Beverages and Supply Chain: Marketing of Coca-Cola, UK

This assignment explores the dynamics of supply chain management in the case of Coca-Cola, focusing on sustainability issues. It discusses the company profile, supply chain stages, drivers of supply chain, and SWOT analysis.

Running head: BEVERAGES AND SUPPLY CHAIN
Marketing of Coca-Cola, UK
Name of the student:
Name of the university:
Author note:

1
BEVERAGES AND SUPPLY CHAIN
Table of contents
Introduction................................................................................................................................2
Company profile.........................................................................................................................2
Supply chain of Coca-Cola........................................................................................................3
SWOT analysis...........................................................................................................................8
Sustainability issues in supply chain management..................................................................12
Recommendations....................................................................................................................14
References................................................................................................................................18
Bibliography.............................................................................................................................19

2
BEVERAGES AND SUPPLY CHAIN
Introduction
Supply chain management is the act of monitoring and regulating the flow of goods,
storage of the raw materials, dynamics of operations and transmission of the finished
products to the appropriate destination. This management involves the use of effective
channels for establishing contact with the clients and the customers regarding the orders.
Technology upgrades the standards and quality of the supply chain network, enabling
companies and organizations to enjoy competitive advantage over the contemporary brands
(Baldwin & Lopez‐Gonzalez, 2015). This assignment takes the case of Coca-Cola for
shedding light into the dynamics of supply chain management. Within this, the focus would
be on the sustainability issues, which stalls the productivity.
Company profile
Founded in 1886, Coca-Cola has emerged as a popular brand among the customers.
As a matter of specification, the brand deals in non-alcoholic carbonated soft drinks, that is
coke. Different kinds of flavours influence the purchasing power of the customers. Coca-Cola
Britain is entrusted with the responsibility to regulate the operations of 20 brands and the
production of 80 drinks of various flavours. Presence of 134 skilled and efficient workers
helps in conducting the marketing operations in an efficient and effective manner. In case of
Coca-Cola European Partners (CCEP), the drinks are prepared and distributed in the
supermarkets and retail outlets. Hard efforts of 4000 people helps in maintaining the
efficiency in the operations of six manufacturing sites all over the country (Coca-cola.co.uk,
2019).
The company envisions possessing highly effective workplace, transforming the
standards of living of the communities. For this, the mission is to inspire and cherish the
moments of happiness in case of the clients and the customers through the expose of

3
BEVERAGES AND SUPPLY CHAIN
optimistic approach to their needs (Coca-cola.co.uk, 2019). In doing this, the employees bear
in mind the core values, which are leadership, collaboration, integrity, accountability,
passion, diversity and quality.
Figure 1: Market value of soft drinks in UK from 2013-2018
(Source: Coca-cola.co.uk, 2019)
The above diagram depicts the market value of the soft drinks in UK market from
2013-2018. In 2017, the market value was approximately 16.9 million euros. Innovation in
the carbonated flavours increases the market value and experiences for Coca-Cola every year.
Advent of sugar tax has resulted in noticeable decline in the level of consumption. This adds
ambiguity into the future of the soft drink consumption. Sky rising retail prices have
adversely influenced the purchasing power of the clients and the customers.
Supply chain of Coca-Cola
The ingredients are assembled for the production of the drinks. The finished products
are packed and transferred to the manufacturers, who distribute them to the sellers. Once the
seller receives the products, storage is conducted before it is sold to the customers (Coca-

4
BEVERAGES AND SUPPLY CHAIN
cola.co.uk, 2019). After usage by the customers, the bottles are recycled for providing the
communities with the basic needs of survival.
Figure 2: Supply chain of Coca-Cola
(Source: Coca-cola.co.uk, 2019)
Delving deep into the supply chain process, there are two components: information
flow and material flow. Information flow is between the suppliers, manufacturers,
assemblers, retailers and customers. Material flow deals with the supplies, production and
deliveries. The process of information flow is as follows:
Figure 3: Information flow of supply chain in Coca-Cola

5
BEVERAGES AND SUPPLY CHAIN
(Source: Coca-cola.co.uk, 2019)
Information is transferred between the suppliers, manufacturers, assemblers, retailers
and customers regarding the production process. This conversation clarifies the doubts
regarding the current status of orders, schedules and forecasts regarding the products and
services. On the other hand, the process of material flow is:
Figure 4: Material flow of Coca-Cola in the supply chain
(Source: Coca-cola.co.uk, 2019)
Material flow involves transmission of information to the clients regarding the
supplies, production and delivery of the drinks.
Supply chain stages
The stages of supply chain process in Coca-Cola are customers, retailers,
wholesalers/distributors, manufacturers/plants and components/raw materials. Inventory and
warehouse systems are important in terms of making estimates about the progress of
production through efficient channels. Along with this, warehouse systems also help in
applying the dynamic inventory models for enhancing the production quality. One of the

