Professional Documents
Culture Documents
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1. Acknowledgement
First and foremost, we would like to express our gratitude to our module leaders Mr.I.G.
Perera for the guidance and the supervision to complete this group assignment. From the
beginning to the end of this report, information was obtained from Coca- Cola and DSI
annual report and all the team members worked hard to prepare the report.
We did our assignment successfully with the effort of all the group members. If not, this
assignment would not have been successful. At last, we would like to thank everyone who
supported us to make this assignment successfully directly or indirectly.
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Contents
1. Acknowledgement ................................................................................................................... 2
2. Introduction to Business .......................................................................................................... 4
Coca Cola...................................................................................................................................... 4
DSI Company ................................................................................................................................ 4
3. Material requirement planning (MRP) .................................................................................... 6
3.1. Coca Cola Company ......................................................................................................... 6
MRP Concept ........................................................................................................................... 6
Objectives ................................................................................................................................ 6
MRP deals with the following issues........................................................................................ 6
Process ..................................................................................................................................... 6
3.2. DSI Company. ................................................................................................................... 8
Advantage of material requirement planning in DSI Company, .............................................. 9
4. Re order level system (Coca Cola, DSI Company) .................................................................. 10
5. Warehouse management system .......................................................................................... 12
5.1. Coca Cola Company ....................................................................................................... 12
5.2. DSI Company .................................................................................................................. 14
6. Performance management system ........................................................................................ 17
6.1. Introduction Coca Cola................................................................................................... 17
6.2. Organizational Strategy Coca Cola ................................................................................. 17
Coco-Cola’s Purpose .............................................................................................................. 17
Coco-Cola’s Ambition ............................................................................................................. 17
Systems of Coco Cola ............................................................................................................. 18
6.3. Introduction DSI Company ............................................................................................. 18
6.4. Organizational Strategy DSI ........................................................................................... 19
DSI’s Purpose ......................................................................................................................... 19
DSI Long-term Goals .............................................................................................................. 19
7. Out-sourcing warehouse functions........................................................................................ 20
7.1. Coca-Cola ....................................................................................................................... 20
7.2. DSI Company .................................................................................................................. 22
8. Conclusion .............................................................................................................................. 23
9. References ............................................................................................................................. 24
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2. Introduction to Business
Coca Cola
The Coca-Cola Company is American multinational
beverage corporation, best known as the producer of The
Cola-Cola. The sugary drink was invented by pharmacist
John Stith Pemberton in 1886. Coca-Cola Co. is that the
nonalcoholic drink company, which engages within the
manufacture, market, and sale of nonalcoholic beverages that embody sparking soft drinks,
water, increased water and sports drinks, juice, dairy farm and plantbased beverages, tea,
energy drinks and coffee. Introduction Coca-Cola operates in more than 200 countries and
has a diver’s workface of around 79,000 company employees. Coca-Cola of beverages
accounts for approximately 1.3 billion of the 50 billion beverage servings consumed
worldwide each day. Demonstrating both the company’s strength and growth opportunity.
The company continuously strives to expand its beverage offerings to meet the evolving
needs and tastes of consumers. However, the current formula of Coca-Cola remains a trade
secret, although a variety of reported recipes and experimental recreations have been
published.
DSI Company
The footwear sector is a very significant
segment of the rubber industry in Sri
Lanka. The abundance of natural raw
material and high-quality craftsmanship
have helped Sri Lankan footwear and
rubber products exporters to establish
themselves as leading suppliers to global brands. The Sri Lankan, leading footwear
manufacturing company (DSI) have transcended from being mere manufacture to creative
design and production solution provider to global buyers.
Sri Lanka is renowned for its production of high-quality natural rubber and rubber-based
products as the pioneer of the global Natural rubber industry. Products made in Sri Lanka
are internationally accepted for their durability and superior quality. The Sri Lanka rubber
industry has given birth to an outstanding and profitable supply chain. Throughout the
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years, the industry has paved its way to niche market-based products such as solid tires,
sole crepe for shoes, and high-quality surgical gloves and other gloves. The manufactured
raw natural rubber falls under types and varieties, out of which the main grades are ribbed
smoked sheets (RSS) rubber, crepe rubber, technically specified rubber (TSR), and Latex
concentrate. Sri Lanka exports rubber and rubber-based products to the USA, Germany,
Belgium, Italy, and the United Kingdom. The country also exports semi-processed natural
rubber to Pakistan, Malaysia, India, Japan, and Germany. Sri Lanka’s rubber industry is
generally positioned as the fourth largest source of foreign exchange for the country
accounting for approximately 8 percent of export income whilst Samson International Plc.
The local availability of high-quality resources like rubber to produce solo crepe and
excellent leather and sustainable production procedure have given Sri Lanka footwear
manufactures a competitive edge over the rest.
