Coca-Cola: Logistics, Supply Chain, Order Cycle & Inventory Analysis

This report provides an overview of logistics and supply chain management within the Coca-Cola Company, focusing on key interfaces, order cycle, and inventory management. It highlights the importance of logistics in satisfying customer needs and fulfilling demands, emphasizing the integration of various departments such as production, marketing, and finance. The report analyzes the production department's efficiency, marketing department's strategies, and the role of accounting and finance in evaluating financial transactions and logistic management. Furthermore, it discusses the order cycle process, from order placement to product delivery, and the significance of key performance indicators. The analysis extends to inventory management, emphasizing the importance of maintaining optimal stock levels and implementing effective inventory control measures. The report concludes that Coca-Cola implements effective logistic management by ensuring best practices related to the management of interfaces in all the important functional areas, order cycle, and inventory management.

Logistics and Supply chain management 1
Logistics and Supply chain management

Logistics and Supply chain management 2
Introduction:
Logistic management is defined as the most important factor of the supply chain
management, and it is the only factor which is used by the organizations for satisfying the needs
of the customers and also for fulfilling the demands raised by the customers. This process of
logistics management starts with the accretion of the raw material and it completes with the
delivery of the goods. The main aim of this paper is to consider the important areas of the
function which directly relates with the current order cycle and management of inventory under
the organization.
For the purpose of this report, Coca Cola Company is selected in terms of the
manufacturing organization. This organization is an American organization, manufacturer, and
retailer and also the marketer of the non-alcoholic beverages.
Coca Cola Company also develops and implements the quality management system, and
they also demonstrate their ability to fulfil the demand of the customers and ensure the
compliance of the regulatory requirements. They are focusing on satisfying the customers by
ensuring the implementation of the system in effective manner, and this mainly includes the
continuous improvement and the restriction of the non-conformity (Coca Cola, 2018.
The most important success factor of this organization is the employees of the
organization, and this is the only factor which leads the organization towards the sustainable
growth of the organization. Empowerment of the employees in the organization results in more
dedication of the employees towards the work, and Coca Cola has been work in the development
of the programs which provides quality trainings to the employees of the organization.
Interfaces in Logistics management
Interface is defined as the term which relates with those techniques, processes, and
frameworks which are required by the Coca Cola Company management for the purpose of
implementing the logistic system which effective in nature. Coca Cola Company enables the
valuable interaction between all the important components of the organization like departments,
chains, and other required processes. It is clear that, interfaces are those techniques, processes,
and frameworks which help the organization in ensuring the effective communication on various
issues (Stock & Lambert, 2001.
Logistic management in the Coca Cola is determined as the method through which all the
functions of the different departments are conducted in the organization such as accounting
department, finance department, operations department, production department, sales
department, etc. Interfaces play most important role in the cycle of the logistic management.

Logistics and Supply chain management 3
Production Department interfaces
Production department of the organization is the most important department of the
operation process, as this department is engaged in the inspection and upholding of the produced
goods productivity. Department of the organization needs to make sure that goods are produced
in such manner as it becomes simple to market those goods. If goods produced in such manner
then it definitely helps the organization achieving their objectives. The production is considered
as effective production if both costa and quantity of the goods are efficient in nature. It must be
noted that, both cost and quantity of the goods is deemed as the most important factors of the
organization in context of determining the effectiveness of the productivity. Usually,
responsibility of ensuring the effectiveness of the production system is imposed on the managers
of the organization, as they are under obligation to check the quantity and quality of the products.
In Coca Cola Company, production is conducted in context of the framework defined for
the production system of the organization. The biggest problem is the time period which
organization spends while producing their goods. There are number of times, when organizations
do not meet their deadlines and this result in big loss to the organizations, as more time
ultimately raise the operating cost of the organization and reduce the organizations profitability.
Deadlines are considered as most important factors which must be recognized by the Coca Cola
Company while making their strategies related to the production system. Organization required
making important changes in the production cost, because changes are required in context of the
nature of goods produced (Respício & Captivo, 2002).
Production
Control of quality
Production
Scheduling
Interface
activities
Production of goods
scheduling of goods
Plant location
Logistics
activities
Transport
Order
inventory

