Supply Chain Management and Strategic Analysis: Mount Franklin Water

This report provides a comprehensive analysis of the Mount Franklin Water Company's supply chain management. It begins by examining factors that influence demand, such as consumer preferences, competition, and pricing strategies. The report then explores the potential benefits of Collaborative Planning, Forecasting, and Replenishment (CPFR) for the company, highlighting how it can improve forecast accuracy, reduce costs, and strengthen relationships with retailers. Furthermore, it suggests Customer Relationship Management (CRM) practices, including geolocation services, content creation, data analytics, and personalization to enhance customer experience. The report also delves into sourcing management, identifying the location of major suppliers and the factors influencing sourcing decisions, such as cost, availability, quality, and supplier capabilities. Finally, the report discusses production management, analyzing production trade-offs like volume vs. variety and responsiveness vs. efficiency, based on customer requirements. The report draws on the understanding that the Coca-Cola Amatil company is responsible for much of the supply and distribution of Mount Franklin water.

Mount Franklin Water Company 1
Supply Chain Management
Mount Franklin Water Company
Student Name
Institution

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Demand Management
What factors do you think may affect the demand for the products that the company
sells? (Hint: random variations, trends, seasonal)
There are several factors that may affect the demand of the products sold by Mount Franklin
Water Company. These include price, competition, consumer tastes and preferences, product
branding and advertising, and consumer income. Other than heightened advertising and
branding, on which Coca-Cola Amatil has spent a chunk of money on, demand for Mount
Franklin products is mainly driven by consumer tastes and preferences. Recent years have
seen a shift towards health consciousness, where consumers are driven by a desire to make
healthy choices (Chung, 2017). In particular, sugar present in juices and soft drinks, which is
linked to a myriad of health issues, has helped increase demand for products perceived to be
healthier (Yao, 2011). Since the need for hydration remains paramount, consumers thus tend
to opt for bottled water. Additionally, consumers have been shown to favour bottled water
over tap water, regardless of the fact that the latter is free and readily available. However,
there are still some areas plagued by poor quality of tap water, fuelling a dependence on
bottled water (Chung, 2017).
Mount Franklin has invested hugely in its brand, with a lot going into its advertising
campaigns. The company’s enlisting of a former Miss Universe as its brand ambassador has
helped in fuelling consumer interest in its products (Chung, 2017). Its parent company Coca-
Cola Amatil seemingly created the Mount Franklin brand as an alternative to its sugary
beverages. It could also be because of the need to tap into an emerging market, regardless, it
has continued to invest heavily in bettering the products in the Mount Franklin range. This
implies that the company projects a solid increase in demand in future as opposed to one that
is merely seasonal.

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Competition is another factor that has affected demand for mount franklin products. Despite
being the most popular brand of carbonated water in Australia, the company’s products have
to contend with competition from various sources. These include rival bottled water
companies such as the Japanese owned Asahi, still water industries, and advocates of
consumption of tap water such as the Sydney Water Corporation (Chung, 2017). Regarding
the effect of price on demand, Mount Franklin products are priced higher than most of its
competitors, thus deterring consumers from purchasing them. More consumers are opting for
store-owned brands which are cheaper (Evans, 2017). Regardless, a continued increase in
consumer incomes has helped increased demand for the company’s products by influencing
consumer tastes and preferences.
Could the company be benefitted using CPFR? How?
Mount Franklin Water Company would most likely benefit from using CPFR. The main
issues they are grappling with include a disconnection between them and retailers,
competitive prices, decreased demand for their products and failure to satisfy their customers
optimally. With CPFR they would be able to increase the accuracy of forecasts on consumer
demand, reduce the prices of their products and improve sales. CPFR would also be
beneficial in reinforcing the relationship between the company and retailers. Retailers will
benefit from better prices and better management of their inventory (Software, 2019).
The main goal of CPFR is to improve supply chain, and as such involves a variety of
stakeholders. In this case, the stakeholders include Mount Franklin Water Company, retailers
such as supermarkets, and customers. The only way for CPFR to be effective is to ensure all
those involved are open to its adoption. The steps involved in CPFR are analysis, strategy and
planning, demand and supply management, and implementation (Software, 2019).
Collaboration here involves transparent sharing of information among all stakeholders. This
implies that CPFR relies heavily on the exchange of data. CPFR would be especially

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beneficial to Mount Franklin because its products are not seasonal, and are highly promoted.
There is evidence to support an increased shift towards consumption of bottled water in
coming years.
It is easy for mount franklin to be committed to the implementation of CPFR, largely due to
the vast resources available at its disposal. So far, the bulk of money the company spends is
in production and advertising. The fact that its products are priced highly may impact
negatively on retailers who have to stock non-moving products. This could be managed
through forecasting, which will provide data on consumer trends regarding demand.
Information from forecasting will guide the company on how much to produce, and also the
quantity to supply to a given retailer. Retailers will subsequently be assured of clearing their
inventories. Forecasting will also inform the company and retailers of consumer preferences,
which will also aid in improving product quality and delivery. Overall, all stakeholders in this
supply chain will benefit from CPFR.
What CRM practices would you suggest to the company?
The goal of CRM is to improve customer experience. In this case Mount Franklin is
grappling with issues such as competition and pricing, which are affecting its customers’
experience. CRM best practices such as geo-location services, effective content creation on
their websites, data analytics, and personalization would go a long way in improving
customer satisfaction for Mount Franklin products. With geolocation technology, Mount
Franklin could tailor its advertising campaigns to customers’ physical locations. The same
technology could be used to identify sales prospects within a given location and enhance
networking between the company and customers (Crmtrends.com, 2019). it is important to
note that consumer preferences may also vary with location thus the need for geolocation
technology.

