Coca Cola Supply Chain Case Study

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INTRODUCTION
As the level of competition increased in the 1990s and markets became global, so did the difficulties and challenges connected with getting a good or service to the right place at the right time at the lowest cost (Moberg, et al., 2002). Because of this, organisations realized that improving efficiencies within an organization is not enough but that their whole supply chain has to be made competitive or aggressive (Power, et al., 2001).With that said, managers ended up being forced to seek and implement ground-breaking strategies with which to improve or enhance their organization’s competitive edge as well as their profitability. Due to the difficulties and pressures they faced, organizations soon came to understand the significance …show more content…

However, as Coca-Cola developed and expanded, it’s supply chain also developed with it (Tallant, 2010). Coca-cola, which is now one of the world’s most celebrated and largest brands in the beverages industry was established amid the year 1886 by pharmacist Doctor John Pemberton in Atlanta, Georgia USA.
As expressed by Berry (2010), Coca-Cola has individuals in Atlanta who deal with the brand and general showcasing, item advancement and other supply chain viewpoints. However, every nation has its own particular bottler. Although this organization is enthusiastic for a portion of the pacakaging operations, it doesn’t mean that the Coca-Cola organization and the bottlers are one big entity.
As Coca-Cola expanded nationally and internationally, the firm recognized the need to control inventory and its related expense to the organization. Frameworks like the material requirements planning (MRP) and the manufacturing resource planning (MRPⅱ) provided organizations like Coca-Cola the ability to track inventory accurately (Tallant, …show more content…

What this means for McDonald’s is that they don’t start to cook, assemble or preheat their stuff until they receive a customer order.
One of the advantages of the JIT system is that it allows for McDonalds to uphold the objective of fast food restaurants of serving freshly prepared foods taking the shortest amount of time. This also means that the restaurant ensures to serve good quality products. The JIT inventory management system also allows McDonald’s to uphold their humble beginnings of a drive-through restaurant allowing for customers to readily purchase a meal with as little inconvience as possible.
Therefore the advantages of McDonald’s for using JIT inventory management are the: reduction of cost of ordering,reduction of cost of holding and reduction in safety stock. This makes McDonald’s more favourable to customers resulting in McDonald’s having the upper hand when it comes to customer

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