Coke

Supply Chain Management Coca Cola bevragesPakistan LTD.APPEX GROUP Malik,Saadia Khan Group Members: Qirat wahab , Anum

January 8

2013Project Report

Supply Chain Management Coca Cola bevragesPakistan LTD.

SUPPLY CHAIN MANAGEMENT OF CCBPL RYK

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Preface

Getting practical knowledge in one of the major aims of BS(COM) program. Department of commerce Army College has followed policy of assigning different practical assignments to its students so a touch of real working environment can be given to the students apart from classroom studies to widen their perspective In this context, respectable Madam Ifat Sanni has assigned us to do visit in CCBPL Rahim Yar Khan. This report consists of two findings to working in the different departments of company and gathered useful information from different sources. ; I hope that the readers of this report will get valuable information about CCBPL Rahim Yar Khan;

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AcknowledgemenT

All prays goes to Allah almighty. To write an acknowledgement after the completion of an enormous task as always been more enormous than the task itself. But with the firm determination and noble passion of hard working, nothing remains difficult. I am grateful to our honourable Madam Iffat Sanni who assigned us this report, which would be very helpful for my future in practical life. I gain a lot from this interesting earning job I want to thank all those personalities, who have been a source of guidance during the visit in CCBPL Rahim Yar Khan. I acknowledge them with thanks for their help.

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VISSION

To become a market leader in ready to drink segment while adding best-in-class value to all stakeholders.

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MISSION

Coca-Cola Pakistan exists to refresh the consumers, inspire moments of optimism through our brands and actions as well as benefit all stakeholders, which we will do with highest social responsibility and with uncompromising commitment towards quality of our products and integrity in our operations.

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OUR VALUE

Our Core Values underlie everything we do. We live by them for two reasons; they are good and right in themselves, worthy of adherence even at the risk of loss of profit-making opportunities, and they epitomize our Companys integrity, which we believe will produce value for our stakeholders over the long term. Accountability We act with high sense of responsibility and hold ourselves accountable. Passion We put our hearts and mind into what we do. Integrity We are open, honest, ethical and we trust and respect each other . Teamwork we collaborate for our collective success.

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HISTORHY OF CCBPLCoca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. As a part of its drive to enhance the quality, availability, and image of Coca-Cola products, The CocaCola Company established a new Company in Pakistan in 1996, by the name of Coca-Cola Beverages Pakistan Limited (CCBPL or Company). CCBPL is a part of Coca-Cola ecek which is sixth largest KO bottler in the World. It has a presence in ten countries including Turkey, Kazakhstan, Kyrgyzstan, Azerbaijan, Jordan, Iraq, Turkmenistan, Tajikistan, Syria, and Pakistan. CCI has 48% shares of CCBPL with Management Control. CCBPL started the process of acquiring and investing in locally franchised bottling operations. This process was completed in 2006 and, thereafter, all manufacturing and selling rights of Coca-Cola products are now with CCBPL. CCBPL has 6 plants and 13 warehouses throughout the country and serves a population of more than 170 million with a production capacity of 111 million physical cases. CCBPL is a significant player in the growth of Pakistans economy since it is one of the countrys top foreign direct investments in FMCG (Fast Moving Consumer Goods) business and is one of the major tax paying beverages companies of Pakistan.

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Beverage Industry in PakistanThe beverage industry of Pakistan has become a play ground for many firms like Coke, Pepsi, RC Cola, Amrat Cola, Gourmet Cola and many others newly introduced local companies. But only two companies share most of the market share, Pepsi and Coke. These two companies jointly are enjoying a market share of more than 90%. But still a very huge share of this market is still uncovered. But in covered areas, it can be said both the dominant companies are facing very stiff competition from each one another. The newly introduced brands are still disabling to find a stable position yet and still most of them are not considered as real competitors of these two players on any base, product quality, availability, visibility or promotion. The positioning of these two well-known brands is almost same. A huge part of the market is still unable to differentiate between these two products and they are considered as perfect substitute of one another. On the other hand the other new brands like Gourmat Cola, Amrat Cola, Double Cola, and Makkah Cola etc. are still considered as inferior on basis of quality. This is one of the reasons why these brands are still unable to create their market and capture the share of these two giants of the industry.

