• Home
  • Swinburne University of Technology
  • Introduction to Logistics and Supply Chain Management
  • Coca-Cola's Global Supply Chain Strategy and Challenges

Coca-Cola's Global Supply Chain Strategy and Challenges

Logistics and Supply Chain Management: Assessment 1 - Coca-Cola For my first assessment I have chosen to research The Coca Cola Company, which in essence works a very successful franchise type model for most of its international markets. As well as being the effectively the franchisor The Coca Cola Company is committed to its regional partners by structuring the companies supply chain model on one that is based upon customers needs for each region, no two are alike and the company works hard to supply its customers the way that works best for both parties. By owning the brand, being the manufacturer of the beverages key ingredients and then being able to control its global marketing campaigns to create a universally recognised brand The Coca Cola Company has truly gone about its business in the right way. By shifting the risks for the manufacturing and distribution sides of things to 3rd parties it has allowed the company to better hone its skills to create premium beverages as well as keep on the forefront of the market in terms of development of products to react to the ever-changing environment. Globalisation Since its start in 1886 Coca-Cola has grown from a small Atlanta based company into the world's largest non-alcoholic beverage producer as well as being the 3rd largest brand in the world ffInterbrands, 2014tt with distribution across over 200 countries globally. Coca Cola has led the way by sticking to 5 fundamental factors; a unique recognised brand, superior quality, creative marketing campaigns, global availability and ongoing innovation to create new product offerings to keep the consumer engaged. These key factors have got the company to where it is today but going forward into the future is going to be a massive undertaking. The company announced in 2012 that they would be investing in excess of $30 billion dollars in markets around the world beginning within the next 5 years in conjunction with their bottling partners which is part of the companies "2020 vision" a strategy they hope doubles their revenue -about $100 billion in 2010- in the next 8 years ffLeon Stafford, 2012tt The development of the brand is becoming increasingly difficult in developing nations especially outside major cities because of the lack of infrastructure, such as roads or reliable electricity. Or other factors like the country not having sufficient bottling or distribution capabilities to keep up with the added demand. The company is even buying bottling and distribution companies outright so that the growth can happen in line with Coca Cola's global standards. Industry Specific Challenges The challenges faced by Coca Cola and any other soft drink manufacturer for that matter is ever changing and as of recently the industry has had to battle challenges relating to the worlds obesity levels and being constantly linked to being a major cause in children and adults alike. Although there a many contributing factors to obesity, the general public and those whom are obese will always go and blame fast food and soft