2. • Material Management is a branch of logistics that
deals with the tangible components of supply chain.
Specifically this covers the acquisition of spare parts
& replacements quality control of purchasing &
ordering such parts & standards involved in ordering,
shipping & warehousing.
• Materials Management thus can be defined as that
function of business that is responsible for the
Coordination of planning, sourcing, purchasing,
moving, storing and controlling materials in an
optimum manner so as to provide service to the
customer, at a pre-decided level at a minimum cost.
3. 1. To buy at the lowest price , consistent with desired
quality and service
2. To maintain a high inventor y turnover , by
reducing excess storage , carrying costs and
inventory losses occurring due to deterioration,
obsolescence and pilferage
3. To maintain continuity of supply , preventing
interruption of the flow of materials and services to
users
4. To maintain the specified material quality level and
a consistency of quality which permits efficient and
effective operation
5. To develop reliable alternate sources of supply to
promote a competitive atmosphere in performance
and pricing
4. 6. To minimize the overall cost of acquisition by
improving the efficiency of operations and
procedures
7. To hire, develop, motivate and train personnel and
to provide a reservoir of talent .
8. To develop and maintain good supplier
relationships in order to create a supplier attitude
and desire furnish the organisation with new ideas
, products, and better prices and service.
9. To achieve a high degree of cooperation and
coordination with user departments.
10. To maintain good records and controls that
provide an audit trail and ensure efficiency and
honesty
5. Materials planning and control: Materials required
for any operation are based on the sales forecasts and
production plans. This involves estimating the
individual requirements of parts, preparing materials
budget, forecasting the levels of inventories, scheduling
the orders and monitoring the performance in relation
to production and sales.
Purchasing: Basically, the job of a materials manager
is to provide, to the user departments right material at
the right time in right quantity of right quality at right
price from the right source.
6. Purchasing: Basically, the job of a materials manage r
is to provide, to the user departments right material at
the right time in right quantity of right quality at right
price from the right source.
Stores: Once the material is delivered, its physical
control, preservation, minimization of obsolescence and
damage through timely disposal and efficient handling,
maintenance of records, proper locations and stocking
is done in Stores.
8. As the world’s largest beverage
company, we bring safe, great-
tasting, quality beverages to
consumers at a rate of 1.8 billion
servings per day.
9. • Material requirement planning or MRP is a
production planning, scheduling, and
inventory control system used to manage
manufacturing process.
• Most MRP systems are software based
• It is possible to conduct MRP by hand as well
10. • Ensure materials are available for production
• Ensure products are available for delivery to
customers.
• Maintain the lowest possible material and
product levels in store.
• Plan manufacturing activities, delivery
schedules and purchasing activities.
11. • MRP deals with following problems:-
– What items are required?
– How many are required?
– When are they required?
12. • Management System: Establish, document,
implement, maintain and continually improve the
quality and food safety management system in
accordance with the requirements of the Coca-Cola
Company that covers products and packaging
materials supplied to the Coca-Cola system.
Appoint a designated person to ensure the
management system is effectively implemented and
maintained, and that performance is reported to
senior management.
13. Risk Assessment: Use a risk assessment process to
determine quality control points and food safety risks
(based on the HACCP seven-principle, twelve-step model
described in the Annex to Codex Alimentarius General
Principles of Food Hygiene CAC/RCP 1-1969), which
allows any identified risks to be reduced or eliminated.
Facilities and Equipment Design: Design facilities and
equipment used to manufacture, handle or store
materials (raw materials, intermediate and finished
products, auxiliary materials, processing aids, and
packaging materials) that are suitable for their
intended use. Maintain facilities and equipment to
preclude potential contamination by or exposure to
outside elements, odorous substances, pests,
hazardous materials, microbial contaminants.
14. General : Meet the specified requirements defined
by The Coca-Cola Company and any specific
additional local needs. Refer to Supplier
Requirements – General (SU-RQ-005) for
requirements for authorization purposes,
category-specific requirements, specifications and
other relevant documents.
Food Safety : Primary packaging suppliers must
obtain certification to one of the GFSI-recognized
food safety management schemes
15. Regulations Implement a process to ensure
compliance to applicable regulatory requirements to
where the packaging materials are manufactured as
well as delivered.
Facilities and Equipment Design: Design facilities
and equipment used to manufacture, handle or store
materials (raw materials, intermediate and finished
products , auxiliary material s, processing aids, and
packaging materials) that are suitable for their
intended use. Maintain facilities and equipment to
preclude potential contamination by or exposure to
outside elements, odorous substances, pests,
hazardous materials, microbial contaminants. Validate
the capability of new or changed equipment, new
technology, or process changes.
