Coca Cola
Coca Cola
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................1
Aims and Objectives........................................................................................................................2
Methodology....................................................................................................................................2
Introduction to Coca-Cola...............................................................................................................2
Purpose and Vision......................................................................................................................3
Wanted Products.......................................................................................................................3
Made in a sustainable manner..................................................................................................3
For A Positive Tomorrow Discussed.......................................................................................4
The idea of value addition...............................................................................................................4
Supply Chain...................................................................................................................................5
Supply chain structure..................................................................................................................5
Procurement.................................................................................................................................6
Distribution..................................................................................................................................7
.Manufacturing.............................................................................................................................8
Forecasting...................................................................................................................................8
Recommendations and Conclusion..................................................................................................9
References......................................................................................................................................10
Executive Summary
The critical elements of The Coca-Cola Company's supply chain management are described in
this paper. The corporation is said to be the premier brand in the food and beverage industry, and
it has been providing humanity since March 1994. In 1973, Coca-Cola was imported from India
and offered to the Local market. Coca-domestic Cola's manufacture began in Nepal in 1979.
Bottlers Nepal Corporation, a market capitalization corporation, will handle the business as of
2020. (BNL). Bottlers Nepal (Terai) Company operates two bottled factories, one in Kathmandu
and the other in Bharatpur. BNL owns both of them. The production plant employs
approximately 500 employees as of June 2020. The industry's supply chain management has
undergone numerous adjustments. Because the company's operation is entirely dependent on
goods demands of the customers, they must have a good supply chain system in order to be
viable. To establish a successful supply chain system, they must look at numerous value-adding
strategies and then devise a plan to fulfill the industry's growing market. Although the firm is
doing well, it is still necessary for them to keep a close eye on the market demands and deliver
the service who can offer them with product on a timely manner in a precise volume and quality
at the specific address. It is critical for the organization to know the purchasing process in order
to find a trustworthy provider. They must also recognize the numerous risks involved in the
supply chain operation in order to mitigate them and improve revenue. Finally, but please do not
forget, they have a responsibilities to act and ecology, that they must consider and implement
solutions to reduce water waste.
Introduction
Logistics activities are a crucial part of the supply chain networks since they define the part of
obtaining fantastic vintage products from the source to the final customer. The origins and
departs logistics operations helps control digital inventory, as well as finishing and orders.
Ecommerce logistical optimization includes stock control, order fulfillment, and shipping
timeframes. Although large corporations may well have supply chain directors, small
manufacturing operators are more likely to do so on their own. The first phase in inventory
control is gathering raw materials, which is performed by the supplier or manufacturer. A
dependable manufacturer is in responsible of controlling the work-in-process inventory period
(i.e., the movement of mineral wealth being polished into polished goods) to make sure you're
getting greater, timely, and cost-effective outputs.
It's vital to choose the right supplier; suppliers who are unpredictable in terms of delivering a
high-quality product and/or transferring inventory to the customer can slow to a crawl operations
from the start. This assessment looks at logistically as an important determinant of a strong
supply chain, and how it may help companies that deal with production line, transit, storage, and
shipping increase their revenue and profits. Additionally, a trustworthy courier service may boost
a firm's value and help it maintain a positive national profile. Integrated logistics techniques help
your firm accomplish more than just fantastic results. Additionally, these tactics offer importance
to the company's products. The more easily your products are accessible to buyers, the more
attractive they might be. Growing consumer value does not have to entail a reduction in client
quantity or quality. It also has something to do with accessibility. Because transportation may
help make your services more accessible to a larger audience, wise company leaders see
transportation as a critical instrument for giving services to consumers. A well-thought-out
national strategy saves costs that were previously disregarded. Businesses may now design
significantly more arrival and departure routes, shipways, and destinations while saving money.
Equalization, streamlining, productivity increases, and resource efficiency are examples of
company-oriented logistics that have lowered strategic expenditures. Supply networks are
complex and fragile and they are based on constantly evolving customer demand. A distribution
network cannot be of considerable value without well-organized transit. As a result, logistics is
one of the most critical parts of the stability of any supply chain.
Methodology
The paper will look into Coca-cola's supply chain problems and strategies. The research was
founded on a process called topic innovative evaluation. Phrases were utilized in the literary
search to find appropriate resources from Google Scholar, Science Direct, Gates of Research,
and Academia.