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3. Material requirement planning (MRP)
A material requirement planning system speeds up the manufacturing process of products
based on demand and bills of materials, which raw materials components, and
subassemblies are needed and when the finished products should be assembled.
Objectives
Ensure material are available for production
Ensure products are available for delivery to customers
Maintain the lowest possible material and product levels in store.
Plan manufacturing activities, delivery schedules and purchasing activities.
Process
Management System
Establish, document, implement, maintain and continuously improve the quality and food
safety. Management system in accordance with Coca Cola company requirements covering
products and packaging materials supplied to the Coca Cola system. Appoint a designated
person to ensure the effective implementation and maintenance of the management system
and report that performance to senior management.
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Risk Assessment
Use a risk assessment process to determine quality control points and food safety risks (
based on the HACCP seven – principle, twelve step model described in the Annex to
Condex Alimentarius General Principles of food Hygiene CAC/ RCP 1-1969) which
allows any identified risk to be reduced or eliminated.
Design facilities and equipment used to manufacture, handle or store materials (raw
materials, intermediate and finished products, auxiliary materials, processing aids, and
packaging materials) that are suitable for their intended use. Maintain facilities and
equipment to preclude potential contamination by or exposure to outside elements, odorous
substances, pests, hazardous materials, microbial contaminants.
Specified Requirement
General
Food Safety
Facilities and Equipment Design
Purchased materials and services implement a program to approve and monitor suppliers
of purchased materials that include the following:
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Pest Control
Housekeeping and Sanitation Controls
Weight Controls
Foreign and Extraneous Material Control
Finish goods
Transportation
Security
Trademarked Protection
Information
Auxiliary Material
The Material requirement planning steps for the DSI Company are; Identify the product
type, estimate the demand and volume, explore required raw materials and components,
evaluating existing inventory levels, examine the manufacturing capacity, plan the
production and cost and schedule the delivery.
This is a part of DSI Company related integration initiatives strategic plan and a much-
needed investment to manufacture the raw materials that is being used for footwear
manufacturing. It will also cut down the supply chain and logistics lead time when it comes
to sourcing materials while DSI Company can reduce the much-needed foreign exchange
spent on imports. While manufacturing the internal requirements for DSI footwear
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manufacturing, DSI synthetic materials plant will make available its full range to the local
footwear manufacturing.
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4. Re order level system (Coca Cola, DSI Company)
A reorder-level system is a stock-control system based on the principle that orders for the
replenishment of items of stock are only placed when the balance of stock for a particular
item falls to a predetermined level. The following factors are taken in to account for
fixing the Re-order level. Rate of consumption of material.
1. Re-order quantity.
2. Minimum level.
3. Lead time
Minimum Level: This is the level below which the stock of an item should not fall. This
is known as safety or buffer stock. An enterprise must maintain minimum quantity of stock
so that the production is not hampered due to non-availability of materials. This level is
fixed after considering the following factors.
Re-order level
Lead time
Rate of consumption
Average Level: Average level can be calculated by applying the following formula
Maximum level + Minimum Level Average Level or Average level = Minimum level of
Re-order Quantity.
Danger Level: Usually stack should not be lower than the minimum level. But if for any
reason, stock comes down below the minimum level, it is called danger level
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Danger Level = Average consumption * Maximum re order period for emergency
purchases
4.Automatic generation of a
replenishment order at the appropriate
time by comparison of stock level against
re-order level inventory controls
Normal consumption - 6500 units per day Normal consumption - 4500 units per
Maximum consumption -10,000 units per day. Maximum consumption - 7000
day units per day.
Minimum consumption 2300 units per day Minimum consumption = 1500units per
Re-order quantity - 7200units day.
Re-order period 10-12 days Re-order quantity - 5000 units
Re-order period 25-28 days.
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5. Warehouse management system
5.1. Coca Cola Company
1. Sustainability is a top priority
Executives at coca cola are determined to ensure that every level of their supply chain is as
sustainable as possible. They believe that responsible businesses care about making a profit
as well as the environment.
In their commitment to sustainability, Coca Cola has adopted six of the seventeen global
sustainable development goals negotiated by the united nationals in 2015 for global peace
and prosperity. Apply named mission 2025, the Coca Cola Company is on track to meet its
sustainability goals by 2025. The company is continuously strategizing ways to improve
their supply chain management to reach these goals.
One of the goals of mission 2025 is to reduce waste. Coca cola contributes to this goal by
removing unnecessary packaging from its products. This can be done by creating reusable
packaging or developing new, sustainable types of packaging.
