Supply Chain Management within inbound, operations, and outbound logistics: A case study Coca-Cola

South Africa.

Critical analysis of SCM within inbound, operations, and outbound logistics: A case study Coca-Cola
South Africa. Determine a flow of material in the operational logistics environment. Analyse a full cycle of
the SCM as per an accepted practice model. Include QMS requirements.

Abstract

1. Introduction

Coca-cola Company has established itself as a global brand in the Supply Chain
Management of soft drinks. Through the years, the company has establishments,
plants and operational units in almost all parts of the world. In terms of providing soft
drinks, coca-cola company is probably is one of the world’s most powerful brands.
Through use of modern technology, use of feasible operational strategies as well as
a structured supply chain, the company has made tremendous profits. In the United
States as well as other developed economies, companies use innovative practices.
In this period of social development, one cannot ignore the fact that even industries
in third world economies use innovative operations and supply chain practices.

2. Problem statement
3. Literature review (Critical analysis and argumentation)
4. Coca-Cola Business Model

 
2. Revenue Model 
 
The sale of a variety of drinks, including sparkling soft drinks, water, reinforced
water, and sports beverages and juices, milky beverages as well as plant beverages
and energy beverages, are the source of Coca-Cola income. In the whole year,
revenues are predicted to grow by 9.3% from 31.9 billion dollars in 2018 to 34.8
billion dollars in 2019 and by 4.7% to 36.5 billion dollars in 2020. The growth in
nearly all key areas will likely create higher revenues compared to slightly smaller
revenues from the transportation business. The firm announced several major
acquisitions by 2018 such that Costa Limited and a Strategic Partnership with
BODYARMOR will further drive revenue growth through Coca-inorganic Cola’s
 development initiatives. The new company, which is a rapidly increasing leader in
drinking categories, including juices, value-added dairy, and ice tea, has recently
announced its acquisition of full ownership in Chi Ltd. in Nigeria.
 
3. Key Activities
 Bottling
 Syrup manufacture and supply
 Marketing
 Distribution in enormous quantities of the physical product (franchises)
 Manufacture (franchises)
 
4. Channels
 Restaurants
 Vending machines
 Stores
 Supermarkets
 Website
 Social Media
 TV
 Snapshots
 
5. Value Proposition
The Coca -Cola Company is a consumer and client value organization. For this
organization, customers are their energy supply. The value begins with the products
of coca-cola. Therefore, more diversity of brands, pricing, packaging, and
accessibility can achieve this. This is important. Coca-Cola products also focus on
the satisfaction of the customer’s lifestyle. For instance, if someone was going to
have a diet, coke is on a diet. Consequently, Coca-Cola meets the customer’s
product requirements.
Coca-Cola has more than 400 brands (including water, juice, teas, coffees, energy,
and sodas) and wants to get its customers to try something new. The choice of coca-
cola products is actually for consumers. “Open Happiness” was one of Coca-Cola’s
slogans. Cola’s This motto was used by the consumers to allow consumers to enjoy
their products. Coca-Cola meets the current needs of consumers with non-alcoholic
drinks. The coke side of life, which is happy when you’re opening a can of coke or
any other product, is the current value offer for Coca-Cola. The coke side of life.
 
6. Target Audience
In general, Coke has no special goal and is aimed at all. The brand is nevertheless
able to reach the main consumers aged 12-23. Although the brand cannot reach
them through partnerships, such as restaurants, fast foods, like McDonald’s, or due
to its value for its consumers, even if there are no specific products or
communication at least 12 or more than 30 years old. Coca-main Cola’s target
audience is young people or young people. Their goal is not gender-based, but the
results indicate that both sexes like and use this product (nearly 50/50). Finally, each
customer is regarded as a target and a potential consumer by Coca-Cola.
 
7. Resources of Coca-Cola
The financial resources of Coca-Cola are solid and durable. Strong financial
resources are utilized to invest billions of dollars in important areas like India, China,
Russia, and a few potential countries like Vietnam. Investment funds are being used
to construct the brand, infrastructure and form a partnership for expanding the
distribution network. Intangible resources are defined as the technological resources
and reputation of Coca-Cola. Coca-Cola invests in the modernization of machinery in
terms of technological resources. Coca-commitment cola’s to employees is vital.
Their achievement hinges on their employee motivation. Therefore, Coca-Cola
commonly organizes the exam to determine the level of commitment and work
conditions satisfaction.
 
