Coca Cola Supply Chain

Topics: Quality management, Management, Quality assurance Pages: 18 (5509 words) Published: February 1, 2012
Executive Summary

We have analyzed Coca-Cola India's supply chain with respect to the following:

• Inventory management
• Quality management
• Vendor management

We have detailed out the practices and policies adopted in the company and highlighted noteworthy practices in this project. We have described recent trends in operations in the areas chosen. We also have identified a problem the company is facing, analyzed it and have suggested a solution for the same. Introduction

The Coca-Cola Company is the world’s largest beverage company. It is recognized as the world’s most valuable brand. It markets four of the world’s top five soft drink brands like Diet Coke, Fanta, and Sprite along with water, juices, tea, coffee and energy drinks. It has one of the world’s largest beverage distribution systems spread over 200 countries selling 1.6 billion servings a day.

Coca-Cola India manufactures and markets brands like Coca-Cola, Thums Up, Fanta, Fanta Apple, Limca, Sprite, Mazaa, Minute Maid, Burn, Kinley, Georgia tea and coffee, Nestea and Fanta Fun Taste. The company employs 1, 50,000 people and has more than 1 million retailers. It is the largest domestic buyer of sugar and one of the top buyers of mango pulp. It positively impacts Glass, Plastic, Resin manufacturers, Sugar, Automobiles, and Banking etc. Its mission statement is called the Coca-Cola Promise – “The Coca-Cola Company exists to benefit and refresh anyone that it touches”. This project report is about Coca-Cola’s supply chain with respect to its inventory, quality and vendor management.

Let us first understand what a supply chain is and also the supply chain components we have chosen to focus on.

Supply Chain

A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer.

The term Supply Chain Management (SCM) was developed in the 1980s to describe the integration of key business processes ranging from the original suppliers to the end user. The primary objective of SCM is the efficient use of resources like distribution capacity, inventory and labor to fulfill customer demand. It seeks to meet demand with supply with minimal inventory. Various aspects of SCM are:

• Eliminate bottlenecks in supply by liaising with suppliers

• Sourcing strategically to balance low cost of material with transportation cost

• Implementing JIT or Just In Time to optimize manufacturing flow

• Maintaining right mix of location of factories and warehouses

• Vehicle routing analysis

• Dynamic programming

• Optimizing traditional logistics

The success of a supply chain depends on the product design but a product too depends on the supply chain for success.

The Supply Chain of Coca-Cola India
In case of Coca-Cola India, at the core of its business is its production and distribution network called the “Coca-Cola system”. Globally, in the rest of the world, the Coca-Cola system includes the company and its 300 bottling partners. The company manufactures and sells concentrate and beverage bases. The bottlers combine this concentrate or beverage base with sweetener (depending on the product), water or carbonated water to produce finished beverages. These are packaged in authorized containers like cans, refillable glass bottles, non-refillable PET bottles and tetra packs bearing Coca-Cola trademarks. These finished goods are then sold to whole sellers or retailers. The company also sells powdered beverage mixes like Vitingo and Fanta Fun Taste. Coca-Cola’s beverages reach consumers through its customers like grocers, small retailers, hypermarkets, restaurants, convenience stores as well as other final points of distribution in the...

“Supply chain management: processes, partnerships, performance” By Douglas M. Lambert
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