Reducing emissions
Another sustainability goal is to reduce the amount of emissions that the Coca Cola
Company and its suppliers add to the atmosphere. Some of its branches use low carbon
technologies such as solar panels to power their building and production lines. They are
always on the lookout for renewable and clean energy sources.
The Coca Cola Company has also decided to reduce their water consumption by 20% in
the areas of their bottling operations. They also work to secure safe water sources for these
communities from which they source the ingredients for their soft drinks. The not only
helps communities around the world but also ensures that Coca Cola’s operations are never
slowed down due to a water shortage.
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Sourcing
Coca Cola follows a strict set of sourcing guidelines in their design process. The Company
is required to obtain a specific set of certificates to ensure that suppliers follows the same
guidelines.
OHSAS 18001 Certification: Inspection of all supplier manufacturing plants for health and
safety regulations
When Coca-Cola is looking for suppliers, they will always give preference to those within
a certain radius of their manufacturing plants. According to their website, 95% of their
spending on sourcing is local to the country in which they operate. Before they set up a
manufacturing plant, they ensure that it is close to a source of raw materials. They are
mainly interested in the procurement of sugar products. Local sourcing gives Coke
immediate access to raw materials, which reduces the risk of supply spoilage or shipping
problems. Buying from local suppliers also helps Coke build stronger relationships with
those suppliers and create jobs that benefit the communities they work in. Beverage bottlers
are one of the largest groups of partners. The Coca-Cola Company has more than 225
bottling partners worldwide.
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increases the warehouse's storage capacity. It tracks products through every stage of the
manufacturing process, from production to delivery from a retail store. Using automation
reduces production costs and keeps inventory in constant flow.
If you have a product that can improve this process, you are a solid competitor for their
business. You can automate aspects of your own business to improve your production
costs. If you can provide goods or services to help them keep warehouse automation a
viable solution, you're also a valuable partner
Coca-Cola monitors the supply and demand of their products in real time. This allows
them to make data-informed adjustments to production or transportation. It allows
manufacturers to produce products every week. This translates into fresh produce and
helps them keep their supply close to demand without playing a guessing game.
Warehouse is a place where both finished goods as well as raw materials are stored. Storage
involves proper arrangement for preserving goods from time of the production or purchase
till the actual use.
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When it comes to types of warehousing, DSI owns their own warehouse which means it's
a private warehouse. In DSI they have focused on some key functions in a warehouse. As
they mentioned, they are:
The warehouse of footwear is one of the best structured warehouses in the island according
to the records mentioned. There are six racks named accordingly A, B, C, D, E, F. there
are about ten (10) feet of gap between the racks. In the warehouse there are about nine (9)
fire doors for the safety of the workers and there are nine (9) big height and broadened
rolling doors. The warehouse height is about 54 feet’s and it’s just a one floor.
According to the picture above, loading is the place where finished goods are loaded in
side to the warehouse. This was done by using a bar cord system and each and every box
is labeled with the code and the other details. To issue the goods they have used another
gate in case of reduce mistakes can be happened. The place is selected mainly affecting on
the space and parking the vehicles.
These are the Characteristics that DSI has selected when building an Ideal warehouse.
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Protection Form Sunlight, Rain, Wind, Dust Moisture and Pests
Parking Space
Security
Firefighting Equipment
The transportation done inside the warehouse of DSI is by using special type of folk lift
trucks. These trucks are imported from Germany. And also, by these trucks the efficiency
and the effectiveness of the warehouse work are have been utilized.
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6. Performance management system
6.1. Introduction Coca Cola
The product, which was only a thought and then became one of the most selling products,
the birthplace of Coca-Cola is Atlanta, was on the date of 8 May 1886, and was produced
by Dr. John Stitch Pemberton, a pharmacist. It was first sampled and at the pharmacy before
being on sale. In a day, nine bottles used to see and the drink soon got popular due to the
advertisement of ‘Delicious and Refreshing’, it is a slogan which is still alive. The brands
of Coca-Cola, which are present in Sri Lanka, are Coca Cola, Coke Zero, Cola-Diet, Sprite,
Fanta, Portello, Lion Beer, and Lion Soda & Kinley.
“To fulfill our purpose is the start of our journey, on which we have to endure but it also
gives the standard to us and acts as a ruler which settles us”.
Coco-Cola’s Ambition
“It is our ambition due to which we are able to construct the way to our goal which is to
produce the good quality and affordable products” People: To be a nice place so that the
people there want to do better and be better
Portfolio: To produce the product which are of good quality and can fulfill the necessities
and thirsts of people?
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Partners: A melody of the customers and the providers which can soothe.
Planet: To be a proper citizen of the society who doesn’t do wrong and can actually help
in the building of good communities.
Profit: Provide the rightful share to the shareowners as it is theirs and minding what our
responsibilities are.
