Beverage Industry Logistics Essay

2867 words - 11 pages

Designing the optimized distribution network for carbonated soft drink industry

Introduction

National and International businesses are becoming ever more dependent on logistics and supply chain management in order to keep pace with the demands of an increasingly global economy. This is why business leaders acknowledge that the supply chain can be a value creator and a source of competitive advantage.
Logistics management is defined according to The Council of Supply Chain Management Professionals (August, 2013) as “Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer’s requirements.”

For any firm to achieve competitive advantage not only good performance of its supply chain is crucial but its logistics is vital too. More recently, logistics has become more prominent and is recognized as a critical factor in competitive advantage (Bowersox and Closs, 1996; Bowersox and Daugherty, 1995; Christopher, 1992).
Reduction in cycle times and inventory levels are the ultimate goals of any supply chain. Increased customer responsiveness is also is an important factor that has also become a supply chain’s ultimate goal. However, reduction in cycle times and inventory levels and increase in customer responsiveness are not possible without an efficient and optimal distribution. Optimal distribution plays a considerable role in each of these areas and enhances firm’s performance. Distribution also represents a large amount of logistics cost. For any successful firm to remain competitive, a firm should continue struggle to reduce its overall logistics costs. Therefore, optimal distribution is an essential component of a well administered supply chain and firm can achieve it through proper planning.
An optimized distribution network is the result of integration of various logistics activities like purchasing, manufacturing, distribution and sales. The efficiency of supply chain can only be enhanced through an optimized distribution network. Therefore, optimizing distribution network is a major task in supply chain. Any firm cannot achieve efficiency if its distribution network is not optimally designed. A good supply chain includes a good logistics system. A key determinant of business performance nowadays is the role of the “logistics function” in ensuring the smooth flow of materials, products and information throughout a company’s supply chains(Sum et al., 2001).
So the objective of this research is:
• To explore different distribution network model and extract better optimized distribution network for carbonated soft drink industry
So related research questions are:
• How can we present minimal cost and optimal service level distribution network for carbonated soft drink industry?
So supportive research questions are:
 How...

Find Another Essay On Beverage Industry Logistics

strategic Fiji Water Essay

8117 words - 32 pages of Roll International Corporation (RIC). Roll International Corporation is a private, $2b corporation with over 4.000 employees in industries such as agriculture, consumer packaged goods, floral services and more (www.roll.com/about-us.php). The acquisition by RIC occurred in 2004 and is stated to have cost $50m (Beverage Industry, 2004). Additionally, the fist year of the acquisition was an enormous success when Fiji Water sales increased 50

Analysis of the Coca Cola Company

4632 words - 19 pages the European Union.] * Central & Eastern Europe * Scandinavia * Soviet Union - The Latin American Group Overseas * Mexico * Central & South America - The Middle and Far East Group * Asia & Pacific Rim * Middle East - The Sub Sahara African Group * Manages any countries below the Sahara Desert. This distribution system provides the backbone needed to support the company and help them remain competitive in the cold-beverage industry. The company is

International business

2955 words - 12 pages , Belarus, and those in other European countries not included in the European Union operating segment. The East, South Asia and Pacific Rim operating segment included our operations in India, the Philippines, Southeast and West Asia and South Pacific and Korea. (pg. 4)Therefore, to discuss the market environment that this company now serves is a daunting task. The Coca-Cola Investors 2005 Annual Report states, "Finished beverage products bearing our

Food and Agro

4236 words - 17 pages faced by the industry and then offers some recommendations which are as follows:a)Overcoming long and fragmented supply chain : Suggests the implementation of contract farming.b)Providing impetus to logistics and supply chain sector : Suggests providing Industry status to this sector and the forming of a separate Ministry for Supply chain and Logistics Sector. Also suggests providing incentives to those involved in this sector.c)Formulation of

Doing Business in China

1800 words - 7 pages -processing of farm and side-line products, meat and sea food products processing, and machinery for processing baby food, food for the elderly, and health food.In the food packaging machinery industry, machinery for making corrugated paper and boxes, shrink-wrapping equipment, beverage-filling machines, paper cutters, can-making equipment, and automatic packing equipment will all be in strong demand. As the Chinese economy continues to boom, and

