1. Coca-Cola sells 1.8 billion servings per day worldwide and prioritizes ensuring customers get the right products at the right time and price. 2. The company automated its indirect procurement process using a SAP-enabled web platform to standardize and improve the efficiency of purchasing raw materials and managing suppliers. 3. Coca-Cola establishes bottling plants near major transport hubs in North America and uses demand forecasting and market data to inform pricing, capacity, and expansion decisions.

1. Group Members:
o Fazel Haq
o Sayed Hasibullah
o Mumtaz
o Behroz Shah
o Nisar Ahmad

2. • An amazing 1.8 billion servings
of Coca-Cola products are sold
around the world every day,
according to Steve Buffington,
vice president of supply chain
development and director of
supply chain, Bottling
Investments Group for The
Coca-Cola Company. Making
sure that every one of its thirsty
clients gets the right product, at
the right time and in the right
price range is Coca-Cola’s
supply chain priority.

4. • Procurement involves buying Raw Materials, Inputs dealing
with suppliers, vendors, billing system
• SAP enabled web based platform:
• Automated the indirect procurement process.
• Transformed the earlier paper based procurement process
online.
• First - the procurement data is captured in a centralized
repository that serves as a reporting source for identifying
opportunities and managing risk.
• Secondly - key business processes are implemented,
automated and standardized to save time and improve
accuracy.
• Finally the supplier base are rationalized and simplified to
ensure consistent and competitive pricing is obtained.

5. • The initiative
implemented are
optimized such as
the location of
distribution of
facilities to minimize
shipping times.
• Material and
inventory control
system.

6. • Reduce time to send “returns” to suppliers.
• Warehouse layout and design to increase
efficiency of operations for incoming materials.
These initiatives have dramatically improved
Coca Cola’s over all supply chain.
• Packaging:
• Packaging in bottles and cans.
• Introduction of new machinery.
• Investment in real time microbiology analyzer.

8. • Provides on-site storage eliminating off site
to warehouse cost
• Designed to operate future expansion of the
sales on the company.
• Linked to 5 bottling plants can receive 200
pallets and dispatch 350 days inventory on
hand and has 5.7927 inventory turns.
• Planning supply is driven by forecasted
customer demand input, seasonality and also
by promotions or changes in merchandising
in the store.

9. • Integrating a full database
system for sales channel,
distributer
• Utilizing a sales driven-
forecast----incorporate
with marketing research
and business analysis
• Inventory turnover
formula----balancing the
inventory level
• Inventory Turnover = Cost
of Goods sold/Average
inventory

10. 1. establishing bottling plants close to the North America’s major
railway transport gateways.
• Setting up trucking terminals for providing door to door service.
• Adopting co transport system
2.
• Demand forecasting maybe used in making pricing decision, in
assessing future capacity requirements, or in making decisions on
whether to enter a new market or expand the product market.
• Analyzing the total market demand, which capture the total volume
that would be bought by a defined consumer group in a defined
geographical area, requires real statistical evidence.
• Statistics Canada is an accurate source of researched data focusing
on using geographical areas as well as income and average
household consumption of goods and services.

11. 3. In North American where it faces a mature and largely non-
expandable total soft drink market, Coca Cola directs most of its
marketing energies towards building consumer performance for
Coke, Diet Coke, Sprite, and its other products.
• 4-
• Coca Cola’s Mission is to be the best beverage sales and
customer Service Company worldwide.
• One of the strategic priorities of the company is to grow value
of existing brands and expand the products portfolio.
• Coca Cola’s Vision also includes being their customer’ most
valued supplier, as the strategy priority behind this statement
refers to transforming the company’s go to market model to
improve efficiency and effectiveness.

13. • Coca Cola believes in delivering executional excellence every day.
Both internally and externally values that Coca Cola also share as a
global operating customer service system surround accomotability,
customer-focused criteria and a team driven experience which is
vital when recruiting top level employees.
• 5-
• Advance the existing the SAP- web based software – EBP, by having
inhouse R & D team.
• More functionalities to be added with proper feedback from
supplier, vendor etc…
• Investment on training to be given to suppliers on operating of the
software.
• Exploring more business tools to shorten the purchasing process.
• Functional within the ERP system to rank suppliers and measure
there performance.

14. • CAPABILITY EXCELLENCE
• One of the main goals of the supply chain arm of Coca-
Cola is to have every customer receive tailored services
from the system, whether that customer is in New York
City, Tokyo or a rural area in an isolated part of the
world.
• “We have 16 million retail outlets around the world
that sell Coca-Cola [products], and we have to have
common practices, processes and capabilities no
matter where we operate in the world,” Buffington
explains. “We do direct store delivery to more than 10
million of those [retail outlets]. We make sure we get
the product on the shelves in a consistent way from a
quality and collaborative standpoint, doing it very
efficiently by leveraging our global best practices and
building capabilities at the local level.”

15. • Coca-Cola’s diverse portfolio and package mix is
geared to meet its diverse consumers’ and
customers’ preferences. “Some customers are
primarily take-home for future consumption and
some are very immediate consumption, on
premise,” Buffington says. “Many customers offer
a large range of products, so you need packaging
at different price points and multi-packs; the
portfolio needs to be wide enough to serve all the
beverage needs.”

16. • The level of customer care Coca-Cola offers requires a specific
model of supply chain structure, what Buffington calls
“segmentation.” “Segmentation is the type of supply chain
that you have based on your customers’ needs or your
product attributes,” he explains. “More and more, we are
understanding that we have to have different types of supply
chains within our local operations.
• “If we are in an area that requires refrigerated distribution,
that is a very different supply chain than if it’s an ambient type
of product. Some products require aseptic filling and
packaging, which is very specialized and requires different
platforms. Then, some products have high volatility and are
hard to forecast, which requires a different supply chain.”

17. • These variable conditions mean that the supply chain has to
be modified depending on the particular attributes of both
product and client. “For some products, the most efficient way
to the market is for us to deliver to the store, yet for others,
the most efficient way to go to market is through the
customer’s distribution channel or through third-party
distribution partners,” Buffington explains.
• Segmentation allows Coca-Cola to understand and implement
best practices and meet its customers’ requirements in
relation to their individual portfolios. “There is efficient supply
chain, there is responsive supply chain and there is agile
supply chain,” Buffington says. “Depending on the customers’
needs and their portfolio, the supply chain can be efficient-
dominant, agile or responsive-dominant. It depends on the
attributes of the portfolio and the requirements of the client.”

18. • As Coca Cola expanded nationally and internationally by
adding licensed bottlers and distributors, the company
recognized the need to control inventory and its related cost
to the company. The advent of material requirements
planning (MRP) systems and manufacturing resource planning
(MRPII) systems along with improved computer capabilities
provided organizations like Coca Cola the ability to track
inventory accurately. As a result, reduction of inventories such
as new and used bottles, sugar, syrup, and other ingredients
occurs along with improvements in communication indicating
when further acquisitions are necessary. While not
implemented, Coca Cola realizes the importance of radio
frequency identification as a benefit for the future.