This Case is about OPERATIONS MANAGEMENT
PUBLICATION DATE: July 30, 2008 PRODUCT #: UV1285-PDF-ENG
Supply-Chain Management at W'Up Bottlery (A) case solution
The W’Up Bottlery, which was a fully owned subsidiary of Hindustan Coca-Cola Beverages Private Limited (HCCBPL), made Coca Cola and other soft drinks for several areas within the Uttar Pradesh marketplace. While stocks had gone down and season had enhanced relative to the preceding peak-sales, Mehra was looking for methods to enhance performance drastically. Mehra had learned about the notion of vendor-managed inventory (VMI) that was gaining popularity in the West.
Executing VMI would entail moving away from the present scenario in which orders were set by separate providers for replenishment to one in which providers would rather report their stock amounts to the W’Up supply-chain management group, to the W’Up plant.
Supervisors in this group would then determine how much inventory to send out to each vendor. Mehra and his team wondered how this notion might be applied to the exceptionally fragmented supply chain of HCCBPL, covering areas where IT infrastructure was thin or nonexistent.