Detailed Analysis of the Coca-Cola Company's Supply Chain Management

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Added on  2021/08/03

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This report provides an in-depth analysis of the Coca-Cola Company's supply chain management. It begins with an introduction to the company and its global presence, highlighting its extensive network and diverse product lines. The report then focuses on the core brand, Coca-Cola, detailing its supply chain operations, which involve syrup concentrate production and distribution to bottlers worldwide. It describes the roles of various bottlers, the operational rules set by Coca-Cola, and the distribution processes from factories to retail points. The report also examines the company's demand estimation methods, including the use of market data and supplier divisions, along with the stocking and consumption phases. It concludes by emphasizing the challenges and areas for improvement within Coca-Cola's supply chain, and the company's efforts to enhance efficiency through collaborations and strategic developments. The report highlights the complexity and global scale of Coca-Cola's supply chain, offering valuable insights into its management and operations.
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Supply Chain of the Coca Cola Company
Supply Chain Management
Introduction
One of the biggest supply chain networks in the global Coca-Cola group.
Coca-Cola Company is a soda manufacturer, developer and
commercializing non-alcoholic product concentrate and syrups. Coca-Cola
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now sells over 500 brands in more than 200 countries or regions, offering
1.6 billion drinks a day. The organization is best known for its iconic drink.
The Coca-Cola Corporation headquarters in Atlanta, Georgia. Along with
Coke, known as the most popular brand in the world, the Firm sells four of
the world's top five non- sparkling brands, including Diet Coke, Fanta and
Sprite, plus a wide variety of other products including diet plus soft drinks,
beers, salads and fruit drinks, teas, coffees, caffeine and sports drinks.
Across most countries, Coca-Cola is the bestselling soft drink.
Coca Cola Company Supply Chain
Because of the large size of the company's activities and its various
product lines worldwide, we must limit the focus of the project to the
company's most relevant brand, Coca-Cola. Each segment offers a brief
description of the supply chain of the business.
Coca-Cola Corporation operates a complex supply chain management
program, which manufactures syrup concentrates and sells directly to
various bottlers around the world. Under the brand Coca-Cola
Refreshments, the Coca-Cola Company has the main bottler in North
América. The finished product, along with purified water and sweeteners,
is manufactured by other Coca-Cola bottlers who have exclusive
terrestrial contracts with the firm, in containers and concentrates bottles.
The bootstrappers then market, supply and export the resulting Coca-Cola
beverage to manufacturers, stores, dealers, and restaurants.
The Coca-Cola Company's downstream operations rely on the franchised
distribution network, where the Coca-Cola Company produces just distilled
syrup and then is distributed to various bottlers across the world who own
proprietary property. While it has a controlling stake in several of the
biggest franchises, such as Coca-Cola Industries, Coca-Cola Amatil, Coca-
Cola Hellenic Bottle Company and Coca-Cola FEMSA, it manufactures
about half the amount distributed worldwide. The drink can be sweetened
according to the local preferences of the individual.
Operations
In this segment, we will identify the bottling processes used in production
by various bottlers, and then sell the Coca-Cola brand in their respective
markets. The Coca-Cola Company provides the basic operational rules for
all its bottling companies and vendors, meaning that most of the
processes are organized and most of their business decisions are
consolidated to some degree.
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Atlanta- Coca- Company produces the drink and markets it to one of its
bottling companies, such as Coca- Enterprises (CCE), which is responsible
for the marketing of the beverage in North America and Canada. Coca-
Cola Corporation mixes the drug concentrate with other ingredients to
manufacture and label the soda, and only markets the products to retail
consumers and customers. In this section, we will identify the bottling
operations used in manufacturing by various bottlers, and then distribute
the Coca-Cola brand in their respective markets. Each bottling partner
serves the assigned geographical area through a headquarters that
manages most of the operations and acts as the center for various supply
chain entities. The head office of the bottler operates closely with a
regional office which is under the direct supervision of The Coca-Cola
Export Company. The Head office of the bottler ties the production plant
together with different distribution and sales centers and several trade
zones to create a full supply chain.
The container must carry it to one of the processing facilities upon
purchasing of the concentrate from The Coca-Cola Company. The plant
creates the final product by combining the substance with purified water
and sweeteners and then carbonizing it into bottles and bins. The bottling
plant has its own supply chain, primarily containing two kinds of goods.
Distribution
From the factory to the manufacturing and service centers with their own
fleet of qualified vehicles are shipped the beverage goods (in bottles or
cans).
The retailers are liable for the handling and management of the inventory
of many SKUs and their distribution to various vendors in the sector. There
are many predefined areas and sub-divisions of dealer and company
distribution centers for gathering both distributors and contact details on
the sector.
Each delivery center is responsible for the supply chain for the execution
of the "jump strategy." -- zone in the channel of distribution has a zone
head responsible for the output of its zone and to increase the per capita
consumption of its region. The region is further split into separate routes
and each route is allocated with specific territories for each car. In
addition to the Coca-Cola soda, the bottlers also have extra supplemental
products as a reward for main accounts such as complimentary chillers
and beer coolers, candy supplies and flexible credit lines.
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The bottlers conduct many strategic tactics to boost profits such as inter-
zone promotions and give the best performers lucrative rewards. The
sales data from each zone is measured on a regular basis and helps to
shape sales reports which in turn helps the regional office create short-
term quarterly selling plans and projections as well as helps The Coca-
Cola Export Company recognize demand opportunities for new product
production and other business growth plans.
Coca-Cola must estimate demands. The organization also uses quarterly
market data to predict potential demand volatility and to detect possible
variations. Since the Coca-Cola brand is a heavily commoditized drug,
there are no such categories of end customers. However, within the
supply chain, there are various supplier divisions depending on their level
of activities and demand statistics. Various product strategy experts or
ASMs have been delegated to the stores (such as Walmart, Kroger and
other supermarket chains) to prevent potential inconvenience and reduce
lead times.
Stocking and Consumption
The manufacturer and distributor are linked to this point in the supply
chain. The key reason for cooling is so that the beverage can have a
cooling effect which helps Coca-Cola consumers soothe their thirst. The
cooling effect also allows the user to reduce heat. The refrigerator is the
equipment associated with this stage and salesmen work in department
stores and shops that are the kind of employee predicted.
The organization still has a position to play to ensure that the goods travel
all the way to the refrigerators as goods are shipped to stores. The
commercial departments of the organization have excellent relations with
distributors, ensuring that Coca-Cola goods are quickly identified in the
shop.
Conclusion
In conclusion, the Coca-Cola company is one of the world's leading supply
chain management programs and because of its scale, there are unique
challenges and areas for change that need to be rectified. Via
collaborations with numerous manufacturers, TCCC is acting to constantly
develop its ever-group supply chain. Various development attempts are
being made to increase the efficiency of the TCCC supply chain. In 2004,
TCCC made significant improvements to its supply chain by combining its
three parts into one more tightly organized commodity in North America.
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