6
BEVERAGES AND SUPPLY CHAIN
other uses of the warehouse systems in the workplace of Coca-Cola is determination of the
order quantities, which helps in answering the queries of the clients regarding the delivery of
the orders. Within this, special care is taken of the safety of the stocks (Coca-cola.co.uk,
2019).
As a matter of specification, the supply chain management of Coca-Cola is comprised
of upstream and downstream activities. Upstream activities include the manufacturing of
concentrates. As a matter of specification, upstream activities initiates through the
assemblage of the raw ingredients from the farms and the plants. The actual formula of the
syrup and the other ingredients are kept confidential, which adds ambiguity over its supply
and the expenses behind it. After this, the actual manufacturing process starts, which is
initiates the downstream activities. Once the drinks are manufactured, they are sent to the
warehouse, from where they are distributed to the vendors and customers. As a sequential
step, the drinks are consumed. One of the positive aspects is the collection of the wastes and
recycling for reducing the environmental pollutions. This approach develops community
wellbeing, enhancing the brand image of Coca-Cola (Coca-cola.co.uk, 2019).
The processes in the downstream activities are reversible. Logistic operations in the
process is indicative of automation, which helps the personnel in averting delays in the
supplying the orders at the right time and place.
Drivers of supply chain in Coca-Cola
Information is one of the primary aspects for maintaining the balance between the
operations. Information model is used by the managers of Coca-Cola for involving the other
members in the process of achieving effective solutions for the issues. Social media helps the
managers in establishing contacts with the external clients, which helps in adding innovation
into the supply chain network. Verification of the information is crucial in terms of averting

7
BEVERAGES AND SUPPLY CHAIN
the instances of leakages in the confidential codes and data (Coca-cola.co.uk, 2019). Herein
lays the appropriateness of the security cookies and policies. Meetings are conducted by the
managers of Coca-Cola, involving the stakeholders and shareholders. The meetings project
collaborative output in terms of enhancing the productivity. The aspect of social media
marketing relates with “paperless information flow”. Typical example of this is the electronic
pick slip reports for the warehouse or transportation. Accuracy is crucial within this slip for
getting deliveries properly. Application of record keeping policies in the slips is a wise step
for Coca-Cola in terms of averting the situations of inadequate resources at the time of
delivering the orders. Usage of SAP ERP software helps in extracting relevant information
from the field surveys (Coca-cola.co.uk, 2019).
For making the supplies, Coca-Cola makes use of high quality and flexible transports.
Before loading the bottled drinks, verification is conducted for assessing its appropriateness
in terms of delivering the products at the right place. Within this, special care of taken
towards maintaining the quality of the drink until it reaches the customers. For this, highways
are chosen in terms of avoiding the hassles of the bumpers of the ordinary roads. Joint
ventures with the international airports help in importing and exporting the goods from the
neighbouring countries. Ship cargoes are one of the other means for exporting the drinks to
the other countries.
Sourcing is one of the other aspects, which enhances the supply chain network of
Coca-Cola. The bottling operations are outsourced. Options are provided to the suppliers
regarding the packaging and labelling of the bottles (Coca-cola.co.uk, 2019). For this,
offshore management is conducted by the managers, which helps in gaining an insight into
the prospective clients for increasing the sales revenue and profit margin. Most of the supply
chain activities is handled by the third parties, which involves verification through security
cookies, software and policies. Along with this, pricing is one of the other drivers of supply

8
BEVERAGES AND SUPPLY CHAIN
chain in the workplace of Coca-Cola. As the competition is intensified in the soft drinks
industry, price attained a crucial position in terms of securing the market share and retaining
the customers.
SWOT analysis
Primary production
Strengths
 Skilled and efficient workers
 Natural ingredients from the farms
 Various flavours
Weakness
 Controversies regarding the use of
vegetable oil in the drinks
 Absence of the ingredients on the
packing labels
 Restrictions regarding access to the
formulas of the ingredients
Opportunities
 Use of stimulants in the formula for
preparing the drinks
Threats
 Incorrect formula for preparing the
syrups
 Lack of proper equipment for
preparing the drinks
Hard efforts of the skilled and efficient workers results in the production of high
quality drinks. Usage of natural ingredients from the farms and various products offers choice
to the customers regarding enhancing their purchasing power. Controversies in the use of the
ingredients aggravate the complexities of the Coca Cola personnel in terms of catering to the
specific needs, demands and requirements of the clients and the customers. Not displaying
the ingredients in the labels for packaging is a conspiracy with the business operations (Coca-
cola.co.uk, 2019). Moreover, it is interplay with the purchasing power of the customers. Not