Stratergic analysis

4721 words - 19 pages , Seattle's Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks had total revenue of $14.89 billion as of September 29 th , 2013. 2 2) External Environment Of The Retail Market For Coffee & Snacks: 2.1) Industry Overview and Analysis: Starbucks primarily operates and competes in the retail coffee and snacks store industry. This industry experienced a major slowdown in 2009 due to the economic crisis

Total Quality Management: 5S of House Keeping Application with a Focus on Textile Industry

9582 words - 38 pages than other and in such cases some lean tools may not be needed or even feasible. Thus the beverage industry, which is characterized as high volume and low variety of raw material has continuous flow of product, which does not require many stops between workstation because of the high volume, which makes it by nature to have continuous flow. This rules out the use of kanban or small batches. Also, the raw material variety is low which means

The Hard Rock Company

2214 words - 9 pages The Hard Rock Café (HRC) and the Hard Rock Hotels / Casinos is a highly successful series of ventures that serves up fun, music, food, nostalgia and beverage. The HRC is also famous for its music collectibles, including guitars used by icons in the industry (i.e. Madonna, Jimi Hendrix, etc), fashion merchandise, live concerts, and Hard Rock Live performance venues. The first Hard Rock Café was opened on June 14, 1971, in London, England. Founded

Kraft Is Back On Track

1869 words - 7 pages Introduction It is vital for organizations to assess the strengths and weaknesses of its functions and activities. As a major market share holder within their industry, Kraft in order to develop and grow is recommended to utilize some basic analytical models used within the business world. These models include the Porter Value Chain (PVC) framework and the Resource Based View (RBV) of unique competencies within their organization. The RBV

Technoloy in Warehouse Management

2712 words - 11 pages Retrieval Systems (AS/RS) AS/RS technology can be broken into two broad categories. These two categories are pallet handling (unit load) systems and tote handling (mini-load) systems. The world's most advanced logistics operations are characterized by automated, direct put-away to storage systems [6]. These automated systems rely on the Warehouse Management System in order to operate well. When a shipment arrives, either a conveyor is put inside of

What is ERP?

7776 words - 31 pages Functions:Organizing The Inventory ProcessOptimizing EOQ (Economic Order Quantity)Optimizing Inventory LevelsInventory Logistics and DeploymentReplenishment Strategies andDisposition.Customer Relationship Management (CRM)The objective of CRM is to add value for customers through those processes that involve direct contact with customers before, during, and after sales. This function encompasses marketing and sales activities related to the

Similar Essays

Organizational Impact Paper

1048 words - 4 pages the competition. The Coca-Cola Company The Coca-Cola Company is the world’s largest beverage company. The company distributes and markets non-alcoholic beverage concentrates and syrups. Coca-Cola offers nearly 400 brands in over 200 countries (Coca-Cola, 2008). Coca-Cola is the leading beverage supplier for the food service industry and the company is an organization where innovation is paramount to success (Coca-Cola, 2008). The company has

Beijing Olympic Economy Essay

1550 words - 6 pages clear sector mainly includes the infrastructure construction, environment improvement, tourism service, electronic information industry, etc. The cleat lever mainly includes those of IOC rules, OCOG administration, the city and the market. The clear market is mainly includes the preparatory market (the space of the service trade), after-match market(the development of tourism, culture and sports industry),etc. II. Markets demanded by the

Marketing Strategies Adopted By F&N Dairies

2522 words - 10 pages ; Beverage arena in Singapore and Malaysia since the 1930s. Beyond soft drinks, it has successfully ventured into beer brewing, glass manufacturing as well as producing, marketing, sale and distribution of dairy products such as milk drinks, ice cream, isotonic and Asian drinks, while building more and more reputable brands well recognized in the region.F&N should position themselves as a preferred supplier. They should use logistics as a

Organizational Behavior Of Pepsico Essay

6339 words - 25 pages framework below:Graphic 1: Value Chain OutlineIn general, the value chain of a non-alcoholic beverage industry contains five main activities such as inbound logistics (suppliers and handling of the materials), operations (production of the beverages), outbound logistics (distribution of the final products to distribution channels), marketing and sales, and service (after-sales services). Moreover, these processes are supported by departments, which