 8. Partnership of Coca-Cola
 World Economic Forum: Coca-Cola is a major supporter of the World Economic
Forum, which was founded on the premise that corporations have a responsibility to
more than just their shareholders, but also all their stakeholders – even enormous
societies.
 United States Agency for International Development (USAID): Over the previous
decade, Coca-Cola and USAID have cooperated on more than 40 projects in 30
countries and have maintained the longest-standing water and sanitation
collaboration.
 American Red Cross: Since 1917 Coca-Cola and the Red Cross have been
working together to assist needy communities through blood disaster relief, disaster
relief…
 World Wildlife Fund (WWF): For almost a decade, the WWF and Coca-Cola have
cooperated to improve the health and environmental performance of freshwater
basins across the supply, emissions, and packaging chain of Coca-Cola. Together,
we contribute to a future that is more climactic and waterproof.
 Special Olympics: We support Special Olympics’ dedication to social inclusion and
programs as a founding partner of Special Olympics since 1968, through
sponsorship, in-kind support, volunteers, and conscience projects.
 
9. Company’s Management
Coca-Cola follows a business strategy where it invests initially in bottling partner
operations that sell the final bottled product through its operating arm. Looking at the
growth Coca-Cola has seen over the years, their business strategy is very much
effective due to which they are still standing today high. Coca-Cola is a household
name around the world which is due to its excellent marketing. Through many years
after the founding of Coca-Cola, Coca-Cola has evolved by improving its quality of
products, quality of marketing.
 

Conclusion
In the beverage sector, Coca-Cola is a big global participant. It is largely rivaled by
several global brands. There is an additional competition like Dr. Pepper Snapple,
although his major adversary is Pepsi. It has become very competitive in the
beverage market. Each brand requires numerous competitive advantage sources in
this scenario to win it. By investing in crucial fields, Coca-Cola aims to create
extraordinary value. Quality and safety of products are important areas in which
Coca-Cola continues to strive for constant improvements. Increased competitiveness
and government regulation in the beverage business have become a major concern.
Coca-Cola and its bottling partners are working together to identify new growth
avenues and launch new and creative products. It is wide global presence is the
major strength of the Coca-Cola business model.
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5. SCM within inbound, operations, and outbound logistics at Coca-Cola South Africa

5.1 Inbound Logistics

Inbound logistics The main ingredients of Coca-Cola are water, sweetener, sugar, beverage
concentrate, and packaging using glass, aluminium, PET resin, or cartons as raw materials.
Coca-Cola uses sustainable practices to source these products and sources these ingredients
from countries around the world. Insight logistics in the CocaCola value chain includes
receiving, storing, and distributing product input. We connect it to the company by bringing
raw materials. Coca-Cola has a huge supply chain. Coca-Cola tried to gain a competitive
advantage in this first step. I think the supplier in the value chain is a business partner.
However, suppliers must observe several rules in accordance with applicable laws. Coca-
Cola also believes in responsible environments and workplace policies and practices. Coca-
Cola HBC's manufacturing facilities are located in 23 of the 28 countries in which they
operate, operating in a rapidly changing business environment, providing the Coca-Cola
Company with state-of-the-art local production and distribution systems. Coca-Cola
advocates the local strategy in procurement and tries its best to purchase raw materials with
standard quality from local suppliers in various markets, to reduce the transportation distance
and transportation cost. The local sourcing strategy also involves importing raw materials
from neighbouring countries in countries with insufficient capacity. Coca-Cola values
supplier diversity and will invest in it every year.

5.2 Operations logistics

5 Operations Coca-Cola's operating divisions include Eurasia and Africa, Europe, Latin America, North
America, Asia Pacific, Bottling Investments and Corporate. The CocaCola company is mainly responsible for
the manufacture and the sale of Coca-Cola concentrate and the transportation of Coca-Cola syrup concentrate to
its bottling partners for production, distribution and transportation.