9
BEVERAGES AND SUPPLY CHAIN
all of the manufacturers have the access to the formulas of preparing the syrups and the
drinks.
Using stimulants in the manufacturing process is an initiative towards catering to the
health needs of the customers belonging to the old age. However, using incorrect formulas
worsen the health condition. Lack of proper equipment is an addition to the issues in the
production process.
Processing
Strengths
 Monitoring and regulation
 Quality control and assurance
 Technological assistance for
packaging
 Water treatment for preventing the
cans from accumulating germs and
bacteria
Weakness
 Lack of efficient software
 Absence of security cookies and
policies
 Inspection of the systems and
software
 Proper regulation and control of
the water treatment devices
Opportunities
 Regular meetings
 Hiring foreign quality control
experts
 Preparing budgets for the water
treatment and quality control
devices
 Market research
Threats
 Not involving the stakeholders and
shareholders in the meetings
 Negligence in maintaining the
systems and software

10
BEVERAGES AND SUPPLY CHAIN
Monitoring and regulating is one of the primary strengths of Coco-cola. Hiring
experts from foreign helps in upgrading the standards and quality of the processing of drinks
(Coca-cola.co.uk, 2019). Conducting lab tests of the produced drinks helps the managers in
averting the instances of substitute products, which contradicts the aspect of possessing
quality and branded products in case of the customers. Water treatment for the processed
drinks removes the bacteria and germs, adding to its quality. Preparing budgets prove
assistance for the personnel in terms of gaining an insight into the expenses, which they need
to bear for carrying out the activities. On the contrary, lack of efficient software stalls the
process of quality control and monitoring the processing of the drinks. Along with this,
absence of security cookies and policies compels the personnel to encounter leakage of the
confidential data.
Not involving the stakeholders and shareholders in the meetings results in the
development of ineffective policies and practices fir manufacturing the bottled drinks (Coca-
cola.co.uk, 2019). Along with this, lackadaisical approach in management of the systems and
software is indicative of disruptions within the production process. This negligence
aggravates the complexities towards performing the tasks in an efficient and effective
manner.
Distribution
Strengths
 Flexible modes of transport
 GPRS sensors for tracking whether
the orders are going in the right place
 Stable relation with the suppliers
Weakness
 Lack of proper planning in terms of
the promotional schemes
 Absence of mapping
 Non-compliance to the franchise
rules and regulations

11
BEVERAGES AND SUPPLY CHAIN
Opportunities
 Segmenting the orders according to
the geography
Threats
 Non-compliance and misutilization
to the franchise rules and
regulations
Using flexible modes of transport helps Coca-Cola in distributing the drinks to the
right place. Installation of GPRS in the transports is assistance in terms of regulating the
distributions on duty. Stable relationship with the suppliers is productive for getting the
supply of raw materials as per the instructions (Coca-cola.co.uk, 2019). On the contrary, lack
of proper planning towards the promotional schemes is a weakness in terms of advertising the
drinks. Not conducting journey mapping would compel the personnel to encounter difficulties
in developing strategies towards enhancing the standards and quality of distribution facilities.
Segmenting the orders according to the geographical proximity would be beneficial in terms
of avoiding unnecessary rides in case of the trucks. Within this, non-compliance to the
franchise rules and regulations would compel the clients to encounter delays in receiving the
orders properly.
Retail
Strengths
 Flexible working staffs
Weakness
 Lack of consciousness towards close
proximity to the customers
Opportunities
 Online retail stores
 Extra-curricular activities
Threats
 Lackadaisical approach towards
proper maintenance of the stores
Flexible working shifts are one of the greatest strengths of Coca-Cola in terms of
catering to the individual needs of the employees. This flexibility is assistance in terms of
unleashing the talents of the employees. On the contrary, lack of consciousness towards the

