Background
Coca-Cola is a major multinational beverage company. Its name originated from a proverbial inspiration. It has its headquarters in Georgia America. John Stith, a pharmacist, first invented its major product Coca-Cola. The product stood out due to its unique formula bought by Griggs Asa in 1889. Since its inception, the company op designed a franchised distribution system. The company only produced the syrups that other bottlers used in the preparation of beverages.
Coca-Cola supplies chain components
Supply chain components are adopted by the company to ensure that there is an efficient supply of its products. Additionally, it factors out the cost of the process. They are the steps the company undertakes to ensure that its raw materials reach to the final products.
Raw materials
The raw material of the Coca-Cola products is syrup, and they are mixed with other ingredients to bring out a freshening beverage. The larger components of the Coca-Cola are water. In addition, sucralose, which is a non-nutritive sweetener, HFCS, and aspartame that are used in the combination process with other sweeteners like acesulfame major, bought at NutraSweet Company. The company raw materials remain a secret owing the threats from other bottlers. The company only sends the already mixed ingredients to all its distribution channels that then manufacture the product (Schniederjans & LeGrand, 2013). Surprisingly, the Coca-Cola beverage in America tastes the same as the Coca-Cola in the United Kingdom or Africa.
The potential problem that accrues to the supply components regards the transition by the customers. This has called for a change of ingredients by other competing companies to meet customer’s demand. The Coca-Cola has countered this problem by adopting different distribution channel. Further, it has taken steps in franchising and merging.
Manufacturers
The core mandate of the manufacturers of the Coca-Cola concerns creation of the packaged materials, canning the products and bottling. This goes in line with the corporate production of the Coca-Cola products. The company had faced competition from Fanta that was a German product. The company acquired the product and made it be in line with its products processes. The manufacturers try their best to cut the cost of production. This is the reason Coca-Cola bottle have unique shapes. The quality of outputs is also observed continually.
Certain restraints face the supply chain component. They include the adjustments to newer technology. Acquiring advanced machinery in the manufacturing process is expensive. However, the company can adopt a process adjustment policy that will ensure that they remain relevant in the market.
Distributors
The supplier of the Coca-Cola products plays a significant role in the distribution process. They supply the products on average of 1.7 billion times daily. A firm supply base is critical for the company. This ensures that the growth of the company is realized. They provide the company with raw materials and machinery. In this manner, the company can produce more of its goods to the entire world. Supplier principles are often observed. It includes the quality of the products supplied and ethical framework that the supplier has presented. The supplier fills the SGPs forms that help in identification of the fundamental values of the company in meeting the expectations of the business.
It is the expectation of the company that its suppliers follow the labor rights, business conducts, service, and quality. The challenge in distribution is the essence of poor infrastructure. The company has set out transporting alternatives that ensure that the product reaches in time. In all the countries that have Coca-Cola products one cannot miss them in their shelves (Stopford, 2011).
Retailers
The retailer’s mandate is to bring the products of the company closer to the customer. The Coca-Cola Company has implemented the supply strategy by offering competitive prices. Further, the company has diverse marketing strategies. The social media has seen the success of the Coca-Cola retailers. In most places, the company provides free fridges with the company’s brand.
Retailers face critical problems concerning the product channeling. To curb the setback, the company has set different centers that make it easier for the retailers to access the company products. Distributors reach the retailers using transport trucks. Additionally, there are ordinary small ships that Coca-Cola Company has delivered to its retailers to enable them to reach out remote areas.
Customers
This is the final consumer of the product. The client is the ultimate target of the supply chain. The company has invested in the front office. It has backed it with back office strategy. The approach is utilized to achieve changes in management. Yearly, the company has various packages that are customer oriented. Respective distribution channels in different countries set frequent offers. The strategy is a way to see ensure that the Coca-Cola products are dominant in the market.
However, the company has faced challenges in maintaining the customer loyalty. There are differences in what the company advertises. The company has taken an initiative to conduct surveys to receive customer feedback regarding their products. In some cases, the company makes offers to its customers especially in restaurants or eateries, for example, at KFC there is a combination of chicken, chips, and a bottle of Coca-Cola with a reduced price.
Recycling and the community
It is part of the company's social responsibility to ensures that it benefits the community. For example, the used bottles require appropriate disposal to conserve the environment. In most cases, recycling is done. The Coca-Cola Company has a defined corporate responsibility. It has engaged itself in the music industry as witnessed in the concluded music talent search (Ghosh, 2010). Like the Fox singing competition, also in sports. The company takes the initiative to sponsor key sports event, for example, it sponsored the 2010 FIFA World Cup held in South Africa. In this way, the company receives airplay and reaches to the wider population.
Operational chart of Coca-Cola
Source: Coca-Cola Company
The operational structure indicates the flow of products and the share each distribution channel has. The channels have the mandate to complete the distribution of the Coca-Cola products to reach the desired destination. The global operation is credible in guaranteeing efficient running of the company.
Streamlining the main enterprise resources will aid in having an efficient planning system. The operating department will be able to strategize on the reliable ways of meeting the company’s objectives. Certain major concerns should be covered. They include the structural management. It should be emphasized that different zones have different customers. Their tastes and preferences differ. Notably, reaffirm the quality control and set out measures to meet the global demands. The focus on profitability lies in the strategies the management adopted. The company has an added advantage. It has unique brands and unique taste of the Coke. The statistical tools also should be reinforced. This will ensure that both quantitative and qualitative analysis help in interpreting the profits the company has realized.
References
Ghosh, B. (2010). Looking through Coca-Cola: Global Icons and the Popular. Public Culture, 22(2), 333-368. doi:10.1215/08992363-2009-031
Schniederjans, M. J., & LeGrand, S. B. (2013). Reinventing the supply chain life cycle: Strategies and methods for analysis and decision making.
Stopford, M. (2011). Reputation Management at Coca-Cola and Beyond. Reputation Management, 201-214. doi:10.1007/978-3-642-19266-1_19