5.3 Outbound Logistics

The Coca-Cola Company has the world's largest beverage distribution network in more than 200 countries. The
outbound logistics part of Coca-Cola's value chain consists of its bottling partners and distributors. Coca-Cola's
bottling partner is mainly responsible for manufacture, package, commercialize and distribute the final product
to customers. In addition to third parties, Coca-Cola owns its own bottling and distribution businesses,
wholesalers and retailers. Coca-Cola ensures that retailers in every region of the world always stock a wide
range of Coca-Cola products. Timely delivery, safe transportation and efficient delivery are the basis for the
smooth operation of the Coca-Cola value chain. This has enabled Coca-Cola to maintain a strong relationship
with retailers and Advances in Economics, Business and Management Research, volume 656 986 customers and
a high level of loyalty.
 5.4 Quality Management Systems

The Coca-Cola system is governed by the Coca-Cola Operating Requirements (KORE) to

ensure consistency and reliability in product quality, health and safety, and environmental
standards (Coca-Cola, 2010). To meet customer requirements and expectations, Coca-Cola
produces high-quality products. It is the responsibility of all staff to check the quality, from
hygiene operators to product and packaging quality, to ensure maintained quality. Within this
context, Coca-Cola uses inspection throughout its production process to ensure that each
product meets specific requirements, reducing the chance of product recall and being easy to
implement and cost-effective (Summers, 2009). This entails product sampling after
production in order to apply the corrective measures to maintain product quality (Coca-Coal,
2011).

Coca-Cola uses Quality Control (QC) and Quality Assurance (QA) to ensure consistency and
quality, using state-of-the-art computers to check all aspects of the production process
(Muirhead, 2011). These reduce the risk of defective products reaching customers, focus on
the quality of supplied goods, and train staff to operate machinery efficiently. This requires
highly skilled engineers to fix problems and maintain high outputs (Summers, 2009). Bottles
are checked for fill level, label, and utilization level, using a computer and scorecard system
to increase production levels if necessary. Coca-Cola also uses Total Quality Management
(TQM) to improve the quality of its products, increase teamwork, and reduce waste and costs,
providing a competitive advantage (Hradesky, 1992). TQM is used during the production
process, to measure customer satisfaction, as well as measure its corporate social
responsibility

5.4.1 The Production Process

Quality checks are performed to ensure hygiene and product quality, allowing production to
begin. This activity includes the use of Questar database system in performing checks on the
line. This check eliminates production problems and ensures the correct alignment of
materials. Yet another quality check includes packaging and carbonation to ensure they meet
standards. 2000 spot checks are further carried out by lab technicians. Quality checks include
the CO2 and sugar values, micro testing, packaging quality, and cap tightness. Continuous
improvement can be used to adhere to environmental and social principles, saving money on
packaging costs and revealing opportunities for improvement. It can also lead to big changes
within the organization.

Coca-Cola (2011)'s Global Product Quality Index and Company Global Package Quality
Index have consistently reached averages near 94 since 2007, with a 94.3 in 2010 indicating
the quality system is working well throughout the organization, and that product consistency
is being recognized by Coca-Cola consumers.

5.4.2 Customer satisfaction

Coca-Cola codes its bottles in order to trace back the plant that produced any faulty bottle,
and where it was distributed to. This exercise helps Coca-Cola to easily recall all faulty
batch/group of bottles well before it reaches a wider customer base. Coca-Cola also has On-
Time-In-Full (OTIF) rating system for distributors to monitor if they deliver timeously and
correctly (Muirhead, 2011). Coca-Cola further uses mystery shoppers to measure customer
satisfaction.
 5.4.2 Corporate Social Responsibility

Coca-Cola's Corporate Social Responsibilities (CSR) are integrated into the business model
and must comply with the law, ethical standards, and international norms. It includes
beverage benefits, active healthy living, community, energy and climate, sustainable
packaging, water stewardship, and workplace. Coca-Cola also adheres to the ISO14001
guideline to implement, maintain and improve an environmental management system (Coca-
Cola Enterprises Ltd, 2011). Coca-Cola's Water Stewardship initiative had aimed to improve
water efficiency by 20% by 2012, but the Edmonton factory was struggling to meet this level.
Coca-Cola also supports litter prevention organizations, such as Tidy Britain Group and
Coca-Cola Great Britain (The Times 100, 2010)

