Coca Cola's Logistics System Essay Example | Topics and Well Written Essays - 750 words

Coca Cola's Logistics System - Essay Example However, as the number of products increased, it was not possible to load one stock keeping unit with one product. With the increase in the number of stock keeping units and retail stores, the traditional system could not be continued (Banker, 2010). The trucks carrying the Coca Cola’s products go through the various retail stores and unload. The products are delivered on the basis of order. Hence, the truck drivers work as order takers. The warehouses are stocked with exactly the amount of delivery orders. For better delivery of the products to the retailers, Coca Cola brought trucks with special facilities. The company has succeeded in having an efficient supply chain and it helps to lower its cost of distribution. It knows from experience the kind of trucks needed for its fleet, hires experienced drivers and ensures that they are extremely productive. The logistics requirements of no two businesses are similar. Therefore, logistics, which is a key component of strategy and an important ingredient of marketing, can be tailored to suit the requirements of business and by implication the customers (Fuller & Et. Al., 1993). Logistics can be an important service differentiator. Coca Cola has segmented its customers in Japan based on their logistics requirements. The segmentation is done based on the store needs and the vending machines as the customers are comfortable with. The delivery drivers deliver the products based on the store type. The company is attempting to segment the customer to save the logistics cost. However, accurate segmentation of the customer is not always possible. Some stores want accurate delivery. Coca Cola has opened a new warehouse that is operated automatically. The reason behind opening it is to save on operational cost and better management of inventory. The benefits that this warehouse provides are that it provides better on-site facilities

Financial Management by Timothy Gallagher and Joseph D Andrewsenior in Essay

Financial Management by Timothy Gallagher and Joseph D Andrewsenior in college - Essay Example Discounting the cash flows for each of the periods and summing them up, I determined that the NPV of launching a new product is equal to $1,000,570. The value is positive and quite significant, therefore, based on the NPV criteria the project should be accepted and the new product launched. However, if the company considers several mutually exclusive projects (for example, launching this product or investing instead in the new factory to increase the production of highly-demanded existing product etc.) and the NPV of this particular project is lower than of those also under consideration, it would be abandoned. The initial investment is equal to $1,000,000. The sum of the discounted cash flows for the first three years amounts to $807,801 $1,000,000. Therefore, the payback period is 3.62 years. Based on the Superior Company's policy of not accepting projects with life of over three years, the project of launching the new product under consideration should not be accepted. If the project required additional investment in land and building, it would increase the initial capital investment amount and consequen