The religious campaigns against these two brands that were carried on by some of the religious groups in near-past acted as a break-through for these newly introduced brands but they could not make the best use of this opportunity and therefore they are still struggling in the market. But it cannot be said that these campaigns were wholly failed and could not disturb the business of these two firms. A negative image of Pepsi has created in minds of some religious people dew to its affiliation with Israel. So, it can be said that there are only two main competitors in this industry in Pakistan like most of the other countries of the world. But the statistics of this industry are very much different in this market from most of the other countries. Coca Cola is unlikely not the biggest player and Pepsi is having a very clear lead as it is having in most of the South Asian countries. Pepsi is claiming a market share of about 60% of the total market; on the other hand Coke is claiming a market share of about 37% to 40%. And both the competitors are also claiming that their market share is increasing rapidly.

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Difference between CCBPL and TCCEC:

The coca-cola company started his business in Pakistan in 1960. All business activities in Pakistan are monitored by The coca-cola export corporation (TCCEC). Head office of TCCEC was in Karachi at that time but now days it is shifted to Lahore. But this TCCEC only monitored business activities, this company issued license for plants in different cities of Pakistan to start production according to company standard. In 1990, company decided for acquisition worldwide. Actually they were operating their business through joint venture, now they decided for acquisition. Thats why in 1996 The coca-cola company buys the Karachi plant, at that time TCCEC decided to form a new company to monitor the operation of bottling in Pakistan. So coca-cola beverages Pakistan limited (CCBPL) is the company, which is responsible to monitor the operations of bottling in Pakistan. Some time people says that there is no difference in CCBPL and TCCEC, but the basic difference between both companies is that CCBPL is responsible for bottling operations and TCCEC is responsible for marketing and corporate decision world wide.

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Organizational StructureDepartments FunctionAccounts Department To prepare monthly, quarterly and annually Accounts, Costing, Budgeting & Forecasting. To handle payable and insurance, Inventory & Stores etc Arranging Finance and negotiate over coat of finance, To handle sale, receivable, debtor aging, cash and bank etc. To monitor the implementation of internal procedures, policies internal control systems and report any violation. Detection and control of financial risk and frauds. Hiring new manpower, satisfaction, Motivation, Appraisals etc To undertake production activity and maintain desired production volume. Installation and maintenance of plant and machinery. Mechanical Department Maintain quality and deal with complaints Quality Control To design and build structural design of new plant to be installed. Project Department To increase existing demand, to work as organizations intelligence in large outer environment, customer satisfaction, advertisement, smooth dispatch, rationing of products in case of excess demand.

Finance Department

Internal Audit

Human Resource Production Department

Marketing & Sale

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CCBPL units in PakistanThere are eight units in Pakistan for production and selling of coca-cola brands. These units are situated in eight cities of Pakistan.

1. 2. 3. 4. 5. 6. 7. 8.

Karachi Rahim Yar Khan Multan Lahore Faisalabad Gujranwala Rawalpindi Peshawar

But some of these plants are currently not operating these days. For example, the Peshawar plant could not start its operations after the take over of the company in 1990 because it was working under too much burdens of debts in the past and it was declared insolvent. Therefore, it was not profitable for the company to pay all the debts and start operations again.

WarehousesThere are following warehouses. 1. 2. 3. 4. 5. Hyderabad Quetta Rawal pinddi Islamabad Peshawar

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CCBPL Management StructureCCBPL has divided the whole Pakistan in two regions named as Southern business unit (SBU) and Central business unit (CBU). Karachi, Rahim Yar Khan and Multan plants are monitored by SBU General Manager (GM) while the other plants Lahore, Faisalabad, Gujranwala, Rawalpindi and Peshawar are monitored by CBU General Manager (GM). You can better understand from this organization chart.

