MKT 421 Beam, Inc
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CHAPTER
Distribution
Customer
Service and
Logistics
If you want a Coca-Cola, there’s usually one close by— no matter where you might be in the world. And that’s no accident. An executive for the best-known brand name in the world stated the objective simply: “Make Coca-Cola available within an arm’s reach of desire.” To achieve that objective, Coke works with many different channels of distribution. But that’s just the start. Think about what it takes for a bottle, can, or cup of Coke to be there whenever you’re
thirsty. In warehouses and distribution centers, on trucks, in gyms and sports arenas, and thousands of other retail outlets, Coke handles, stores, and transports more than 400 billion servings of the soft drink a year. Getting all of that product to consumers could be a logistical nightmare, but Coke does it effectively and at a low cost.
Fast information about what the market needs helps keep Coke’s distribution on target. Coke uses an Internet-based data system that links about one million retailers and other sellers to Coke and its bottlers. The system lets Coke bottlers and retailers exchange orders, invoices, and pricing information online. Orders are processed instantly—so sales to consumers at the end of the channel aren’t lost because of stock-outs. Similarly, computer systems show Coke managers exactly what’s selling in each market; they can even estimate the effects of promotions as they plan inventories and deliveries. And
Coke products move efficiently through the channel.
In Cincinnati, for example, Coke built the beverage industry’s first fully automated distribution center.
And when Coke’s truck drivers get to the retail store, they knowingly stock the shelves with the correct mix of products.
Coke’s strategies in international markets rely on many of the same ideas. But the stage of market development varies in different countries, so Coke’s emphasis varies as well. To increase sales in France,
2
CHAPTER
Distribution
Customer
Service and
Logistics
If you want a Coca-Cola, there’s usually one close by— no matter where you might be in the world. And that’s no accident. An executive for the best-known brand name in the world stated the objective simply: “Make Coca-Cola available within an arm’s reach of desire.” To achieve that objective, Coke works with many different channels of distribution. But that’s just the start. Think about what it takes for a bottle, can, or cup of Coke to be there whenever you’re
thirsty. In warehouses and distribution centers, on trucks, in gyms and sports arenas, and thousands of other retail outlets, Coke handles, stores, and transports more than 400 billion servings of the soft drink a year. Getting all of that product to consumers could be a logistical nightmare, but Coke does it effectively and at a low cost.
Fast information about what the market needs helps keep Coke’s distribution on target. Coke uses an Internet-based data system that links about one million retailers and other sellers to Coke and its bottlers. The system lets Coke bottlers and retailers exchange orders, invoices, and pricing information online. Orders are processed instantly—so sales to consumers at the end of the channel aren’t lost because of stock-outs. Similarly, computer systems show Coke managers exactly what’s selling in each market; they can even estimate the effects of promotions as they plan inventories and deliveries. And
Coke products move efficiently through the channel.
In Cincinnati, for example, Coke built the beverage industry’s first fully automated distribution center.
And when Coke’s truck drivers get to the retail store, they knowingly stock the shelves with the correct mix of products.
Coke’s strategies in international markets rely on many of the same ideas. But the stage of market development varies in different countries, so Coke’s emphasis varies as well. To increase sales in France,