Logistics System for Coca-Cola: Planning, Implementation, and Challenges

RUNNING HEAD: Logistics System
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Coca-cola
Logistics System

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Contents
Introduction...........................................................................................................................................2
Coca-Cola background..........................................................................................................................2
Approach identified for planning and implementation of supply chain activities..................................3
Issues impacting the decision of implementing strategies employed.....................................................7
Benefits and limitations.......................................................................................................................10
Future trends........................................................................................................................................12
Conclusion...........................................................................................................................................13
References...........................................................................................................................................15

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Introduction
The order processing is concerned with the logistics system and includes various operations.
The logistics management is a component of supply chain management which is used to meet
the demand of customers. The supply chain management is the management of all processes
which transforms raw materials into the final products. It enables a company to better manage
demand and carry the right amount of inventory in order to meet the demand in the most
efficient manner. The logistics system is helpful to companies in reducing expenses and
improving customer services. A company is required to maintain logistics management
software to take full advantage of benefits. The logistic system has advantages in the form of
capital reduction, reducing the cost of production and helps to improve service level. The
logistics system includes mainly three activities, order processing, inventory management and
freight transportation. The logistics focus on moving products in the most efficient way so
that it arrives at the right place at right time. It includes activities such as packaging,
transport, distribution, warehousing, and delivery. The benefits of logistics can be achieved
by implementing appropriate strategies to manage growing complexity of supply chains. The
example of Coca-Cola has been taken in this report to identify an approach for planning and
application of logistics and supply chain activities. The approach further includes the
techniques used and focus of investment for execution. The concerns have been defined
which impacts the decision to implement, the basis for execution and the specific strategies
employed. The benefits and limits have been explained of the application of the logistics
system. Finally, the future trends and the direction of the organization have been defined in
order to see it moving forward.
Coca-Cola background
The Coca-Cola is an American beverage corporation and it's headquartered is in Atlanta,
Georgia. The mission of the company is to become prominent supply chain function in the
industry by efficient customer service and cost competence. Such supply chain creates value
and makes difference. The vision is to become the best place to work for people. The
company is listed on the NYSE. Coca-Cola has over 146,000 employees around the world. It
has more than 500 brands in over 200 countries. It obliges more than 1.9 billion servings each
day. As per the report of 2016, the company had 100,300 associates worldwide (Coca-Cola,

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2017). The company has a major market share of around 50%. The values of the company
rely on leadership, collaboration, integrity, accountability, passion, diversity, and quality.
The supply chain plays important role in the business. It also ensures that the process
minimizes the impact on the environment and certifies the sustainability in the value chain.
The company yields and distributes more than two billion unit cases of products annually.
The supply chain is accountable for the obtaining, scheduling, manufacturing, and
engineering. The process considers sustainability in the supply chain. The companies which
have a prominent presence in the soft drink industry other than Coca-Cola are PepsiCo and
Cadbury Schweppes. The entry and exit of soft drink companies do not put pressure on the
established company like Coca-Cola. It is going to be very difficult for the new companies to
compete with the established brands like Coca-Cola because the new companies will not be
able to compete with the company and it’s distribution process.
Coca-Cola has large portfolio of products. The company is committed to evolve beverages
and portfolio selections through on-going innovations. Some of it’s products are given below:
Portfolio of Coca-Cola products
Coca-Cola
Fanta
Sprite
Limca
Thumps up
Aquarius
Minute maid apple
Kinley water
Minute maid mango
Zico
Approach identified for planning and implementation of supply chain activities
The logistics management is the process of incorporating movement and upkeep of goods in
and out whereas supply chain management is the coordination and administration of supply
chain activities. The first step of accomplishing a task in the logistics management is
planning. The company needs to advance a plan in order to discourse how products and