Findings

Criticisms of Coca-Cola
In 1999, Coca-cola released Dasani bottled water onto the shelves, which ended up turning
into a disaster for Coca-cola and as a result was taken off the shelves. There were
speculations over the quality of the water and that Coca-cola had simply filled each bottle
with purified tap water. It has been stated by BBC news (2004) that the water is that of the
mains supply from Coca-cola’s plant in Kent. This bad press put Coca-Cola’s brand into a
bad light and raised questions over the quality provided to consumers.

Recommendations Still to add more!!!!

Based on the findings of this report, it seems that Coca-Cola has an efficient and productive
quality management system. However, some recommendations can be made that Coca-Cola
could consider in both the short and long term. The Coca-Cola Company has high uncertainty
about the usage of raw materials, which are used to create their products. This may not be an
issue at present but with raw material supplies becoming increasingly scarce there could be
pressure to use more recyclable materials. The company faces criticism of health and safety
and packaging obligations, which can affect the social image of the company. Therefore, the
use of continuous improvement is a significant concept within the quality management
system and the business should look to find the most recyclable packaging available.
Although this could help reduce their carbon footprint, different materials may affect the
quality of products and the cost of production. This is something that would need to be
considered by the company. This may not be the best option financially in the short term but
could boost social image in the long term.

Conclusion
The educational visit to Coca Cola Enterprises and the research conducted via other sources
suggest that the company has a very efficient and productive quality management system.
The global presence that Coca Cola has means that its quality system needs to maintain a
high level of consistent products which meets the standards expected by its consumers
worldwide. Research shows that the system in place enables Coca Cola to measure all parts
of the production process with large success. This is reflected in the Company’s Global
Product Quality Index rating which has consistently reached 94%. The effectiveness of this
system allows for the organisation to profit by creating various distribution centres all over
the world, applying the same quality principles. Without this quality system in place, Coca
Cola may have found it tougher to penetrate international locations. One important aspect to
Coca Cola is their brand image and this quality system does its best to promote this image
providing checks throughout the production process. Other ways in which Coca Cola tries to
increase its social standing is by adopting sustainable approaches to environmental initiatives.
These factors are important to maintaining quality in the design and development of new
products, packaging, production processes and factory facilities. The water stewardship
scheme is an example of this.

However, the recommendations suggested provide Coca Cola with some areas to consider.
Environmental and social factors which are likely to influence the quality system are the most
important recommendations. Continuous improvement throughout the organisation could
offer some ideas about these issues which could maintain or improve upon the current
product quality index rating. Nonetheless, the current system in place seems to be extremely
effective and allows Coca-Cola to distribute its products on a global scale producing
consistently high products with rare cases of defection. It is clear that the system has gone
through various transformations that have improved the way in which quality is managed and
without these changes, customer demand would struggle to be achieved.

References
BBC News (2004). ‘Soft drink is purified tap water’ (?online?) Available at:
http://news.bbc.co.uk/1/hi/uk/3523303.stm (Accessed on 19th April, 2023)

Coca-Cola (2010). Introduction to our business. (Online) Available at: http://www.coca-

cola.co.uk/about-us/introducing-our-business.html (Accessed:13th April, 2023) 

Coke Education (2009). ‘Coke Education Production Video’ (online) at:

http://www.cokeeducation.co.uk/resources.html (Accessed 16th April, 2023).

