Running head: PROCESS DESIGNS AND SUPPLY CHAIN, PART I

Process Designs and Supply Chain, Part I

Shelia Collins
University of Phoenix
Operations Management
OPS/571
Andres Carrillo
April 6, 2014
Process Designs and Supply Chain, Part I
A supply chain, by definition, involves the different aspects of organizational structure
that deals with the allocation of resources, people, and capital that will help move products and
services from the manufacturers and suppliers to the end users who are the customers. It will
involve movement of raw materials from the suppliers to the manufacturing or focal firm and the
movement of the processed raw material in form of finished goods to the customers. There is
also the movement of cash as payment for the goods and services downwards to the
manufacturers and suppliers. An integrated supply chain involves both the primary and
secondary activities. Primary activities are those in-house activities that help in the
transformation of the raw materials into finished good. They include infrastructure, human

resource capabilities, information technology, and procurement. Secondary activities are those
that entail the movement of raw materials and goods from suppliers to customers. Activities here
include inbound logistics, which are the activities that bring in the goods and services to the focal
firm, operations, outbound logistics, marketing, and sales as well as service delivery to the
customers.
Coca-Cola is the worlds leading soft drink distributor that has established itself in most
of the countries such as Africa, Asia and Europe. They have a specific set of formulas and recipes
for making these soft drinks of which no one else has the formula. Coca-Cola has the sole right
to manufacture the drinks that they have acquired a patent for. Most distribution in major
countries is by use of franchisers. Coca-Cola gives exclusive rights to some people and
merchants to sell over a specific region. In return, these merchants pay up some profit to sell the
product. From there, they can acquire more distributors to aid in distribution of the product to a
given geographical area. Retailers also aid in the supply of the drinks.
Inbound logistics involves the movement of raw materials from the suppliers to the focal
or manufacturing firm. Coca-Cola has been known to maintain a constant supplier for their raw
materials. This is the most critical thing to do since they value quality and on time delivery of
their raw materials at the right time, right place, and right quantities. They also embrace suppliercustomer relationship in which the supplier is also involved in the innovation and creativity
system. The suppliers are also responsible for giving ideas of where they think can be improved.
This will create an increased value in their products. The human resource managers and
personnel responsible for procuring are also very keen on ordering the items. The process flow
chart is as follows:

PROCESS DESIGNS AND SUPPLY CHAIN, PART I

Inputs:
Mixing of the elements according to recipe
ce, citric, sugar, carbon dioxide, cinnamon, coriander, lemon, and orange oil

Output:
Coca cola carbonated drink

Bottling and packaging

N
O
Branding of the bottles

Inspection for quantity and quality- sampling

Good quality?

YE
S

Storage ready for supplying.

Basically, performance measurement is by the efficiency and effectiveness of

manufacturing machine and process. The amount of drinks that the machines can
complete making and packaging per hour is what determines the efficiency of the
process. They also use the defective number rate to gauge the effectiveness. The
ratio of the defective drinks at the end of the inspection exercise compared to the
non-defective ones will also dictate the effectiveness of the process. Coca cola is
value driven and will usually and has been known to produce quality drinks. The
quality of their brand is hard to imitate and their global presence makes it hard for
any company to compete with.

N
O

PROCESS DESIGNS AND SUPPLY CHAIN, PART I

References
Banutu-Gomez, M., & Rohrer, W. G. (2013). Coca-cola: International business strategy for
globalization. Journal of American Business Review, Cambridge., 1(2), 256-268.
Retrieved from http://search.proquest.com/docview/1356599360?accountid=458
Ferrari, B. (2010-2011). Coca-Cola supply chain. Retrieved from Supply Chain Matter:
http://www.theferrarigroup.com/supply-chain-matters/tag/coca-cola-supply-chain/
Stewart-David, D. (2003). Essentials of Supply Chain Management. Logistics & Transport
Focus, 5(7), 86.

PROCESS DESIGNS AND SUPPLY CHAIN, PART I