The doctoral study includes background study and discussion about Apple's distribution network,
as well as readings on how to undertake mixed methods projects. The scientific inquiry has the
ultimate say in this paper; but the extensive evaluation of the objectives gives a far richer grasp
of the difficulties as well as enough information to cross-reference the outcomes.
Introduction to Coca-Cola
Bottlers Nepal Limited is a public owned business headquartered in Kathmandu's Balaju
Industries District (BID) that has been in existence for 41 years. The facility contains both RGB
(Recoverable Glass Bottles) and PET package lines, which produce a variety of goods from the
catalog to ensure that customers can always get their favorite brands. However, later in the
twentieth century, Asa Griggs Candler, an entrepreneur whose marketing efforts made Coca-
Cola the dominating brand in the food and beverage industry, purchases it. It is now available in
over 200 nations. The company's idea is to make a super-efficient organization where individuals
may work efficiently toward maximizing profit while simultaneously serving diverse
communities in civilization. The company's aim is to generate value that makes an impact in the
world by rejuvenating it and encouraging enjoyment and hope. Coke-zero, diet-coke, caffeine-
free-coke, coke-vanilla, coke cherry, Fanta, and Sprite are among the firm's other brands. The
Coca-Cola Company is the world's largest beverage corporation and the nation's top soft drink
manufacturer and distributor. Coca-Cola, Diet Coke, Fanta, and Sprite are four of the world's top
five premium products. For the first ever, Coca-Cola Nepal has produced an Environmental
Spotlight report, which highlights the industry's initiatives toward a more equitable, responsible,
and robust environment in 2020. The Coca-Cola Company's performance is dependent on five
primary factors:
Coca-Cola is a globally known brand with a strong identity.
Consistently providing high-quality items to customers
Advertising global unique and new marketing programs
Global accessibility—Coca-Cola containers are made and delivered all over the world.
Continuous Technology: Supplying customers with relevant promotional offers, such as
Diet Coke, on a regular basis.
The Coca-Cola Company will mark its 135th birthday on May 8, 2021. With a glorious history
more than a decade, it's no wonder that the company has seen numerous transformations since its
inception. Here's how the Coca-Cola Corporation has changed over time, and how the growth
has effected its operations, from delivering nine beverages a day at Jacobs' Drugstore in Atlanta,
Florida, to distributing more than 1.9 billion bottles in far more than 200 countries worldwide
every day. Coca-Cola is arguably one of the most well-known franchises in the market. That's
not always the situation, though. When the company was originally began in 1886, it employed
free drink vouchers to generate desire for the product. Asa Candler, a sales clerk, completed its
acquisition of Coca-Cola from inventor Dr. John Pemberton in 1892. The initial marketing
budget for Candler was $11,000. 3 Calendars, soda machine urn, painting board banners,
tablecloths, pens, and clocks were among the products he utilized to promote Coca-Cola. Coca-
Cola states that the drink is marketed and consumed in each and every provincial and territorial
in the United States by 1895, signaling the start of its global market dominance.
Frank M. Robinson designed the iconic Coca-Cola classical style in 1886. In 1970, the Active
Ribbon Devices, a red and white design representing two neighboring contoured cylinders, was
introduced to the logo. In 2003, as part of the Coca-Cola Big campaign, a splash of yellow and
flying bubble were introduced to the white twist. By 2007, the improvements had been undone.
The firm produced a unique logo for their 125th anniversary that depicted bubble pouring out of
the contouring container. In 2020, Forbes rated Coca-Cola sixth on its shortlist of the World's
Best Expensive Companies. Pepsi, the No. 8 rival, came in at No. 36. Coca-Cola has maintained
its appeal and kept pace with the trends for more than a decade while being rooted in memory.
With the challenge, Coca-Cola is one of the world’s largest most famous and effective
companies.
Supply Chain
Supply chain structure
Coca-Cola is a global firm that operates on a local level. This means that there are currently over
225 bottling offices around the globe. In the case of Coca-Cola, the process usually begins with
the procurement, which would include farm products (such as sugar cane or fruit) and water. Its
most vital materials, like as water and sugar, are sustainably acquired, and the participants can
only choose the sort of sugar they use. Beet sugar is popular in Europe, sugar cane is popular in
Asia, and sugar made from corn molasses is popular in the United States. One of the initial
processes in Coca-supply Cola's network is the preparation of concentrates, which is blended
with water, sugar, and carbon dioxide by bottling operations.
