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Supply chain of Coca Cola
company
University of Moratuwa ,Faculty
of Engineering
Department of Transport &
Logistics Manag...
Origin
• The first Coca-Cola recipe was invented in
Covington, Georgia, by John Stith Pemberton,
originally as a coca wine...
To inspire moments of optimism and happiness.
To create value and make a difference.
To refresh the world.
Mission
Vision
• People: Be a great place to work where people are inspired to be
the best they can be.
• Portfolio: Bring to the ...
Values
• Coca-Cola values serve as a compass for our actions and describe
how we behave in the world.
• Leadership: The co...
Coca Cola Family
Focus on the Market
• Focus on needs of our consumers, customers and
franchise partners
• Get out into the market and list...
Supply chain of Coca cola
• Coca cola supply chain divided as parts for good supply chain
;all parts want to be good
• Coc...
Importance of facility
• To void the unnecessary wastage
• To make resources work together
• To maximize value and minimiz...
Facility in coca cola
• Locations
• Bottling plants are spread world wild
• Warehouses are located in every countries
• Mo...
Importance of Inventory
• For smooth production and selling activities
• To avoids the stock-out problem
• To Expense Cont...
Inventory control by coca cola
• The Economic Order Quantity (EOQ) Model
• FIFO
Importance of Transportation
Distribute products
• with right product
• with right quantity
• to right place
• with right ...
Transport in coca cola
• Use highways to transport product
across the land
• Use international airports to
transport goods...
Importance Of Supply Chain
Drivers To Coca-Cola Company
Information
• Information is nothing but the customer needs and wants.
• Coca-Cola need fast and accurate flow of informat...
Sourcing
• Coca-Cola Company manufactures and sells
concentrates, beverage bases and syrups to bottling
operations(outsour...
Pricing
• Soft drink industries become more and more
competitive since new productions come out from
world leading compani...
• Thus there is a trade off between price and
responsiveness.
• Then Coca-Cola needs to pay more attention
toward this tra...
Strategies Coca-Cola used to
manage its supply chain drivers
• Focus on aggressive marketing
• Operating through push stra...
• Using material and inventory control systems
• cooperative supplier-buyer customer relations
through the use of JIT and ...
Issues in Coke supply chain
• Trucks assigned to fixed geographic routes
• Their supply chain was also old and slightly
ou...
How to improve supply chain drivers
1) Establishing supply chain guiding principles
• Focus on metrics needing no manual i...
2) Installing a three-phase approach
I. Proof of concept-Primarily to validate
functionality, scalability and flexibility
...
4) Align supply chain strategies with corporate
objectives
5) Analyze information to meet customer
needs
Group members
• 121496B
• 121437X
• 121487A
• 121415E
• 121474G
• 121404U
• 121449K
Supply chain of coca cola company
Supply chain of coca cola company
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Supply chain of coca cola company

Coca cola supply chain divided as parts for good supply chain ;all parts want to be good
Coca cola company gets in formations from this information they will decide the manufacturing quantity
For a better supply chain information follow and material follow want to be very efficient and affective
According to the information follow and orders they make plans about manufacturing .
They keep stock in warehouses for the demand and orders then company will distribute the stock for customers

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Supply chain of coca cola company

