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History:
The Coca-Cola Company began operating in Pakistan in 1953. Benjamin H. Oehlert Junior, former senior
vice president of The Coca-Cola Company, served as United States Ambassador to Pakistan from 1967 to
1969.
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Famous Globally BRANDS
Globally, the Coca-Cola Company owns or licenses nearly 450 brands in the nonalcoholic beverage
business. Many of those brands are considered among the worlds most valuable. Some of these include:
Sports drinks
Water products
Teas
Coffee
Japan.
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COCA-COLA IN PAKISTAN
Introduction:
Bottling Information:
CCI produces, distributes and sells sparkling and still beverages of The Coca-Cola Company (TCCC) across
Turkey, Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Turkmenistan, Jordan, Iraq, Syria and Tajikistan.
Bottling Information:
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CCI System in Pakistan
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CCI PROFILE
MISSION:
VISION:
PURPOSE:
VALUES:
Our values serve as a compass for our actions and describe how we behave in the world.
Authenticity: we act with integrity, and do what is right, not just easy
Caring for our people: we believe in our people invest in them, and we empower them
Performing as one: we believe in the power of working together, contributing in every occasion
Winning with our customers: our customers are at the heart of everything we do.
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SC ORGANIZATION CHART
9,000 employees are currently working in the CCI Company. According to the organizational
chart below is the territory hierarchical levels
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TYPES OF SOFTWARE USED IN COCA-COLA
SAP:
SAP is an abbreviation for Systems, Applications and Products.
It helps in working more quickly and cost-effectively – connecting people directly to business
processes and delivering the information and capabilities they need to make decisions and
take action.
SAP is an integrated ERP solution, providing solutions from Production to HR modules.
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Material management (MM):
Supports the procurement and inventory functions occurring in day to day business
operations it includes requisitions, purchase orders, goods receipt, accounts payable,
inventory management.
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Sales & distribution (SD):
Manages problems in sales & distribution with the help of quality notifications and by
processing customer complaints.
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Supply Chain Management (SCM)
The company produces the syrup which in turn is used in making beverages. The franchised
companies then make the final product. This has been optimized by Information Technology
implementation of SAP R/3. The movement of the final product from the manufacture to the
customer encompasses supply chain. The CCI Company employs a number of strategies that make
this possible including compliance with local laws human rights and that all suppliers have contracts,
are audited to form a comprehensive report. The suppliers are entrusted with provision of
ingredients, ware and packaging. In turn, the company produces drinks which are taken to
warehouses and distributors for availing to customers. The Coca Cola Manual Distribution Center
model has seen the company sell even to the remotest part of the world.
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CCI Group Procurement Policy
DEFINITIONS
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OBJECTIVES
The objective of this guideline is to adequately describe the basic principles to be followed in
Procurement in Coca-Cola İçecek AŞ with particular reference to the Group Procurement team to
align Coca-Cola İçecek’ s practices in the procurement of goods and services, and to give the
relevant processes in order to:
Procurement Mission
‘Be a World Class Procurement Team w/best in class Capabilities ensuring cross-functional
end to end governance, securing supply and on time management while
creating savings and value for all CCI Operations”
Group Procurement supports Country Procurement, using technical expertise and know-how,
leveraging the ability to aggregate volumes across the countries to create value for Coca
Cola İçecek A.Ş.
Material
Sweeteners Crystal Sugar, Liquid Sugar, HFCS
Ingredients
Gases CO2, Nitrogen
Can
Resin and Preform
Direct Primary
Glass
Material Pack Packaging
Aseptic Packaging (Tetra Packs)
Material
Closures, Crown
Secondary Label, Shrink, Stretch, Sleeve, Crates, Bag
Packaging in Box, Corrugated
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SME (Cooler, Other CEPG Managed Categories)
Chemicals
Indirect Fleet (Operational Car Rental)
Material and Forklifts and Pallets
Services Group CAPEX projects managed by Group Supply Chain and
related Spare Parts of main equipment suppliers
Group IT Projects (Above 100kUSD annual spend)
Indirect Logistics*
Material
and
Services Spare parts* (Production Line and Equipment)
GP’s main roles and responsibilities for all categories above are:
Supplier Management
Determines relationships to engage in with different suppliers in order to create new value
and reduce risk with respect to overall business strategy
Defines Key Performance Indicator’s and measurements to track supplier performance.