Coca Cola eKOsystem (2002).

http://www.thecocacolacompany.com/citizenship/eKOsystem.pdf (Accessed 18th April,
2023)

Coca-Cola Enterprises Ltd (2011). ‘Corporate Responsibility and Sustainability’ (online)

Available at: http://www.cokecce.co.uk/corporate-responsibility.aspx (Accessed 18th April,
2023)

Guardian (2006). ‘Has Coke become the new McDonald’s’ (online) Available at:
http://www.guardian.co.uk/media/2006/aug/18/marketingandpr.business (Accessed 17th
April, 2023)

ISO 14001 Environmental Management. (2002). http://www.iso14000-iso14001-

environmental-management.com/iso14001.htm (Accessed 18th April, 2023)
Muirhead, B. (2011). Coca-Cola Enterprises Ltd. Edmonton. ‘In Communitcation’. February
22nd 2011

Pendergrast, M. (2000). For God, country and Coca-Cola: the definitive history of the great
American soft drink and the company that makes it. Basic Books.

The Times 100 (2010) Examples of environmental initiatives. (Online) Available at:
http://www.thetimes100.co.uk/case-study–corporate-citizenship-and-the-community–3-81-
11.php (Accessed 16th April, 2023) 

The Coca Cola Company-Quality (2011)

http://www.thecoca-colacompany.com/citizenship/quality.html (Accessed 16th April, 2023)

 Section 1: Introduction and problem statement (complete with Abstract).

 Section 2: Body and argument (critical analysis and argumentation, infusion
of theory with practice)
 Section 3: Findings/recommendation (with evidence)

Introduction

Operation management consists of various concepts and procedures. Supply chain

and operation management are therefore important aspects for organizations. These
aspects assist an organization meet market demands. Through the application of
concepts such as lead-time, lean production and human resource strategies,
organization meet market demands. These concepts further assist an organization
overcome market barriers and competition. Operation and supply chain management
principles therefore relate to planning, designing, controlling and improvement of the
service and manufacturing operations. However, it becomes necessary for
organizations to ensure that its operation and supply chain activities are in constant
transformation. For instance if the market demand exceed supply, an organization
might have to change its production capacity.

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The company might acquire new machinery, add new management teams or
collaborate with other players. Coca-cola Company is an American multinational
company specializing in manufacturing and distribution of nonalcoholic beverages.
The company’s best-known product came into the market in the year 1889. Over the
years the company has met its customer’s demand using its distribution system
dating as far as the year 1889. The company has faces various challenges in its
production and supply. To counter these challenges, Coca-cola has transformed its
manufacturing process, its supply chain and operation procedures.

Operation and supply management at Coca-cola

Coca-cola is an iconic beverage maker all over the world. The company has had
tremendous influence on most individuals. Coca cola’s dominance in the beverage
market has made it a leader for almost a century over the globe. Therefore, one can
attribute its influence on different societies. From recent data, it has come out clear
that Coca-cola company still reigns over various markets. The company has
continued with its dominance thus rated top in the market in the year 2011
(Pendergrast, 2000). The company has been able to maintain this position using
diverse strategies. One of these strategies is the achievement of its vision and
mission statements. The company has maintained its vision over the years. This
therefore has seen the company develop frameworks and other policies that ensures
excellence in operation.

Operation management entails activities such as engaging employees in production.

Operation management on the other hand entails the use of technology and other
strategies. In relation to operations, the Coca-Cola Company has teams of managers
and employees all over its branches. The company additionally has undertaken
various acquisition strategies. These acquisitions include the acquisition of Minute
Maid in the year 1960. The company also acquired Thums Up and Barq’s in the year
1993 and 1995 consecutively. Its acquisition strategies further includes the
acquisition of Odwalla, which came at a cost of $181million. Other acquisition
includes the acquisition of Fuze Beverage at $250 million (Pendergrast, 2000). The
company’s strategies have seen it venture into other businesses. In the year, 1982
coca-cola company acquired Colombia Pictures at a price of $692million.

