Course title - Introduction to Production and Operation Management

Course ID – MGT330.
Section – 5.
Semester – Summer 2022.
Team name – Team Coca-Cola.
Submission date – 20th August, 2022.
Submitted to - Dr. Md. Kharshiduzzaman.
NAME ID
Twaha Tanzim 1831082
Md. Rafshan Jany 1831199
Suraiya Akhter Labony 1811210

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Table of Contents
Executive Summary.....................................................................................................................................3
Introduction.................................................................................................................................................4
Coca-Cola Supply Chain...............................................................................................................................5
The Standard process within the Coca-Cola supply chain........................................................................5
Logistics Department of Coca-Cola..........................................................................................................5
The Case Study on Coca-Cola......................................................................................................................6
Findings and Analysis...................................................................................................................................9
SCM Facilities...............................................................................................................................................9
Conclusion.................................................................................................................................................12
Reference..................................................................................................................................................13

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Executive Summary
Located in North Atlanta, Coca-Cola is a global corporation. It has been exporting its goods and
the Coca-Cola brand of beverage worldwide. This has led to millions of people drinking Coca-
Cola as a result. In order to produce products more rapidly and get them to distributors as quickly
as possible so that they can be sold to customers, the parent firm has partnered with all of the
local manufacturers in every country. Despite their global fame, their primary issue is that they
do not adhere to a core supply chain.
The Coca-Cola business should implement a suitable and consistent supply chain management
strategy so that every producer may receive appropriate guidance and comply to a single process
when producing Coke. They are not appropriately moving forward since they are pursuing
multiple supply chains rather than just one. So, only one supply chain management strategy
needs to be used in order to keep everything in working condition. According to this claim, the
Coca-Cola business has developed a number of innovative technologies to help it operate more
effectively, respond to consumer demands more rapidly, and create fewer waste products overall.
They need to satisfy their consumers' demands and wishes because there is a huge global market
for their products.
Innovative business concepts are being developed. The beverage Coke is produced using the
individual inputs of each manufacturing sector. Coca-Cola uses enterprise resource planning
(ERP) software to retain data about its supply chain, promote transparency, and enhance
relationships with all parties involved. Their daily input costs are declining, and their degree of
efficiency is rising.

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Introduction
Supply Chain Management is the management and process of coordinating the activities of the
operations from the purchase of raw materials from suppliers to the production of finished
products. From raw material to finished product is a
Transformation process, and the final finished product is delivered to the customer at the other
end. To add value in the conversion process, the conversion process must be maintained in a
Sequential manner. Supply chain management is the process of planning and managing the steps
involved in producing and distributing a product.
Coca-Cola is a well-known brand and a company operating in about 210 countries, so it lacks
proper supply chain management. Billions of Coca-Cola beverages are manufactured and served
to customers locally, using only a secret ingredient. Only the specified ingredient is supplied by
the parent company. Each country manufactures Coca-Cola beverages in their own way, using
their own sets of operations of workers, ingredients, and suppliers. They have their own
equipment and facilities to produce Coca-Cola. The Coca-Cola Company is the only parent
company of Coca-Cola products. Coca-Cola is produced in Atlanta, in the United States of
America. The parent company only supplies the secret concentrate ingredient so that all
beverages have the same taste and nothing else.
There isn't a single supply chain management operation, not even for a single brand.
Diversification exists, and the parent business does not exercise control. Therefore, the parent
firm must make sure that all Coca-Cola makers must maintain a single supply chain, adhere to a
single directive, and utilize the same ingredients while producing the beverage. To prevent the
Coca-Cola drink line from becoming more diverse, this must be ensured. All manufacturers
should adopt new technologies similarly.