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Through analytics, Mount Franklin would be in a better position to identify factors that
influence demand for their products. User data could be procured by encouraging consumers
to leave their information on their website (Crmtrends.com, 2019). With this data, the
company could generate market specific advertising campaigns, enabling them satisfy a
particular clientele. This would be beneficial to both the company and its consumers, in that
Mount Franklin would be creating specific products for a select cluster of consumers.
Customer needs vary, and this can be determined by the use of analytics. This further implies
that Mount Franklin would have to engage in extensive technology.
Relevant content creation will enable Mount Franklin further its agenda of making an
emotional connection with consumers. Emotional engagement with consumers is crucial in
enhancing their satisfaction. Currently social platforms have become the go-to place for
content creation other than company websites. Social media in particular is one of the fastest
ways of reaching target consumers. Mount Franklin’s company website only lists its products
and prices and does not actively engage with consumers. On the other hand, consumers are
increasingly demanding for more information on products including promotions, and they
also want a platform to share their concerns (Crmtrends.com, 2019). More marketers are
finding content creation especially in social media to be a more effective means of reaching
their target audiences in contrast to traditional media (Crmtrends.com, 2019). Mount Franklin
Company would thus benefit from increasing consumer engagement through shareable
information about their products.
The competition that Mount Franklin products face from cheaper brands such as supermarket
owned bottled water, can be improved through enhancing overall buyer experience. Mount
Franklin needs to enhance brand loyalty, something that can be achieved through improving
consumer experience at the point of purchase. Buyer experience should not just be limited to
transactional aspects but rather, be extended to be more wholesome. The company should

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focus on more fulfilling personal interactions between their sales teams and customers. Thus,
Mount Franklin would need to liaise with retailers as they are closer to consumers than they
are.
Sourcing Management
Where are the major suppliers of the company located?
The major suppliers of Mount Franklin water are located in Australia, Fiji, New Zealand,
Papua New Guinea and Indonesia. Mount Franklin is a brand manufactured by Coca-Cola-
Amatil, a subsidiary of the Coca-Cola Company. However, the main location remains
Australia where the brand targets mainly urban consumers. Coca-Cola Amatil is responsible
for much of the supply and distribution of Mount Franklin water in Australia. Mount Franklin
water is thus produced and distributed by its parent company throughout majority if not all
urban areas in Australia. Coca-Cola Amatil has company owned warehouses where they store
their products, and from where retailers can make purchases. They, however, do not engage
in direct sales to consumers. The Mount Franklin water bought form the shelves of retailers
like Woolworths, are purchased directly from Coca-Cola Amatil who are its distributors.
However, to cover logistics, the company has secured partnerships with fleet companies who
deliver products to retailers or to their warehouses (Crozier, 2019). In the case of delivering
to retailers, sourcing of logistical teams may be done in a collaborative manner. The company
has also invested in technology that tracks real time delivery (Crozier, 2019).
What factors do you think may affect the sourcing decisions e.g. supplier selection,
supplier location? (Hint: cost pressure, availability, quality, supplier capability,
competition etc.)
There are several factors that may affect the sourcing decisions made by Coca-Cola Amatil
regarding the supply of its Mount Franklin water brand. These include cost management,
availability, competition, capabilities, and quality of suppliers. In this case, Mount Franklin

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water is distributed by its manufacturer, Coca-Cola Amatil. This implies that much of the cost
management is handled internally by the company. Logistically, the parent company has
always relied on its own mode of distribution, but it also outsources whenever there are
changes in demand for their products (Coca-Cola Amatil Limited, 2017). Outsourcing may
also depend on the location on which supply is based, for instance, major suppliers are not
based in areas with limited demand for Mount Franklin water. This implies that when
distributing to such areas, mostly not within their target consumer range, they may have to
outsource. Outsourcing requires money and a strategy needs to be put in place for the
selection process. The Coca-Cola Amatil company has cited in its website that it requires that
its partners uphold certain standards in order to maintain a good relationship and enhance
supply chain management. Regarding cost when outsourcing, the company may be keen on
the ability of the supplier to deliver within their time frame, and also the capability of their
facilities, in this case it may be how a supplier maintains their fleet and previous reviews
(Stark, 2018).
The availability of a given supplier, especially when needed to deliver on demand, is also an
important factor considered when making sourcing decisions. Mount Franklin water products
are subject to demand changes, which also affect supply. Large corporations such as Coca-
Cola Amatil produce goods in capacities that help manage their inventories and those of their
retailers. This comes in handy whenever there are shifts in demand and they need to increase
supply and minimize stock outs for retailers. In such a case, sourcing for a supplier will
depend on their availability. The factor of availability is also crucial in considering a supplier
in areas where Mount Franklin water is not in high demand.
Competition is another factor that may influence sourcing decisions for suppliers of Mount
Franklin water. Their products currently face stiff competition from other bottled water
brands keen on usurping their dominance. Competition affects demand, in that it segments

