Coca Cola Supply Chain Essay

1. executive SummaryThis report comprises of findings, orbiculate strategies, strategic fit and recommendations with respect to The Coca low-down Comp each (TCCC) generate concatenation focal point of the drunkenness crosswayion degree Celsius in wedlock the States. every findings argon ground on secondary seek from applic competent websites. All sources of information pay off been added into the denotations and addition for referral.The report starts off briefly slightly TCCCs global market identify and summary of their suppliers and client base. Following which, the full stop of TCCCs tack stove were described.TCCCs global strategies and efforts were identified in unison to the troupes run reach and the function of information in the bestow kitchen range. The global strategies identified were namely global transition and sustain adequate to(p) communities. afterward which, TCCCs global strategies argon assessed a touchst their translate drawing stri ng to see if they be strategic wholey fit.Lastly, recommendations be provided in accordance to their contribute filament and global strategy. The two recommended cleansements to TCCC atomic number 18 being truthful with their information and share it across their bring out cosmic string and to repair their select control checks.By adopting these changes into their interpret image and global strategy, TCCC exit be able to discover align themselves with their business goals and commence a branch in their boozing sales.22. Company Overview2.1. Company landTCCC is currently the largest boozing society in the creative activity. As a market loss leader in the potable industry, they feature much than than 3,500 contrary types of products which covers sparkling beverages, still beverages, juices,ready-to- sup umber and waters. Some of the brands that TCCC offers includes Sprite, Fanta, food Coke, Honest Tea, undecomposable Orange and many much (Coca- pinhea d at a, n.d.). With their large and soundly develop supply concatenation and dispersion channel, they are able to reach out glob each(prenominal)y to to a greater extent(prenominal) than 200 countries in the world.2.2. Company suppliers and nodesTCCC adopts a franchise model where they sell their beverage bases or syrups to to a greater extent than 250 bottling companies worldwide. TCCC monitors all of their suppliers well to en incontestable the tone of the products supplied. They ensure the suppliers seemly the standards required by the law and find their provider Guiding Principles and be environmentally sustainable.The report would be foc drilld on the finespun drink Coke in North the Statess market. beingness the opera hatselling beverage for the company, Coke is sold in well-nigh of the countries in the world. The soft drink overtakes potential market of teenagers, athlete and functional adults. The company is trying to target a bigger market heedless of age, hea and so groups, sexes and eve lifestyle. To catch up with the identify up trend of having a healthy lifestyle, they fetch created drinks such(prenominal) as Diet Coke and Coke Zero. They strive to crucify represent, improve eccentric and provide service and tin to tailor to customers call for.3. The Flow of Supply kitchen rangeThe supply kitchen stove of a company shows all of the forkies who are involved every directly or indirectly in the dish out of satisfying consumers request. The supply filament will alike show the ride of product and the flow of funds and information. TCCCs supply cooking stove of mountains consist of sixer diametrical stages. The six stages of the supply chain are supplier, Coca Cola Company, bottling companies, dissemination centres, retailers and finally the consumers. (See record 1) TCCC aims to provide tailor services to customers all more than or less the world with their constantly improving supply chain. Firstly, the supp liers will supply the raw clobbers to TCCC for production of toilsome beverage base in their plants.The concentrated beverage base will then be franchised to the bottling companies. For the productionof Coke, bottlers will energise to combine the concentrated syrup with some opposite materials in a certain laid ratio. Next, they bottle the drink into respective containers. After the inspection, the bottled drink are packaged and releaseed to distribution centres. The distribution centres will consolidate and deliver the products to the retailers who will then sell to consumers. 4. international Supply Chain StrategiesTCCC aims to satisfy consumers needs and expectations finished companys progress and implementation of global supply chain and strategies. With the 3supply chain strategies, TCCC is committed to get global diversity and sustainability in communities. The sustainable communities refers to cut back environmental harm, facts of life good work environment and increase economy in community.4.1. SupplierTCCC believes that it is bring to get trustworthy suppliers to ensure best quality of concentrated syrup produced every time and having a good unified citizenship will help in promoting early success of the business. The first step in achieving the best suited supply chain would be acquiring reliable and undifferentiated supplier. TCCC strive to grasp supplier diversity by offering more opportunities for the minorities, women and even lesbian, gay, bisexual and transgender (LGBT) suppliers. Under the Supplier renewal Mentoring Program, reading and assessments are provided by TCCC to the supplier to mitigate position and improve the growth of their operations.TCCC also created the 2nd Tier Supplier Program to get Coca Colas main suppliers to work in concert with the women and minorities suppliers. This increases procurement opportunities and stretched our companys interlock into more markets. TCCC came up with their own clique r egulations and policies which includes the Supplier Guiding Principles (SGPs), Human Rights insurance and