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Analyse the key components in the global supply chain of a typical multinational company. Then explain the importance of good global supply chain management to the achievement of sustainable competitive advantage with regards to these key components - Assignment Example

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The Coca Cola Company’s global supply chain is a complicated network synchronizing the activities of product lines, plants, bottlers, warehouses and customers. It is noteworthy that Coke’s product lines use multiple supply chains guided by diverse objectives. All these…
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Analyse the key components in the global supply chain of a typical multinational company. Then explain the importance of good global supply chain management to the achievement of sustainable competitive advantage with regards to these key components
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Analyse the key components in the global supply chain of a typical multinational company. Then explain the importance of good global supply chain management to the achievement of sustainable competitive advantage with regards to these key components

Download file to see previous pages... Coke tried several other alternatives too to help with this problem. There are a number of components in Coke’s global supply chain which are the basis of its competitive advantage.
KPI was good but the metrics incumbent at the time made it difficult to carry out such tasks as processing stock out and fill rates. Coke tried SAP’s Advanced Planning and Optimization (APO) but still felt it needed an innovation that would help upgrade its supply chains. A number of principles guide Coke’s supply chain and it needed an innovation that would match them. This is how it landed at SAP’s Business Objects Supply Chain Performance Management. This application was found to be consistent with Supply Chain Council’s SCOR model and allows customization of metrics. Using SAP NetWeaver Business Warehouse the application captures details concerning business transactions and allows the aggregation without the limitation of static data model (Gattorna 2003, 56).
This application helped Coke to assess supply chain performance on the important aspects of demand planning, production and customer service. This is what ensures the sustainability of Coke’s competitive advantage because the application avails real-time information and allows flexibility in its use. This flexibility enables different levels in the supply chain to provide report and the creation of dashboards unique to different areas of priority and interest. The complex and extended supply chains of multinational companies requires them to have actionable insight that can support the continuous improvement based on a root-cause analysis and end-to-end view of supply chains. Given the success that Coke has enjoyed as a leading beverage company, companies can consider incorporating the program in their supply chain management (Skjott-larsen & Schary 2007, 19).
The alignment of supply chain strategies with a company’s corporate strategy is an ...Download file to see next pagesRead More
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