Supply chain of coca cola company

Coca cola supply chain divided as parts for good supply chain ;all parts want to be good
Coca cola company gets in formations from this information they will decide the manufacturing quantity
For a better supply chain information follow and material follow want to be very efficient and affective
According to the information follow and orders they make plans about manufacturing .
They keep stock in warehouses for the demand and orders then company will distribute the stock for customers

1. Supply chain of Coca Cola
company
University of Moratuwa,Faculty
of Engineering
Department of Transport &
Logistics Management
2012 Batch

2. Origin
•ThefirstCoca-Colarecipewasinventedin
Covington,Georgia,byJohnStithPemberton,
originallyasacocawinecalled“Pemberton’sFrench
WineCoca”in1885.
•ThefirstsaleweremadeatJacob’spharmacyin
Atlanta,Georgia,onmay8
th
,1886,andforfirsteight
monthonlyninedrinkweresoldeachday.
•Inincorporatedin1892asCoca-ColaCompany(the
currentcorporation)

3. To inspire moments of optimism and happiness.
To create value and make a difference.
To refresh the world.
Mission

4. Vision
•People:Beagreatplacetoworkwherepeopleareinspiredtobe
thebesttheycanbe.
•Portfolio:Bringtotheworldaportfolioofqualitybeverage
brandsthatanticipateandsatisfypeople'sdesiresandneeds.
•Partners:Nurtureawinningnetworkofcustomersandsuppliers,
togetherwecreatemutual,enduringvalue.
•Planet:Bearesponsiblecitizenthatmakesadifferenceby
helpingbuildandsupportsustainablecommunities.
•Profit:Maximizelong-termreturntoshareownerswhilebeing
mindfulofouroverallresponsibilities.
•Productivity:Beahighlyeffective,leanandfast-moving
organization.

5. Values
•Coca-Cola values serve as a compass for our actions and describe
how we behave in the world.
•Leadership:The courage to shape a better future
•Collaboration: Leverage collective genius
•Integrity:Be real
•Accountability:If it is to be, it's up to me
•Passion:Committed in heart and mind
•Diversity: As inclusive as our brands
•Quality:What we do, we do well.

6. Coca Cola Family

7. Focus on the Market
•Focus on needs of our consumers, customers and
franchise partners
•Get out into the market and listen, observe and learn
•Process a world view
•Focus on execution in the marketplace every day
•Be insatiably curious

9. Supply chain of Coca cola
•Cocacolasupplychaindividedaspartsforgoodsupplychain
;allpartswanttobegood
•Cocacolacompanygetsinformationsfromthisinformation
theywilldecidethemanufacturingquantity
•Forabettersupplychaininformationfollowandmaterial
followwanttobeveryefficientandaffective
•Accordingtotheinformationfollowandorderstheymake
plansaboutmanufacturing.
•Theykeepstockinwarehousesforthedemandandorders
thencompanywilldistributethestockforcustomers

10. Importance of facility
•To void the unnecessary wastage
•To make resources work together
•To maximize value and minimize costs
•To maximize productivity
•Tonavigates the requirements and mitigates the
risk.

11. Facility in coca cola
•Locations
•Bottling plants are spread world wild
•Warehouses are located in every countries
•Modern technology
•High-tech machinery
•greener bottles (2009)
•Social Networking( facebook, twitter)
•Freestyle Dispensers (allows you to create your own beverage by choosing from
over 100 drinks)
•Online Advertising
•Recycling( bottles )
•is made from responsibly-sourced materials
•is designed to be effective and safe throughout its life cycle
•meets market criteria for performance and cost
•meets consumer choice and expectations
•is recovered efficiently after use wherever possible

12. Importance of Inventory
•For smooth production and selling activities
•To avoids the stock-out problem
•To Expense Control
•For emergency situations

13. Inventory control by coca cola
•The Economic Order Quantity (EOQ) Model
•FIFO

14. Importance of Transportation
Distribute products
•with right product
•with right quantity
•to right place
•with right quality
•right price

