Introduction
Supply Chain Management is the control of materials, data, and resources (including financial and non-financial resources) as they transfer from one level of distribution to another. The participants in a supply chain include manufacturer, wholesaler, retailer and consumer. Also, SCM involves coordinating and augmenting the inflows and outflows within the firm and in the industry. The primary goal of attempting to oversee the supply chain is to minimize carried forward inventory. Assuming that the products are always ready for distribution, and the consumers constantly need the products then the stock should be flat. Sophisticated software is available to provide a part or the entire SCM service. Coca-Cola offers insight into how an active SCM operates.
Coca-Cola Background
Coca-Cola Company Limited has its headquarters in Tysons, Virginia, USA and other central offices across the sixty countries. The Company Management has come up with a strategy that leads clients through the firm’s digital transformation path. The plan has provision for innovative technology service delivery and solutions that improve the supply chain’s depth of industry expertise, economic independence, and general partnership. Such schemes are consistent with the multinational’s mission that states, “To refresh the world, inspire moments and create value and make a difference”. The operational statement serves as a guide to the aspects the business vision should describe. The concept covers multi-cultural diversity, the business allies, the environmental sustainability and the profit drive to ensure sustainability. The culture of winning delineates the outlooks and manners. The fundamental values include leadership, collaboration, accountability, and integrity. Passion pushes the participants (partners, investors, and employees) of the company while embracing diversity and improving quality products. Therefore, the focus on consumers and franchise associates prompts the company to conduct market research through listening, observing and learning. Also, the nature of business pushes the staff to possess a worldview of enterprise and concentrate on consistent value addition. Such company culture defines successful Supply Chain Management at Coca-Cola Company Limited.
Successful Strategies
The policies that Coca-Cola applies to distribute sodas internationally possess a unique level of motivation among partners. The Company Management has succeeded in making operating a global business using local channels, circumventing every community where the company has set precedence. However, the Coca-Cola is not a unit entity since it does not govern all its bottling partners. The system spreads down to multiple local supply chains such that as the leading firm produces concentrates, liquid bases and syrup the associated bottling companies oversee proper and hygienic packing.
Also, the partners are responsible for handling the merchandise and ferrying it to wholesalers who distribute to retailers and customers such as grocery stores, street vendors, restaurants, convenience stores, amusement parks and movie theaters. The Bottling Partners play the role of localized plans of distribution. However, the Tysons, Virginia Institution communicates specific guidelines, values, vision and mission. The emphasis is largely on the importance of nurturing workplace environment policies and procedures. The policies comply with applicable laws in regards to forced labor, child labor, collective bargaining, the freedom of speech, cultural diversity, discrimination, health and safety, and environmental conservation. The central office dispatches trainers to the suppliers to comprehensively train on the legal and work issues. Further, the independent auditors conduct audits to determine the levels of compliance and meet customer demands.
Meeting Business Demands
Supply Chain Management at Coca-Cola seeks to understand the effect of the business along the whole value process, including the customers, to satisfy business needs. Partnering with clients helps to address areas of concern and improve the industry beyond beverage production and distribution. The clients constitute the large global chains of retailers and restaurants. Working closely with the members of the supply chain, therefore, avails mutual benefits. The eateries and small independent businesses proactively look for ways of reducing costs, increase sales revenue and deliver quality products to end consumers.
Additionally, the Head- quarter’s Operating Department seeks to create marginal worth for consumers and customers by predicting demands and providing solutions beforehand. Such efforts motivate the overall team to strengthen the partnering relationship. For example, in April 2007 the associates met for the first time to deliberate in the development of the major performance indicators. As a result, groups of companies, associates, and consuls from all partners have formed a committee to oversee the appraisal procedures. The legal and administrative complexity of the organization makes it difficult to collect business data thus the overall sustainability reports are still in the hands of individual suppliers (see appendix). Therefore, the company’s successful business performance allows mostly depends on the vendors’ aggressiveness and output.
Conclusion
Coca-Cola is a multinational institution that exhibits an elaborate and successful supply chain. Everything about the company, from the mission and vision to the interaction with customers, spells determined market strategy. The leadership has put in place effective strategies that motivate suppliers to sell aggressively, reduce costs of operations and maintain a high level of integrity. As such, the company has created a sustainable business environment that is outstanding in every business aspect.
References
Applbaum, K., & Levi, J. M. (2003). Fluid Signs of Commodity Fetishism: The Cosmologies Of Coca-Cola And Tesguino, In Norbert Dannhaeuser, Cynthia Werner (Ed.). Anthropological Perspectives on Economic Development and Integration (Research in Economic Anthropology, Volume 22) Emerald Group Publishing Limited, 283 - 298.
Cola-Cola. (2016). Cola-Cola . Retrieved 8 22, 2016, from Cola-Cola : http://www.coca-colacompany.com/our-company/the-coca-cola-system
Petty, R. D. (2012). Coca‐Cola brand protection before World War II – it's the real thing. Journal of Historical Research in Marketing, Vol. 4 Iss: 2, 224 - 244.