From this investment, Coca-cola company perhaps made one the best strategic
decision of the time. It sold the same movie studio to Sony at a price of $3 billion in
the year 1989. This strategic operational move meant that the organization had
funds to move into new markets. In terms of its operation, Coca-Cola Beverage
Company acknowledges that the influence of employees is crucial to its success.
Therefore, the company’s strategic goal is to ensure that employee needs
satisfaction. In order to meet this need, the organization observes employment rules
and policies. Since Coca-Cola Company has a global market, its employment
policies vary from regions. However, the organization observes ILO principles of
employment and other laws pertaining to countries of operation (Castellanos et al
2005). In order to remain relevant in the market, Coca-Cola Company has replaced
its old systems with new ones.
This strategy has seen the company maintain its long-term goal, which ensured the
company maintains a competitive edge in the market. Companies operating in
manufacturing of beverage products undergo various challenges. These challenges
include cost factors, logistical influences and ever policy influences. In order to
overcome these challenges, Coca-Cola Company has modernized its operation
chain. These meant that the company purchases new machinery, advertise products
at various platforms and recruited skilled employees. Over the years, the company
has been able to transform its manufacturing process through the acquisition of new
plants. The company has also ventured into other markets. Its marketing campaign
has seen Coca-cola products meet African, America and Europe beverage needs. In
the year 2010, the company completed a contract, which saw its products penetrate
the European market.

With current technological improvements, Coca-Cola Company has been able to

meet its supply chain responsibilities. The company has been on the forefront in
utilizing Information Technology in advertising its products. The company uses T.V,
the internet and other platforms in ensuring consumer awareness. Moreover, its
supply chain responsibility means that the company has to transform its supply chain
management policy. As part of its program, the company has transformed its supply
chain through its 17 European plants (Pendergrast, 2000).

This has seen the organization use SAP enabled programming in operations. These
program coded Genesys integrates the use of Enterprise Resource Planning (ERP)
to eliminate traditional CCE’s system. This program is a lead-time strategy since it
shortens the time of operation. The system process information for the organization
in “order to Cash” “Record to Report” and “requisition to payment fashion. This
influence has seen the organization ensure timely payment of suppliers, payment of
raw materials and in recording of data.

Operation management

Operation management in organization has various advantages. Proper operation

management principles ensure that organization meet its human resource
management needs. Operation management assists in the supply chain activity as
well as marketing products. Operation management in organizations is concerned
with the designing, overseeing and controlling the process of supplying and
production. For manufacturers, sound operation management strategies, ensures
that the manufacturing process follow quality standards. The process of
manufacturing needs to have skilled work force (Castellanos et al 2005). Operation
management additionally is concerned with the responsibility of ensuring that
business operations run according to schedule and efficiently.

This therefore will entail the management of resources, management of customer

requirements and government policies. Management of operation in organization
further relates to the management of information. Information flow in such
organization ensures that customers get information on products. Information
management also ensures that information flow in organization. In organization such
as Coca-Cola Company, information management ensures that customers get
information on latest brands. Information is essential in communicating business
strategies as well as operational procedures (Castellanos et al 2005). Therefore,
operation management assists in the management of factory, production systems,
and production control, employee needs and strategic policies. Operation
management also assists industry players in cost control, system analysis and
production analysis.

Operation management at Coca-Cola Company

Coca-cola is the world’s leading manufacturer, marketer and distributer of

beverages. The organization concentrates in the manufacturing of beverage syrup
as well as beverages. Coca-cola depends on its management teams, quality control
process as well as production policies. With a network of branches and bottling
partners, the company produces more than 300 brands across the globe. Its
operation on the global arena concentrates in over 200 countries (Pendergrast,
2000). According to its strategy, Coca-cola company members of staff perform their
manufacturing function in line with company policies as well as market policies.
While operating in these vast markets, Coca-Cola Company provides beverages in
accordance with local market preferences.

Through the years, company policies have been targeted towards understanding
local cultures and tradition. When a company understands the local culture of the
market, it becomes easier to penetrate the market. Understanding of local cultures
ensures that the organization provide high quality beverages. On top of these, Coca-
Cola Company has contributed to various projects around the world. Their
contribution to communities across the globe relates to their strategies in providing
health, educational and environmental services.

In relation to quality and design, the Coca-Cola Company has developed various
policies over the years and according to environmental needs. These policies are
important in ensuring that employee’s perform their duties effectively. Policies of the
company ensure that the manufacturing process results in quality products and in
time. Since beverage products consumption is frequent, Coca-cola has effective
supply chain systems. The world in the year 1886 was introduced to glass bottled
beverage from Coca-Cola Company. In the year 1916, multiple bottle designs came
into the market. Quality management is perhaps the most important for
manufacturing firms such as the Coca-Cola Company. Quality management is an
important aspect since it entails various processes (Castellanos et al 2005). These
processes begin from products design, production and even marketing.

