Question: Read the case study below and answer the questions that follow. Coca Cola Coca - Cola is the most popular soft drink in the world.
Read the case study below and answer the questions that follow. Coca Cola CocaCola is the most popular soft drink in the world. Its sold almost everywhere, and its brand name is known in most languages. The CocaCola Company TCCC manufactures and sells not only CocaCola itself, but also a wide range of other beverages, like Fanta, Sprite, water, juices, and energy drinks. The brand owes its success primarily to the product itself as well as its iconic marketing campaigns that position Coke as a drink with a fun and active lifestyle. But theres one factor a person might miss when explaining the wildly successful product: the CocaCola supply chain is one of the most widereaching, seamless operations in the world. The History of CocaColas Success and Manufacturing Milestones Before we start talking about the CocaCola supply chain, lets take a look at the key milestones in the history of this legendary drink. In Dr John Pemberton, a pharmacist in Atlanta, invented a flavoured syrup mixed with carbonated water. At those times, there was a belief that carbonated water had a good impact on health, so CocaCola was actually sold as a medicine at soda fountains. In Dr Pemberton sold his business to Atlanta businessman, Asa G Candler., who expanded the beverage sales to soda fountains beyond Atlanta. In Joseph Biedenharn was the first to start selling CocaCola in bottles. In three enterprising businessmen in Tennessee got exclusive rights to bottle and sell CocaCola, thus starting the companys worldwide bottling system. In the first CocaCola slogan, The Pause That Refreshes, appeared in the Saturday Evening Post In the contoured CocaCola bottle was trademarked, and the first marketing efforts were made, which then turned CocaCola into the worlds most wellknown beverage brand. CocaCola Supply Chain: What Makes It So Remarkable? Coca Colas VP of Customer Logistics Wendy Manning once said the company is able to deliver a drink from a factory to a local store within hours. The secret behind this impressive figure is local sourcing, meaning that most of the drinks are manufactured directly in the country where they are sold. CocaCola has more than bottling and manufacturing facilities across the world, and its factories have some of the worlds fastest production lines. Its not just about the sheer number of facilities, though. These are other things that contribute to CocaColas supply chain: Innovation CocaCola Enterprises seamlessly integrates modern technologies into its supply chain. For example, it uses D printing to manufacture bottles and cans for its drinks. People CocaColas logistics team consists of more than people who ensure the safe journey of each bottle from factory to fridge. Longterm relationships with retail partners Over the past few decades, CocaCola has proven to be one of the most valuable and reliable suppliers for its retail partners. One example is that the company has been growing together with McDonalds since Supplier relationship management program Helen Davis, VP of CocaCola Supply Chain in the US conducts supplier innovation days. During these events, the companys procurement and marketing teams present the companys market needs while the suppliers also present their own latest innovations. The program also involves quarterly meetings with key suppliers, where a mutual performance review takes place. Strict quality control CocaCola has strict quality requirements on its manufacturing practices. For example, CocaCola HBC a bottling franchise partner of CocaCola Enterprises, requires quality, environment, and health safety certifications from its suppliers. Global Supply Chain Council The beverage giant established the Global Supply Chain Council, which consists of subcommittees that focus on adhering to established CocaCola supply chain strategy. The Council has its own centralized portal where the employees and supply chain participants share their experiences and best practices. Close collaboration with bottlers The CocaCola Company provides a standard set of guidelines for all of its bottling partners and suppliers. As a result, most of the strategic decisions are centralised. The headquarters controls most of the bottling partners operations, so each bottling partner services the respective geographical area through a head office. The bottlers office works in tight collaboration with a regional office under the direct supervision of The CocaCola Export Corporation TCCEC The bottlers head office connects the production plant with different distribution and sales centres across the world, forming a coherent supply chain. All of these aspects make CocaCola supply chain management one of a kind. CocaCola Supply Chain: How It Works In a nutshell, CocaCola beverages go through the following destinations in their journey: Manufacturer Distributor Retailer Consumer Now lets take a closer look at this journey. The typical workflow within CocaCola supply chain: The CocaCola Company headquarters in Atlanta manufacture the concentrated syrup and sell it to CocaCola Enterprises CCE or another bottling partner, which is responsible for selling the product in North America and Canada. The bottling partner sends it to a manufacturing facility, which mixes the syrup with other ingredients, such as filtered water and sweeteners. After that, the bottler packages the final product and distributes it to retail partners stores restaurants, vending machines The CocaCola Export Corporation TCCEC partners with local bottlers across the world and distributes the drink to the corresponding local markets. CocaCola Logistics Logistics is an integral part of any supply chain, and CocaColas logistics expertise definitely contributes to its supply chain success. Here are some of the logisticsrelated best practices implemented by CocaCola: Manufacturing products on a more frequent basis, eg once a week Implementing weekly meetings between the teams worldwide Moving the production plants closer to customers Introducing daily interaction between the main sites Introducing seamless processes that are shared between all supply chain participants. Does Cokes Supply Chain Management Inspire You? CocaColas manufacturing and supply chain management have inspired a lot of other businesses to be better. But businesses today can scale growth at a much faster rate than one could back in the early s thanks to new software and automation techniques. The takeaway here should be that the principles CocaCola grew from still apply, even if the technology that facilitated that growth is outmoded QUESTION TWO If CocaCola needs an easytomanage system that allows it to exert a great deal of control over workloads and user access, a centralised network makes the most sense. Decentralised architecture may be more difficult to implement and maintain. Explain the concept of centralised and decentralised purchasing and whether it would be suited for an organisation like CocaCola
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