Anonymous asked in 商業及金融其他 - 商業及金融 · 1 decade ago


This is a case study:

Collaborative Commerce

Forecasting Tool Lowers Coke Bottler's Inventory

How to answer this question?

A review of the benefits accruing from the strategy adoped, describing the key reasons for success and commenting on any alternative approaches or variants that could have been used.


Is it suitable to use (J.I.T. / ERP / VMI or EDI system) for the alternative approaches?

Update 2:

Is it suitable to use (J.I.T. / ERP / VMI or EDI system) for the alternative approaches?

Anyone can help??

2 Answers

  • 1 decade ago
    Favorite Answer

    In my opinion, in order to fully utilise the supply chain management to reduce cost --> forecasting tool lowers Coke bottler'sn Inventory. I believe can use the below approaches.

    Coke is the manufacturer, so It could using the recycle approach, which already applied in certain country. For example: if return the empty coke bottle to the particular branch, the people will received 5cents per bottle from Coke.

    The pro are Coke does not need to order so many bottles from their supplier and they can stress on that by recycle the empty bottle, Coke is caring about the environment. Meanwhile, this can reduce the cost,able to gain reputation and building rapport.

    Another way to have a more effecient and effective supply chain management is Coke can have their own Bottle factory where they can control the overstock and cost.

    Besides that, by having their own bottle factory, they also can produce or OEM for other people.

    p/s: I hope these examples able to help you, i cannot recall most of the theory, only remember vertical supply chain management.

    2006-11-21 14:54:56 補充:

    for retail industry, i believe ERP and EDI system are very useful.As this system able to record and help you to track the inventory level.Sorry, i forget what is J.I.T. I suggest that you can refer to retail marketing books. 

  • 1 decade ago

    There are two questions before answering your question

    First question I would ask

    (A)What is the main cost of producing a can or a bottle of Coke?

    Its cost break-down would be as follow:

    a) Operating costs:

    1. Sugar and syrups

    2. Water

    3. Caffeine

    4. Chemical Flavor

    5. Bottling process, Manpower and energy

    6. Packaging materials (Glass, Aluminum and PET) and package manufacture

    b) Fixed cost: Plants, facilities, equipment and automatic bottling machines

    I believe that none of (a) items but it could be the (b)

    Second question I want to ask

    (B) Would you classify Coke is a fashion or a fancy item which would have a very short product life cycle?

    However, I would classify that a Coke is a Staple good or Commodity item, and which packaging, ingredients and recipe have been lasting for long time without big changing, however its packing(not packaging form) would be changing for with respect to special promotion and marketing programs in each season.

    Since the costs of material and production are low and the cost of producing a coke can be minimized to very low when a bottler is able to spread over the fixed cost with economies of scale that aims at production efficiency rather than servicing responsiveness for customers

    For such the case above, supply chain management should not be applicable to the staple good or a commodity item of low value.

    Supply chain management is only suitable for manufacturing a Mass Customized and Highly Added Value products, such as fashion apparel, cars, which materials and production costs are high, and also demand of the end product is very uncertain, and/ or the product is easily becoming obsolete.

    The value of a Coke is mainly at the brand and the cost structure for selling a coke (fast moving consumer good) should be at brand management-marketing program, distribution and retailing that costs could be spreading over with large volume of sales.

    The demand forecast could be based on the seasonal volume consumption of beverage, the study of consumer taste shifting, and package form preference over the time, however you might employ EDI, POS linking to the cash registers of the major retailers--supermarket chains, convenience chain stores for precise consumption and demand of different type of Cokes that how many regular, diet, lemon, and other flavored coke should be produced everyday without stoppage or idling the bottling machines.

    ERP system might be good for multiple components assembling, complicate workflows and process in manufacturing high added value products.

    JIT & VMI systen might be sutiable for multiple materials, components but very inconsistent supplying.

    However, low valued sugar, syrups, water, caffeine, chemical flavor and packaging materials (glass, aluminum and PET) are available at anytime, there would not be high degree of urgency for the application of ERP, JIT and VMI

    2006-11-22 11:56:57 補充:

    The information getting from EDI and POS is much helpful not only for production scheduling and also for better collaboration of coke transportation and distribution to retailers

    Source(s): Own Article
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