Nguyễn Hữu Việt Dũng:

Explain how supply chain help the cocacola company to solve difficulties problem.

I think coca cola has many difficulties problem, but i think three key issues that
make management success the Coca-cola Group’s supply chain is:
1. Inventory management
2. Distributor management
3. Retailer management

Inventory management- wholes sale agents:

- Inventory of raw materials: coca leaves, bottles, cartons, paper boxes, machine &
equipment
- Unfinished inventories of products: products at each stage, product not yet
labeled.
- Inventory of finished product

Ensuring a large quantity of product requires a great deal of care. For example when
the raw materials in the warehouse are exhousted, the cost of damage cause by the
lack of raw materials will include emergency ordering cost and production stoppage
cost. When inventory unfinished product warehouse, the company will be damaged
due to replacement of production plans trade and that may also cause production
losses to be stopped stagnant and incurring costs. Finally when inventory runs out
for possible finished goods

Distributor management: manufacure – wholesale – retailer – consumer

- Manufacture: manufacturing and distributing, ensuring appropriate market

demand. Include:
 Tcc (the Coca-cola company): product and supply the cola siro for
factories
 Tcb (the Coca-cola bottles): manufacturing and distributing warehousing
and providing services for Coca-cola products
- Periodic assessment of middlement’s operation: sale shortage level, time of
education, how to handle lost or damaged goods, cooperation level in
advertingsing programs and customer service.
- Wholesale, wholesaler: distributing inventories to reserve inventories in a bulk,
arranging and sorting goods, placing and recceiving orders, handle information
and sales, selling goods of competitor were baned.
- Retailers: supermarket, restaurants, fast foods, movie theater...
- Customers: families, kids... this is the stage that decides whether the enterprice’s
product succeed or fail.
 Coca-Cola carries out activities to attract toxic agents rights with attractive
preferential policies, creating a strong connection between the company and its
agents. Accordingly, agents are not allowed to sell products of competitors

Coca-Cola will pay agents exclusive discount of VND 1,000 / tank. This discount is
converted to product for payment.

Some difficulties of Coca-cola supply chain:

+) the unstable of customers need:

Nowaday, people are tend to use healthy product. That make the supply chain of
Coca-cola have to change their product if it is fit people’s need.

+) large amount of inventory:

Some solution of Coca-cola:

- Improve suppliers evaluation standards and more stringent testing of input

quality.
- Focus on the tretment of pollutant waste
- Increase using recycled materials
- Pay more attention to iventory control

Nguồ n: vietnamsupplychian.com