This week, you will explore the link between successful relationships and strategies. In addition to relationships and strategies, supply chains must be managed. Successful management of the supply ch
Running head: SUPPLY CHAIN FLOWS 1
Supply Chain Flows
Calvin Blount
CTU
5/27/20
Introduction
The American company Coca-Cola, established in 1892, now primarily manufactures and markets the Coca-Cola product and concentrates, which is a sweetened carbonated drink which is a US cultural tradition and a global icon of American flavors, which is one of its major suppliers. Nevertheless, it manufactures and markets additional cold drinks and fruit beverages. Coca-Cola is the world’s leading soda producer and dealer in the U.S, with more than 2 800 items sold in more than 200 nations. Atlanta, Georgia is the primary headquarters of the organization (Hays, 2015).
Flows within the supply chain
The flux of merchandise involves the shipment of materials from a manufacturer to a consumer and any refunds or service requirements of the client. Credit and billing plans, transportation, and possession agreements are the financial flows. The transmission of data includes a product data-sheet, orders and schedules, and updates on the shipping documents.
The Product Flow
Product Flow involves transferring products from the manufacturer to distributor (both internal and external), as well as meeting customer care demands such as raw materials or consumables, or facilities such as housekeeping. The stock movement involves returns/rejections (Reverse Movement).
The continuous flow process is used by Coca Cola as a bottling company. Continuous flow, as we know, can be described as the so-called process industries that apply to product manufacturing like beer, paper, oil, and energy, where it will be a soft drink business in this case. Here the goods are continually manufactured and are usually highly organized and centralized with high output volumes. Coca Cola’s output process requires the daily transfer of subsets/components from a processing point to another. This is traditional for bottling plants at any stage (Christopher & Peck, 2014). Coke chose the approach as the goods supplied by the firm differ widely and are marketed in bulk. Products are available from coke, diet coke, and various flavored soft drinks to bottled water. They are sold for all types of foods. Because Coca Cola has such a wide output range, the best way to manufacture such goods is through a continuous stream.
The Financial Flows
The strategic and economic dimension of the organization's supply chain management (SCM) is viewed from the two aspects. Firstly, from the point of view of expense and expenditure. Secondly, from a distribution of funds. When the supply chain goes on, prices and expenditure add up. Therefore minimizing the actual expense of the supply chain explicitly (and sometimes very significantly) leads to the overall productivity of the Coca-Cola company. The management of expenditures in the supply chain often helps to maximize the return on the company's money (Anand & Goyal, .2019). There should be movement of funds in a supply chain from the final user of the commodity back down into the network. Financial funds (Revenues) flow back into certainties in the chain (typical stores, dealers, manufacturers, and providers), to the end customer who is typically the only "actual" outlet in a supply chain.
In Coca-Cola, the supply chain consisted of loans, allowances, and other financial agreements – as well as funds, flowed to opposite directions: liability (inflow of funds) and payables (outflows of funds) and the Company Payables operations and accounts earn (A / R) practices. The working capital cycle helps the organization to ensure that financial flows are represented effectively within a supply chain. Therefore, significant prospects and obstacles lie ahead in the handling of the financial movements in the supply chains of the company. Integrated control of this process is a core SCM operation, one that directly affects the company's cash flow status and profitability.
The Information Flow
The distribution of knowledge in the supply chain is two-way. The efficiency of the supply chain increased and information (IT) turned the output even more quickly and more effectively. Owing to the growth of the organization, the various facets of their multinational market is managed by an advanced company management framework (Hofmann, 2015). They decided that strategic enterprise management (SEM) would be incorporated. This allowed them to prepare companies for the financial market, store data for the processing of information and review data, and to produce financial results and revenue estimates monthly. This information system is now completely integrated inside the organization and all the collected information gives simple details such that Coca-Cola can monitor the company's financial health and progress.
Ways of improving the 3 supply chain flows
The method Made to Stock is the customer order used by Coca Cola for processing goods. Coca Cola is an excellent manufacturer of the MTS ordering system. This method will help to provide consumers with quicker service from the inventory available and lower prices, as Coke typically distributes bulk goods. Typically when Coca Cola goods are shipped, they are in bulk as they are sold with a B2B process. After a wholesale product has been sold to a company and the company subsequently distributes every single item to its customers, benefiting from the product since they have purchased it in bulk from Coca Cola. The MTS consumer order protocol requires a mechanism where the manufacturer determines a specific product line rather than the client and then the goods are processed and they satisfy customer demand automatically. Suppose Coke Cola uses the "made to order" method, because of the great demands of its customers, it would never distribute its products fast enough (Pfohl & Gomm, 2019).
Monitoring of cash flow is an important tool for improving suppliers’ management used by various organizations. To order to grasp the technologies utilized for money transactions the company has to track payment conditions and situations for specific classes to the supply chain. Simply put, it has to be transparent whether manufacturers and distribution providers are to be compensated, how much they are to be charged for, billing mechanisms, and any costs allocated to clients.
References
Anand, K. S., & Goyal, M. (2019). Strategic information management under leakage in a supply chain. Management Science, 55(3), 438-452.
Christopher, M., & Peck, H. (2014). Building the resilient supply chain.
Hays, C. L. (2015). The real thing: Truth and power at the Coca-Cola Company. Random House Trade Paperbacks.
Hofmann, E. (2015). Supply chain finance: some conceptual insights. Beiträge Zu Beschaffung Und Logistik, 203-214.
Pfohl, H. C., & Gomm, M. (2019). Supply chain finance: optimizing financial flows in supply chains. Logistics research, 1(3-4), 149-161.