  1. 1. Supply chain of Coca Cola company University of Moratuwa ,Faculty of Engineering Department of Transport & Logistics Management 2012 Batch
  2. 2. Origin • The first Coca-Cola recipe was invented in Covington, Georgia, by John Stith Pemberton, originally as a coca wine called “Pemberton’s French Wine Coca” in 1885. • The first sale were made at Jacob’s pharmacy in Atlanta, Georgia,on may 8th, 1886, and for first eight month only nine drink were sold each day. • In incorporated in 1892 as Coca-Cola Company (the current corporation)
  3. 3. To inspire moments of optimism and happiness. To create value and make a difference. To refresh the world. Mission
  4. 4. Vision • People: Be a great place to work where people are inspired to be the best they can be. • Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. • Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. • Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. • Productivity: Be a highly effective, lean and fast-moving organization.
  5. 5. Values • Coca-Cola values serve as a compass for our actions and describe how we behave in the world. • Leadership: The courage to shape a better future • Collaboration: Leverage collective genius • Integrity: Be real • Accountability: If it is to be, it's up to me • Passion: Committed in heart and mind • Diversity: As inclusive as our brands • Quality: What we do, we do well.
  6. 6. Coca Cola Family
  7. 7. Focus on the Market • Focus on needs of our consumers, customers and franchise partners • Get out into the market and listen, observe and learn • Process a world view • Focus on execution in the marketplace every day • Be insatiably curious
  8. 8. Supply chain of Coca cola • Coca cola supply chain divided as parts for good supply chain ;all parts want to be good • Coca cola company gets in formations from this information they will decide the manufacturing quantity • For a better supply chain information follow and material follow want to be very efficient and affective • According to the information follow and orders they make plans about manufacturing . • They keep stock in warehouses for the demand and orders then company will distribute the stock for customers
  9. 9. Importance of facility • To void the unnecessary wastage • To make resources work together • To maximize value and minimize costs • To maximize productivity • To navigates the requirements and mitigates the risk.
  10. 10. Facility in coca cola • Locations • Bottling plants are spread world wild • Warehouses are located in every countries • Modern technology • High-tech machinery • greener bottles (2009) • Social Networking( facebook , twitter) • Freestyle Dispensers (allows you to create your own beverage by choosing from over 100 drinks ) • Online Advertising • Recycling( bottles ) • is made from responsibly-sourced materials • is designed to be effective and safe throughout its life cycle • meets market criteria for performance and cost • meets consumer choice and expectations • is recovered efficiently after use wherever possible
  11. 11. Importance of Inventory • For smooth production and selling activities • To avoids the stock-out problem • To Expense Control • For emergency situations
  12. 12. Inventory control by coca cola • The Economic Order Quantity (EOQ) Model • FIFO
  13. 13. Importance of Transportation Distribute products • with right product • with right quantity • to right place • with right quality • right price
  14. 14. Transport in coca cola • Use highways to transport product across the land • Use international airports to transport goods to other countries in the world • Use deep water ports to ship cargo to other countries in the world
  15. 15. Importance Of Supply Chain Drivers To Coca-Cola Company
  16. 16. Information • Information is nothing but the customer needs and wants. • Coca-Cola need fast and accurate flow of information through their supply chain to be competitive in the beverage industry. • In the Coca-Cola Company, information builds the connection between various stages in SC and allows coordination between stages • The company use SAP ERP web base software to get real time information from the field. • They requires information to plan their production, marketing campaign, demand forecasting ,inventory level and optimizing transportation etc. • Information is the key to successful supply-chain management because no product flows until information flows
  17. 17. Sourcing • Coca-Cola Company manufactures and sells concentrates, beverage bases and syrups to bottling operations(outsourced) and also do the marketing initiatives. • Their bottling partners manufacture, package, merchandise and distribute the final branded beverages to their customers and vending partners, who then sell their products to consumers. • Coca-Cola company have more than 250 bottling partners worldwide. • Considerable amount of Coca-Cola’s supply chain is handled by the out sourced parties. • Therefore sourcing is very important driver of Coca- Cola’s supply chain.
  18. 18. Pricing • Soft drink industries become more and more competitive since new productions come out from world leading companies such as Coca-Cola, PepsiCo, Dr Pepper Snapple, Nestle, Suntory…….. • Price is a key factor that determines market share of Coca-Cola in the industry Inventory CostResponsive ness Inventory Cost Responsive ness
  19. 19. • Thus there is a trade off between price and responsiveness. • Then Coca-Cola needs to pay more attention toward this trade off to be in game
  20. 20. Strategies Coca-Cola used to manage its supply chain drivers • Focus on aggressive marketing • Operating through push strategy- customer order anticipation • Use A-B-C classification for inventory handling • SAP enable web base platform
  21. 21. • Using material and inventory control systems • cooperative supplier-buyer customer relations through the use of JIT and TQM. • Warehouse layout and designs to increase the efficiency of operations for incoming materials • Provides on-site storage to eliminate off site to warehouse cost • Bottling plants have been located near to railway network (in America) • Demand forecasting use to make pricing decisions
  22. 22. Issues in Coke supply chain • Trucks assigned to fixed geographic routes • Their supply chain was also old and slightly outdated compared to modern companies • Depending on bottling partners • Negative impacts on products(health issues)
  23. 23. How to improve supply chain drivers 1) Establishing supply chain guiding principles • Focus on metrics needing no manual intervention • Focus on metrics to drive profit consistency and metric consistency across the supply chain • Focus on industry standards that are not Coke specific • Develop a robust system for reporting hierarchies that change when business changes
  24. 24. 2) Installing a three-phase approach I. Proof of concept-Primarily to validate functionality, scalability and flexibility II. Foundation phase-Create a robust foundation for metrics and reporting, a measurement that’s easy to implement out of the box. III. Exploitation phase-Identify long-term metrics and improve them on an ongoing basis 3) Support continuous improvement with an end-to-end view of performance and root- cause analysis
  25. 25. 4) Align supply chain strategies with corporate objectives 5) Analyze information to meet customer needs
  26. 26. Group members • 121496B • 121437X • 121487A • 121415E • 121474G • 121404U • 121449K

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