Logistics and Supply Chain of Coca-Cola Ltd

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LOGISTICS AND SUPPLY CHAIN OF COCA-COLA LTD
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Introduction
Established in the 1880s in Atlanta Georgia, Coca-Cola has become one of the most
popular brands in the beverage industry across the world. Coca-Cola is considered to have strong
marketing, production and distribution channel of its products. The company is in over 200
countries with more than 2700 products. Some of its products include; minute maid, sports drink,
coke, Fanta, diet coke, minute maid and others cited. Coca-Cola strives to achieve a great market
share in different countries across the world with an effective distribution channel and
commitment to providing value to their customers.
External Environmental Analysis
Different internal and external factors influence the functions of management, and
general operations of an organization and Coca-Cola is no exception. The wide customer range
requires coca cola to meet the demand of their customers. Through its operations, it is faced by
different factors in the environment. The external environment of the company comprises of the
micro and macro environmental factors. The macro environment influences the strategy and
decision-making process of the company. These factors include; legal which is characterized by
the different laws of the country of operations, the political environment is affected by the
interests of the political parties in host nations and government policies that influence the
marketing strategies. The economic factors such as inflation, taxes influence the pricing of coca
cola products in a country. Social factors such as the sports season influence the consumption of
the products. Technological factors are responsible for the production process and its
distribution. This influences the number of customers the product can reach. The market trends,
customers, suppliers, market structure and competition, are some of the micro-environmental

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factors that affect the operations of the company Ho et al, 2015 p. 5040). These are some of the
external environmental factors influencing the operations of the coca cola company.
Supply chain
Supply chain management refers to the streamlining of supply activities to provide value
to the customers and gain a competitive advantage in the marketplace (Christopher, 2011).
Companies strive to establish an effective, economical and efficient supply chain. The supply
chain is responsible for the information system, production and the development of the products.
Therefore, for the success of a company, it has to be more effective. The supply chain refers to
the collection of steps a company follows to achieve the desired final product from the raw
materials. The process includes the following steps; planning, development/source, manufacture,
and distribute/deliver.
Planning stage
The coca cola's planning stage involved marketing, standardizing, branding and
management. The planning stage of all companies revolves around the above factors. They
determine the product, distribution and end users.
Component/raw material
The concentrate and syrup is the main ingredient in the coca cola products. The products
are outsourced. The syrup is made of caffeine, carbon dioxide for fizz, caramel, natural
flavoring, and phosphoric acid. Other raw materials such as sugar and water are also sourced
from different suppliers.
Manufacturing
Ones the raw materials are supplied the manufacturing process takes place. The diagram
below shows the supply chain process of coca cola.