12
BEVERAGES AND SUPPLY CHAIN
close proximity to the customers aggravates the complexities towards satisfying their needs,
demands and requirements (Coca-cola.co.uk, 2019). Uploading the specifications of the
bottled drinks on social media enables Coca-Cola to strengthen the customer base. Extra-
curricular activities, like sponsoring the education of the community children, enhances the
corporate social responsibility of Coca-Cola. Negligence towards maintenance of the stores
aggravates the complexities in terms of upgrading the infrastructure.
Consumption and health implication
Strengths
 Usage of natural ingredients
 Labelling of the ingredients in the
package
Weakness
 Competition with Pepsi regarding
the diet coke and diet Pepsi
Opportunities
 Product diversification
Threats
 Lackadaisical approach towards
catering to the health needs of the
customers
Including natural ingredients for preparing the drinks preserve the originality. This is
an agent in terms of retaining the customers. Depicting the ingredients on the label of the
bottles answers the queries of the customers regarding the calorie intake with each serving.
Variability within the products helps the personnel of Coca-Cola to influence the purchasing
power of the customers (Coca-cola.co.uk, 2019). Typical example of this is the different
flavours, catering to the specific tastes and preferences of the customers. Lackadaisical
attitude in the adding innovation into the Diet Coke and Pepsi would aggravate the
complexities regarding the health issues of the customers. Using detectors for gaining an

13
BEVERAGES AND SUPPLY CHAIN
insight into the sugar content in the syrups and the drinks would help the personnel of Coca-
Cola in catering to the appetite cravings of the customers suffering from diabetes.
Sustainability issues in supply chain management
Sustainability issues in Coca-Cola mainly comprise of water stewardship, climate
protection, sustainable packaging and social performance.
Water stewardship
Development of the water treatment methods helps in conducting thorough cleaning
of the produced bottles. Along with this, the water treatment methods help in providing clean
drinking water to the nearby communities. This is assistance in terms of proper maintenance
of the livestock and the people. Contacting the scientists helps the company in seeking an
insight into the methods for conserving the soil, water and air resources (Coca-cola.co.uk,
2019). Market research helps Coca-Cola in gaining an insight into the devices, which assist in
detecting the content in the drinks. Inspection of the devices is appropriate in terms of
averting the illegal instances. Preparation of the budgets helps in assessing the feasibility of
the supply chain network.
Climate protection
Humid climates assist in storing the drinks, which helps in maintaining the original
taste and quality. Plans regarding reduction in the carbon footprints help in contributing to the
preservation of the ecological diversity. This reduction has greatly affected management of
the supply chain activities. Adhering to the guidelines provided in UN Climate talks 2017
helps in averting the risks and errors within the business operations. Joint venture with NGOs
helps in reducing the emissions of the greenhouse gases. All these initiatives help in
preserving the ecological diversity (Coca-colacompany.com, 2019).
Sustainable packaging

14
BEVERAGES AND SUPPLY CHAIN
In the packaging process, Coca-Cola makes use of the materials, which can be
recycled. This reflects the consciousness towards sustaining the resources for the future
generation. However, lack of necessary infrastructure and collaboration needs creates
complexities in the packaging process. Mention can be made of the schemes World Without
Waste, which aims to eliminate the non-recyclable materials, which can add to the
environmental pollution. Therefore, efficient technologies are used for producing the bottles
in a manner, in which they can recycled after consumption. In the advertising campaigns, the
recyclable signs have been displayed for making the customers aware of the recycling
facilities.
Social performance
Sponsoring the education of the school dropout children of the communities enhance
the reputation of Coca-Cola. Mention can be made of the scholarships, which has attracted
many students to attend schools. Providing financial assistance to the schools for developing
the infrastructure also adds to the image of Coca-Cola in terms of creating positive image
about the brand (Coca-colacompany.com, 2019). Typical example can be cited of Coca-Cola
Foundation, which caters to the health issues of the community people. Assistance of the
neighbouring agencies helps in Coca-Cola in organizing free health check-ups. The
foundation works towards the provision of relief measures to the victims of catastrophes and
natural disasters.
Recommendations
 Implementation of new ERP systems
New ERP systems would help Coca-Cola to ensure that planning have been
conducted properly. Along with this, the systems would enhance the awareness of the
personnel about the effective and judicious use of the resources for the production of

15
BEVERAGES AND SUPPLY CHAIN
the bottles. Regular inspection of the systems would help in identifying the drawbacks
in the supply chain network. Conducting market research would be effective for the
brand in terms of gaining an insight into the software, which would be flexible in
terms of increasing the production of the bottles.
 Standardization in the ERP systems
Adherence to the directives and legislations would upgrade the standards and
quality of the supplies in the workplace of Coca-Cola. For this, the brand need to
establish stable relationship with the governmental agencies, especially statutory
bodies of law. This can be done through the means of joint ventures and
collaborations.
 Increasing transparency
Involving the customers within the processes would increase the transparency within
the business operations. Uploading the plans in the social media and asking their
feedbacks would add innovation within the production of the drinks. Sending drafts and
progress reports to the higher authorities would lead to the estimation of the time till
when the tasks would be completed.
 Gaining data insight
The employees need to be made aware of the data regarding the current strategic
condition of Coca-Cola. Presentations can be conducted for enhancing the awareness
of the employees about the journey mapping till date. Sending drafts regarding the
established policies and practices would help in assessing its effectiveness,
appropriateness and feasibility in terms of the identified and specified goals.
Moreover, the data would help in assessing the market position as compared to the
contemporary brands.

