Supply Chain Management at W'Up Bottlery

1938 WordsMay 25, 20158 Pages
LINCOLN UNIVERSITY EXTENSION in Addis Ababa Course Title: Import-Export Management (BA318) Global Supply Chain Analysis-W’up Bottlery Submitted to: Mike Guerra, Ed.D Prepared by: Group 2 Abiy Hailemariam- 70120 Abaynesh Mekonen-70119 Daniel Assefa-70126 Eskatnaf Lulseged-70129 Menkir Hailu-70130 Yetenayet Befekadu-70147 June 2015 Supply- Chain Management at W’Up Bottlery Background W’UP Bottlery is one of the four bottling company which produces and distributes Coca- Cola and other soft drinks, juice, Soda and Water for several regions within the Uttar Pardesh Market, India. It is a wholly owned subsidiary of Hindustan Coca-Cola Beverages Private Limited (HCCBPL). The company sales most of its products (70%) through returnable glass…show more content…
4 Literature Review Inventory Management “Inventory exists at every stage of the supply chain as raw materials, semi-finished or finished goods. They can also be in process between different locations. Holding of inventories can cost a company about 25% to 40% of their value. Lost sales and customer dissatisfaction can occur as the cause of inventory; therefore efficient inventory management is very important in supply chain operation and it helps the firm to maintain competitive advantage (Stock and Lambert, 2001; Axsäter, 2006). In this area only large scale multi-national companies have set a number of strategies to ensure that costs arising from inventory are minimized. Such strategies include; setting up optimal and minimum of raw and finished products, employment of first in-first out (FIFO) policy, minimum stock reorder for each item and periodic stock evaluation. One of the respondents from the brewing industry reported to incur inventory cost of about 2 to 3 % of their value i.e. from rental, interest foregone, obsolescence/damage/expire, insurance, handling, security and stock valuation. On the other hand, most of the processors payless attention on inventories available at their downstream partners’ (wholesalers and retailers) stores. Processors’ productions are based on produce-to-stock strategy to avoid dissatisfaction of customers if the demand turns

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