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consumers based on their preference for a given brand. A supplier should thus be able to
work with the manufacturer to ensure their availability whenever changes in demand arise.
The quality of a supplier’s work may also be considered, especially since Mount Franklin
water is a hugely recognised brand that always has to maintain certain market standards. The
choice of a supplier may thus be influenced by their ability to deliver according to the
standards that the company hopes to maintain.
Production Management
Based on your understanding of the requirements from the customers, discuss around
two production trade-offs for the selected company – Volume vs Variety and
Responsiveness vs Efficiency
Customer requirements are factors that gauge the satisfaction of a consumer. They answer the
question of whether or not a consumer is happy with the product they are purchasing, in this
case Mount Franklin water. Manufacturing and production processes often have to engage in
trade-offs where they have to select the best alternative that meets consumer requirements
while also generating profits for them. In volume vs variety trade-off, Mount Franklin will
have to contend with whether or not to increase the quantity of their products or change the
design in which they make and package their products (Deif and ElMaraghy, 2016). the main
goal for Mount Franklin should be to cut costs and still maintain the quality of their product.
Therefore, volume will favour them as they will be able to increase their output while
minimising the cost of production. Given that Coca-Cola Amatil is a well-established
company, it can be argued that they have the capacity to maximize production through
simpler steps within the production process. Mount Franklin water is not a resource intensive
product that will take long to produce, hence the assertion that the company can increase its
volume. Selecting the variety alternative would see production costs rise and subsequently
the price of the end product will increase (Deif and ElMaraghy, 2016).

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In the responsiveness vs efficiency production trade off, Mount Franklin will have to decide
on whether or not to lower the cost of their products through efficiency or to be more
responsive to the needs of consumers (H Hugos, 2010). Already, the company has gained
massive popularity over the years despite its high prices. As an established brand, the
company should focus on deterring competition from an increasing pool of bottled water
companies. The main issue for that may threaten its dominance in the coming years is price.
However, the fact that the demand for bottled water is on the rise implies a future decline in
cost of the same. thus, Mount Franklin should opt for a responsive supply chain. This will
place customers at the focal point of production, whereby their concerns and requests will be
addressed promptly. Additionally, the company will be more aware of changes in the market
informed by consumers such as changes in tastes and preferences, and also be able to deal
with them accordingly. The result will be increased customer satisfaction.
Does the chosen supply chain follow a push or a pull or a push-pull system? Explain
The chosen supply chain for Mount Franklin water is a push-pull system. Their products are
not seasonal and as such could not fully fit into a push supply chain system. Mount Franklin
water is consumed all year round, a factor that indicates that their product is always on
demand. However, the pull supply chain strategy could come in handy through future
predictions of demand (Kumar Sharma, 2018). Although the demand for bottled water is
projected to rise in the coming years, it is not clear whether other factors that affect demand
such as the tastes and preferences of consumers will remain the same. This implies that there
may be a need in future for the company to increase the variety of their products, or lower
cost, or generally adjust to demand changes. Therefore, it will be prudent for them to adhere
to a push-pull supply chain strategy.
Supply Chain Relationships

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Discuss the existing relationships and their implications between the company and their
buyers and suppliers (can be any two actors of the chain based on their role).
Mount Franklin has a good relationship with their customers, if their popularity is anything to
go by. Their products have been well received among consumers, a factor that has probably
encouraged the company to increase innovation and create more brands. The fact that Mount
Franklin water is diversifying its portfolio implies that their efforts translate to good customer
satisfaction. The company’s relationship with their buyers, particularly retailers may not be as
rosy as seen by the refusal by one of its retailers to stock some of its products (Dunckley,
2017). Woolworths recently announced that it will only stock a select number of Mount
Franklin products because of the introduction of a new sugar laden product manufactured by
Coca-Cola Amatil (Dunckley, 2017). However, there are no other incidences of rifts between
the company and its buyers and suppliers, or a strained relationship. The implications of such
a good business relationship include the gains made on efficiency in delivery of products to
the end customer. The purpose of an efficient supply chain management system is to ensure a
smooth movement of products until they reach the target customer.
Conclusion
Conclusively, Mount Franklin water has a solid supply chain system in place. The popularity
of the brand is a stark indicator of the efficiency with which it manages its systems. The main
issues affecting the company are demand changes and pricing, which can be managed by
making the right production trade-offs. This will help lower the costs of production and
increase sales, as their brand will be able to reach more consumers. The fact that Mount
Franklin is a brand produced by an established and well-loved company has helped increase
its edge in the market. So long as the demand for bottled water keeps rising in future, Mount
Franklin water is poised to retain its dominance in the market.

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