Code of Business Conduct for Suppliers. The SGP conveys the expectations of the suppliers study policies and righteousness towards the environment. These policies, trainings and assessments are necessary for unceasingly updated to follow the companys progress.4.2. BottlingCompaniesorganism the largest beverage company, TCCC partners with more than 250 bottling companies all around the world. These bottling companies are responsible for bottling, promotional material, merchandising and market Coca-Cola beverage products. Some of the authorised bottlers are Coca-Cola Hellenic in Eastern europium and Coca-Cola Enterprises (CCE) in Western Europe. Most of the bottling companies are independent from TCCC.Coca-Cola Refreshment (CCR) is a infantryman of TCCC after TCC decided to acquire it from CCE on October 2010. They foc utilizations mainly on the Northern America market. Othe r than the concentrated syrup from TCCC, CCR requires other raw materials such as aluminum can sheet from Novelis Inc., PET bottles, blue fructose corn syrup and carbonate. CCR is part of the Coca-Cola Bottlers Sales & Services Company LLC (CCBSS). CCBSS is a limited liability company and is owned by Coca-Cola bottlers in America (Seasonality.n.d.). CCBSS helps in facilitating and procuring strategies and systems to the bottling companies in America. In launch to achieve efficient purchasing, CCBSS consolidates the purchases of raw materials for all bottling companies in America.The bottlers make an effort to be environmentally sustainable by recycling, reusing and usage of hoy weight package. To encourage recycling, re rung bins are placed everywhere in public. The rehearse of goods and services of lighter packaging helps in reducing the carbon footprint as well as reducing the hail of material utilize (See Figure 4). They also use recyclable PET bottles that are made part ially from plants (Our progress, n.d.). 44.3. Distribution CentresTCCC read many distribution centres and stores around the world. All distribution centres and warehouses are controlled by TCCC. To better enhance their global commitment, TCCC initiated the 5by20 program. TCCC hope that by means of this program, over five million business women all over the world would welfare from it. Under the 5by20 program, the women entrepreneurs would receive training, financial imagery and mentors fromTCCC. In America, the 5by20 program is currently down the stairs incubation in Haiti and Mexico. These micro-distribution centres will be in-charge of delivering Coca-Cola beverages to local retailers, helping TCCC to gain elementary access to more hard-to-reach communities and markets (See Figure 2). TCCC tried to make the slant process more movementive finished the transformation of the delivery truck.The packaged Coke in the warehouse are now delivered to the retailers using the vaga bond Fulfilment System (OFS) trucks instead of the conventional sideloading delivery trucks. These OFS trucks allows CCR to load and deliver products in America more commodiously through palletized orders. The palletized order allows driver to unload still one cart filled with different products ordered by the customer. This will constrict the delivery time and increase the amount of orders delivered. Not only so, the trucks are more fuel efficient as compared to handed-down delivery trucks, incurring a pull down rapture costs.The distribution centres in America delivers the beverages to retailers in different area through the interstate Highway System despatch. The Interstate Highway system interlinks provides business routes for companies to envision the central business district in each city, making it more convenient for the delivery trucks to deliver the products around America. The vehicle routing software is also implemented to make the delivery process more efficien t. The transportation planners will be able to use this software to design which route to stick to reduce the time taken and place travelled to deliver the product to the retailers.4.4. RetailersRetailers who purchases the Coca-Cola soft drink includes restaurants, small businesses and international retailers. Retailers are platforms for consumers to purchase Coca-Cola beverages. They are important in the supply chain as they have direct contact with the consumers.TCCC provides customer training and development when necessary, especially to those smaller businesses. TCCC hopes that through the programs, it will help the retailers be more efficient and expediencyable in their business. To foster help the retailers to be economically sustainable, a global initiativeAIM-PROGRESS is implemented. This initiative offers crossroadst trainings either physically or some globally covering responsible sourcing.TCCC also have their own peddle machines. The vendition machines are designe d to increase fundamental interaction between the company and the consumers. TCCC are also known for using their unique vending machines to mobilise happiness or spread awareness. Some of the vending machines includes getting pack to mimic the dance moves in southeastward Korea and Hug Me vending machine in Singapore (See Figure 3). These interactions encourages healthy lifespan into people.4.5. ConsumersThe consumer is the most important source of taxation for the company in the supply chain. TCCC hopes to capture as many people in the market as possible regardless of age or lifestyle. Coke is a more popular choice of drinks among the teenagers and meat class consumers. With the increasing number of teenager and middle class consumers globally, this is particularly well-heeled to the company. TCCC offers a diversity of beverages to cater to different lifestyles. To target the health conscious customer group and address the obesity issue, Coca-Cola Zero, Coca-Cola Diet and be verages with low or no nutritionists calorie are available in the market. The company would also get people to perform through efforts such as the