DSI product range includes EVA/Rubber flip flops, Sandals, Vulcanized shoes, Leather
shoes, Rubber boots, School shoes, PU sandals, Indoor slippers and Industrial shoes.
The Company currently produces more than 24 million pairs of footwear per year and has
a workforce of more than 2,500 employees. DSI footwear is manufactured in 5 large well-
designed and modern production facilities with state-of-the-art technology ranging from
EVA, PVC/Rubber Injection and Direct Vulcanizing combined with the advanced
machinery and tools such as PVC Injection Machines, Polyurethane Machines, EVA
Injection Machines, PVC V-Strap Machines, PVC Sole Injection Machines & Hydraulic
presses.
All DSI products are REACH complied, meanwhile factory has acquired Fairtrade, GOTS,
OCS, VEGAN and FSC certifications along with BSCI and SMETA social compliance
certifications.
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6.4. Organizational Strategy DSI
DSI’s Purpose
DSI having a clear plans and goals for the future. DSI, short and medium- term growth
strategies focus on a mix of market penetration, market development, and new product
development on routine basis. Over the next three years, company plan to target new export
markets and new demographic segments for growth, supported by attractive new products.
High standards of quality are what sets apart DSI from its competitors. Our processes
including our state-of-the-art laboratory is ISO 9001:2015 certified. As we work with
several global footwear brands, we are accustomed to customer retail audits as well as
meeting all customer compliances. Our testing laboratory is capable of conducting a wide
range of testing such as Tensile load, elongation, bonding strength, toe post attachment,
Color fastness rubbing, out sole flexing, whole shoe flexing, Abrasion resistance,
compression set, etc. to ensure that the final product reaching the market has withstood the
harshest conditions and successfully meets international quality standards
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7. Out-sourcing warehouse functions
Outsourced or third-party warehousing and distribution describe a company's use of
specialist external storage facilities and inventory management expertise rather than
building or expanding capacity and coordinating goods through the entire supply chain in-
house.
7.1. Coca-Cola
Both outsourcing and growing bottling competence inside the supply chain have their
benefits and drawbacks. On the one hand, expanding a vast network of distributors and
franchisees offers the chance to flourish and concentrate on the business’s primary strength,
the manufacture of syrup. Additionally, outsourcing such a process increases competition
among bottling businesses, driving down bottling prices and encouraging greater efficiency
for them to preserve and enhance profitability. The Coca-Cola Company can react locally
and rely on people who have acquired local experience through time by relying on a global
network of Coca-Cola bottlers and distributors.
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greater economies of learning while preventing the parent corporation from creating a local
distribution network. On the other side, outsourcing for the parent firm would involve less
control and more work to monitor suppliers’ activities in order to consistently improve the
reputation of the “Coca-Cola” brand name. Other significant challenges with the
outsourcing of the bottling process, which stem from the control issue, include possible
problems with delegation and communication between Coca-Cola and its partners. The
procedure in its supply chain and how the product gets to market are generally less of Coca-
control Cola’s under this method. Since launching a bottling business has such large fixed
costs, assuming responsibility for all these activities would push the parent company’s
ability to meet demand to an unfavorable level.
However, several of its affiliated businesses, including Coca-Cola European Partners, have
significant negotiation power. This indicates that Coca-Cola partners now have more
negotiating authority with stores and the parent firm as well as economies of learning over
time.
To sum up, it’s critical to identify those tasks that are extremely performable and
strategically feasible, deserving of being kept inside the company’s control, minimizing
the need to outsource them. On the other hand, any expensive, non-strategic task that is
challenging to carry out and manage should be outsourced to partners. Coca-Cola has
succeeded in this by maintaining the syrup’s manufacture while contracting out the bottling
and distribution work.
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7.2. DSI Company
The Group sector portfolio most recently included
information technology. Samson Information
Technologies (Pvt) Ltd was established with the
goal of consulting for and outsourcing a portion
of the IT functions of individual DSI businesses.
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8. Conclusion
This assignment has defined the entire processes of material requirement planning, reorder
level system, warehouse management system, performance management system in terms
of Coca Cola and DSI Company very clearly and accurately. All information provided is
timely and accurate.
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9. References
https://www.slideshare.net/jainarchi/material-management-in-cocacola
https://nowcorp.com/coca-cola-logistics/
https://operationsmanagementblog.home.blog/2019/05/27/is-outsourcing-a-good-
strategy-for-coca-cola/
https://operationsmanagementblog.home.blog/2019/05/27/is-outsourcing-a-good-strategy-for-
coca-cola/
https://www.dsiholdings.com/sector.php?secid=ith#:~:text=The%20company%20also%20ser
vices%20externally,markets%20are%20still%20under%20review.
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