MO09519 Applied Logistics & Supply Chain Management: Coca-Cola Case

This report provides an overview of Coca-Cola's logistics and supply chain management, highlighting key interfaces, order cycle processes, and inventory management strategies. It discusses the company's franchised distribution system, the role of Coca-Cola Enterprises (CCE), and the implementation of the Genesys program to improve supply chain practices. The report also explores theoretical frameworks such as resource dependence theory and transaction cost theory to analyze Coca-Cola's operations. Furthermore, it examines the company's approach to inventory management, including the use of vending machines and bar code technology. The analysis concludes by emphasizing the importance of streamlining production processes and maintaining association, sustainability, improvement, and efficacy to gain a competitive edge in the market.

Running Head: MANAGEMENT 0
Applied Logistics and Supply Chain Management

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Table of Contents
Overview....................................................................................................................................2
The interfaces.............................................................................................................................2
Order Cycle................................................................................................................................4
Inventory Management..............................................................................................................6
Summary....................................................................................................................................7
References..................................................................................................................................8

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Overview
With increasing competitive business landscape, every organisation is working
towards improving its efficiency, raising productivity, reducing costs and gain advantage
through exploiting the resources in the best way (Leonidou et al, 2013). One of the key
business processes that contribute to the achievement of these objectives is supply chain
management. This study outlines the logistics system of Coca-Cola while relating it to
various theories and frameworks to as to best identify the issues and accordingly provide
recommendations. My role in this report is to be a supply chain manager of Coca-Cola who is
required to discover significant problems in logistics of company and give necessary
provisions to make them right.
Coca-Cola is a leading global beverage corporation founded in 1886 and currently
having its presence in more than 200 countries. The company vision is to craft the brands and
choice of drinks that people appreciate, to refresh them in spirit & body. In 2018, the Coca-
Cola net operating revenues world-wide were nearly 31.86 billion U.S. dollars (statista.com,
2019). Since the year 1989, the company carries out franchised distribution system serving
1.7 billion customers every day (Bhasin, 2011). Coca-Cola trails a typical supply chain
management where it only manufactures syrup concentrates and sells it to bottlers all over the
globe. Coca Cola Enterprise is also responsible for manufacturing and distributing a wide
range of soft drinks under its umbrella from Coke itself to juices, Fanta, water, energy and
sports drinks. To reduce economic costs and gain more market share in the industry, the
company is practicing new innovations and technology like 3D printing and Bluetooth
beacon technology (White, 2015).
The interfaces
Logistics is known to be process of planning, executing and controlling procedures
for the effective and efficient transportation and storage of goods together with services and
associated information (Shih et al, 2012). In most of the part of the world, Coca Cola has
developed its presence with having nearly 300 bottling partners and they together create the
Coca-Cola system delivering value to both customers and consumers (coca-colahellenic.com,
2019).

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Although, the management of the company knows how burdensome it would be to
manage all the procedures in the supply chain and for that cause, a subsidiary was also
founded well-known as Coca Cola Enterprises (CCE), that practices logistics related
activities and undertakings. Considering production, Coca-Cola prepares and vends syrups,
beverages bases and focuses to the bottling partners (Gutman, 2013). The company also start
BIG (Bottling Investment Group) as the bottling franchises seems to require some specialised
help (coca-colacompany.com, 2019). In this situation, company has managed to put bottling
tasks under their ownership and it helps BIG to present appropriate capitalisation and
proficiency to improve eternal success. At the time, bottler is stable besides thriving, BIG
will then regress possession and manufacturing procedure to the bottling corporation.
In relation to logistics functional area, marketing is another area that interrelates it and
Coca-Cola also undertake routine surveys so as to bring innovation in the products targeting
at diverse segment of customers (Gutman, 2013). In relation to logistics, there is not any such
theory directly to it, though, it uses a set from other areas and domains such as economic and
social science (Batalden et al, 2016). Coca-Cola can have practiced resource dependence
theory considering the social science domain as it has dispersed its activities to various
bottling corporations and the association amid two units is symbolic and therefore, the
resources that are external exercise high influence to the whole company logistics for the
cause BIG were developed to assess these resources in a well manner (Drees & Heugens,
2013). In addition, from economic perspective, Coca Cola can also embrace over transaction
cost theory in integration with their logistics where they have totally reduce their cost of
operation by confirming native production in most marketplaces and therefore, decreasing the
space amid consumer and the production (Yang & Zhao, 2016). Ultimately, this will lead the
production process to be cheaper and the organisation can also fulfil rise in demand instantly.
In relation to business core processes, most of the business found to operate logistics
operations independently however, Coca Cola was stirred by international supremacy for that
cause it drives through significant tactical ideas like establishing association amid business
processes and logistics. This is also the reason that helps company to drive its commercial
procedures unified as they are sum up in logistics handling. When the supply chain is
modernized and updated, the revenue edge will be improved and similarly in customer-
business bond from decrease of cost and product obtainability.