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Coca-Cola Supply Chain
Coca-Cola beverages supply chain is as follows:
1. Manufacturer
2. Distributor
3. Retailer
4. Consumer
The Standard process within the Coca-Cola supply chain is as follows:
 Coca-Cola Enterprises or another bottling partner purchases the concentrated syrup and
then sells it to Coca-Cola Enterprises or another bottling partner, who is in charge of
managing sales in North America and Canada.
 The production plant receives the syrup from the bottling partner and blends it with
additional additives like sweeteners and filtered water. The bottler then delivers the
finished product to retail partners like shops, eateries, and vending machines after
packaging it.
 To get the drink to the right markets, Coca-Cola Export Corporation partners with
regional bottlers all around the world.
Logistics Department of Coca-Cola:
Any supply chain must include logistics, and Coca-logistics Cola's know-how unquestionably
helps the chain function well. The following are a few of the best practices in logistics that Coca-
Cola has adopted:
1) Produce goods more frequently, such as once per week.
2) Move manufacturing facilities nearer to consumers.
3) Schedule weekly meetings for teams located all over the world.
4) Outlining regular interactions among the primary sites.
5) Establish a streamlined procedure that each supply chain participant can use.

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The Case Study on Coca-Cola
As a truly global company, Coca-Cola may only need to manage one major channel: supply
chain management. In order to quickly supply the local markets, Coke has used a distributed
supply chain approach. The parent Coke Company, headquartered in North Atlanta, focuses
solely on producing the extremely confidential concentrate that it then distributes to the various
manufacturing sites across the world.
Coke made a fairly ingenious innovation by strategically placing various manufacturing sites in
each of the markets where this beverage is consumed. Each manufacturing facility has its own
set of suppliers and logistic service providers, unique billing and collection methods, as well as
individuals that supply a variety of inputs needed for the creation of this renowned beverage
from across the world. To achieve a perfect locking intimacy with the consumer at each place,
many improvements have been made for each manufacturing and supply location.
Amazingly, the parent company has allowed each of its local production facilities to act as an
autonomous partner in creating this perfect solution that guarantees bulk supplies of the world's
most popular beverage. I'm here. Had parent company Coca-Cola pushed the concept of
centralized manufacturing, it would have been an incredibly gigantic undertaking. The
originality and consistency of the taste are maintained thanks to the central supply of
concentrates. As a result, the taste of cola is the same everywhere in the world. This is probably
the first and biggest innovation in the coke supply chain. This white paper will specifically see
how plating has been innovated, such as explaining some of the philosophy of COKE's
supplementary chain in detail.
Coca-Cola Refreshments, USA uses a VoIP system at its corporate facility in Atlanta. There is a
well-designed voice application hosted on a series of servers spanning data centers, PABXs, and
over 100 facilities using voice systems. The main technology behind this is a speech recognition
and text-to-speech application. This application transforms previously created Voice XML into
language-based instructions that workers can execute. The beginning of this whole system is that
it is centrally generated and verified in the ERP system and passed to the application to generate
orders in voice XML format. These pages are then routed to the PABX system, ready for transfer
to the person calling the system. At the warehouse, the order selector logs in and first prints a
paper picklist and her, then selects a VoIP phone and headset. Each phone has a separate IP
address. When the logs into the system, selectors receive instructions in English, Spanish, or
French.
The system chooses the order to be picked after proper verification and review of the selector's
profile. After being directed to a slot for picking the order, the selector uses a forklift to get there.
After verifying the slot number, the picker is told to choose the correct item and quantity. The
selector is then sent to a printer to produce a palette label. The system then requests the selector
to stretch wrap and stage for delivery after receiving confirmation. This technology, which is
entirely based on VoIP, allows for incredibly quick and accurate order picking and packing that
is almost error-free.

