the largest
supplier as well as the bottling partner of the Coca Cola (Putra and Soegiarto 2017). Though
there has been 2.8% decrease in the trading revenue, which is as high as 4.9 billon dollar and in
addition to this, there is a decrease in the Earnings before Interest and Tax (EBIT), the firm has
succeeded to have sustainable growth during the last year (Ccamatil.com 2018). However, in
recent days the firm has faced issues with its supply chain management that has forced it to
review its management program.

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This is report is aimed to discuss management process of the Coca Cola Amatil while
analysing the existing situation of the firm and highlighting the major issues associated with its
operation. In addition to this, the report is meant to utilize the current performance of the supply
chain and contest the logistics in the business context. Through the SWOT analysis, this report is
aimed to provide details regarding the performance of the firm and in addition it will provide
recommendation to maintain its competitive advantage over the other nations. To conclude, the
report will provide summarized overview regarding the findings and plan to impose the same.
Analysis of the existing situation:
Supply chain management is one of the important factors for the every organizations in
order to achieve better performance goals and to reach larger population who may become the
prospect buyer of the goods or services produced by an organization. Analysing the supply chain
management of the Coca Cola Amatil, it can be seen that the firm has well maintained supply
chain network that is comprised of three well defined segments, which are material flows,
information flows and the financial flows (Morgan et al. 2018). Material flow defines the
physical product flows from to the customers from the suppliers through the supply chain and
vis-à-vis, where the consumer returns the products for recycling after the usage (Christopher
2016). Information flow is integral part of the organization, which is necessary for the better
development and performance of the organization (Stadtler 2015). Financial flow is another
important part of the organization that ensure the payment schedule, credit terms, card
information, ownership agreement renewal, cost of operation and various other aspects of the
firm (Mangan et al. 2016). Beverage bases, syrups and concentrate is sent to the Coca Cola
Amatil, then it manufacture and package the final output and makes it ready for transportation.
Coca Cola Amatil works closely with the restaurants, convenience stores, grocery stores,

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amusement parks and other large buyers in order to sell their produce smoothly to the end
customer (Wisner et al. 2014). As the form of the physical flow of the final product, Coca Cola
Amatil perform according to the following flowchart:
Figure 1: Flowchart of the physical movement of the Coca Cola Amatil
Source: (Created by Author)
As it can be seen from the figure 1 that the firm at first produce the final product, then it
distributes the same to the large distributor. Next to this, it goes to the retailer and from there it
goes to the nearest shops, stores, cafes and other place, where the buyers purchase the final
product.
Coca Cola Amatil
Large Distributor
Retailer
local stores, cafes, restaurants,
grocerry stores etc.
End user

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Figure 2: Management and organisational structure of coca cola
Source: (Ccamatil.com 2016)
Figure 2, depicts the organisational structure of the brand that highlights the detailed
working scenario of the firm. From the above figure it can be seen that the business is divided
into various segment like marketing, sales, supply chain and other making it a complex business
environment. However, this structure of the firm has aided it to have better growth and revenue
over the time.
Information flow is crucial part for the growth of an organization and Coca Cola knows it
better. For the purpose of the real time information sharing regarding the various variables of the
firm, it has incorporated Manufacturing Resource Planning (MRPII) and Material Requirement
Planning (MRP) that has provided enhanced computer capabilities (Stuart 2016). In addition to
this, tracking inventory is also crucial for the firms like Coca Cola Amatil in order to maintain

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smooth flow of the business. Under this situation there is Total Quality Management (TQM) and
Just-in-Time (JIT) process in the firm that has enabled it to have enhanced productivity and
smoother business performance while dealing with the Coca Cola (Wentworth 2018). Through
these new mechanism, the firm has enabled itself to share information among its various centres
around the operational zones.
Current Performance of Supply chain:
Coca Cola Amatil is one of the bottling and distribution partner of the Coca Coal and
presently it is performing well.
Figure 3: health, safety and wellbeing performance
Source: (Ccamatil.com 2016)
From the above figure, it can be seen that the firm has maintained well control over the
health, safety and wellbeing of their employee that has provided them better efficiency compared
to other brands.

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Figure 4: Performance of the business
Source: (Ccamatil.com 2016)
Considering the figure 4, it can be seen that the firm’s business performance is good
enough to hold sustainability in the future. With the commitment to enhance the performance of
the women workers in all the sectors of operation, the brand has ensured better future while
maintain human rights of the workers (Ccamatil.com 2016).

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Figure 5: Enhanced choice option
Source: (Ccamatil.com 2016)
From the figure 5, it can be seen that the brand has enhanced its choice option to serve all
the segment of the customers equally. Thus the firm is sustainable enough with its supply chain
management programs.

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Figure 5: Financial performance of coca cola Amatil
Source: (Ccamatil.com 2016)
Considering the figure 5 details it can be seen that revenue of the firm has enhanced by
1.3% during 2016 from the year 2015. Earnings per share of the firm has also enhanced
substantially showing the enhancement in the demand of the firm in its operational market. In
addition to this, coca cola Amatil operates in more than 14,000 routes with fuel efficient cars that
has aided the firm to have competitive advantage in logistics operation (Ccamatil.com 2016).
Logistics in the Business Context:
Logistics is an essential part for the supply chain of the Coca Cola Amatil. From the
figure 6, it can be seen that they recognize the importance of the transportation in their business
and thus they are focused to enhance the performance of same through reducing the loss of lives.
Figure 6: Logistics approach of the Coca Cola Amatil
Source: (Ccamatil.com 2016)
Considering the case of the internal corporate policies the firm utilises price
competitiveness as well as productivity enhancement through the on job training and special skill

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enhancement workshops. In addition to this, latest revamped organisational structure
implemented by the coca cola Amatil is aimed to aid the employees to enhance their productivity
through the Business Process Reengineering (BPR) in order to have well designed supply chain
to accomplish its desire to serve something better to everyone (Andini and Simatupang 2014).
Additionally there is enterprise application software like SAP that has provided the firm ability
to deal with the present market scenario around the world.
Considering the external business environment of the firm, it can be seen that it has been
facing higher number of competition from the other business entities like Pepsi Co limited due to
their increasing existence in the market. Price completion in the market has also enhance due to
the substantial market share growth by the PepsiCo (Joshi 2017). Under this context, the Coca
Cola is largely dependable upon the third party contractors to produce and enhance their market
share in the foreign markets at low cost leading to development of new geo political trading
blocks around the Asia pacific regions.
SWOT analysis:
SWOT matrix is an essential tools for the managers to analyse the macroeconomic
environment of the firm. Detailed SWOT analysis of the firm is as follows:
Strength Weakness
 The Coca Cola Amatil has high brand
value, which makes it one of the largest
partner of the Coca Cola.
 Coca Cola owns 23% of its stake, that
makes it a subsidiary firm of the beverage
giant Coca Cola.
 It has well established organization and
 Major weakness of the firm lies within its
lack of product diversification.
 Recent researches against the calorific
value of the carbonated beverages is
harmful for the business because it can
reduce the operation of the firm (Baah and