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Order Cycle
For an organisation operating in a beverage industry where the competition is at peak,
it is important for business to ensure positive satisfaction to its customers or it can create any
sort of threat in the near future. Being an international company also, Coca Cola required to
ensure that increasing demand and numbers of customers both catered well so that to gain all
round success to the business (Szyszka, 2017). This is also one of the reasons that Genesys
program was passed in the company in 2010 so that to help will improved supply chain
management practices. Through this program, it was plan to make easy for Coca Cola to
integrate new regions once attained as earlier they were practicing on SAP and ERP to take
on their operations such as process of ordering, HR, procurement, manufacturing together
with accounting and finances (genesys.com, 2019).
Hence, once the management identified their gap in strategies then they bring out this
Genesys programme which is also known to be integrated ERP and SAP way out that
revolutionised the procedure of reporting, directive to ach and requisitions to payment. In
relation to carrying out the process, this programme was found to be fruitful in the operations
and also gone a great way to improve transparency and productivity, therefore by lead in
decision making process. CSC also supported technically the Genesys projected and help in
its effective implementation in the company (coca-colacompany.com, 2019). It was high
focused near corporate automation and connecting demand and supply processes on a sole
structure.
.Genesys architecture

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It was identified that Coca Cola did not totally use away SAP solutions however they
improved it with the Genesys development. Here, the customer enable to navigate to the CCE
corporate to book an order and the structure and programme is well assisted and integrated
with many techn from the user edge all the manner to the record care. Using Ajax services
and Web 2.0, an interactive interface is being offered by Microsoft Silverlight UI with
integration to Azure service network (Mohamed & Omwenga, 2015). CISCO WAF is
responsible for handling web service security and once validation is approved, it will be
transported out in master data of SAP.
The current order processing approach is well operational as there are not such
complications to access and also not high burdensome in relation to manual processing of
order. Considering consumer fulfilment, the structure and programme is very operational as
consumer can effectively access previous order to check and manage if necessary (Mohamed
& Omwenga, 2015). In addition, it eases timing uncertainties as the client can easily trail the
order while having access to data on new products and the in succession marketing
campaigns.
The company greatly depends on its bottling enterprises spread out all over the globe
and it is also true that they are independent from it while having one tasked with production
representing core of the enterprise offering prevalent logistical threat (Cheptegei & Yabs,
2016). However, to some extent, it has been controlled by the company using BIG and hence,
through adopting inter-organisational network logistic approach, the company ensure to
undertake wide research of the bottlers where they have greater control and possibly can use
more measures to improve their relations. It can be done effectively by collaborating with
them or take complete acquisition. In addition, the interactions can also be raised with
everybody at each location in the supply chain with using of cooperative game theory. It can
be achieved by improving the CRM System in the Genesys project to fulfil for the customer
requirements and then the whole ERP programme to synchronise the processes of the CCE to
the enterprise vision and objectives.