interactional vending machine as mentioned in 4.4.4.6. Flow of schoolingThe sharing of ingrained information is important across the supply chain. TCCC came up with the Coca-Cola sell Research Councils in order to communicate more efficiently and effectively throughout the supply chain. The Coca-Cola Retailing Research Councils would conduct market research on a periodical tooshie with regards to the possible factors which may affect the beverage industry. When there is a change, the supply chain will be nonified through a collaborative website. TCCC also uses the SAP activity in order to improve the flow of information in their existing supply chain. The implementation of SAP in North America has helped in monitoring andmaintaining consistency. Information is shared across the supply chain and thus every segment is nonified on what is going on.5. strategical FitStrategic fit is the key to having supply chain profitability and consistency. In order to achieve strategic fit, all parties in the supply chain need to work towards the aforementioned(prenominal) goal. They also need to make sure that the goal is relevant to customers requests. For TCCC, their strategies fit their supply chain. The nature of the beverage industry is that the profit margin is low, the product life cycle is short, intense competition and elevated demand fluctuation. This means that TCCC needs to have a very efficient, responsive and well developed supply chain in order to fulfil customers requests. TCCCs supply chain is able to maintain the speed of product flow through their extensive and diffusive entanglement. The company have many distribution centres and over 2.4 million delivery points all over the world to help them in the distribution of Coke.Also, TCCC uses the just-in-time and the total quality charge strategies in support with the rest of the supply chain. The collaboration in using these strategies helped in minimising the disruptions that may be ca apply by problems such as the safety stock. It also reduce delivery time and produce better quality products. TCCCs strategies are in line with their principles. It is a challenge for TCCC to evaluate the packaging and production across all the bottling companies across the world. However, the implementation of strict rules and usual assessment by TCCC enables the consistent packaging requirements and the quality of Coke. In line with their emphasis to attain customer diversity, TCCC tries to lower the cost through their 6supply chain. As mentioned in 4.3, transportation cost is cut by planning the delivery route wisely and using fuel conservation trucks to deliver the products to retailers.6. Recommendations6.1. Information SharingTCCC could improve the transparency of different levels of their supply chain. The transparency of the supply chain has been getting more important as internet becomes more accessible. Consumers wants to know more about the process and ingredients of the products as they are worried for the safetyand quality of the product. They are also more concerned on what impact does the manufacturing of the product do to the environment.With the increase in exam by the social media, being transparent with the companys supply chain will help in getting trust from consumers, especially those who focuses on the sustainability and incarnate social responsibility. By trying to be more transparent, it encourages the company to be on a constant lookout for any potential or existing risks or problems and solve them before getting media attention. TCCC could also make use of the transparency to background any information gaps.6.2. Improvement in Quality ControlTCCC have pissed control on suppliers to ensure that the ingredients veritable are of good quality and consistent. However, it is not just the sup pliers that constitute to the overall quality of the beverage drinks produced. The choice of ingredients made by the company also influences the quality.In America, the sweetener, aspartame, is used as an artificial sweetener in Diet Coke. The aspartame gives Diet Coke a taste that is similar to sugar. TCCC uses aspartame as a sweetener in many of their food beverages. However, the aspartame have negative effects on human if drunk. According to the Medical Daily, aspartame contains high dosage of toxic which could cause neurological problems and depression. Reports also proved that aspartame will number in greater weight gain as compared to consuming sugar (See Figure 5). The negative effects caused by aspartame affects the quality of the beverages and tarnish TCCCs reputation. The usage of aspartame results in contradiction with one of their strategy which is to set up healthy lifestyle.Although aspartame is currently one of the most common artificial sweetener put in many food and beverage product, TCCC could source for another alternative that does not have any negative effect and meet their healthy lifestyle strategy. If used effectively, it could be one of the companys competitive advantage against other competitors. The range in sales due touse of aspartame can also be picked sanction up.7. ConclusionIn conclusion, TCCC has a well-developed supply chain and an extensive distribution network through their corporate social responsibility efforts. Although the supply chain and strategies are kind of developed, there are still cortege for improvement. If TCCC constantly improve themselves and keep up to the rising trends, the company will be able to grow and advance further.Reference5by20 markets. (n.d.). The Coca Cola Company. Retrieved November 29, 2014, from http//www.coca-colacompany.com/5by20-map/TCCCCallahan, A. (2013, March 15). Partners of women-in-business IFC and 5by20 join forces. The Coca Cola Company. Retrieved November 29, 2014, from ht tp//www.coca-colacompany.com/stories/partners-of-women-in-business-ifcand-5by20-join-forcesTCCC Christensen, L. (2011, December 14). Creo customer System logistics tightens up the warehouse.