Logistics and Supply chain management 4
Marketing Department interfaces
Process of the logistic management in the department of marketing is defined as the
factors with the help of which marketing activities can be handled. It must be noted that, strong
connection is shown by the marketing management activities and logistics department. Four
components are determined by the Coca Cola Company in terms of the marketing management
activities, which means, Coca Cola Company consider the traditionalist, relabeling, unionist, and
intersections as the important factors while dealing with the market (Lakemond & Johansson,
2007).
Organization need to determine the different kinds of changes while implementing the
interfaces related to the market such as traditional factors of the market are evaluated in terms of
conducting the best management practices under the logistic management. Organization needs to
understand that marketing management activities and logistics management are connected with
the each other, but these activities are not correlated to each other. In other words, there is
interface between these two activities.
However, another factor such as relabeling determines the connection between these two
activities in context of evaluating the market. Factor considered as unionist, determine the
togetherness of the marketing activities and logistics activities.
Accounting & Finance Department interfaces
Interfaces lay important role in the two significant departments of the organization that
are department of accountancy and department of finance. In other words, interfaces emerged
between these two departments are deemed as most important interfaces (Respício & Captivo,
2004).
It can be said that, interfaces mainly evaluates the Coca Cola Company accounts, and
also determine the way through which regular checking is done in context of the accounts of the
organization and financial transactions conducted by the organization. Generally, economic
advantages are analysed which are get by the organization by implementing these interfaces.
Coca Cola Company mainly determine these interfaces while conducting the evaluation of the
transaction in terms of accounting and finance, and through these they also determines the
logistic management in the organization. These interfaces also give recommendations to the
management in terms of enhancing the performance of the business in both the related
departments of the organization. As both the departments hold the responsibility to determine the
profits and losses occurred by the Coca Cola Company, and this is defined as the most important
function (Croxton, no date).
Order Cycle
Order cycles is defined as that process through which product is passed and ultimately
reached to the consumers, which means, it initiates with the stage at which order is placed by the

Logistics and Supply chain management 5
management to the supplier and completes when manufactured product is ultimately reached to
the consumer. Order cycle includes number of stages and product reached to the consumer after
going through all these stages such as placement of order, receiving of the information in terms
of the placed order, and at the end product packaging and shipment.
It must be noted that, order cycle in the organization evaluates the time gap between the
placement of the one order and the placement of the other order. This time gap which is occurred
between the placing of the orders is known as the order lead time (Resipicio & Captivo, 2004).
Activities related to the order cycle in terms of the Coca Cola Company in terms of the logistics
activities of Coca Cola Company are defined below-
Placement of order- process of the order is conducted after its placement and once this
process is completed, then products are shipped at the warehouse of the Coca Cola Company.
Checking of order- When order is placed and process related to the order is start,
management needs to watch the each stage of the process. Organization evaluates the leftover
stock in the organization and also makes the calculation related to the Economic Order Quality
(Viewlocity, no date}.
Key performance indicator- These factors are considered ads most important factors for
the Coca Cola Company because it not only measured the organization performance but also
measure the performance of the order cycle and show its inefficiencies which affect its
performance.
There are number of recommendations which are stated below in context of the order cycle of
the Coca Cola Company, and all these recommendation ultimately results in the achievement of
the organization-
 Order related to the inventory must be making in such manner as it becomes easy for the
organization to calculate the required cost.
 Organization needs to maintain the record or all the stages of the order cycle and those
components also which help the organization in reducing their operation cost.
 One more recommendation is also there which states that services must be given to the
customers on timely basis, and this mainly focus on the fact that all the services must be
given on time and in such manner as it ensures the satisfaction of clients.

