Inventory Systems

Coca Cola also implement the Just-In-Time ordering system to ensure retailers are getting the right amount of stock delivery. This ensures that the product will stay fresh on the retailer’s selves and the quantity of the stock meets the customers’ demand. Coca Cola is aware that to take advantage on the JIT system, the ordering process has to be fast enough to synchronize within the company to avoid disconnect between orders. In addition, Coca Cola is working with IBM to improve the system efficiency to connect the order entry and process in real time flow to truly optimize the benefits of the system.

Coca-Cola Co., Statement of Financial Position, Inventory

USD $ in millions

Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006 Dec 31, 2005

Finished goods

697 706 789 548 512

Raw materials

1,366 1,191 1,199 923 704

Other inventory

291 290 232 170 208

Total inventory, net

2,354 2,187 2,220 1,641 1,424

Source: Based on data from Coca-Cola Co., Annual Reports

The second organization that we will discuss is Starbucks Coffee. Starbucks is a very well known coffee company. They were founded in 1971 and have since grown into the largest coffeehouse company in the world with over 16,000 locations in over 50 countries. Starbucks was founded in Seattle, WA and the original location is still currently open.

Currently, Starbucks sells drinks, whole bean coffee, food and music. Inventory data for this company was proven to be a challenge to find. There is so much data available for Starbucks; unfortunately, it was difficult to find data that that showed simple information year after year. The data that was available referenced information about the year ending sales and what sold best for them over a period of time. This is very important information for Starbucks as it shows the company those items that can generate a positive flow of revenue and which departments that require improvement. Not only does this data show...