16
BEVERAGES AND SUPPLY CHAIN
 Real time inventory management
Including the use of modern software would help Coca-Cola to enhance the visibility
of the inventory levels. Limited scalability of the software would act assistance in
terms of regulating the levels of the production. Market research would enhance the
awareness in terms of the software, which is ruling the market. Preparing budgets
would help in estimating whether it aligns with the prepared budget.
 Monitoring the vendor performance
Personal visit by the managers to the factories would help in gaining an insight into
the performance. Maintaining consistency in this visit would provide an insight into
the areas, which needs modifications in terms of upgrading the infrastructure.
Checklists and templates would act assistance in terms of strengthening the
understanding about the extent to which improvements have been made. Inspections
by the foreign experts would prove beneficial in terms of averting the instances of
malfunctions during the actual performance of the expansion projects.
 Raising cost awareness
Emails can be used for the interactions between the different managerial levels
regarding the expenses for the supply chain activities. Using centralized financial data
would help Coca-Cola personnel to make proper utilization of the resources for the
right actions. The employees can be briefed about the stabilizing cost related
communication. This would be productive in terms of developing strategies regarding
consolidation of the expenses for the streamline activities.
Conclusion
Technologies help Coca-Cola in conducting the activities in an efficient and effective
manner. Flexible supply chain network is beneficial in terms of maintaining the balance
between the upstream and downstream activities. Revision in the policies and practices help

17
BEVERAGES AND SUPPLY CHAIN
the brand in adding innovation into the transport and the raw materials used for completing
the production process. Market research and budgets is assistance for Coca-Cola in terms of
adopting effective software, which rules the market. Budgets help the managers in assessing
whether the expenses suffice the need for increasing the sales revenue by maintaining the
efficiency in the product lines. Trainings possess flexibility to upgrade the preconceived
skills, knowledge and expertise of the employees regarding the effectiveness, appropriateness
and feasibility of the developed plans in terms of identified and specified goals and
objectives. Revisions and audits of the policies and procedures is productive in terms of
adding innovation within the business operations.

18
BEVERAGES AND SUPPLY CHAIN
References
Baldwin, R. & Lopez‐Gonzalez, J., (2015). Supply‐chain trade: A portrait of global patterns
and several testable hypotheses. The World Economy, 38(11), pp.1682-1721.
Coca-cola.co.uk (2019). Refreshing the world, one story at a time. Available at:
https://www.coca-cola.co.uk/ [Accessed on 9th Jan 2019]
Coca-colacompany.com (2019). Climate protection. Available at: https://www.coca-
colacompany.com/stories/2017-climate [Accessed on 11th Jan 2019]
Coca-colacompany.com (2019). Packaging. Available at: https://www.coca-
colacompany.com/stories/2017-packaging [Accessed on 11th Jan 2019]

19
BEVERAGES AND SUPPLY CHAIN
Bibliography
Bode, C. & Wagner, S.M., (2015). Structural drivers of upstream supply chain complexity
and the frequency of supply chain disruptions. Journal of Operations Management, 36,
pp.215-228.
Chen, J., Yao, D. & Chen, H., (2017). Supply Chain Collaboration of High Pressure
Pasteurization Processing Foods and Beverages. International Journal of Business and
Economics Research, 6(5), p.139.
Demartini, M., Pinna, C., Aliakbarian, B., Tonelli, F. & Terzi, S., (2018). Soft Drink Supply
Chain Sustainability: A Case Based Approach to Identify and Explain Best Practices and Key
Performance Indicators. Sustainability, 10(10), p.3540.
Grant, D.B., Trautrims, A. & Wong, C.Y., (2017). Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management. Kogan
Page Publishers.
Kagawa, S., Suh, S., Hubacek, K., Wiedmann, T., Nansai, K. & Minx, J., (2015). CO2
emission clusters within global supply chain networks: Implications for climate change
mitigation. Global Environmental Change, 35, pp.486-496.