Part 1Create Section 6 of your Supply Chain Process Improvement Proposal: Measurement and Management. Describe how supply chain performance is measured, presenting the various measures used in each or

Running Head: Supply Chain Relationships and Strategies

Supply Chain Relationships and Strategies

Calvin Blount

CTU

6/6/20

Coca-Cola has fostered good relationships in its supply chain to improve its efficiency. They have embraced effectiveness from the acquisition of raw materials to the distribution of its finished products to retailers. Coca-Cola company has more than 225 bottling partners worldwide. Therefore, good relationships with its partners is paramount in the effectiveness of its supply chain. Diversification has been used to boost better relationships in its supply chain. Through diversification, third party logistics providers and bottling partners can concentrate on a few responsibilities thus promoting effectiveness. That also makes the supply chain easy to manage.

The use of technology in the supply chain has also fostered better relationships. That is because it ensures effective communications and accurate reporting. Thus, any challenges in the supply chain can be mitigated easily. However, there are many intermediaries in cooperation and communication with the partners currently. Thus, increases the time used in conducting processes and it also increases the costs incurred.

The use of SAP blockchain technology has helped foster better relationships with partners. Through the technology, the time used in order reconciliation has been reduced from over 50 days to a few days (Reyes, Visich & Jaska, 2020). Coca-Cola also uses just in time inventory control system and total quality management. Such systems promote cooperation between the company and its suppliers and buyers. The systems also enable the company to streamline its supply chain management.

To improve on the effectiveness, Coca-Cola has employed some strategies in its supply chain management. One of the strategies that Coca-Cola has employed is focusing on aggressive marketing. Aggressive marketing is the process of communicating directly to potential customers and actively pursuing their engagement with them. In the case of Coca-Cola, such measures are taken with the bottling companies and their third-party logistics providers. With increased engagement, the effectiveness of the supply chain process is enabled.

Coca-Cola operates through a push strategy in customer order anticipation. That means that Coca-Cola uses its data in the projection of estimated customer demands. Therefore, the company can project the products that it should produce in each period depending on the expected demand. That enables the company to procure raw materials that are enough to produce the desired amount of production. Coca-Cola uses an A-B-C classification for inventory handling. In such an inventory handling method, the inventory is categorized by the priority it should be given. Therefore, the inventory handling technique ensures optimal inventory management in the company.

Coca-Cola can implement some strategies to promote risk management in its supply risk management. It should promote proper diligence in supplier assessment. That provides a review of the performance of its suppliers. Therefore, any challenges that are encountered because of the supplier can be mitigated easily. The supplier can also improve the effectiveness and efficiency of its services after assessment. It also promotes the identification of risks before they occur. Coca-Cola should also provide redundancy and optimization in its supply chain management. That ensures that the failure of a single supplier is covered by other suppliers. It should also promote innovation and efficiency in contracting management. That reduces the occurrences of risks in supply chain management (Weingarten, Humphreys, Gimenez & McIvor, 2016).

Coca-Cola should adopt technologies that will ensure optimal processes and communication with its partners. That will decrease the lead time in their processes and reduce the costs incurred. It will also promote transparency in its operations. When inter-organizational transparency is achieved, real-time insights into its transactions will be enabled. Coca-Cola should also establish principles to guide its supply chain. Such principles should focus on promoting their relationships with partner companies, suppliers, and third-party logistics companies. They should also promote an effective reporting platform so that any challenges in the supply chain can be easily identified and managed. It should also ensure continuous support and improvement with a view of the end to end performance and root-cause analysis.

References

Reyes, P. M., Visich, J. K., & Jaska, P. (2020). Managing the Dynamics of New Technologies in the Global Supply Chain. IEEE Engineering Management Review, 48(1), 156-162.

Wiengarten, F., Humphreys, P., Gimenez, C., & McIvor, R. (2016). Risk, risk management practices, and the success of supply chain integration. International Journal of Production Economics, 171, 361-370.