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Inventory Management
It is very essential to have a system in place for all the business that transact with
distribution and production of their products as it allows them to control availability of
product to their customer so as to ensure they are not understocked (Mangan & Lalwani,
2016). Considering the Genesys approach, they can receive a report of how much definite
population customer and well tailor their process of production. Though, for the ultimate
users, it is their customer like superstores that have must maintain a stock because they have
to confront with the clients directly and recognises how repeated a particular commodity is
purchased. For their association with Coca-Cola, they do order in bulk and this is supposed to
be made prior a definite time to let right processing time.
Although, the corporation also closely deal with customer through their vending
machines known to be fully mechanised system put in a place and sure that it is completely
stocked (Kraus, 2019). Formerly, this procedure was not practised automatically and
therefore, take high time while also being labour-intensive. Although, they collaborate with
Bar Code Application to introduce new technology called as Track It
(barcodesoftwareinc.com, 2018). A distinct asset number is being provided to each vending
machine and it is allotted by consumer and each commodity includes a bar code. With a click
of button, the inbuilt laser scanner helps in giving of latest data and through that information,
necessary actions can be undertaken to improve the availability of product. It has positively
resulted well with reducing physical inventory time and therefore, improving overall
productivity.
Though, the whole process can also be more streamlined with using of resource
dependence logistics theory as there are many considerations nearby operations of Coca Cola
like making of the syrups for their bottlers. In addition, the course of distribution from the
bottlers to consumers like superstores permits keeping stock management. The company
largely launched its drinks for nearly 1.7 billion individuals each day, though, this number is
also theme to alterations in taste, drops in demand and boom of economy (Bhasin, 2011). So,
by undertaking and practising the stated aspects as resources they will assess them as assets.
Hence, Coca Cola must develop from keeping stock on products in selling machines
and change on to their raw resources and anticipated trades (Le et al, 2017). It will certify that
their process of distribution and production will be undertaken further effectively allowing

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customers to put order sooner while giving time for production. Furthermore, it will also offer
them time to bring product innovation while carrying out supplementary marketplace
assessments to confirm they strengthen their marketplace standings. Ultimately, from the
commencement of each bottle’s journey when raw constituents arrive in the plant, to the right
end when it is chilling in the fridge; association, sustainability, improvement and efficacy are
the vital factors that will help Coca-Cola to gain competitive edge in the market (Jones &
Comfort, 2018).
Summary
Coca-Cola is probably the world best known brand with having presence in various
countries and the main reason is their massive footprint in managing its supply chain. For
assessing organisation sustainability over a longer period of time while attaining a greater
market share, streamlining the production process is very important where the product will be
supplied to the end user in most effective way. The whole process comes under supply chain
and logistics management and it was found that Coca Cola has positively administered the
key procedures in this series by franchising manufacture practices. This had presented the
company as an example in substantial management of logistics division while addressing
various setbacks and solidifying its spot as the marketplace leader in the beverage breach.
Logistics part of the supply chain also plays a significant role in the business process
of Coca-Cola and if the product is not supplied to the consumers on time, they will instantly
switch to the other brands and hence, will negatively impact on the company market share.
Hence, effective logistics management is the necessity of Coca-Cola to satisfy varied
stakeholders on the necessities and requirement. It will also benefit the company to be able to
take constant move while ensuring economic benefit and decreasing the cost of
transportation. For instance, it will lead in optimising the routes and capacity.

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References
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Hartung, H. (2016). Coproduction of healthcare service. BMJ Qual Saf, 25(7), 509-
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Bhasin, K. (2011). What is ERP? A guide to enterprise resource planning systems. Retrieved
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Cheptegei, D. K., & Yabs, J. (2016). Foreign market entry strategies used by multinational
corporations in Kenya: A case of Coca Cola Kenya Ltd. European Journal of
Business and Strategic Management, 1(2), 71-85.
Coca-colacompany.com. (2019). THE COCA-COLA SYSTEM. Retrieved from
https://www.coca-colacompany.com/company/coca-cola-system
Coca-colahellenic.com. (2019). Relationship with The Coca-Cola. Retrieved from
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genesys.com. (2019). Quenching their customers thirst for better suport: The Coca-Cola
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Jones, P., & Comfort, D. (2018). The Coca Cola Brand and Sustainability. Indonesian
Journal of Applied Business and Economic Research, 1(1), 34-46.

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Kraus, C. (2019). More than Just a Soft Drink: Coca-Cola and China’s Early Reform and
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