How can we explain how important supply chain management is in the business industry? Many business go through the process of supply chain such as Public v Private Primary, Secondary, Tertiary sectors, Financial, Retailing, Manufacturing, Wholesale trades, Construction, Mining Quarrying/Farming, Services and Transport. Our lives moves and grows through supply chain management its part of a system in receiving our products, everyday goods, Raw materials, Packaging materials, Semi - finished goods, Finished goods , Machines & spares, Services and Office Equipment. It can be defined as a process of arranging, preparing, applying and taking efficient control, by storing goods or services and taking information from the original point to the point of its development or consumption for the intention of conforming to customer’s orders and requirements. It involves coordination of all sectors involved in delivering the arrangement of inputs, outputs or outcomes that will meet a specification of customer or buyers requirement. Figure 1 TRADITIONAL SUPPLY CHAIN MODEL
Physical good flow information flow
In a way it’s like the circle of life, business life.
To go through the process of purchasing you must first characterize and define what is required and when it is wanted. Second identify the item, suppliers and evaluate. After that you negotiate the terms in which you want and negotiate the price or the order. The result is receiving the requirements, goods or services. The final stage is the payment procedure in which will either be in check or cash. “To acquire the right quality material, at the right quantity, from the right source, at the right price.” - Baily 2005 Our aim is to the theory or definition of purchasing which are six rights can impact on coca cola as the key official supplier to the 2012 Olympics. We’re going to cover each of the six rights which are:
RIGHT ITEM RIGHT PLACE
RIGHT TIME RIGHT QUALITY
RIGHT QUANTITY RIGHT PRICE
A product is what the company produces and provides for their customers. The right items for Coca cola would be the raw materials which are the main ingredients that are used to produce Coca cola which are sugar, water and aluminum to produce cans or plastic for producing bottles. This would also involve specification of the product as well as material requirements planning and manufacturing resource planning. It is important that Coca cola to be specific in ordering their supplies and raw materials. To make a note every order or purchase or specification or the order must be documented.
For selecting the right place we should acknowledge where are our sources? Where are we getting our raw materials from? And where are we selling it to? Our raw materials would be water, sugar and aluminum; we’re getting our sugar from Egypt as for water and other ingredients’ will be manufactured in turkey from there the products will be transported by ship and rail to Germany where the all the materials are put together and produced to Coca cola cans and bottles. then the end products will shipped to the UK distribution center where the products will be transported to retail stores around the UK .
“Time is money”
In order for us to meet customer orders it is important to be right on time in delivering the product. We can’t afford to be too early or too late. If the delivery is too early there would be a problem in storing the goods and if the delivery is too late we would also have the same problem in storing the goods this brings us to where MRO (Maintenance, repair, operations) could be used. In this case the coca cola products must be delivered in time of the Olympic 2012 as it is the key official supplier. This would have an effect on coca colas brand image, so in order for coca cola to meet their...