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Each of Coke's manufacturing partners uses either SAP or Oracle as their ERP system to ensure
meticulously accurate servicing of orders received. All of these partners are aware of how
important supply chain management is for businesses. This guarantees that the person picking up
orders from stores on the ground always delivers the right orders, keeping the retailer, who plays
a crucial role in the entire supply chain, pleased. Nearly all of the partner plants have finished
automating, and they are always packed with cutting-edge ERP systems.
Coca-Cola Shanduka drinks improved customer service by utilizing the Coke One Foundation
Solution from the parent firm. This specific model's fundamental tenet is the elimination of non-
value-adding activities, the use of human intelligence to concentrate on analysis rather than
transactional issues, as well as a focus on the future and present rather than reconciliation and
reporting of the past, with the goal of steadily improving customer service. Instead of merely
facilitating processes across the firm through IT, this offers a framework for business
transformation and direction. The results of this particular process include increased customer
satisfaction because of consistently defined processes and procedures, real-time access of
pertinent information, process visibility, the creation of a single solution platform, and enhanced
process visibility.
Each manufacturer often produces millions of cases per day, so there is a need to have
standardized processes. This was included in Coca-vision Cola's 2020 business strategy. In order
to achieve this, both inventory reduction and yearly incremental sales are specifically mentioned
in the Coca-Cola vision 2020 business strategy. Coca-Cola has selected Oracle transport
management to handle both inbound and outbound transportation in order to meet these goals.
On both sides, carriers are integrated.
One of the benefits of the aforesaid approach is that the finance team at Coca-Cola would have
the authority to audit each and every invoice without exception and to quickly approve it. Every
time there is a pick-up or delivery, the transportation management system makes sure that status
notifications are generated. Additionally, this aids in tracking the carrier. Additionally, this
solution guarantees simple efficiency and freight cost control improvements.
With 17 facilities, Coca-Cola SCMC, China, using Digi-TRACC technology. In the first year of
operations, the use of Digi-TRACC technology increased mechanical efficiency on the three
manufacturing lines by 10, 16, and 20%, respectively. There was a 35% decrease in the amount
of electricity used for every liter of beverage, and a 41% decrease in the amount of fuel used for
every liter of beverage. The amount of water consumed per liter of beverage increased by 49%
concurrently. All of this took place despite difficulties with language, a lack of skilled workers,
attrition, and unpredictable machine performance. Additionally, the order fulfillment rate has
grown to 98% and unscheduled downtime has decreased by more than 50%.
SAP helps the European Coca-Cola Enterprise overcome supply chain difficulties. Despite
working in a highly developed market, Coca-Cola Enterprises encounters its own set of
difficulties in arriving at the market on time. The majority of Coca-Cola Enterprises' processes,
including order processing, financial transactions, and procurement, have been connected since
SAP was implemented, and they now provide to the end user without any interruptions.

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Coca-Cola Enterprise's traditional systems were replaced by the SAP solution in a number of
processes, including order-to-cash, requisition-to-payment, and record-to-report, among others.
Here, IT-main enablement's goals are to shorten cycle times, improve the processes'
effectiveness, increase visibility, and improve decision-making.
Coca-Cola Enterprises must fully integrate their manufacturing process into the replenishment of
shelves in the retail outlets because they are a self-replenishment business. This will properly
integrate product manufacturing and supply.
All of the manufacturing and supply partners of the parent Coca-Cola were given freedom to
develop and accomplish the goals outlined in the vision plan. To better serve the end user and
improve productivity, effectiveness, and visibility across all of their processes, each partner has
innovated in a unique way. At the individual level, a whole range of ERP systems, VoIP
solutions, and cutting-edge technology have been leveraged to creatively accomplish the
strategic goals outlined in the vision document. The adage "necessity is the mother of creativity"
seems to have been adopted by Coke, who believes that innovation is the key to improving both
customer service and profitability for both themselves and their partners. The decision by Coca-
Cola to decentralize and provide its partners and stakeholders the flexibility to innovate has paid
off handsomely for both parties.

