Coke's Master Plan

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A REFRESHING APPROACH TO SUPPLY CHAIN
Coca Cola is a company that of course needs no introduction (I appreciate the irony of this statement!) and of course being one of the most universally available consumer food and drink brands makes for a meaty challen ge for any self - respecting Supply Chai n Manager. Heading up their division in Uruguay is Supply Chain Director Aldo Rossi who took some time out f rom getting your Diet Coke break to happen on time to tell us a bit more about how he keeps f ridges stocked wi th the best thing to happen to caffeine since the espresso (which incidentally, was only invented two years previously in 1884!)

W hat are the top 3 challenges
you are currently facing with
regards to your supply chain?
1. The need to improve lines
efficiencies
to
produce
enough volume to allow the
business to continue to grow.
2. How to improve Logistics
and Manufacturing costs so
as not to increase above
what the business can afford.
This
is
particularly
challenging as it has to be
considered
in
an
environment in which Government and
Unions are pressing to increase salaries
above inflation and where there is no
framework
to
improve
efficiency.
Therefore it is essential that we ensure the
union and workers are part of efficiency
improvements and behavioural changes.
3. After reviewing the Plant Master Plan, one
of our main challenges is performing a
long term Site Master Plan over 10 years,
considering Plant expansion (already
performed) and the Logistics/Warehouse
Master Plan (to be performed).

W hich specific suppl y chain projects will you
be spending the majority of your time on in
the next 6 to 9 months?

1. Continuing to improve line efficiencies,
and
in
the
meantime
prepare
infrastructure to launch new SKU’s and
new categories.
2. Preparing the Warehousing/Logistics
Master Plan for the next 10 years.
3. Preparing for negotiations with the
union/workers and performing pilot
testing for a new warehousing & picking
area that will generate changes in how we
run current processes.

W hat have been the biggest strategic
c hanges to your supply chain over the last
1 2 months?
Performing the Plant Master Plan which
considers understanding our needs for the next

10 years and reviewing the current layout,
where to locate new lines, where to expand
services and how to solve some structural
issues with the building to meet that expected
growth.
How a re you collaborating with your S upply
M anagers to ensure an efficient supply
chain?
1. I received Supply Managers which were
not working as a team. They were having
very poor results and they were working in
silos. Since my first day I implemented
daily meetings with my 9 Supply
Managers to get them to start working
collaboratively. So we are reviewing the
entire chain each day to ensure we’re
detecting any inefficiencies and solving
them as soon as possible. As result of this
we improved in several areas, one
highlight being lines unconstrained
efficiencies moving from 35% to 43% in 9
months.
2. There is a need for us to improve the cost
of serving customers. The Supply
Managers are collaborating to perform
relevant work in order to understand
where we are placing more service than
required, creating excess cost and
decreased efficiency, but also where we
are giving less service than we should,
losing sales opportunities

W hat are your biggest challe nges in terms of
risk management?
If we do not continue improving line
efficiencies as we are doing now, the main risk
would be not being capable of producing
what the business needs to sell. At the same
time we are improving our efficiencies; several
other parts of the chain start showing signs of

lack of capability to process more volume. This
is upstream and also downstream. The main
risk in this will be not being able to anticipate
the next rocks that will be appearing.

W hat systems do you have in plac...
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