Measure and track internal performance within each spend category.
GP advises how to communicate with the supplier in case of a need.
Collects market information and trends from Cross Enterprise Procurement Group and
other sources (banks, commodity analysts etc) and reviews CCI past hedging performance
for related commodities.
Proposes price ranges and quantities for hedging. GP shows the potential opportunity gain
or loss of these price ranges compared to best case, most likely and worst case market price
estimation scenarios for Group Hedging Committee.
Provides Procurement budget and Rolling Estimate assumptions to CP.
CP prepares Cost Performance Reports and GP checks data validation.
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Value Generation
Works closely with key stakeholders to develop effective cost reduction strategies and
implementation plans.
Enables sustainable use of resources and reduction of carbon footprint.
Optimizes asset and capital utilization by effectively using supplier partnerships.
Within CEPG, represents CCI and supports The Coca Cola Company wide programs to
achieve better access, value and information (technology/innovation).
Provides guidelines and supports the organization and performance of country
procurement operations.
Maintains confidentiality and code of ethics.
Vendor Qualification
Procurement personnel, aided where necessary by end user countries, must maintain up-to-date
lists of qualified vendors (e.g. TCCC approved supplier data base). Those Vendors requiring
TCCC qualification must be detailed on vendors list and include relevant information on their
qualification status and expiry of qualification. Qualification involves consideration of such factors
as past performance, testing of products against specifications, ability to respond in good time
and dependability of products.
Vendors who lose their qualification must be de-listed. However, should the criteria be met in the
future, they may be re-listed. The market must be regularly surveyed in order to identify new
vendors.
In uncompetitive markets procurement personnel must work with potential vendors in order that
they may become qualified.
The RFQ is used when Coca-Cola Icecek has a fully defined requirement and specification
against which the suppliers may bid.
As the requirement is fully defined, price will be a principal deciding factor in the purchase
decision. Other influential factors which have a verifiable cost implication and could also be
considered might be: after sales service, lead times, etc.
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Request for Information / Request for Proposal
A request for information (RFI) is a standard business process whose purpose is to collect
written information about the capabilities of various suppliers. Normally it follows a format or
written documentations that can be used for comparative purposes. An RFI is primarily used to
gather information to help make a decision on what steps to take next. RFIs are therefore
seldom the final stage and followed by Requests for Proposal (RFP).
The RFP is used when Coca-Cola Icecek is unable to define its requirements with a precise
specification. Rather, Coca-Cola Icecek defines its need and invites suppliers to propose
solutions.
The RFP should be specific as to our needs and any terms, conditions or considerations, which
are non-negotiable. It should not be so inflexible as to prevent a supplier from proposing an
innovative solution.
The RFP must indicate that it is not an order, and that Coca-Cola Icecek is not obliged to accept
any proposal.
Bid Analysis
Bid analysis includes an evaluation of the bidder’s responsiveness to the bid specifications and
an initial consideration of the bid price. Vendors who do not match the bid specifications should
be disqualified at this stage. If there are insufficient qualified bidders, a disqualified bidder may be
informed of the reasons for disqualification and invited to re-submit.
CONTRACTS
Contracts are needed to apply the needs of CCI according to the negotiated terms and
conditions with the suppliers.
Contracts must be in place to support all purchases and verify invoices. Purchase Orders against
contracts are opened by the country procurement responsibles. Contracts and Purchase
Orders must be approved according to the local CoA.
Also, CEPG signs Master Terms and Conditions document for CEPG category suppliers.
For categories under Group Procurement responsibility, negotiations about commercial terms
and validity (short term-long term) of the contract are led and finalized by Group Procurement.
Legal contract process (preparation of the contract, review of the contract with country Legal
Departments, approval process) is led by Country Procurement Departments based on the
negotiated terms. Contract renewal/re-tendering process is managed by Group Procurement
Department. In case of any risk or delay in the contracting process, Country Procurement
Department contacts with Group Procurement Department to get the needed support.
All contracts should also include the latest version of the Supplier Guiding Principles. This
document governs the ethical business requirements to suppliers who have business with Coca-
Cola İçecek and the latest version is also published on our CCI Cokeport Portal Procurement
Pages.
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Material Requirement Procedure at CCI
MRP is the process which reads the production plan and explodes it down to the raw material by reading
production versions, BOM and Routing. It calculates raw material requirements and generate proposals
(Planned Orders/PRs) for Finish/Semi-Finish and Raw Materials.