Coca cola’s quality management activities consist of various processes and

procedures. Coca-cola beverages have been packed in glass bottles since its
inception. However, as their production process progressed over decades, the
company uses glass as well as plastic bottles. Further, due to market preferences
the company has to change its bottle designs. By the year 1980s Coca-cola
company had already diversified its family brands. The company on the other hand
expanded its operation bases in the 1990s.

Organizational leaders at the company understand that quality differentiates them

from competitors. Therefore, to meet their quality needs the company introduced
Coca-cola Quality System in the year 1995. The system coded TCCQs, has seen the
organization meet quality environmental standards as well as internal standards. The
system has been effective ever since in ensuring the guidance of corporate activities
as well as meeting customer needs. However, while promoting such a strategy.
Management teams in the organization have to undergo diverse operational
challenges. These operational standards relate to the organizational structure,
resource challenges and challenges resulting from external standards.

Coca-cola quality assurance principles ensure satisfaction of company is operational

and meet supply chain needs. This quality management principle has been important
in ensuring that company policy, assurance and control meet regional as well as
global standards. In relation to policy, the management teams of the company
concentrates on ensuring that employee needs, manufacturing process as well as
supply chains meets customer needs. The policy statement of the company
concentrates on safety, environment and on product quality.

In relation to Assurance, the company has management systems that ensures

compliance, adherence to procedures by employees and in ensuring consistency of
production. Controlling process on the other hand relates to inspections and testing
procedures. By ensuring good manufacturing practices, Coca-cola has been able to
customer needs. As a result of maintain good manufacturing processes, Coca-cola
company attained a profit margin of $173.05 according to Forbes data (Pendergrast,
2000). Moreover, the company has an operating committee under the leadership of
the C.E.O. The operating committee ensures effective coordination of activities as
well as assists in decision-making.

Supply Chain at Coca-cola

Supply chain management has been an important aspect in today’s organization.

Supply chain management ensures timely delivery of products and information.
Since it involves managing the flow of goods, raw materials as well as final products
need to be part companies’ strategies (Lambert,2008). In relation to the Coca-Cola
Company, supply chain management involves formulation of supply chain strategies.
The company’s strategy in relation to supply chain has seen the organization open
branches all over the globe. The company supplies its beverage products in Africa,
Europe, America and other regions of the world. Its supply chain system is structure
to ensure that products reach the market. It is the policy of Coca-Cola Company to
ensure that customers purchase quality products. Coca-cola supply chain
management begins from acquisition of raw materials, processing to distribution of
finished products.

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The company ensures that products reach customers in time. In order to meet these
goals, the organization has opened numerous manufacturing branches. Each of
these branches needs to meet local demand needs. Distribution of these products on
the other hand, becomes part of the company’s supply chain needs. Coca-cola
Company manages its supply through personally distributing products or using other
businesses such as stores. In order to meet its supply chain needs, the company
employs competent workforce, uses integrated management systems as well as IT
frameworks (Pendergrast, 2000). The company therefore has integrated SAP into its
management practice. On the other hand, the company utilizes Enterprise Resource
Planning software. In order to fill the between supply and demand the firms utilizes
internet as well as other platforms in marketing.

Recommendation

Coca-cola Company has dominated the beverage industry. However, there has been
growing competition from other players. This competition contributes to decrease in
market share as well as sales volume. To limit such influences, the company needs
to acquire other businesses. The company on the other hand might market its
products using the internet. The internet can be an important tool for the
organization. Its strategy might involve use of social media platforms in marketing
and in evaluating customers’ responses. The company might enter into mergers with
other organizations. A very lucrative merger would involve mergers with restaurant or
bakeries. In addition, in order to meet customer needs the Coca-cola might open
distribution shops around neighborhoods

References

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Lambert, D. M. (Ed.). (2008). Supply chain management: processes, partnerships,

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