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SABCO(SOUTH AFRICAN BUSNISS CONCIL)

Sabco is a bottler company which provide bottle design to Coca cola company.Its also a copatner of Coca Cola company.

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Management of CCBPL Rahim Yar Khan.In CCBPL there is four department include in supply chain management

CONTROLLINGCCBPL is under control by CCI (ICECEK) group, TURKEY.What is the difference between Coca-Cola ecek (CCI) and The Coca-Cola Company? CCI produces, sells and distributes products of The Coca-Cola Company in Turkey, Pakistan, Central Asia and the Middle East. The Coca-Cola Company develops products and produces the advertising and programs to support those products and sells syrup concentrate to CCI. As a bottler of The CocaCola Company, CCI combines the concentrate with other ingredients to produce and package beverages. CCI then uses its sales and delivery forces to sell and distribute products to retail customers and distributors. Which brands does CCI produce? CCI produces Coca-Cola, Coca-Cola light, Fanta and Sprite in all operating countries. Besides these brands, we have a wide range of beverages in different countries. Our product portfolio is displayed under country pages in our website

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There are four heads which control the plant and direct report to their head office Lahore. Supply Chain Management Operation manager (Shamim Raza Zaddi) Human Resource Human resource business leader (Maryam Saeed)

Finance Territory Financial Manager (Sharif Khalid) Commercial Territory Commercial Manager (Imran Hashimi)

Departments in CCBPL Rahim Yar Khan.There was following departments in which we were visited. Sale Department Purchase Department Production Area HR Department Logistics

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Quality Management

INFRASTRUCTURE CCBPL RAHIM YAR KHAN 3G Regions 1. Punjab region from BWP to SDK. 2. Sindh region from SDK onward MAYARI. 3. Blochistan region from Sibi ,Quetta Gulastan. SALE DEPARTMENTTerritory commercial manager (Imran Hashim) Riginal sale manager(Kosser Abbas) Senior sale manager (Saleem Raza)

in this department forecast the sale after getting the order from the distributors.

Purchase department Mr Gulam Rubbani tells us about the procedure of raw material there are following step in procedure. Requisition Three quotations ,comparative statements , committee of purchased Purchase order Availability of material Inspection of material Preparation of GRM (good receipt note) Verification finally. Invoice to account for payment.

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Quality department

Quality manager (M. Naeem ) tells about how to maintain the quality and the ratio of ingredients which are used to make soft drinks. The company achieve also ISO standards .there are four standards use in this plant.

Production AreaIn production area we met with Plant Planner (M .Salem) and production engineer ( Jaziq Ashraf ).they told us about the production procedures and approximately production per bay of different brands. Regular PET 1litter (glass bottle) i.5 litter 500 ML 1500 ML. Approximately 100,000 cases of all brand are produce per day.

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Logistics DepartmentLogistic department is basically the combination of two departments these are Fleet and shipping department. The whole transports and vehicles are arranged and maintained by Fleet department. And shipping department is responsible for the maintenance of inventory of empty bottles. On the whole logistic department is consists of 14 permanent employees. And rest of the employees work on daily wages.

DISTRIBUTERSThere are 127 distributer in RYK city and frim them 62 are register under ISIS.ISIS is a computer software in which the data of distributer is held.

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Did u knowCoca ColaIs most widely used expression in the world after

Okay

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ConclusionThe key to a success business Have a well-organized business plan - Implement the use of technology - Have a well establish network.

The Coke Side Of LifeThe coca cola company understand the importance of having a well-organized business strategy and the essential of applying technology.

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ReferencesHRBL

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CCBPL Rahim Yar Khan.

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Coke

Documents

supply chain

newly introduced

coca cola

cola ecek

amrat cola

cola company

shipping department

cola products