Logistic Functional Measures and Transportation Operational Management

Coca Cola New Zealand has embarked on a new Supply Chain Management and decision-making strategy in order to allow for fast information collection and metric in its logistics systems. Coke initially was not able to get any consistent metrics in its different plants in the country. Basically, it was not able to get any accurate information that would help compare its logistic functional measures. They needed a new way of getting information from the plants to assess the five different functional measures of their logistics performance. They have implemented a new technology that tracks down the information about product delivery and customer.

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The company now is able to know exactly who the products deliveries are made to, the delivery person, the time of delivery, customer returning outdated products, and other relevant delivery information. They are able to measure more accurately the logistic performance of the company through this metric system.

Quality is a functional measure that relies on the supply management of products of a particular company. The quality of delivery of products in this case for Coca Cola New Zealand is measured using the error rates. The errors rates of the company logistics systems are checked on a regular basis to since it can be a critical difference in evaluating the effectiveness of a particular logistic system. Quality product delivery is measured by the number of errors that the company made in the delivery of their product. The material and specification base of each product has to be the same for all their products and the quality has to be the same.

Coca cola has also set a measure on the costs of delivery as they are also an important part of the business model and strategy to ensure they dont use a lot of resources through extra costs in the logistic system they have put in place. They have to ensure that the company delivery system is well integrated and that every cost of delivery is up to date with the current market demands. Any increase in costs means that the business has to restructure its financial ratios to cope with the added costs.

Asset management is also used as functional measurement of any logistic system. Coca Cola New Zealand has a large asset base in their logistic system. The company keeps management of assets is done in house and they have to track down every asset they have at all times. With new technological systems installed they are now able to collect and manage asset data for the company. This is can now be done in a real time environment through a new supply chain and decision making system they have implemented.

Productivity in the company has always been a priority and all departments set out their goals to ensure that productivity is at an all time high. As a market leader in the soft drink industry Coca Cola New Zealand has to ensure that the logistical systems are performing at a high and the productivity levels are at optimum level. Keeping up with the demand of the soft drink market is not usually an easy task.

Customer service has also been a top priority for Coca Cola New Zealand in achieving the best customer relationships in the industry. The company is now able to collect customer data that they can measure their performance in delivery of products and what they need to change to ensure an effective supply of products to customers everywhere and on time.

Question 3: Collaborative, Planning, Forecasting, and Replenishment (CPFR)

Proctor and Gamble is one of the countrys leading distributors of household products. They have established a strong supply chain network and are leading in the way that they manage the distribution of their products. The company previously used a more traditional push method, which meant that products were being produced and delivered the form of large quantities. The delivery was determined by the company, and would normally be shelved by the different retailers for instantaneous sale. This was seen as a problem for the company because 60% of the companys products were sold as promotion items for the retailers. It was no longer a functional method of distribution for the company as they were now starting to make losses. The company had to change the way they produced and delivered their products and how they brought them in to the market.

Stock outs that occurred during promotions in retailer shelves prompted the company to change their strategy and come up with a new way of operation. The best solution was to integrate their business to collaborative planning with the retailers and wholesalers. Collaborative supply chain forecasting and planning involves setting up of relationships and process strategies that will linked with the company retailers and distributors to ensure better understanding of the future demands of products. It is one of the most regarded forms of contemporary management of logistical systems both manufacturing companies and their distributors.

The most suitable system that would benefit the Proctor and Gamble Company in New Zealnd would be the quick response system. This is a system that was adopted in the 1990s by the Milliken Company. It offers responses to four levels of technology and application. The first level is mainly focused on the retailer inventory status data sharing and also the automatic order processing for the retailer and supplier. The other two levels deal with the introduction of the Vendor-Managed inventory (VMI) that is used to manage more accurately a companys supply chains and networks. It will help the company have a collaborative platform with retailers in helping them manage their replenishing decisions of stock from the company. The VMI system reduces the chances of information distortion for both the retailers and the manufacturer.

They can also adopt the customer response system, which will reduce the product cycle time up to 65 days. An upgrade to the original 130 days that were witnessed in the 1980s.