Procurement
The purchasing of goods & services is referred to as procuring. It is critical that the acquired
goods or services are of great quality and offered at the greatest feasible price, meeting the
customers' reliability, amount, timeliness, and geographic needs. Many companies followed the
certain procedure when making a purchase decision for the essential items in order to avoid any
form of deception or collaboration and to serve the customer's needs on time. It is recognized as
a significant edge and a piece that adds impact on the entire organizational processes. It has
completely transformed the world of traditional buying methods. Procurement and source
responsibilities are now controlled on both a strategic and operational level in today's world.
Managers nowadays are more concerned with developing strategy that makes, lowering
expenses, and so on.
As a result, we may define our providers by bringing these two things into account. The very
first two stages of the procurement are stated to be these. We will assess the number of vendor’s
options in the country, and then choosing the appropriate vendor and make a vendor selection
plan based on different vendor metrics. Now that we are aware of the incident and know what
assets we need to make the goods, we will reassess the number of vendor’s options in the
country. Suppliers Appraisal: The process of evaluating a source starts with a list of possible
producers in the market, and then an analysis is done based on a variety of criteria including
such: Provision of current services and machinery, as well as the possibility of future growth.
Forth the basis of provider operations such as quality management, production time, workplace
environment, and so on. Managing the distributor's qualities, such as if it is educated, has a
consistent and solid team, and has a long-term vision, and so on.
Coca Cola Nepal deals with a variety of possible threats, ranging from price and rising customer
demands to potential consequences and natural calamities. Containers and supplies, delivery,
merchandising products, refrigerators and beverages containers, fleet and manufacturing
machinery are among the billion-dollar sectors covered by the effective purchasing plans. They
are recognized in the procurement area for being an economic expansion company and a
recruitment and selection process. They aspire to be leaders in the industry and collaborate with
the finest. By optimizing funding sources and aggressively interacting and similar interest with
contractors and vendors, CCBSS is devoted to source diversification. They feel that within our
customers in our procurement strategy will assist to establish better local areas and provide the
Coca-Cola system with long-term development and a strategic edge. They will continue to
support our efforts to expand prospects for a range of suppliers, furthering our mission to
empower and refresh everybody who is affected by our operations.
Distribution
Bottlers Nepal Limited (BNL) is Nepal's only Coca-Cola winemaker, with two bottling partners,
one in Kathmandu (Bottlers Nepal Limited – BNL) and the other in Bharatpur (Bottlers Nepalese
(Terai) Ltd, 160 kilometers from Kathmandu. There are various points of sale where the
corporation sells the product. The corporation has the extensive distribution network in the
world, which comprises autonomous bottlers and marketers, company-owned network of
distribution facilities, importers, and shops. Through its powerful grid infrastructure, the firm
keeps increasing its market in rising, growing, and developed countries. Direct selling and
indirect marketing are the two types of product marketing channels used by the company.
Restaurants, cinema halls, department shops, and other businesses receive merchandise straight
from the company. Furthermore, Coca-Cola has developed an external sales strategy,
collaborating with distributing agency, distributors, and bottler’s associates who subsequently
make the products accessible to brands and customers.
The corporation transmits its items to sellers, who subsequently deliver them to smaller
distribution channels through the indirect approach. When items are to be supplied in locations
with fewer people or in country places, smaller wholesalers are provided. The firm has a deal
with the majority of bottling companies. Aside from that, the corporation uses a variety of
additional distribution networks to reach clients in various parts of the world. One of them is a
pre-sale system that separates the marketing and order fulfillment processes, permitting Lorries
to load a larger range of products and therefore increasing sales. The typical system is organized
is the first type that the corporation has implemented. In this method, the person at the top of
delivery of products means direct sales from inventory accessible in the vehicle. In order to
assist industries in developing countries, the brand has built a powerful and distinctive delivery
system. Its unique distribution system enables the organization to cultivate long-term
partnerships with dealers and small businesses. MDCs, or Manual Distribution Facilities, are
small-scale enterprises that engage local employees to make items online to local consumers.
These micro carriers can reach consumers in far-flung places where standard truck service is not
viable. Restaurants, super markets, corner stores, pharmacies, street sellers, recreational places,
movie theaters, and other clients are all collaborated closely with by all clients and partners.
