Coca Cola HBC. A Case Study

Term Paper , 2011 , 9 Pages , Grade: A

Business economics - Operations Research

Coca Cola HBC is one of the largest manufacturers of non-alcoholic beverages in the European continent. The strategy of CCHBC centres on four key A’s credo for maintaining the growing and constant demand of its products in the markets. (Verma and Boyer, 2011)These four A’s are
Availability- CCHBC aims that all its products are easily accessible by the target buyers. On its part, CCHBC aims to provide the right package, the right time and in the right location.
Affordability – CCHBC also aims at offering affordable products to its customers and strive to develop a wide range of highly desirable, useful and high quality products in a right package that appeals to different market and for specific occasions and priced appropriately. (Mahadevan, 2011)
Acceptability- CCBHC aims for complete control, flawless efficiency and reliable customer service and adapting the most feasible route-to-market, along with intensive knowledge of buyer requirements and needs. With such an approach, it is ensured that products launched by CCBHC are acceptable and well liked by customers in different markets.
Activation- CCBHC believes in enhancing customer motivation and choose their products. To achieve this, the company aims to provide the right brand at the right price and in the right location. CCBHC aims to place these products in enticing and interesting point of sale displays and make them available through coolers placed wisely or through racks, vendors, fountains and making these products relevant to the purchasers. These are some of the ways through which CCHBC aims to boost customer demand. (Schroeder, 2003)

Table of Contents

1. Executive Summary
1.1 Production planning
1.2 Supplier relationship
1.3 ERP Implementation problems
1.4 Customer service
1.5 Data mining tools

2. Operations management practices for CCHBC to achieve its stated strategic aims
2.1 Critical assessment of CCHBC’s approach to capacity
2.2 Challenges faced to implement the capacity management approach

3. Nature of the relationship between CCHBC and its suppliers

4. Challenges for CCHBC in implementing organization wide information systems (ERP)
4.1 ERP implementation problems and ways of addressing each challenge

5. CCHBC’s Acceptability factor demands, among other things, “effective customer service”

6. Data mining and related search toolshelpful for CCHBC to analyse its performance

7. Conclusion

References

1. Executive Summary

Coca Cola HBC is one of the largest manufacturers of non-alcoholic beverages in the European continent. The strategy of CCHBC centres on four key A’s credo for maintaining the growing and constant demand of its products in the markets. (Verma and Boyer, 2011)These four A’s are

Availability- CCHBC aims that all its products are easily accessible by the target buyers. On its part, CCHBC aims to provide the right package, the right time and in the right location.

Affordability – CCHBC also aims at offering affordable products to its customers and strive to develop a wide range of highly desirable, useful and high quality products in a right package that appeals to different market and for specific occasions and priced appropriately. (Mahadevan, 2011)

Acceptability- CCBHC aims for complete control, flawless efficiency and reliable customer service and adapting the most feasible route-to-market, along with intensive knowledge of buyer requirements and needs. With such an approach, it is ensured that products launched by CCBHC are acceptable and well liked by customers in different markets.

Activation- CCBHC believes in enhancing customer motivation and choose their products. To achieve this, the company aims to provide the right brand at the right price and in the right location. CCBHC aims to place these products in enticing and interesting point of sale displays and make them available through coolers placed wisely or through racks, vendors, fountains and making these products relevant to the purchasers. These are some of the ways through which CCHBC aims to boost customer demand. (Schroeder, 2003)

1.1 Production planning

CCHBC is of the opinion that determining production on the basis of long-term forecasting is now passé. CCHBC has now implemented an on-going planning process which is based on attaining an agreement plan that finds consensus among the concerned senior managers of the company.

1.2 Supplier relationship

CCHBC has a well-entrenched supplier relationship. Its suppliers range from countless local companies to international corporations. The local firms are contracted for providing services, equipment, packaging and ingredients. For instance, the resin supplier from Asia has developed a PET plant in Poland. On other hand, a leading manufacturer of cold drink equipment has production plants in Russia, Poland and Romania. From these suppliers, CCHBC sources vending machines and coolers.

1.3 ERP Implementation problems

CCHBC faces several ERP implementation problems even as completion heats up in this industry. Commonly, CCBHC faces issues faced in module integration. Based on individual competency levels, there is a growing tendency to bring to the fore different vendors who implement varying ERP modules. Thus, CCHBC needs to innovate when it comes to handling compatibility problems.

1.4 Customer service

CCHBC is aware that faster and better execution of supply chain is depending on effectively partnering with intermediate as well as final customers so as to find new ways to reduce costs across the entire chain and also offer relevant product range by means of tailored and customized packaging innovation. Simultaneously, CCHBC also develops tailored internalized systems for improving customer service as well as SCM efficiency. In the year 2005, it created centralized database that contained material for visual marketing to activate channel-based promotions as well as consumption occasions.

1.5 Data mining tools

Demand planning review of CCHBC is determined by the usage of data mining tools as well as scientific tools. Further, the Forecasting Manager in the company is responsible for communicating and co-coordinating with Commercial Manager (Marketing Manager). The reason why the Forecasting Manager should coordinate with the marketing manager is to verify whether the scientific demand plans are attuned with the sales targets set by Commercial Manage. If not, it needs to be decided what corrective actions should be taken on a tactical level.

2. Operations management practices for CCHBC to achieve its stated strategic aims

The product range offered by CCHBC is designed to enable the company to offer each of its customers with the apt refreshment, in the right place and at the right time. CCHBC is one of Coca-Cola Corporation’s major bottlers, operating on a worldwide basis. CCHBC was founded in the year 2000 as a result of the merger of the Coca Cola Beverages plc and Hellenic Bottling Company SA, which is based in Athens.

2.1 Critical assessment of CCHBC’s approach to capacity

Efficient supply chain management and configuration are essential to attain the foul goals , mentioned above. Additionally, effective SCM is also critical to meet the evolving demands of the marketplace as well as the buyers. Supply chain processes and efforts of the company are focused on offering the required flexibility in manufacturing so as to sustain the widening of product portfolio and at the same time, adopting the most economical route-to-market for delivering the products and order taking. (Alam, 2011)

Two key drivers of efficient supply chain management for the company are technology applications as well as investments. In the year 2005, CCHBC launched the most successful and single-largest roll out of the Advanced Planning Optimizer, based on SAP, it sixteen of it operations in seven Central European countries. These enabled CCHBC to co-ordinate and optimize operations through the entire network and even on a cross-country basis since it could consolidate the most efficient practices on a standard, single enterprise platform. There are many plans for integrating 8 additional operations within the framework of this platform. This platform lays the foundation for aligning demand planning and supply chain planning for achieving high efficiency levels in operations and sales. With this, CCHBC creates many cost-saving avenues and it moves one step ahead to achieve class leadership in the intensely competitive Fast Moving Consumer Goods Industry. ( FMCG industry).

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• College: University of Canberra
• Grade: A
• Author: Aldridge Menzel (Author)
• Publication Year: 2011
• Pages: 9
• Catalog Number: V270837
• ISBN (eBook): 9783656625599
• ISBN (Book): 9783656625582
• Language: English
• Tags: coca, cola, case, study