Operations management Case study: CCHBC Amina Halilović Razić 11.12.2013.

1. How do CCHBC’s supply chain management practices help them to achieve their four major strategic aims? CCHBC's aim is to provide each customer with the right refreshment, at the right price and in the right place. o achieve this they produce a wide variety of

products with over !"" different com#inations of pac$ages and flavors, so their supply chain must #e focused on ma$ing the manufacturing process fle%i#le enough to accommodate this variety and still stay efficient with low costs. hey

also must focus their distri#ution channels to achieve the #est delivery routes in order to $eep costs under control since the products must #e profita#le, #ut also afforda#le for customers. CCHBC also puts a lot of effort into integrating sales and consumer information and coordinating demand forecasting with the production planning in order to achieve highest levels of efficiency. hese efforts have gone to such e%tent that CCHBC has a &orecasting manager who produces demand plans on wee$ly #asis which are then adjusted in consultation with the Commercial manager in order to satisfy re'uirements of achieving sales targets. Besides wor$ing on improving the efficiency of their manufacturing, CCHBC also wor$s with their customers, supermar$et chains and other retailers in order to minimi(e costs wherever possi#le and produce added value for everyone in the supply chain. his cooperation is a valua#le source of information for CCHBC

a#out consumer #ehavior, preferences and future demand. CCHBC has created a centrali(ed data#ase containing #est practices collected from the entire group which enhance possi#ilities of analysis and utili(ation of many different e%periences that lead to improved chances of success of new mar$eting campaigns. CCHBC’s operations management must provide coordination of all

to improve its supply chain management availa#le to retailers and accessi#le to final customers.. constant 'uality control. #e it opportunity or a threat.#ased .-/1 to coordinate operations within their whole networ$ and across the #orders. How does CCHBC use * performance? CCHBC uses a +. all the while #uilding lasting and supportive relationships with their customers. which ena#les managers to control operations.system ena#les the . CCHBC also can monitor demand levels and follow the sales regularly.-/ to align production. *nformation gathered through the +. 'uic$ly. 2ith current information availa#le from the customers.-. produced periodically to monitor and control manufacturing processes. distri#ution and delivery. 3.levels of supply chain. 2hat actions should CCHBC ta$e to improve integration internally and e%ternally within its supply chain? . ). *nformation systems help CCHBC #uild their competitive advantage in the mar$et #ecause with all the information and reports availa#le to their managers they are a#le to react to every new challenge. CCHBC managers are provided scheduled reports. current information a#out sales and production levels. *n order to ma$e sure products are in stoc$. optimi(ation of production planning with minimum costs and efficient distri#ution channels which will ensure full availa#ility of their products in the mar$et.dvanced -lanning /ptimi(er 0. *nformation provided #y the * system helps CCHBC achieve its goals of 'uality and cost control #y providing insight into daily activities and operations in the company. effectively and efficiently. demand planning and distri#ution 0the whole supply chain1 in order to achieve sales and operations planning efficiency. plan demand and organi(e productions more effectively and more efficiently.

distri#ution channel to formulating campaigns that will target the right audience and deliver the most appropriate message in the #est way. #esides the *C . CCHBC should continue to develop and improve their information system and continue to #uild their competitive advantage on all the information availa#le to them.. . pac$aging materials. improve delivery and availa#ility of product. transportation and delivery service as well as end customer service. through manufacturing process.s the information technologies are improving every day.lso. from selection of inputs. he 5data mining6 process will ena#le #etter forecasting of demand.naly(ing this data will help them identify meaningful patterns in #ehavior and decision ma$ing process of #uyers. e'uipment for production and display of products. it is very important for the success of this process and the whole #usiness strategy that they have good relationships and company should wor$ on #uilding communication and team . #etter target mar$eting efforts.nother issue that should #e paid attention. improve production processes. is the relationships #etween the managers involved in the continuous demand planning process. all leading to saving on costs and improving 'uality in all stages of supply chain. . +ince these managers are re'uired to wor$ very closely. 4athering information a#out all availa#le suppliers of inputs and service will ma$e CCHBC a#le to negotiate with the #est providers in order to achieve #est value in terms of 'uality and cost of ingredients. which will help them focus their mar$eting strategies and #etter predict the demand. *nformation gathered through *C is also crucial for decision regarding large investments in e%pansion of production plants. identify potential ris$s and improve customer service. sophisticated computer models should #e used to calculate profita#ility of these investments.#uyers who are ma$ing the final decision which product to #uy. hey should focus on gathering as much as data as possi#le on their customers 0retailers1 and well as end. .

suppliers are re'uired to follow strict standards of #usiness ethics. efficiency. many companies are eager to wor$ with CCHBC and they have many thousands of local and international companies that supply them with ingredients. afforda#ility and availa#ility of CCHBC’s final products.Cola Company itself. which further contri#utes to #etter integration of CCHBC supply channel and assures the 'uality of inputs. 7. Besides this. +uppliers are independently audited and their compliance is verified every two years. *n spite of these strict rules. pac$aging. *t is e%tremely important that all the managers have e%cellent communication s$ills and that team mem#ers understand that company’s strategic goals are more important than individual goals of different departments. for e%ample ingredients and primary pac$aging materials which #ear the trademar$. e'uipment and services. How would you characteri(e the nature of the relationship #etween CCHBC and its suppliers? CCHBC aims to have fair and mutually #eneficial relationships with all of its many suppliers. service and innovation from their suppliers. &ollowing the company’s e%pansion into 8astern 8urope.ll the re'uirements e%pected from the suppliers are specified in the 4uiding -rinciples for +uppliers and CCHBC e%pects high levels of 'uality. human rights. heir suppliers are also important #ecause their constant wor$ and improvement of their own products which they supply to CCHBC improves the 'uality. fair la#or practices and environmental responsi#ility. some of their international suppliers have e%tended their #usinesses and esta#lished production near the CCHBC. . . +upplier relationships are managed on country and group level and some of the $ey issues are controlled #y he Coca.spirit.

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