How Coca Cola utilizes supply chain
Thus, for this instance Coca-Cola company is going to be used as an example for this essay. Since Coca-Cola is a vast and grown business there are many ways in which they control supply chain so as to ensure the product reaches the market. Coca-Cola company comprises of a supply chain system that is unique in its own way. Coca-Cola company produces concentrated syrup that it later sells to all its bottlers all over the world who then convert the syrup into tasty drinks. Supply chain system of Coca-Cola company is divided into three main levels. To start with operations, what is focused at this point is the bottling operations that the various bottlers do use in the manufacturing and distribution process of the Coca-Cola brands into the world market in various countries.
Normally the company will set its own operational guidelines for all the local bottlers and many others who they do partner with and make sure there is a certain degree of centralization that is adhered to. After the syrup is delivered to local bottlers its then mixed with filtered water and then carbonated later its taken to the market. The next step which is conducted by the local bottlers is distribution of the soft drinks to the market using commercial vehicles of local bottlers. The distribution centers that act as the depots then do the dispatch of the soft drinks to different retailers who then sale them to the public. Coca-Cola executives are professionals who are able to understand demand and risks which are involved in the business.
Thus, these has enabled them to adopt to their supply chains and the market trends which are ever changing hence enabling them to grow than their competitors. Coca-Cola has adopted best strategies in planning and organized their operations in a manner that favors the drastic changes in demand. Coca-Cola company has driven its regional expansion in IT which is used by all the European plants. This system has replaced and automated many supply chain procedures and also speeded up deployment processes. The company has undergone technological changes that have led to increased efficiency and transparency like most of the shippers are trying so hard so that they can be able to reduce the supply chain costs they incur and save costs.
Thus, the company will be having supply chain systems being wireless and are in cloud so that they can improve on their accuracy. The technologies which have been adopted have helped in the reduction of labor costs like through the use of robots in the manufacturing sector which has increased productivity and also accuracy of then work done. The reducing of labor costs saves money for the company which can also be used in other operations or can be used in investing. Actual focus on each employee has been made possible since each and every employee is assigned his own devices that they are using during work hours. Outsourcing has led to the minimizing of overall costs of the company. (Sweeney & Riordan,2007).
Through the hiring of professional companies that have specialized in supply and logistics management, Coca-Cola has been able to use their expertise and specialization in the supply and delivery of goods to their local and other bottlers. This has made Coca-Cola to minimize their overall costs and thus leading to the growth of the company and also increased revenue. It has led to meeting of customer demands which has also influenced the company to focus on production since the supply chain department is being taken care of by the external suppliers who use their expertise to supply products to the market and once the desired target is achieved the customers could have got the desired quantity that they do want always.
Once the supplier goes against this law he will also face legal action from the relevant bodies. The other laws that the suppliers have to comply with include healthy and safety laws, working hours and overtime like he has to pay for any kind of overtime that is worked by the casual who is doing the delivery of goods for his company. The law also states that the supplier has to comply with law of wages and benefits like there are benefits the supplier has to give to the workers like paying for the statutory requirements of the workers and also pay them wages that the law has stipulated for them to be paid as per the specific category they are in.
Freedom of association and collective bargaining is also another law that supplier has to take into consideration like he has to allow the employees to form or join any kind of labor unions that they feel are fit for them to join and the union has to be a legal union recognized by the law. Supplier has to comply with applicable laws and regulation of supplier principles once requested by the company. The adoption of returns management system will also lead to the increase in production which could also lead to the company supplying goods in large quantities to many vendors hence increasing the profit margins of the company and also making the company to grow drastically. Conclusion To conclude it can be learnt from this paper that for a company to increase its financial margins and also enhance its growth, it has to work effectively on its supply chain or logistics department and ensure that it has to developed its technology which increase productivity and supply as it has been explained in this paper.
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