Coca-Cola is the world’s leading soft drink company with a market share of 48%; it falls under the category of the world’s top 3 beverages and drinks. Well-developed supply chain network of Coca-Cola plays a key role in the worldwide reach and success of the soft drink brand. Today, we’ll discuss Coca-Cola supply chain management; its key elements, players involved in the SCM process, and benefits.
- Coca-Cola is operating its business in more than 200 countries globally
- Serving 1.9 billion customers daily
- Offers products from more than 500 brands
- Collaborating with 225 bottling partners
- Network of more than 900 bottling plants
Elements of Coca-Cola Supply Chain Management
Some of the main elements and components of Coca-Cola’s supply chain management are as follows;
Implementing Technology
The bottling partners and Coca-Cola invest a significant amount of resources in technological development, implementing the latest technology, and digitalizing supply chain processes. It comprises employing the following technology;
- Innovative software
- 3D Printing
- Warehouse Technologies
Logistical Team
The focus of the logistical team of the soft drink brand is to increase transparency and visibility and transparency in the distribution process. It ranges from the warehouse to the shelves of the stores.
Partnerships
When it comes to establishing partnerships with retailers, Coca-Cola has high standards that value longevity. For instance, Coca-Cola has been a partner with McDonald’s since 1955.
Suppliers & Vendors
The suppliers of Coca-Cola play a key role in the sustainability and success of Coca-Cola. They engage in the events and functions of supplier innovation days and supplier relationship management programs.
Quality Control
The quality control standards and regulations of Coca-Cola and its other relevant products are very strict. In order to work with the brand, the suppliers should comply with health, safety, and environmental regulations; and quality certifications.
Global SC Council
Coca-Cola has developed the Global SC Council with its bottling partners. However, they establish a sub-committee around the company’s overall strategy; and share the company’s best practices and strategies with the bottler.
Players in Coca-Cola SCM Process
Some of the main top players involved in Coca Cola supply chain management process are as follows;
Producer & Manufacturer
Coca-Cola is the sole manufacturer and producer of the brand. The company started its business as a concentrated syrup for stomach and then it became a beverage brand. The soft drink brand sells syrups, beverage bases, and concentrates to the bottling partners.
Distributor
After selling concentrate to the bottling partners in various production and manufacturing facilities; they blend concentrate with sugar, carbon dioxide, and water. The distribution channel strategy of Coca-Cola develops relationships with local suppliers and sources. However, it is significant to establish manufacturing plants near the sugar factories; it would reduce the sugar delivery time from the plant to the production unit. The bottling partners prepare the soft drink, package the drinks, and distribute and sell it to the retailers.
Retailer
The finished goods operations of Coca-Cola comprise of sale and distribution of company-owned and company-controlled bottling. The local bottler delivers Coca-Cola’s soft drinks around the world while collaborating with Coca-Cola Export Corporation. However, the retailers comprise of following;
- Amusement parks
- Movie theatre
- Convenience store
- Street vendors
- Restaurants
- Grocery stores
Consumer
Coca-Cola is the most popular soft drink beverage in the world. Retailers distribute Coca-Cola and other soft drink beverages to the end consumers across the globe.
Benefits of Coca-Cola SCM
Some of the main benefits of Coca-Cola supply chain management through automation technology are as follows;
Low Cost
The automated SC processes help the soft drink brand Coca-Cola to decrease the manual labor cost. It allows you to decrease the total number of employees involved in the SC process and network and perform the same operations at a low cost. It results in the form of decreased labor costs. However, SC automation helps you to decrease the required time and resources
Better Customer Service
Automated SC processes help you to offer better and improved customer service. However, it helps you to accurately and rightly track orders and makes sure to deliver orders timely. It allows you to address the issues whenever they come up by making sure that the customers would receive the optimum service.
Streamlined Operations
Automation technology allows you to streamline all of your SC processes and operations. It allows you to speedily track orders and make sure timely delivery of orders. The right order fulfillment would ensure the streamlining of the company’s operations and functions.
Conclusion: Coca-Cola Supply Chain Management
After an in-depth study of Coca-Cola supply chain management; we have realized that Coca-Cola is the world’s top soft drink with an efficient SC network. If you are learning about the SCM processes of Coca-Cola, then you should keep in mind the abovementiond elements, players, and benefits.
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