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Findings and Analysis
The parent firm for Coca-Cola drinking drinks, the Coca-Cola company, is located in North
Atlanta. Because its beverages are distributed all over the world, Coca-Cola is an American
multinational corporation that seeks to grow daily by increasing consumer usage. In order to
control the entire firm and ensure that everything is carried out in accordance with the procedure,
it is concentrating on how to maintain proper supply chain management. Since Coca-Cola is
well-known throughout the world and must be distributed to consumers and every nation as soon
as possible, it authorized all manufacturers in over 200 nations to produce this well-known
beverage. As a result, the Coca-Cola industry produces the drink known as Coke in every nation.
To safeguard and preserve the drink's flavor all across the world, this company has been
dispersing its exclusive formula. In order to keep the same flavor, all manufacturers from all
nations use a secret concentrate that is supplied to just those makers.
Every manufacturer has their own methods for manufacturing beverages, including their own
suppliers, personnel from the logistics department, equipment, and ingredients to be used. Only
the parent firm provides the highly-secret concentrative component. Because they use a distinct
supply chain, various techniques are used rather than just one. So, in this instance, the author
discussed the primary issue facing Coca-parent Cola's firm, which is keeping a single supply
chain management. They have created new inventions in addition to their own machinery to
perform more effectively and simply in order to satisfy customer requests.
SCM Facilities:
According to its corporate headquarters in Atlanta, Coca-Cola uses a VoIP system to interact
with each of their 100 locations throughout the United States. VoIP is a voice application that is
housed on the server bank of PABX's main data center. The order is generated centrally, verified
in the ERP program, and then transformed into a speech XML format for the employees.
Workers in the warehouse or production plant receive voice-based instructions using this
technology, which transforms voice XML. Inside the warehouse, order selectors have access to a
VoIP phone and headset they can use to get instructions on which product items to pick and in
what quantity. This VoIP system ensures that the logistics department's faults are kept to a
minimal and makes choosing and packing things for delivery a breeze.
Coca-partner Cola's facilities all recognize the value of a strong supply chain, which is why they
use cutting-edge supply chain management tools like SAP (Systems Applications and Products
in Data Processing) and Oracle SCM to build a strong ERP (Enterprise resource planning)
solution. These software firms are well-known throughout the world for their capacity to assist
global businesses in resolving supply chain issues and thriving.
In order to cut expenses and unnecessary activities, Coca-Cola used the parent company's Coke
One Foundation Solution in its Coca-Cola Shanduka products. Instead of only assessing previous
reports, it placed the greatest emphasis on understanding the current and future needs of the
clients. As we can see, Coca-Cola is making predictions about future trends. It is an aspect of
SCM's activity. As a result, real-time information about the processes is made available, which is
related to higher levels of customer satisfaction. This supply chain ensures information flow. The

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main danger to SCM is information. Coca-Cola wouldn't be able to gather various data and
conduct analyses along the supply chain without guaranteeing it. Additionally, two requirements
of SCM are raising customer happiness and improving operations. The case demonstrates the
significance of IT in Coca-operations Cola's management and how they utilized technology to
reduce inefficiency, waste, and cycle time while keeping their consumers content by satisfying
their requirements. This is what makes Coca-Cola such a sizable global powerhouse.
The firm often supplies millions of cases every day as part of its logistics to the supply chain. As
a part of Coca-vision Cola's 2020 business strategy, standardization became a crucial component
of the organization to maintain its quality. Additionally, Oracle transport management is
approved to handle inbound and outbound transportation in order to decrease inventory and
boost annual sales. Carriers from both sides are included.
The transportation management system makes sure that status notifications are created whenever
there is a pick-up or delivery. The carrier's tracking is helpful as well. Additionally, this method
guarantees efficiency gains and effective management of freight costs. The majority of the
American multinational company's contemporary supply chain concepts are highlighted in this
case.
The 17 factories of Coca-Cola SCMC, China, using Digi-TRACC technology. In the pilot lines
and three production lines, respectively, the usage of Digi-TRACC technology enhanced
mechanical efficiency by 10, 16, and 20% during the first year of operations. In addition to a
41% decrease in fuel consumption per liter of beverage, there was a 35% decrease in power
usage. At the same time, there was a 49% rise in the amount of water consumed per liter of
beverage. All of this took place despite communication barriers, a talent gap, employee churn,
and inconsistent machine performance. The fulfilment rate increased to 98 percent, and
unexpected downtime was reduced by more than half.
The European Coca-Cola Enterprise uses SAP to handle supply chain issues. Despite competing
in a highly competitive market, Coca-Cola Enterprises faces its own unique set of hurdles in
order to remain on time in the market. The majority of Coca-Cola Enterprises' operations,
including order processing, financial transactions, and purchasing, are now effortlessly provided
to the end user thanks to the integration of SAP.
The SAP solution replaced Coca-Cola Enterprise's conventional systems in a number of
procedures, including order-to-cash, requests, and record-to-report. In this instance, reducing
cycle durations and enhancing efficacy while enhancing production and decision-making
procedures are the major objectives.
Since Coca-Cola Enterprises is a self-replenishing company, the entire supply chain process
must be properly integrated. Even so, they are doing things correctly by integrating the
replenishment of store shelves into their production process. Here, they focus on retail
establishments such that their strategic inventory buffering and replenishment in response to
demand might aid supply chain management in overcoming the bullwhip effect. As a result,
specific retail outlet inventories may be supplied as needed based on point-of-sale data from
retail outlets as well as information on retail outlet stocks. As a result of the integration of all