Bottling Investment Firm, as the corporation is named, has different departments for operating its
bottling interests around the world. This division is dedicated to expanding in all markets and
collaborating with other bottling companies and retailers. In addition, the brand largely relies on
computer technologies to support numerous business operations, such as products and supply
chains, processing and transportation, promotion, and so on, incorporating third-party virtual
servers, as well as digital media and social media
Manufacturing
The initial capital commitment is Rs ten million. From West Germany, complex gear such as the
Filter and the Inter-mix were introduced. The remainder of the apparatus was acquired
secondhand from New Delhi bottlers. Coke sells for Rs 1.40 each bottle in the markets, while the
wholesale cost is Rs 25 per container of 24 containers. The corporation also makes its own pump
syrups, runs various processing processes, and collects money from goods. Coca-final Cola's
products business include these activities. This industry area includes both company-owned and
regulated manufacturing and distribution businesses. This involves the sale of soft drink and
effervescent refreshments to shops. They're also sold to distribution channels, who then sell them
to shops. Coca-Cola has four geographical business sectors and two separate things:
North America is the industry's most well-known area. This industry is worth $215
billion and has over 370 million customers.
Latin America: This market comprises around 650 million users spread across 39
countries, contributing a total value of $72 billion.
Europe, the Middle East, and Africa: This category, which includes 130 foreign market
and 2.8 billion customers, is worth $220 billion.
Asia-Pacific: With a population of 4 billion people, this region has the largest customers.
32 marketplaces provide $280 billion to the entire market revenue.
The Bottling Investment Company (BIG) was founded in 2006. As previously stated, this
section is in charge of guaranteeing that bottled businesses have the funding they require
to operate.
As a result, the corporation formed the Bottling Investments Group. This organization discovers
failing licensees and offers them regulatory and fiscal assistance. The corporation provides
professionals and resources to help the franchisee expand and become profitable again. The
company is hiring a certified bottler to take over business once they've achieved incremental
costs. Coca-Cola has backed the restructuring that is taking place as one of its bottling
companies. It is because the corporation faced various macro and microeconomic issues because
of owning so many independently owned bottling plants. When dealing with financial
difficulties, locally owned bottlers frequently lack the resources to keep business and support
improvements. Coca-Cola has revenue difficulties because of this.
Forecasting
Quality Inspection: If Bottlers Nepal decides to transport Coca-Cola to India, the business will
have to build a new packaging factory in the Terai region close the Indian border. The cost of
transportation from Kathmandu will render the enterprise unprofitable. Surprisingly, Kamani did
not dismiss the concept, but she declined to say whether such a suggestion is being debated
among some of the executive board. The beverage behemoth's stock jumped 3% in premarket
trade after the company topped third-quarter quarterly revenue projections. Coca-sales Cola's
increased by 16 percent to $10.04 billion in the third quarter, thanks to a resurgence in market for
its soft drinks due to the restoration of public facilities such as theatres, arenas, and cafes
throughout the world. Unit container quantities, a key measure of market, increased by 6% in the
past quarter, with driving factors coming from Europe, the Middle East, Africa, and Latin
America.
Coca-Cola hiked prices to offset part of the trend of increased material and transportation risks
generated by jammed port facilities, a worker shortage, and the outbreak, which increased the
mean value of items sold by 6%. Coca-Cola forecasts its year modified profitability to climb by
15% to 17%, relative to the previous prediction of a 13% to 15% growth. As per Ibes statistics
from Refintiv, the good chunk 65 US cents per dollar in the third period, exceeding economists'
projections of 58 cents. Other businesses, notably PepsiCo, Unilever, and Proctor and Gamble,
have indicated that they will have to raise prices once more to address ongoing liquidity
constraints. PepsiCo, which just increased rates, warned this week that it will probably increase
rates again early in the year to address issues ranging from a scarcity of Gatorade containers to a
scarcity of trucking companies. In many places of the world, Coca-Cola and its competitor Pepsi
have a 50-50 customer base, while in Nepal; the market dominance pattern is 3:1. The
component that must be acknowledged for this statistics on Coca-market Cola's position is
difficult to pinpoint. The administration and the standard it has kept, as far as I am aware, could
be the causes. Bottlers Nepal, the sole wholesaler for Coca-Cola in Nepal, placed second with the
most necessary paperwork. This also demonstrates that the administration is competent, and the
performance measurement requires no explanation.
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