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
Supply chain of Coca Cola
University of Moratuwa ,Faculty
Department of Transport &
• 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
To inspire moments of optimism and happiness.
To create value and make a difference.
To refresh the world.
• 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
• 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.
Focus on the Market
• Focus on needs of our consumers, customers and
• 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
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
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
Facility in coca cola
• 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
Importance of Inventory
• For smooth production and selling activities
• To avoids the stock-out problem
• To Expense Control
• For emergency situations
Inventory control by coca cola
• The Economic Order Quantity (EOQ) Model
Importance of Transportation
• with right product
• with right quantity
• to right place
• with right quality
• right price
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
Importance Of Supply Chain
Drivers To Coca-Cola Company
• 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
• 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
• Information is the key to successful supply-chain management
because no product flows until information flows
• Coca-Cola Company manufactures and sells
concentrates, beverage bases and syrups to bottling
operations(outsourced) and also do the marketing
• 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
• 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.
• 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 Cost Responsive
• Thus there is a trade off between price and
• Then Coca-Cola needs to pay more attention
toward this trade off to be in game
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
• SAP enable web base platform
• 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
• Bottling plants have been located near to
railway network (in America)
• Demand forecasting use to make pricing
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)
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
• Develop a robust system for reporting
hierarchies that change when business changes
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-
4) Align supply chain strategies with corporate
5) Analyze information to meet customer