ASSIGNMENT ON INTERNATIONAL LOGISTICS MANGEMENT

SUBMITTED BY SUHAM CHAKRABORTY

PGDM SAP

0191PGM002

Q.1

Select a product of your choice, and discuss the various decisions

pertaining to its transportation, warehousing and material handling
during the complete process, starting from the procurement of raw
material till the point of sale.

1.1 Flow Chart

Ingredients Packaging Manufacturing

Consumption &Recycling Refrigeration Distribution

Fig 1: Coca Cola’s Supply Chain Management Flow

The figure above illustrates the stages associated with the development of all the

elements associated with the beverage Coca-Cola and the steps taken with the aim of

delivering the final product to the consumer.

1.2 Ingredients
 The technology employed in the ingredients stage is the basic farm technology.

Depending on the scale of one’s farm, some of the technology may include high end tractors.

Otherfarms have been found to employ the use of small planes associated with the application

of pesticides(Hafezalkotob&Ghezavati, 2015). Bigger farm have also employed irrigation

systems. The type ofworker associated with this step is typically a farmer, while the action

done in this step is basically farming.

1.3 Packaging

Coca-Cola is renowned for its capacity to ensure that the products ingredients are kept

a secret. The packaging stage is associated with the packaging of the ingredientsinto a

formula that can be distributed to its manufacturer. Dues to the company’s protocols and

secrecy, it is very difficult to determine the technology employed in the packaging of coca

coal’s formulae(Hafezalkotob&Ghezavati, 2015). The employees working in the packaging

plants are also secretive thus maintaining the company’s hold on its market niche.

1.4 Manufacturing

Manufacturing with regards to coca cola refers to the goals associated with the

development of the final product and packaging it into the bottles that have become well

known and associated with coca cola. The technology used for this step includes water

filtering and disinfection systems that remove impurities from

water(Hafezalkotob&Ghezavati, 2015). This water is combined with sugar and the

concentrate that was previously packaged at the parent company. Other technologies

employed are systems that subject the syrup to high pressure carbon dioxide. Automated

machinery and conveyer belts are also to be found in a manufacturing plant. Individuals

specialized with these technologies are to be found working in the company as mentioned.
 1.5 Distribution

The distributionmethod employed by the company depends on the locale of the

distribution strategy as well as the consumption rate. For instance, third world countries have

been known to employ the use of trucks, pick-ups, and other non-conventional modes of

distribution. However, developed countries will have formal distribution systems. The bottom

line of the distribution is efficiency with regards to meeting the demand of the

consumer(Hafezalkotob&Ghezavati, 2015). The type of worker normally associated with

distribution is the driver and the personnel who load and offload the product.

1.6 Refrigeration

This stage of the supply chain is associated with the retailers and sellers. The main

reason for refrigeration is so that the drink can have that chilling effect that helps in

quenching the thirst of coca cola consumers. The chilling effect also helps in reducing the

heat as experienced by theconsumer(Hafezalkotob&Ghezavati, 2015). The technology

associated with this stage isthe refrigerator while sales persons work at the retail stores and

shops thus representing the type of worker to be expected.

1.7 Consumption & Recycling

The final step in the supply chain is the consumption and recycling of the final

product. A customer purchasing the final product is expected to recycle both glass bottles

and plastic bottles. The company has liaised with distributors to allow for the return of the

containers used to deliver the final product(Hafezalkotob&Ghezavati, 2015). The simple

procedure to subsidizing one’s future purchase of the product ensures that the client has an

incentive to recycle the used product. The technologies employed in the distribution of the

products are also used in the recycling process.

Importance of Inventory

• For smooth production and selling activities

• To avoids the stock-out problem

• To Expense Control

• For emergency situations

Inventory control by coca cola

• The Economic Order Quantity (EOQ) Model

• FIFO

Importance of Transportation Distribute products

• with right product

• with right quantity

• to right place

• with right quality

• right price

Transport in coca cola

• Use highways to transport product across the land

• Use international airports to transport goods to other countries in the world

• Use deep water ports to ship cargo to other countries in the world

Strategies Coca-Cola used to manage its supply chain drivers

• Focus on aggressive marketing

• Operating through push strategy customer order anticipation

• Use A-B-C classification for inventory handling

• SAP enable web base platform

Using material and inventory control systems

• cooperative supplier-buyer customer relations through the use of JIT and TQM.

• Warehouse layout and designs to increase the efficiency of operations for incoming materials •
Provides on-site storage to eliminate off site to warehouse cost

• Bottling plants have been located near to railway network

Q. 2

What do you mean by Containerization? What is CONCOR? Discuss

its role and responsibilities in International trade and logistics.

Containerization is a system of intermodal freight transport using intermodal

containers (also called shipping containers and ISO containers). The containers
have standardized dimensions. ... It displaced many thousands of dock workers who
formerly handled break bulk cargo.

Container Corporation of India Ltd. (CONCOR), is a Navratna Public Sector Undertaking under

the Indian Ministry of Railways. Incorporated in March 1988 under the Companies Act, CONCOR
commenced operations in November 1989 taking over an existing network of seven inland
container depots (ICDs) from Indian Railways.

Discuss its role and responsibilities in International trade and

logistics.

Coordinate with overseas vendors to manage import activities in order to

meet service level expectations.
Develop and implement supply chain strategy for international business
expansions.
Assist in managing shipment and custom activities for import services.
Maintain good relationship with vendors and service providers to improve
overall business performance.
Work with vendors to identify and eliminate logistics obstacles to ensure
safe and timely shipping of products.
Develop standard operating procedures and scheduling/shipping practices
for efficiently carrying out logistics activities.
Negotiate sea and air freight quotes with carriers.
Inform cost changes, shipment issues, supply concerns to respective
personnel and team in timely manner.
Identify opportunities for cost reduction, material flow improvement, and
business development.
Review customer orders to determine items to be stocked and shipped.
Create and maintain detailed financial reporting on all import activities
including order management, logistics and shipping.
Ensure that logistics system is operated in accordance with local, state and
federal customs laws.
Ensure that logistics activities are in compliance with United States
Customs and Border Protection regulations.
Recruit, lead and train staff in inventory management and shipping
processes.
Develop and monitor international routing instructions for suppliers.