Case Scenario: Supply Chain Management at Coca-Cola Company
The Coca-Cola Company is the world's largest beverage company, its 500 sparkling and non- sparkling brands sold in more than 200 countries. The company needed a more modern SCM system that would work well with its other systems. The new SCM systern would also need to provide processes and information to assist with acquisitions of other companies, and it would need to integrate the information from manufacturing with its retail operations. To achieve these goals, Coca-Cola decided to implement a new supply chain management system at its 17 European plants, replacing several of the existing systems. SAP ERP was adopted as the main system, with certain applications outsourced to CSC. The new SCM implementation has succeeded by providing more automation and by streamlining various SCM processes. It also assists in bringing newly acquired companies online in a timely manner. More important, the new SCM system links supply and-demand data into a single system. Overall, the new system provides key decision makers with timely and relevant information that improves the overall efficiency and effectiveness of the entire supply chain operation.
Answer the following questions:
Q1. Why did the Coca-Cola Company implement an SCM system?
Q2. How does the SCM system impact the efficiency of the entire supply chain operation?