Analysis of Global Supply Chain Management for Coca-Cola Company

This report provides a comprehensive analysis of Coca-Cola's global supply chain management. It begins with an introduction to global procurement and discusses the challenges faced by the company, including sustainability, risk, and especially transportation costs. The report justifies the need for changes, examining storage, inventory, and facility management. It then explores the implementation of knowledge within the company, highlighting strategic fit and IT strategies. Global network management is discussed, emphasizing the impact of transportation costs. The report justifies the use of the linear programming scientific model to minimize transportation issues and costs, and it presents the application of this model in setting up new facilities. Recommendations include managing international suppliers and developing healthy relationships. The conclusion summarizes the benefits of implementing the linear programming model to optimize costs and improve the overall supply chain efficiency of Coca-Cola.

Global Supply Chain Management

Introduction
In this present paper, we will discuss the global procurement change in which changes are
justified, and knowledge is implemented within the organization. The paper also describes the
global network management implementation of linear programming scientific model in order to
minimize the transportation issue in the Coca-Cola Company, and it is settled by the
administration researcher programming in order to produce an ideal arrangement. The global
supply chain management analysis of Coca-Cola Company shows that there are transportation
issues which act as a barrier to achieving the goals and objectives of the company.
Global procurement change
The global procurement is defined as the way which is used by the company in order compete
the competitors globally. There are various challenges which are faced by the company, namely,
sustainability, risk, innovation, transportation, collaboration, and transparency.
Justifying the changes
Supply chain strategy analysis
1. Storage
The company currently operates in more than two hundred nations across wide over six
working locations. The company is managing its storage through system management
strategy in order to provide the products and services on time.
2. Inventory

The company has large inventory store, and there are two types of inventory, namely,
cycle inventory and safety inventory. (Jervis et al., 2015) The company faces various
challenges in managing the safety inventory due to uncertain demand which leads to
exceeding the inventory.
3. Transportation cost
The Coca-Cola Company is a world's largest company, but the company faces various
challenges due to lack of standard procedure for overseeing the transportation of The
Company.
4. Facilities
The company has currently 92,400 employees around the world, and it has more than
nine hundred plants due to which the company has centralized it's headquartered in order
to manage its all process in a most efficient and effective manner.
It shows that the company is facing a problem of high transportation costs which impacts on the
profit margin of the company and it shows that the global procurement needs to be changed. The
supply chain analysis shows that there is an absence of a standard procedure for over viewing the
transportation model of the company due to which the company bears a huge amount of
transportation costs, and it reduces the sales volume of the company.
Implementing the knowledge within the week to the company
The strategic fit map shows that the business strategy of the company includes mission, vision,
goals and competitive advantage in order to stand out among the competitors within the same
industry. The IT strategy of the company includes digital marketing, system management, and
distribution system. The organizational structure of the company includes employees, suppliers,
NGOs, communities, government, customers and others (Mena et al., 2014). The strategic

analysis shows that the company must adopt the standard procedure in order to minimize the
transportation costs which enable to maximize the profitability of the company within the
particular period of time.
Global network management
It is defined as the standards which are used by the company in order to monitor and control the
system in order to integrate the diverse elements and functionality. The company is managing its
network globally through implementing the effective supply chain strategy in order to work in a
most efficient and effective manner (Mangan et al., 2016). The company is using advanced
technology, high knowledge, and partnership in order to provide a competitive advantage to the
company. The global network management of the company is facing a transportation high-cost
problem due to the absence of standard criteria to overview the transportation model of the
company. It helps to increase the competitive advantage to the company in order to stand out
among the competitors within the same industry. The innovative business model of Coca-Cola
Company helps to promote the products and services among the competitors globally. The
distribution channel of the company is wide and effective which helps to provide the high quality
of products and services to the end users on time.
Justification of theory
Global procurement
The global procurement theory determines the way which enables the company to achieve the
goals and objectives of the company through gaining the competitive advantage within the

specific time framework. The linear programming scientific model is used by the company in
order to solve the transportation issue.
The linear programming scientific model helps to minimize the transportation issue and costs by
considering the two variables namely, time and costs in order to determine the best alternative
method among the set of options (Vanderbei et al., 2015). In the global procurement strategy, the
linear programming scientific model can be used to select the procurement market in order to
determine the cost benefit to the company. For example, there are three markets from which the
company procures goods and services so by implementing the linear programming procurement
model; the best option is selected by the company by considering the time and costs of
procuring the good and services from the suppliers. The company is currently facing various
challenges in the transportation due to the absence of standard procurement procedure. So the
implementation of linear programming model helps to resolve the problem of transportation
issues which enables to improve the global procurement strategy in the efficient and effective
manner (Mangan et al., 2016). The global supply chain of the company is facing the
transportation issue which impacts on the overall profit margin of the company because of
excessive cost (Monczka et al., 2015). The linear programming model helps to resolve the
transportation issues by providing the standard procedure for resolving the transportation issue. It
is further settled by the administrative research programming in order to produce an ideal
arrangement. Further research programming helps the company to determine the new and skills
in order to develop innovative global supply chain strategy of the company. The transportation
model can be implemented by the company in order to maximize the sales volume of the
company and minimize the cost of the global procurement by determining the minimum
transport costs from the particular supplier.

Implementation of theory to the company
Setting up & running new facilities
The setting of new facilities considered various factors such as distance from the market,
availability of raw material and others. The implementation of linear programming procurement
model helps the company to select the best place for setting up new facilities. The linear
programming helps to determine the place which is near to the market in order to minimize the
transportation costs which enables to maximize the profitability of the company within the
particular period of time. The setting of new facilities means expansion of business which aims
to increase the profit margin of the company. The implementation of linear programming
scientific model helps to eliminate the transportation issue which enables to maximize the
profitability of the company, and it directly enables to achieve the goals and objectives of the
company within the particular period of time (Sarkis et al., 2016). The setting up of new facilities
requires research and development in order to determine the viability of the project. The
implementation of linear programming model helps to achieve the best outcome by minimizing
the transportation costs, and it maximizes the sales volume of the company. For example, the
implementation of linear programming helps the company to compare the various locations in
order to determine the competitive advantage which enables to stand out among the competitors
within the same industry. The implementation of the linear programming model is helping to
maximize the sales volume of the company by minimizing the total costs of the company which
is the ultimate aim of the company (Guo et al., 2015).

It is recommended to manage the international suppliers in order to minimize the transportation
costs of the company in a most efficient and effective manner. The company must develop the
healthy relationship with the suppliers of the company in order to minimize the supplier's force
and provide the supply of products and services to the end users on time. The international
suppliers must be selected by analyzing the background information of the company in order to
provide the competitive advantage to the company. It is recommended to starts buying from
global suppliers in order to produce innovative products and services which enable to attracts a
large number of target customers from local as well as international markets.
Conclusion
It can be concluded that the implementation of linear programming scientific model helps to
determine the minimum costs of procuring the material globally which enables to minimize the
costs and maximize the profitability of the company in a systematic manner. The transportation
model can also be implementing in setting up facilities in order to determine the competitive
advantage of selecting the particular place. There are two main factors which are considered at
the time of setting new facilities, namely, the distance of market and availability of raw material.
The transportation model helps to select the place through determining the distance of market
and supply of material from the new set up. The selection of right theory is the bit challenging in
order to minimize the transportation issue which enables to run the supply chain of the company
in a most efficient and effective manner.

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