Operational Strategies for Coca Cola: Benchmarking and Balanced Scorecard Approach

This document discusses the operational strategies of Coca Cola, focusing on benchmarking and the Balanced Scorecard approach. It explores how Coca Cola compares to competitors like Pepsi and Dr Pepper in terms of supply management and technology. The document also highlights the use of AI and AR in the development of Coca Cola's supply network process technology.

Operation Strategy

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Benchmarking is the process of measuring the performance of the organisation's products
and services in comparison to those other businesses which are performing good in industry. The
main objective behind the acceptance and adherence of this approach is about identification of
the internal opportunities for improvement. The organisation considered for successful
application of this aspect is Coca Cola. It is multinational American organisation which deals in
beverage industry. Large number of products in which this organisation deals at worldwide level.
The scope and nature of beverage industry is wide where many organisations operate
their functions and provide products and services at worldwide level (Mir-Tutusaus, Sarrà and
Caminal, 2016). The two different competitors choose in respect to benchmark to bring
improvement in operational activities of Coca-Cola includes Pepsi and Dr Pepper. These
organisations are major competitors and having many substitute products in market which have
direct impact over the market share and profitability of an organisation. One of the major aspect
due to which impact is ascertained by the management of Coca-Cola is includes their
competitor's effective and efficient operational and production technology along with competent
operational strategies in respect to supply management (Fuess, Kiyuna, Garcia and Zaiat, 2016).
The approach which is used to bring improvement in internal operational capabilities of
an organisation is named as Balanced Scorecard approach. It is a strategic management
performance metric uses to improve internal business functions along with the attainment of
effective external outcomes. This approach is having an function which includes measurement of
the important aspect and provide feedbacks to the organisation. This approach has four different
perspectives named as learning and growth, internal business process, customer and financial.
There are different importance of balance score card for Coca- Cola such as better strategic
planning, improved strategy communication and execution, better alignment of projects and
initiatives, better management information, improved performance reporting, better
organizational alignment, better process alignment and so on. These are major significance of
Balance score card which will be beneficial for the success and growth of company within given
time duration. It will also support an organization to accomplish long term goals and objectives
easily (Solon and et. al., 2017). Coca-Cola is multinational organisation and having good chain
of supply management instead of that they lack in some aspects in comparison to the
organisation like Pepsi and Dr pepper.
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The supply network process technology used by Pepsi is advanced in nature where they
focus over ordering their algorithms which help in effective generation of automatic orders for
different stores on the basis of their sales history. Also, to provide edge to their supply process
they add robotics in the process where they installed large number of robotic truck loaders and
automated picking for individual small bags at some of our facilities to allow fully automated
mixed cases for delivery to small-format stores. The technology of Artificial intelligence and
augmented reality gives edge to supply network chain of Pepsi that reduce system wide
inventory and elimination of warehouse constraints. This will help an organisation to attain the
award of its innovation distribution strategy (Supply network process technology of Pepsi. 2019).
Another side, the technology which is used in respect to supply their products by Dr
pepper includes the combination of direct store delivery and warehouse delivery capabilities
which is also supported by other 22 manufacturing locations, more than 100 warehouses and
21000 employees. The management of this organisation adopts six sigma tools and
methodologies to bring efficiency in process along with the elimination of wastes and track
metrics. Also, in this regard they leveraged advanced robotics technology which help in tracking
of the accounts receivable operations. FSCM is software is provided which help in optimisation
of receivables and payment functions through use of AR in respect to credit, collections, cash
application, deductions and e-billing (Supply network process technology of Dr Pepper. 2019).
The technologies which are benchmarked with assistance of the approach of Balanced
Scorecard are mentioned below:
Benchmarked Technology
used by Coca-Cola
ascertained from the
operation's of Pepsi and Dr
Pepper
Pepsi: Use of AI and AR in robotics and creation of sales
algorithms
Dr Pepper: Use of AR in optimisation and automation of
receivables and payment functions
The impact of the same is ascertained over operational strategy of Coca-Cola in respect to
the development of their supply network process technology (Panteli, Trakas, Mancarella and
Hatziargyriou, 2017). They focused over the use of AI and AR in respect to the development of
border less supply chain and having the ability to embed the new and updated technology within
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the same. Coca-Cola freestyle is one of the aspect that emerged from this process only which
help in providence of the important information to the organisation related to valuable data
collection from customers, machine performance, micro-dose cartridge usage and beverage
consumption. This bring major improvement in the supply chain of Coca-Cola. Those that can be
emerged in future with the use of such technologies includes using the information in our SAP
Supply Network Collaboration (SNC) module we can respond for the first instance in a pure
demand impelled Supply Chain ecosystem to keep the brand cartridges in stock (Supply network
process technologies of Coca-Cola. 2019).
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REFERENCES
Books and Journals
Fuess, L. T., Kiyuna, L. S. M., Garcia, M. L. and Zaiat, M., 2016. Operational strategies for
long-term biohydrogen production from sugarcane stillage in a continuous acidogenic
packed-bed reactor. International Journal of Hydrogen Energy, 41(19), pp.8132-8145.
Mir-Tutusaus, J. A., Sarrà, M. and Caminal, G., 2016. Continuous treatment of non-sterile
hospital wastewater by Trametes versicolor: how to increase fungal viability by means
of operational strategies and pretreatments. Journal of hazardous materials, 318,
pp.561-570.
Panteli, M., Trakas, D. N., Mancarella, P. and Hatziargyriou, N. D., 2017. Power systems
resilience assessment: Hardening and smart operational enhancement
strategies. Proceedings of the IEEE, 105(7), pp.1202-1213.
Solon, K. and et. al., 2017. Plant-wide modelling of phosphorus transformations in wastewater
treatment systems: impacts of control and operational strategies. Water research, 113,
pp.97-110.
Online
Supply network process technology of Pepsi. 2019 [Online]. Available Through:
<https://www.digitalcommerce360.com/2018/04/04/pepsico-drives-a-more-digital-
supply-chain/>.
Supply network process technology of Dr Pepper. 2019 [Online]. Available Through:
<https://www.drpeppersnapplegroup.com/company/operations>.
Supply network process technologies of Coca-Cola. 2019 [Online]. Available Through:
<https://consumergoods.com/coca-cola-innovation-sparks-supply-chain-revolution>.
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