COCA-COLA’S SUPPLY CHAIN

Group 7

Members: Dang Uyen Nhi

Ton Nu Hoai An
Do Thuy Anh
Truong Thi Hoang Van
07. 12. 2021
 Contents:

Introduction Coca-Cola’s supply chain Describe flows in The Advantages &

Describe the components the supply chain Disadvantages
Proposal
01
INTRODUCTION
 About The Coca-Cola

 The Coca-Cola Company, headquartered in Atlanta, Georgia, incorporated in Wilmington, Delaware

 A beverage company and manufacturer, retailer and promoter of beverages and American syrup non-
alcoholic multinational
 Coca-Cola was founded in 1982, operating in over 200 countries around the world.
 In Asia, the company operates in 6 regions:

★ China
★ India
Worldwide Coca-Cola operates in 5 territories: ★ Japan
★ Philippines
North America, Latin America, Europe, Asia, the
★ South Pacific and Korea
Middle East and Africa. ★ West and Southeast Asia (SEWA)
Main products
Vision
“Our vision is to craft the brands and choice of drinks that people

love, to refresh them in body & spirit. And done in ways that create a

more sustainable business and better shared future that makes a

difference in people’s lives, communities and our planet.”

Mission
Since its establishment, Coca Cola has always followed a great
mission and fulfilled their long-term goals:
1. Entering the market and introducing new products to the
world
2. Delivering inspirational messages
3. Generating fresh and unique potential value
 Achievements

Coca-Cola accounts for 3.1% of total beverage products worldwide.

Among 33 famous non-alcoholic beverage brands in the world, Coca-Cola

owns up to 15 brands. Coca-Cola is now present in all continents of the

world and is widely known by the majority of the world population.

 02
COCA-COLA’S
SUPPLY CHAIN
NETWORK
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 03
THE COMPONENTS IN
COCA-COLA’S SUPPLY
CHAIN
 Suppliers

Product ingredients Packing Devices

★ C02 ★ Production system
★ Supply of bottles
★ Food coloring (Caramel Color ★ Control and management system
★ Supply of packing boxes
E150d ★ Warehouse system
★ Sourizer (Phosphoric Acid) - ★ Water treatment system
E330
★ Caffeine,...
 Manufacturers
● TCC (The Coca Cola Company): responsible for water
production and supply Coca-Cola core for factories,
responsible for promotion and management trademark.
● TCB (The Coca Cola Bottler): responsible for production,
warehousing, distribution and provides services for Coca
Cola products.
Distributors
● In Vietnam, Coca-Cola has 3 main distribution centers
located near 3 production plants in Ho Chi Minh, Da
Nang and Hanoi.
● To be able to become a direct distributor of Coca-Cola,
the distributor must ensure and fulfill a number of
commitments with the company.
 Retailers
● Coca-Cola goods can be found in all retail outlets. Restaurants,
commercial centers, shopping centers, retail stores, refreshment bars,
and other similar establishments are included.
● For retailers Coca-Cola uses a strategy of “wide distribution”.
❏ Personal customers: Those who buy products for
consumption, for personal purposes. Individual
customers here are individuals who want to buy
from coke bottles and cans from supermarkets,
grocery stores, etc.

Customers
❏ Institutional customers: These people buy goods to
use for activities. organization's activities, may
purchase products to combine with their other
products to sell. Customers organized here can be
cafes, beverage shops, restaurants, hotels,...
04
INFORMATION/
PHYSICAL/
FINANCIAL
FLOWS IN THE
SUPPLY CHAIN
Physical Flow
Coca-Cola uses two types of parallel
distribution channels: one-level and
two-level.

Coca-Cola uses exclusive distribution

agents and wholesalers to bring goods
to retail intermediates and from retail
points

To promptly supply products to the

market, the corporation hires three
major carriers: Dai Thanh, Binh Vinh,
and most recently, Phinapco.
 Financial Flow

Final consumers of small

retailers will pay the wholesaler
in cash at the time of delivery or
at the end of the month,
depending on the terms of their
agreement.

Coca-Cola will be paid for via

transfer by wholesalers,
supermarkets, and key accounts.
Information Flow
The company will provide
information to distribution
intermediaries

The company also receives input

from the remaining channel
members in order to promote itself
or identify and address its flaws.

The data system can be passed

directly from one component to the
next.
 05
THE ADVANTAGES &
DISADVANTAGES OF
COCA COLA’S
SUPPLY CHAIN.
ANY PROPOSALS?
 Advantages Disadvantages

■ Coca-Cola can reduce the cost of international

■ The supply chain of required materials (coca leaves
freight service by sea by using domestic resources
and coca seeds) and generating coca syrup has been
■ The production line system is simple and reliable
disturbed due to the COVID-19 pandemic
throughout the manufacturing
■ Cost for the traditional operation of the production
■ Contact with end-users on a regular basis -> better
system will require an investment
understand their needs, tastes, and purchasing
■ Conflict of interest
habits
 Proposals

Enhancing the innovation of

warehousing, transportation,
forecasting problems

Investing in product
A To resolve conflict of
development research and
interest, Coca-Cola must
changing design
E B have proper policies

Before product reaches the

buyers, it should be D C
Control product quality
thoroughly examined from supplier
THANK YOU
Do you have any questions?