Logistics process of Coca Cola

8/18/2019 Logistics process of Coca Cola

1/4

Mary Joy M. Dela Cruz Ms. Beo

BSBA-Management Logistics

Coca Cola Logistics Process

Introduction

It is an undisputable fact that over the years logistics has made a substantial contribution to

businesses. Today, a number of companies such as Coca Cola Company has attained competitive

advantage through an improved management of its supply chain (Cooper et al. 1992). Coca

Colas strategy is emphasi!ed on e"cellence in logistics# sourcing material management and

physical distribution relative to the production location. Coca cola relies on imported

componenti!ed parts from a $ide range of suppliers in different countries to produce its products

and assemble it in another country. The thrust behind the logistics and supply chain activities has

been the transportation industries culminating globalisation.

%ccording to Cushmann & 'aefield (2*) the ongoing globalisation of production inculcating

business practices such as outsourcing and restructuring as $ell as the integration of regional

economies in the logistics maret has been pragmatic $ithin the +uropean regions and other

parts of the $orld. This has also necessitated the creation of modern logistics and distribution

facilities such as distribution centres, $arehouses and transfer depots to promote efficiency in the

managing the supply chain activities as a $hole (ushton et al., 2).

The managers of Coca Cola have decided to strategically focus on China for its primary

production. This because China is endo$ed $ith ra$ materials such as bau"ite ore and sugar

cane and factories that processes the ra$ materials into aluminium cans and sugar. -oreover it

has e"tensive supplies net$or in countries lie India, Thailand, etc (ch$ab and /orter, 20)

$ho also produces some amount of sugar and aluminium. esides China have the $orforce,energy and infrastructures including road$ays, rail$ays, $ater$ays, ports and terminals (CI%,

21). In support to its energy resources, China in 29 commissioned an enormous

ine"haustible hydroelectric dam built on the angt!e river near ichang $hich is capable of

generating 139 of Chinas total po$er output (C4++, 29)


2/4

Distribution flow of Coca Cola

The manufactured coca cola in ei5ing, Tian5in and hanghai $ill be transported to the +uropean

distribution centre based in -unich, 4ermany. In the ei5ing bottling factory, the palleti!ed

canned coe $ill be paced into 6ft containers and moved to the main ei5ing78amburg

rail$ay terminal by train. The containers $ill be loaded onto freight train to be transported from

ei5ing to 8amburg. The train routes passes through -ongolia, ussia, elarus and /oland to

the 8amburg rail terminal (C report, 20). The rail shipment $ill tae 1 to 10 days

(:loyds, 20).

-ean$hile the palleti!ed canned coe produced in Tian5in and hanghai $ill also be paced into

6ft containers and moved to the Tian5in and hanghai /orts respectively by train. The containers

are then loaded onto containerships bound for deep7sea shipping from the various ports $hich

$ill mae a stop at 8amburg /ort. The sea route lining the China ports and +urope passes

through the outhern parts of China, -alaysia, through the ue! Canal to -alta, elgium to the8amburg /ort (;inhuanet, 26). %ccording to :loyds (20) the 2,m sea voyage taes


3/4

Filling a Gap between Supply and Demand

The 4enesys program is an integrated %/ +nterprise esource /lanning (+/) solution that

$ill replace CC+?s legacy systems in the processes of @order to cash,A @reBuisition to payment,Aand @record to report.A

4enesys $ill allo$ CC+ to shorten cycle time in these processes and be more productive. It $ill

also help bring more visibility into the business and improve decision maing.

@'e are a shelf7replenishment company, a supply chain company, a sales and customer services

company,A says +sat e!er, senior vice president and chief information officer of CC+. @It is

very important for us to integrate our manufacturing plants all the $ay up to the replenishment of

shelves in the retail outlets. Through the information side of the eBuation, $e are basically tying

those t$o ends of the business process together the manufacturing side, $hich drives the supply

of our product, and the shelf7replenishment side, $hich drives the demand part of our product.A

CC is playing a ma5or role in e"pediting the delivery of 4enesys across CC+?s operations,

allo$ing CC+ to deploy 4enesys at multiple7country locations at a much faster pace than if CC+

had forged ahead alone.

@There are a lot of technology areas that reBuire some capacity that $e might not have or some

technology areas that $e might not have the no$ledge about,A says e!er. @o $henever $e

have those no$ledge gaps, $e turn to our strategic partner CC to fill in. 'henever an

accelerated deployment need arises, $e leverage CC, and $e can generate value much more

Buicly.A


4/4

The Coca7Cola efreshments team includes students Erinn Manby, Drew Downey, Mereit!

"reeman, #e$in Jamison, Sa!il %ama&ris!nan, 'atalie Sout!er , and Ma( )ans&i. Their

faculty advisor is )on Die&er. The purpose of their pro5ect is to reduce Coca7Cola efreshments?

total inventory costs at three in7scope plants by developing ne$ inventory replenishment

policies. y creating three ne$ policies and customi!ing policy parameters for each ra$material, they have identified a

Documents

Logistics process of Coca Cola