16. Purchased Materials and Services Implement a
program to approve and monitor the suppliers of
purchased materials that includes the following:
• Written specifications for purchased materials.
• A process to ensure materials or services purchased
from upstream suppliers meet the specifications.
• A system to prevent the use of purchased materials
that do not meet specifications.
17. Good Manufacturing Practices (GMP) : Plant personnel,
visitors and outside contractors must comply with the GMP
requirements as set forth by applicable regulations. Refer to
Codex General Principles of Food Hygiene (CAC/RCP 1) a
minimum (for those suppliers who are not yet certified to a
GFSI-recognized scheme).
Good Laboratory Practices (GLP) Plant or contract
laboratories and laboratory personnel must implement GLP
principals. The laboratory must use published, recognized
and validated testing methods. Where published test
methods are not available, internally developed methods
must be validated for their intended use consistent with GLP
requirements. The laboratory design, equipment and
processes must ensure the test results are consistent and
reliable.
18. Pest Control: Implement a documented pest control
program to effectively prevent pest activity in the facility
and the surrounding area. Assign a trained plant
personnel or an approved external contractor to manage
this program. Assign certified pest control operators or
personnel with equivalent training to perform pest
control activities.
Housekeeping and Sanitation Controls: The program
must also ensure raw materials, packaging, in-process
components and finished goods storage areas, shipping
trailers, cars and containers are clean and pest-free.
Weight Controls: Where applicable, the supplier must
have a weight control program compliant with applicable
regulations. Establish operating limits and quality
monitoring procedures to achieve tolerances
documented in the specifications or purchase contract.
19. Foreign and Extraneous Material Control: Implement
controls, procedures and equipment in place to prevent
foreign and extraneous material from entering the
products. Examples include the use of metal detectors,
magnets, screens and filtration systems.
Finished Goods: Where local regulatory authorities
require the chemical treatment of wooden pallets, ensure
the pallets do not contaminate package materials during
shipment and storage. If pallets are chemically treated,
declare the treatment to the Coca-Cola system. The
following restrictions apply:
No use of chlorinated or brominated phenolic
compounds;
No use of halogenated phenols; or
Conformity with applicable heavy metal regulations.
20. Transportation: Implement processes to ensure
transportation conditions do not affect the packaging
and to prevent the shipment of nonconforming
packaging. Inspect transportation vehicles for
structural integrity, cleanliness, security and suitability
prior to loading. Control the security of the
trailer/container/tanker to prevent tampering. The
supplier must demonstrate the security of the delivery
container.
21. •Materials used in the manufacturing of packaging
must meet both corporate and local business unit
requirements and performance criteria.
•Materials that have a potential for direct contact with
The Coca-Cola Company products must comply with
regulatory requirements for food contact use in the
•country where the finished product will be
distributed.
•Materials must be approved by the Company
scientific and Regulatory Affairs (SRA) and
additionally, if required, by the group’s SRA.
•Suppliers must provide complete and accurate
information for components of materials used for
contact with The Coca-Cola Company product.
22. Trademarked Protection: Maintain control of The
Coca-Cola Company’s trademarked
materials/promotional materials and/or graphics
(“Intellectual Property”) until point of delivery. This
requirement includes the control, use and
destruction of scrap and/or obsolete materials.
Acknowledge and comply with requirements
pertaining to The Coca-Cola Company’s intellectual
property ownership rights as outlined in the Supplier
Authorization agreement.
Information: Secure access to information that
pertains to the Coca-Cola system.
23. Auxiliary Material: Materials used in manufacturing
processes, storage and product delivery that come into
intentional contact with equipment, packaging, or
surfaces, or unintentional contact with raw materials,
intermediate or finished products.
Examples: cleaning and sanitizing agents, container
cleaning agents (including bottle washer
additives), lubricants, solvents, glues, date code ink.
24. Coca cola purchase syrups and
concentrates from TCCC and other
licensors to manufacture products
Coca cola purchase sweeteners, juices, mineral
waters, finished product, carbon dioxide, fuel,
PET (plastic), glass, aluminum, and plastic
bottles; aluminum and steel cans, other
packaging materials.
The beverage agreements with TCCC provide
that all authorized containers, closures, cases,
cartons and other packages, and labels for the
products of TCCC must be purchased from
manufacturers approved by TCCC.
25. 25
•In the U.S. and Canada, high fructose corn syrup (HFCS) is the
principal sweetener for beverage products of COCA COLA.
• Sugar also can be use as sweetener.
•Requirement of plastic bottles full fill by multiple suppliers.
•Requirement of steels for cans full fill by purchasing bulk quantity
of steel sheets.
•Water is use from surrounding area of plant.
•Plastic mostly coming from the recycling plant.
