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Management Accounting Essay

3645 words - 15 pages

Content
Abstract ……………………………………………………………………………………1
Introduction ……………………………………………………………………………….1
Suppliers for Coca- Cola………………………………………………………………….1
Inventory management……………………………………………………………………4
Quality management……………………………………………………………………….7
Conclusion…………………………………………………………………………………10
References ...view middle of the document...

The main suppliers are sugar refiners and manufacturers of PET perform, glass bottles, cans and coolers. In 2010, Coca-Cola spent of 4029 million for suppliers that means the company has significant influence with them (Coca-Cola Company, 2010).
Selected suppliers by Coca-Cola
At the Coca-Cola Company, they are considered that their supplier base should represent their diverse customer and consumer base. They have been committed to supplier diversity for the past three decades. It costs them more for selecting suppliers because purchased material and components can make up a large proportion of the cost of producing a product and they know the importance of carefully selecting suppliers. Thus, Coca-Cola current mission is to maximize procurement opportunities with suppliers and then strengthening communities and creates long-term relationships. Developing strategic cooperative supplier relationships allows Coca Cola to select suppliers that can provide the highest quality service. Coca Cola identifies those suppliers and gives the majority of its business to those that assist in generating additional sales through improved delivery, quality, and product design as well as provide cost savings, improvements in processes, materials, and components used in the manufacturing of their products (Coca-Cola Company, 2010). To accomplish this, organizations focus on cost reductions and emphasis placed on organizational core competencies leading to long-term competitive advantage. The sustainability of supply chain is also critical to further business growth, particularly, ensuring the security of sugar and fruit juice suppliers are core business issues.
Coca-Cola starts to address the significant impacts and risks about their suppliers. Coca-Cola aims to making clear the workplace practices required for suppliers and assessing their performance. They also need their suppliers make clear of their system’s basic requirements with regard to human rights, labour rights and ethical business in supplier workplace. To achieve cost reductions in supply area, Coca-Cola want to develop their new suppliers who can meet a variety of criteria, which may include supplying materials of a certain quality and meeting a specified delivery schedule. It also involving a supplier whose materials or actions will achieved expected costs for the company. Therefore, Coca-Cola signed a supplier agreement with the new STUDEN-AGRANA sugar refinery which the first in the country (Coca-Cola company, 2010). Coca-Cola signed a long-term contract with the new suppliers who are local suppliers. It is not only most cost efficient for Coca-Cola, but also brings economic benefit to local communities and reduces the costs of transportation.
Managed suppliers by Coca-Cola
Coca-Cola’s code of business conduct for their suppliers establishes related requirements for them. The supplier must keep accurate records of all matters which includes the proper recording of all expenses and...

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