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Cca Logistics Essay

6060 words - 25 pages

Group Project Report (OMGT2087)
Group Project Report (OMGT2087)

Executive Summary

This report aims to analysis the Australia Company Coca-Cola Amatil of the logistics and supply chain activities. Coca-Cola Amatil is an Australian beverage company which is a partner of Coca-Cola Company purchasing and distributing carbonated soft drinks from Coca-Cola license. In addition to this, CCA provides their own products of water, soft drinks and fruit juices, and spirits and an alcoholic beverage. In view of the supply chain of CCA, we have a specific of the analysis for the quality management systems, transportation and warehousing system, inventory management systems during ...view middle of the document...

Inventory Management System - 17 -
6.1 Information Technology for purpose of Forecasting & Inventory Management - 18 -
6.2 Recommendations: - 19 -
7. Conclusion & Recommendation - 20 -
8. Appendix - 21 -
9. References - 26 -

1. Background
Coca-Cola Amatil (CCA) is an Australian public beverage company which its major revenue comes from manufacturing and distributing beverages. Also, CCA manufactures and distributes packaged ready-to-eat food products of fruit and vegetables. In terms of beverage, CCA is a partner of Coca-Cola Company purchasing and distributing carbonated soft drinks from Coca-Cola license. Besides that, CCA has its own products of water, soft drinks and fruit juices. The company also sells spirits and alcoholic beverages under Beam Global Spirits & Wines’ license. In addition, CCA produces and distributes fruit and vegetables packet, jams and sauces. Through the Grinders brands, CCA hands out coffee products and supplies cold drink kit. CCA runs companies in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea with the headquarter operating in Sydney, Australia. The company employs more than 15,900 workers and serves over 270 million consumers and 690,000 active customers (CCA fact book 2011).

CCA has 28 production facilities over the five countries, in which Australia has 13 facilities with 88 beverage product lines, 25 warehouses and 1,250 stock keeping units. CCA has spent 450 million dollars to build new production facilities of PET bottle-self manufacture or “blow-fill” technology over its groups since 2011. From this, the company can produce new lightweight bottles using up to less 20% PET plastic compared to normal plastic bottles. This would result in the reducing of carbon emissions, energy saving and increasing the effective of production line. Thebarton facility (South Australia) is the largest PET bottlers which manufactures around 110 million bottles per year.

According to IBISworld Industry report February 2013, CCA’s revenue accounted for 62% market share of soft drink manufacturing in Australia. The turnover of CCA 2012 was 895.5 million dollars, in which increased 5% of NET profit and 17.1% of return invested capital based on the CCA’s report. There were an incline in the earnings before interest and tax and total dividends per share by 3.1% and 13.3% respectively.

2. Supply Chain Structure
Apart from the manufacturing, Coca-Cola Amatil also has the responsibility in distributing in their divided region. In regard this, Coca-Cola Amatil sell products to grocery stores, restaurants, convenient stores, hypermarkets and entertainment parks through all kinds of marketing methods.

However, in this case, it is important to note that Coca-Cola Amatil is strictly forbidden in cross-selling. Based on this precondition, Coca-Cola divides market and logistic into two operation patterns: delivery partner and out delivery partner (James Tallant, 2011). More...

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