MRP List and Stock requirement list are tools to evaluate MRP results and to evaluate current planning
situation of any material. All MRP elements (Planned Orders, PRs, POs, Reservations, Dependent
Requirements, Stock) can be viewed in these lists.
Prerequisites
All Master data has been created and production plan has been entered in the system.
Menu Path
Use the following menu path to begin this transaction:
Select SAP Menu [Symbol] Logistics [Symbol] Production [Symbol] MRP [Symbol] Evaluations [Symbol]M
D04 – Stock/Requirement List
Transaction Code
MD04
Additional Information
None
Procedure
Start the transaction using the menu path or transaction code MD04
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SUPPLY CHAIN FUNCTION:
PLANNING:
This department is headed by Purchase and logistics managers who has an array of advisors and
analysts reporting to him. On territories he is provided by planners who manage day to day planning
cycles. Advisors and analysts perform long term planning (usually one business cycle i.e Fiscal
year).
After inventory forecasting consecutive requisitions are made and purchase orders are provided to
the vendor. Lead time to deliver is taken into consideration by system. Production plan is shared with
production team weekly and productions orders are shared in SAP for production postings.
WAREHOUSE:
Raw material enters production facility from vendors site, Quality and WH departments vet it against
standards respectively Good receipt indicator is marked by each department. Raw material is then
shifted physically as well as in system to production shop floor.
Warehouse department accepts material from production and removes it from production’s shop
floor (both physically and in the system). The material is then stacked in WH keeping in mind FIFO
standards. All physical movements are done on third party vehicles.
PRODUCTION:
Production department accepts production plan, gives reservation in system for required raw
materials. Initiates production engines, in result finished goods are produced. The goods are posted
in system using all the raw materials in real time. Finished goods after inspection from quality
department are handed over to WH.
SALES:
Sales are broken into two facets, Direct and indirect sales
Direct sales, where Coca Cola dispatches goods to premium customers itself (Hyperstar,
Imtiaz, etc)
Indirect sales, where regions are split into third party distributors and they monitor and demand
sales with assistance and training from Coca Cola sales department. Distributors outreach is
till kiryana stores, wedding halls and whole sale markets.
Sales trends are monitored by sales and planning divisions accordingly. WH assists in inventory stock
keeping and day to day sales updates. This data is compiled and shared daily across territories for
planning and replenishment of all facets. (Raw material to Finished goods)
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COMPETITOR- PEPSI COLA:
• Competitor, uses manual systems and automation isn’t available in planning nor purchase.
• ERP is being used but it isn’t integrated, and all levels are maintained on excel sheets
• Sales is done direct, competitor owns vehicles and sales officers whose outreach is till
domestic shops and large supermarkets
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WEB SITES
• The Coca Cola Company has a very reliable website “www.coca-cola.com” which details all
its operations. It is also well arranged and updated to ensue correct information reaches the
viewer always.
•
• Online business involves selling of products using Information Technology tools like the
mobile phone and the Internet. The CCI Company is in the initial stages of rolling out
services to enable online transactions take place. In Finland for example, CCI has
implemented an accepted payment system using SMS for their products.
•
• Various types of data that can be analyzed at CCI Company include production volume,
water, packaging, raw material volumes and Environmental Safety data. All this data is
collected individually from respective companies and traceability is attached to enable final
analysis. Data is collected scientifically and analyzed using spreadsheets to give detailed
results.
•
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Demand &Sales Forecasting Model:
(Quantitative forecasting Technique)
35297 36320
24488 25664
21758
12173
Reference: Excel file is attached for the sales data imported from SAP.
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Salas forecasting equation using historical data from 2013 to 2018
Regression Statistics
Multiple R 0.724724442
R Square 0.525225517
Adjusted R Square 0.406531896
Standard Error 6929.047925
Observations 6
ANOVA
Significance
df SS MS F F
Regression 1 212454321.4 212454321.4 4.425052616 0.103235222
Residual 4 192046820.6 48011705.14
Total 5 404501142
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%Lower 95.0% Upper 95.0%
- - - -
Intercept 6996627.857 3338393.293 2.095806948 0.1041452 16265493.57 2272237.861 16265493.57 2272237.861
- -
Year 3484.285714 1656.359263 2.103580903 0.103235222 1114.504854 8083.076283 1114.504854 8083.076283
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