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related processes onto a single digital platform, time is saved and efficiency is increased.
Additionally, by giving suppliers responsibility for inventory ownership, management, and
replenishment, Coca-Cola is able to reduce expenses. As a result, orders are processed more
quickly and goods are converted into cash.
Strong supplier ties are crucial when it comes to rush orders and changes, and suppliers are an
excellent source of information about product and material updates. Due to this, the parent
business of Coca-Cola has developed a vision and set high standards for its partner production
companies. In order to better serve the demands of their individual local clients, they offered
their partner bottlers the opportunity to innovate their business operations, while maintaining the
coca cola brand's reputation globally with a uniform production method. Coca-Cola has adopted
numerous digital tactics to maximize the value added to its supply chain networks, including
VoIP systems and a variety of ERP solutions that integrate their operational processes and boost
productivity. Since each country's geographical market is unique, Coke has realized that
innovation is the key to achieving and maintaining global success. As a result, they encourage
their international partners to innovate by analyzing the customers' needs according to each
location and developing a supply chain network that is advantageous for everyone starting from
the supplier, manufacturer, distributor, retailer, and lastly the end consumer.

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Conclusion
Due to consumer demand, Coca-Cola is supplied all over the world because it is a multinational
corporation and a well-known brand thanks to its iconic beverage. As usage increased globally,
this beverage is also manufactured in over 200 nations in order to get it to the final
consumers/customers more rapidly and to make money. Each nation has a unique set of
machinery, a logistics division, and suppliers to produce the beverage's ingredients. The parent
firm provides a secret concentrate component to all the manufacturers in the country producing
the beverage to ensure that the taste remains the same, despite the fact that different types of
inputs are used to generate this drink around the world.
Numerous technologies are being implemented, such as the VoIP and SAP systems in the United
States and the Shanduka system's utilization of the parent company's Coke one foundation
system. The procedure would be more effective and less expensive to consume while generating
if all beverage production companies used the same technologies. Everyone should adopt this
production supply chain. To oversee the entire process, there should be a single supply chain
management. By utilizing all the processes, costs would be reduced and product production
would be more effective, leading to improved output. In order to prevent waste and damage from
additional production, adequate communication and knowledge of the appropriate level of
production are required. So the Coca-Cola Firm should build a single supply chain from the
parent company to increase communication.

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Reference
1. Example Of Coca-Cola Supply Chain Research Paper. (2020, March 5). WOW Essays.
Retrieved August 15, 2022, from Example Of Coca-Cola Supply Chain Research Paper | WOW
Essays
2. Coca-Cola. (n.d.). Wikipedia. Coca-Cola - Wikipedia

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