1). 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, 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:
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.
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 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.
2). 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.
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.
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).
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.
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).
3). 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.
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 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.
4). 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 transportation network in Australia and other Asia Pacific countries that provide it large market to operate and expand (Krishnaswamy 2017). · The brand has well established service chain that has provided it much amount of competitive advantage in the market. · It has well established supply chain management system to serve the customers better. · The firm has poured 75 million dollar to enhance its business in the CBD area. This is aimed to enhance the growth of business. |
· 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 Bohaker 2015). · Coca Cola Amatil lacks transportation and service to the rural areas of the Australia that need to be checked. · There is scope for the Coca Cola Amatil to grow its business in the CBD location through pouring more investment, which will increase its business (Joshi 2017). · Expanded and automated warehouses are the demand of the 21st century that can provide better efficiency in managing the supply chain of the firm (Ccamatil.com 2018). |
|
Opportunity |
Threat |
|
· Constantly growing beverage market provides large field of operation to the brand and scope to grow its business. · It has scope to introduce diversified range of products which can serve the demand of all age group in the market (Martinez 2017). · The brand can expand its business in the areas beyond the Asia Pacific region. · There is ample scope to enhance the means of transportation and to reach those areas, where it was not serving previously in the countries like Australia, New Zealand Fiji and other (Aleksandrova 2017) |
· Lack of energy and sports drink from the Coca Cola Amatil is one of the major threat to the existence of the brand. · Lack of presence in the CBD and rural areas in the countries like Australia, Fiji, and New Zealand can be proved to be harmful for the future growth of the firm. · Rise in growth of the other large competitor like PepsiCo is another major concern that can be proved to be threat in front of the Coca Cola Amatil (FMCG 2016). · Shifting demand and shrinking market share is one of the major concerns in front of the Coca Cola Amatil. |
5). Major issues and problems:
Coca Cola Amatil is one of the bottling and distribution plant for the coca cola that has aimed to delight their customers with their exceptional portfolio. As the brand is related with the supply chain, then they are focused to ensure productivity of firm through utilizing lean and agile cost structure that can create value for the organization (Selvanathan et al. 2016). Being a well versed organization in the market it now aims to promote safety and wellbeing of their being in order to gain organizational goal through fulfilling the personal goals (Ccamatil.com 2018). Diver’s safety is one of the major focus of the brand, where they want to excel through reducing the scale of accidents.
According to 2015 report, there has been 22 fatal accidents with the drivers due to traffic mishaps (Ccamatil 2016). In addition to this, there has been increasing number of the injuries in the plant that has attracted lots of issues towards the Coca Cola Amatil (Crane and Matten 2016). Not only this, it has also been argued by the varies agencies that the Coca Cola Amatil does not follow the human rights regulation with their workers in their plants that has caused fall in their reputation and additionally it has also been found that the brand faces crunches in the market share.
6). Recommend Solution and Justification:
As the mechanism of controlling the issues following recommendations can be made:
7). Implementation of Recommended Solution:
For Installing modern sensor the firm has to install photovoltaic sensors and vision system to their vehicles so as to enable it to align itself with the self-enforcing road design. When it comes to the vehicle profiling, then the firm need to install 2D scanner and central control unit at places like entrance or exit of the loading facility, customer facility and other places, which are prone to accidents.
As the mechanism of checking the issues of human rights violation, Coca Cola Amatil can utilize the human rights protocol of the respective governments and ensure that the production is aligned with the same. Advertising can be helpful for the firm to ensure higher amount market share overcoming the present crunching market situation. In order to have better outcome from these recommendations it would be ideal to implement the same as soon as possible and to point out the effectiveness of the same, firm can use KPI measurement and performance measurement of the employee as well as the allied branches of the organisation. If the performance has been enhanced and the output is higher than before, then it can be mentioned that the recommendations has performed according to the expectation.
Conclusion:
From the above 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 firm has scope to enhance its market and reduce the human rights violation issue while fulfilling the personal goal of the employees. This rather will help the firm to attain higher popularity that inherently will aid the firm to achieve better sustainability. From the report it has been found 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 can be 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.
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.
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.
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