Logistics and Supply chain management 6
Source (Slide Share, no date
Management of Inventory
Management of the inventory is deemed as the important area in which organization
needs to focus while conducting the supply chain management. It mainly involves the evaluation
of the required inventory and inventory which must be keep in stock by the organization for
meeting the future needs of the organization and also for dealing with the situations of urgency.
It must be noted that, cost and quantity related to the remains stock are calculated by the
management of the organization at the forward stage. Inventory management of the Coca Cola
Company is effective in nature, which means, it required the management of the stock which is
left after the completion of the production or order cycle and also the calculation of the required
quantity of the stock. The main aim of the inventory management process is to ensure the
maintenance of the required inventory. It can be said that, inventory management process of the
Coca Cola Company is effective in nature, and it also help the organization in conducting its
other operations in smooth manner.
Few recommendations related to the inventory management process are stated below, as all these
recommendations ensure the effective inventory management system in the Coca Cola Company
-
 The most important recommendation highlights the fundamentals related to the Economic
Order quantity, which means, continuous checking must be done by the organization in
context of the inventory held by the organization such as checking of the remaining
stock, checking of the required stock, etc.
 Another recommendations deal with the fundamentals of the minimum stock level, which
means, organization must set the standards of the minimum stock level and whenever

Logistics and Supply chain management 7
stock reached this level, order for the stock is placed by the Coca Cola Company
(Samanta, 2015).
Source (Shah, no date
Conclusion
After considering the above facts, it is clear that Coca Colaimplement the effective logistic
management in the organization, and this is done by ensuring the best practices related to the
management of interfaces in all the important functional areas, order cycle, and inventory
management. Logistic management is defined as the most important factor of the supply chain
management, and it is the only factor which organizations used for satisfying the needs of the
customers and also for fulfilling the demands raised by the customers. Logistic management in
the Coca Cola is determined as the method through which all the functions of the different
departments are conducted in the organization. In Coca Cola Company manufacturing,
production is conducted in context of the framework defined for the production system of the
organization. The biggest problem is the time period which organization spends while producing
their goods.
Order cycle in the organization evaluates the time gap between the placement of the one
order and the placement of the other order. This time gap which is occurred between the placing
of the orders is known as the order lead time.
The main aim of the inventory management process is to ensure the maintenance of the
required inventory. It can be said that, inventory management process of the Coca Cola
Company is effective in nature, and it also help the organization in conducting its other
operations in smooth manner.

Logistics and Supply chain management 8
References
Coca Cola, (2018). About Coca-Cola Journey. Retrieved from https://www.coca-
colacompany.com/our-company/about-coca-cola-journey.
Croxton, K. (no date). The Order Fulfillment Process. Retrieved from
https://pdfs.semanticscholar.org/182f/b7c9a6cecd0ac2cd6bd9d45c49f71326dcc1.pdf.
Lakemond, N. & Johansson, G. (2007). Thomas Magnusson and Kristina Säfsten, Interfaces
between technology development, product development and production: Critical factors
and a conceptual model, International Journal of Technology Intelligence and Planning,
Vol. 3(4), PP- 317-330.
Resipicio, A. & Captivo, M. (2004). Marketing-production interface through an integrated DSS,.
Decision Support in an Uncertain and Complex World: The IFIP TC8/WG8.3
International Conference 2004.
Respício, A. & Captivo, M. (2002) Cutting stock within a production planning problem: exact
solutions, SICUP 2002 (Meeting of the Special Interest Group on Cutting and Packing)
IFORS 2002, Edinburgh, Scotland.
Stock, J. & Lambert, D. (2001).Strategic Logistic Management. Boston: McGraw-Hill
companies.
Samanta, P. (2015). Introduction to inventory management. Retrieved from
https://www.researchgate.net/publication/317970709_INTRODUCTION_TO_INVENT
ORY_MANAGEMENT.
Shah, I. (2015). What is Inventory management ? and Objective of inventory management.
Retrieved from http://onlineaccountreading.blogspot.com/2015/01/inventory-
management.html#.W7Lwb3szbIU.
Slide Share. Order cycle. Retrieved from https://www.slideshare.net/maxgalarza/order-cycle.
Viewlocity. Order Lifecycle Management. Retrieved from
http://www.viewlocity.com/solutions/order-lifecycle-management.htm.