Bacardi Reflection
Learning Team Reflection (Bacardi Corporation) Bacardi Corporation is their largest rum and neutral spirit distillation operation, serving the United States and European markets. The company was founded in 1862 and is based in San Juan, Puerto Rico. Bacardi Corporation operates as a subsidiary of Bacardi Limited, with Mr. Joaquin E. Bacardi as Chief Executive Officer and President is the local chairman. Originally known for its white rums, now have a portfolio of more than 200 brands and labels of different kind of liquors as Bacardi rum, Grey Goose vodka, Dewars Blended Scotch whisky, Bombay Sapphire gin, Martini & Rossi vermouth and Asti, Eristoff vodka, Cazadores blue agave tequila, and so on. “It is the largest privately held, family-owned spirits company in the world. Founded in 1862, and family-owned for seven generations, Bacardi employs 6,000 people, manufactures at 27 facilities in 16 markets on four continents, with sales in more than 150 countries. Bacardi Limited refers to the Bacardi group of companies, including Bacardi International Limited. The company sells in excess of 200 million bottles per year. The companys sales in 2007 were US$5.5 billion, up from $4.9 billion in 2006.”( Bacardilimited; 2013 ). Actually the corporation is globally lead by the original founders great -great grandson, Facundo L. Bacardi III.
Bacardi Corporation is a complex distillery business where you can see all the phases of the production operation since the entry of the raw materials, in time inventory, labor, and the result of the final product output where quality and lean processes are incorporated. It is a multinational company with various products to produce and distribute simultaneously in its operation. Processes in organizations are considered one of the most important tasks of a company, outlined in stages. The Bacardi Corporation operation consist of several phases that includes, but are not restricted to: operations strategy, product and process design, forecasting, selected technology according to globalized requirements , quality management, supply chain conduct, facilities and aggregate planning, operations scheduling, and control and inventory management. In Bacardi Corporation at first glance can be stated that their process design is make to stock (MTS). By definition make to stock (MTS), can be defined as “traditional production strategy used by businesses to match production with consumer demand forecasts. This method forecasts demand to determine how much stock should be produced and how much will be customer demand”(Jacobs & Chase; 2011). This method proves to be an efficient one if demand for the product can be accurately forecasted by previous inventory movements. The main drawback to make-to-stock method is that it relies heavily on the accuracy of demand forecasts. Inaccurate forecasts will lead to losses stemming from excessive inventory or stock outs. In Bacardi Corporation due to the complexity of their operations the main method in use is The Hybrid Method. This method combines the make-to-order and make-to-stock ones which covers the manufacture of the main product -Bacardi Rums-, and the handling, bottling, inventory and distribution of multiple brands and spirits products they represent.