Author: scottc301s12

Everything is better with Coke

Posted on by scottc301s12

 

 

 

The Global Fund, which is a decade old government and private partnership dedicated to financing healthcare issues in impoverished areas, has recently revamped it’s supply chain and distribution processes to more closely model those of Coca-Cola.  In thinking about what aspect of discussing supply chain management might be most interesting, I came across a video made by The Global Fund.  http://www.theglobalfund.org/en/blog/29348/   The video explains an interesting solution to a common problem, the final leg of the distribution process.  Global Fund workers in Tanzania needed to find a way to distribute malaria medication to locals, but were having a great deal of difficultly.  It was then that they noticed something… There are Coca-Cola bottles everywhere.  Why can’t we distribute medication, but somehow these people have such immediate access to Coke?  It was then that The Global Fund reached out to Coca-Cola and asked for guidance to improve their supply chain and distribution management.

Coca-Cola then proceeded to improve The Global Fund’s supply chain processes through analyzing, identifying issues, maximizing effectiveness of current processes, and implementing new ones.  I think I enjoyed this article to the extent I did because of the sheer simplicity in The Global Fund’s approach to problem solving.  When thinking about a company like Coca-Cola, I think there is much to be learned.  They have not only existed, but been successful for over 100 years!  That kind of longevity is something you just don’t see much of anymore, but especially when the product remains (relatively) unchanged.  Of course Coca-Cola has introduced new products, advertising designs, and marketing campaigns, but with the exception of removing cocaine, the original formula has remain relatively intact since its inception.  I suppose we could expect a company that has been around as long as Coke to continually improve its supply chain, but I think it’s great that they share this time tested process with other entities for the betterment of others, in this case, people living in remote areas of Africa in need of malaria medication.

What are other examples of improving a supply chain management process having a direct and positive impact on you or someone else’s life?

Source:  “Home – The Global Fund to Fight AIDS, Tuberculosis and Malaria.” The Global Fund to Fight AIDS, Tuberculosis and Malaria. N.p., n.d. Web. 14 July 2012. http://www.theglobalfund.org/en/.

When Forecasting Goes Too Far

Posted on by scottc301s12

 

 

 

 

I, like hopefully some of you, am a huge basketball fan.  Of course the early exit from the playoffs by our beloved Chicago Bulls was demoralizing, but I still find myself glued to the television and often cheering or cursing the players on screen during the current NBA final series.  While right now the Oklahoma City Thunder is down three games to one against the Miami Heat in a best of seven series, I have been listening to a great deal of sports talk radio over the last two days and most everyone is saying the same thing…  because no team in NBA history has come back to win a championship when down three games to one in the finals, Miami is going to win.

This sounds like forecasting gone too far.

Simply because something hasn’t happened before doesn’t mean it wont eventually happen.  No one can possibly know the outcome of the future, so why should we even try to predict it?

This makes me think about how some companies, especially start-ups, may have an extremely difficult time coming up with initial sales forecasts.  Who could have predicted things like the meteoric rise in demand of products from companies like Apple and Microsoft, or the rapid decline in domestic auto sales years ago?  According to MaRS, a Canaidian consulting firm, initial forecasting of sales is paramount to a strong start in a new business venture.  http://www.marsdd.com/articles/sales-forecasting-for-start-ups/  For a company to be able to properly allocate resources to things like distribution and storage of finished inventory, accurate sales forecasting can have a major impact on a company’s bottom line.  Forecasting sales too tentatively could cause a great deal of lost potential revenue whereas too strong a sales forecast can result in major expenses related to the excessive production.  This leads to what in my opinion is an interesting debate over what type of forecasting method to use, but also how much weight should you assign to those forecasts?

As we enter the final minutes of the NBA final’s games five, I have a feeling that in this case, the forecasting consensus may be right. Congratulations Miami.

Central question:  Knowing that even the most accurate and thoughtful forecast could be completely inaccurate, how much stock should be put into its creation?  What are some instances where forecasting is crucial?  When is forecast simply unimportant?

 

References:  “MaRS Discovery District.” Sales Forecasting for Start-ups. N.p., n.d. Web. 21 June 2012.