Question 5: Transportation Operational Management

DHL New Zealand is a growing company and one of the largest in the distribution industry. They have hosts transportation equipment that they have running in order to maintain their effectiveness in the distribution services for clients. The company has specialized in the distribution services using any mode of transport, including ground express, air, road, ocean, and the rail freight express forwarding. In New Zealand they have a large distribution network that they have to manage and operate at all times to ensure any delivery made by the customer gets to its destination on time.

The company is involved in frequent transport requirements when making deliveries to different destination countrywide. Therefore they need a proper transport operational management strategy in four activities including Equipment scheduling and the yard management, load planning, routing and advanced shipping notification systems, and movement administration. All these activities are crucial to the success of the organization and how it delivers its services to their clients.

Equipment scheduling and yard management should be at the top of the list of the concerns for the DHL New Zealand Company. The reason being that that they deal with a category of transport modes which have to be scheduled in case a delivery service comes in. The type of delivery service will determine the type of transport to be used to ensure the package gets to its rightful delivery point and at the shortest time possible. This calls for an increase role to determine the transport functionality and specialists to prepare and evaluate the goods being shipped and ensure that they will be shipped in the best mode possible. For example if it is LPG gas supplies then they have to check on the proper regulations and standards for gas delivery since it is a dangerous packaged good.

Load planning involves preparing a strategy for goods to be delivered and how they will reach their intended destination on time. DHL has put a system that will ensure that their goods and packages are sent out in the best way possible. Minimizing damage to goods on transit is a major thing for a company that deals with delivery services. They are judged by how well they are able to handle delivery of the smallest to the largest package delivery. They have to ensure there is a constant effectiveness when it comes to safe delivery of goods to clients.

Routing and advanced shipment notification has a huge reliance on computers to accomplish. The company places its systems on the transport modes in order to know when the deliveries will be made and where they are at all times. Shipping requires real time knowledge the maritime regulations and ports that the various forms of transport will use in order to stay ahead of the package before it reaches the intended destination. It facilitates for easier planning when the package arrives at any port.

Movement administration is focused on the office work and the evaluation of the transport carriers in an organization. DHL works hard in ensuring that they are able to keep up with the demand imposed on their carriers at all times. This way they can be able to manage their fleet from the office.

Question 6: Global Supply Chain Management

The main focus of the global supply chain management is to ensure that there is a highly responsive rate to the demands of the market and also ensure that a company is cost efficient in its operations so that the company customers are able to get a valued product that is affordable. The Coca Cola Company has employed professional logistic managers that are able to read and define the global chain supply of their products who can work with the complex international trade policies. Coca Colas worldwide market is usually a headache for the supply chain managers how have to formulate strategies that will fulfill all conditions of the global membership. They have to form an articulate network of subsidiaries that have to delivery similar products every time at any given time.

Managing the overall global chain is dependent on fiver factors including transportation, performance cycle structure, operational considerations, alliances, and information system integration. In this section we will discuss three factors in regard to the case of the Coca Cola Company.

Each of the factors of global chain management is important in any organization and how it functions. Coca Cola has used different factors to ensure that they have a smooth running global supply chain. The company has also learned from its past mistakes and how it managed their supply network. They have created benchmarks for every country subsidiary and how the supply and distribution strategy should be handled in order to ensure delivery of quality products to their customers.

Transportation is one of the factors that they have invested so much on as they believe that for their products to be available everywhere they have to be transported far and wide across the market. This includes even the most remote of locations where they have loyal customers who enjoy their products. This is one way that the Coca Cola has gained competitive advantage over its market rivals who are still lacking in the transportation management of products.

Information systems integration has also been endorsed by Coca Cola and will now be closer to the market with the new systems. They are looking at newer technologies to ensure that that can be able to have better monitoring or the global supply chain networks in real time and in full view of how concentrated the market is in terms of customer data and feedback. With information system integration there is more value in the delivery and distribution of products. The company is able to optimize the flow of products and also have better forecasting of the dem...