Procurement and Supply Chain Strategy for Coca-Cola

 Haiti Hope

-Procurement and Supply Chain Strategy for    
Coca-Cola

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Table of contents

1. Discussion of Case        2

2. Preferred Strategy for Coca-Cola        3

References        5

Plagiarism Statement

‘I declare that the material contained in this report is the result of my own work and that due acknowledgment has been given in the references to ALL sources, be they printed, electronic or personal.’

- Karthik Augustine

  October 26th 2017

As the Director of Supply chain and purchasing for Coca-Cola the strategy statement prepared from the perspective of which will be implemented after the exit of the project partners of Haiti Hope, to retain and improve the procurement of high quality mangoes like the Fransique and for making sure that there is a growing supply of the fruit to expand Coca-Cola’s portfolio of fruit juices.

1. Discussion of Case

Coca-Cola’s business goals (procurement of high quality mangoes) were achieved with TechnoServe’s assistance through Haiti Hope project. Since the partner organizations including TechnoServe are preparing their exit strategy of the project, Coca-Cola has to develop its own long term strategy for a sustainable Supply chain of high quality mangoes from Haiti since this fruit is a key part of Coca Cola’s expanding portfolio of fruit juices.

Some of the options open for consideration are to;

Propose a new partnership with TechnoServe or another NGO for capacity building.

Involve directly with farmers and Producer Business Groups (PSBs).

Let the Haitians take control.

Other method or Strategy.

 TechnoServe is an NGO engaged in Capacity building through skill development, creating credit facilities and networking all stakeholders. Their specialization is Capacity building and not philanthropy. Any project of this kind where capacity building will not sustain after reaching its goal. With one more year remaining for the project to wind up, TechnoServe have already   been successful in organizing 18,000 or 72% of the target of 25,000 farmers into PBGs (Edmondson and Harvey, 2016)

The partnering organizations are all known for their expertise in promoting economic growth and poverty alleviation. TechnoServe’s mission is to provide business solutions to poverty. The business solution that evolved finally is the PBG model where the producer’s i.e. the farmers have been clustered into groups who would sell their produce directly to exporters.                                    

Statistics on total sales for the two years of PBG model show that during year 2013 the PBG farmers sold about 240 MT out of a total sale of 650 MT or 37% and during their second year of operation i.e. 2014 they sold about 490 MT out of a total sale of 990 MT or 50% of the total sale (Edmondson and Harvey, 2016).

Re-engaging TechnoServe or any other NGO will not help Coca-Cola since their mission limited to building communities, capacity building growth which has already been almost achieved. More over the presence of an NGO longer than required may affect communities since their dependence on NGOs will have to end one day so that they can be on their own.

Involving directly with the farmers will require a gestation period to bear results since Coca-Cola will have to gain the confidence of the farmers and PBGs before establishing viable and sustainable business. It will be like reinventing the wheel.

Letting Haitians take control will give them the freedom, with all the training and skills acquired through Haiti Hope project, to choose their business partners and business models may be detrimental to Coca-Cola’s goals. Coca-Cola has high stake in this project having contributed 3.5 million USD (Edmondson and Harvey, 2016). Unlike other partners of the project who will have little or no interest left in Haiti, Coca-Cola can reposition itself as a potential and Global customer.

1.  Preferred Strategy for Coca-Cola

Now, to ensure steady supply of high quality mangoes from Haiti, the company should device its own strategy to exploit the encouraging results from the Haiti Hope project. The following action points should be considered vigorously and executed in time so that a smooth transition takes place when the exit plan is implemented and the main player, TechnoServe is no longer available.