15. Transport in coca cola
•Use highways to transport product
across the land
•Use international airports to
transport goods to other countries
in the world
•Use deep water ports to ship cargo
to other countries in the world

16. Importance Of Supply Chain
Drivers To Coca-Cola Company

17. Information
•Informationisnothingbutthecustomerneedsandwants.
•Coca-Colaneedfastandaccurateflowofinformationthrough
theirsupplychaintobecompetitiveinthebeverageindustry.
•IntheCoca-ColaCompany,informationbuildstheconnection
betweenvariousstagesinSCandallowscoordinationbetween
stages
•ThecompanyuseSAPERPwebbasesoftwaretogetrealtime
informationfromthefield.
•Theyrequiresinformationtoplantheirproduction,marketing
campaign,demandforecasting,inventorylevelandoptimizing
transportationetc.
•Informationisthekeytosuccessfulsupply-chainmanagement
becausenoproductflowsuntilinformationflows

18. Sourcing
•Coca-ColaCompanymanufacturesandsells
concentrates,beveragebasesandsyrupstobottling
operations(outsourced)andalsodothemarketing
initiatives.
•Theirbottlingpartnersmanufacture,package,
merchandiseanddistributethefinalbranded
beveragestotheircustomersandvendingpartners,
whothenselltheirproductstoconsumers.
•Coca-Colacompanyhavemorethan250bottling
partnersworldwide.
•ConsiderableamountofCoca-Cola’ssupplychainis
handledbytheoutsourcedparties.
•ThereforesourcingisveryimportantdriverofCoca-
Cola’ssupplychain.

19. Pricing
•Softdrinkindustriesbecomemoreandmore
competitivesincenewproductionscomeoutfrom
worldleadingcompaniessuchasCoca-Cola,
PepsiCo,DrPepperSnapple,Nestle,Suntory……..
•Priceisakeyfactorthatdeterminesmarketshareof
Coca-Colaintheindustry
Inventory
CostResponsive
ness
Inventory Cost Responsive
ness

20. •Thusthereisatradeoffbetweenpriceand
responsiveness.
•ThenCoca-Colaneedstopaymoreattention
towardthistradeofftobeingame

21. Strategies Coca-Cola used to
manage its supply chain drivers
•Focusonaggressivemarketing
•Operatingthroughpushstrategy-
customerorderanticipation
•UseA-B-Cclassificationforinventory
handling
•SAPenablewebbaseplatform

22. •Usingmaterialandinventorycontrolsystems
•cooperativesupplier-buyercustomerrelations
throughtheuseofJITandTQM.
•Warehouselayoutanddesignstoincreasethe
efficiencyofoperationsforincomingmaterials
•Provideson-sitestoragetoeliminateoffsiteto
warehousecost
•Bottlingplantshavebeenlocatednearto
railwaynetwork(inAmerica)
•Demandforecastingusetomakepricing
decisions

23. Issues in Coke supply chain
•Trucks assigned to fixed geographic routes
•Their supply chain was also old and slightly
outdated compared to modern companies
•Depending on bottling partners
•Negative impacts on products(health issues)

24. How to improve supply chain drivers
1)Establishingsupplychainguidingprinciples
•Focusonmetricsneedingnomanualintervention
•Focusonmetricstodriveprofitconsistencyand
metricconsistencyacrossthesupplychain
•FocusonindustrystandardsthatarenotCoke
specific
•Developarobustsystemforreporting
hierarchiesthatchangewhenbusinesschanges

25. 2) Installing a three-phase approach
I.Proof of concept-Primarily to validate
functionality, scalability and flexibility
II.Foundation phase-Create a robust foundation
for metrics and reporting, a measurement that’s
easy to implement out of the box.
III.Exploitation phase-Identify long-term metrics
and improve them on an ongoing basis
3) Support continuous improvement with an
end-to-end view of performance and root-
cause analysis

26. 4) Align supply chain strategies with corporate
objectives
5) Analyze information to meet customer
needs

27. Group members
•121496B
•121437X
•121487A
•121415E
•121474G
•121404U
•121449K