Supply Chain

A supply chain is an entire system of producing and delivering a product or

service, from the very beginning stage of sourcing the raw materials to the
final delivery of the product or service to end-users. The supply chain lays
out all aspects of the production process, including the activities involved at
each stage, information that is being communicated, natural resources that
are transformed into useful materials, human resources, and other
components that go into the finished product or service.

Supply Chain Management (SCM)

Supply chain management is the act of overseeing the network mentioned

above. It involves monitoring all of the supply chain activities so that every
 individual process runs smoothly and is in sync with the others. It also
involves managing the people and businesses along the supply chain and
ensuring clear communication between them. This unifies a business’s
production process, increases its efficiency and improves the value and
quality of the final product.

How does Supply Chain Management

(SCM) work?

In simple terms, the overall workflow of supply chain management is split

into three different categories: product, information, and finances. Every

business that is a part of the supply chain works under one of these

categories. Here’s a little more about each one:

 The product flow includes the timely formation, storage, and delivery

of products along the supply chain. It also involves conducting quality

assurance at each product location.

 The information flow consists of sending and receiving sales and

purchase orders, as well as updating delivery statuses. It is essential that

this workflow runs smoothly because all the other workflows depend on

the accuracy of information that is sent throughout the supply chain. The

finances flow deals with payments, inventory management, billing, credit

terms, and other workflows related to finance.

Walmart (Retail Company)

 It is an American multinational retail corporation that operates a chain

of hypermarkets (also called supercenters), discount department stores,

and grocery stores from the United States, headquartered in Bentonville,

Arkansas. The company was founded by Sam Walton in nearby Rogers,

Arkansas in 1962 and incorporated under Delaware General Corporation

Law on October 31, 1969.

Why is Walmart’s Supply Chain

Management famous?

Walmart executives were pioneers of modern supply chain management.

They built a streamlined flow for their products by establishing a network

with the other businesses involved in their production process. Up until that

point, not many companies had created such a robust system out of their

supply chains. This network helped all members of the supply chain to
 communicate more efficiently with each other. Better communication meant

a better flow of products and more revenue for Walmart. Walmart’s

relationship with Procter & Gamble was a shining example of this. Walmart

put together an automatic reordering system by connecting the P&G factory

computers with theirs through a satellite communication system. Every time

the stock for a product at Walmart dropped below a certain threshold, the

system sent P&G a notification to ship it immediately. This made sure that

Walmart always had sufficient stock in its warehouses. After its success,

this system of communication set a standard for supply chain management

at other companies worldwide.

What is Supply Chain Management

Software?
Supply chain management software are tools that help simplify and

improve the accuracy of several supply chain activities. Most supply chain

management software include the following essential features:

 Inventory management and warehouse management

 Order management and billing management

 Product lifecycle management

 Supply chain planning, inventory planning, and maintenance of

enterprise assets and production lines

 Logistics and transportation and fleet management

 Supplier collaborations

In short, supply chain management refers to supervising all the businesses

and individual workflows within a supply chain. While it may seem

like using just a supply chain is enough, supply chain management is what

keeps it organized and efficient. It helps bring down production and

purchasing costs, minimizes the risk of inventory shortages, and improves

customer service. If you feel like your supply chain has room for

improvement, then maybe supply chain management is just what it needs.

The Coca Cola Supply Chain & Manufacturing

Process Explained:
Coca-Cola is the most popular soft drink in the world. It’s sold almost

everywhere, and its brand name is known in most languages. 

The Coca-Cola Company (TCCC) manufactures and sells not only Coca-
Cola itself, but also a wide range of other beverages, like Fanta, Sprite,
water, juices, and energy drinks. The brand owes its success primarily to
the product itself as well as its iconic marketing campaigns that position
Coke as a drink with a fun and active lifestyle.

But there’s one factor a person might miss when explaining the wildly
successful product: the Coca-Cola supply chain is one of the most wide-
reaching, seamless operations in the world.

We have already discussed the success of supply chains

at Amazon, Apple, Starbucks, IKEA, Walmart, and McDonald’s. In this
article, we are going to take a look at the Coca-Cola manufacturing process
from factory to fridge and see how the industry giant manages its coherent
supply chain.

Coca-Cola is the most popular soft drink in the world. It’s sold almost everywhere, and
its brand name is known in most languages. 

The Coca-Cola Company (TCCC) manufactures and sells not only Coca-Cola itself, but
also a wide range of other beverages, like Fanta, Sprite, water, juices, and energy
drinks. The brand owes its success primarily to the product itself as well as its iconic
marketing campaigns that position Coke as a drink with a fun and active lifestyle.

But there’s one factor a person might miss when explaining the wildly successful
product: the Coca-Cola supply chain is one of the most wide-reaching, seamless
operations in the world.

We have already discussed the success of supply chains

at Amazon, Apple, Starbucks, IKEA, Walmart, and McDonald’s. In this article, we are
going to take a look at the Coca-Cola manufacturing process from factory to fridge and
see how the industry giant manages its coherent supply chain.

The History of Coca-Cola’s Success &

Manufacturing Milestones
Before we start talking about the Coca-Cola supply chain, let’s take a look at the key
milestones in the history of this legendary drink.

 In 1886, Dr. John Pemberton, a pharmacist in Atlanta, invented a flavored syrup

mixed with carbonated water. At those times, there was a belief that carbonated
water had a good impact on health, so Coca-Cola was actually sold as a medicine
at soda fountains.
 In 1888, Dr. Pemberton sold his business to Atlanta businessman, Asa G.
Candler., who expanded the beverage sales to soda fountains beyond Atlanta.
 In 1894, Joseph Biedenharn was the first to start selling Coca-Cola in bottles.
 In 1899, three enterprising businessmen in Tennessee got exclusive rights to
bottle and sell Coca-Cola, thus starting the company’s worldwide bottling system.
 In 1929, the first Coca-Cola slogan, “The Pause That Refreshes,” appeared in
the Saturday Evening Post.
 In 1977, the contoured Coca-Cola bottle was trademarked, and the first
marketing efforts were made, which then turned Coca-Cola into the world’s most
well-known beverage brand.

Coca-Cola Supply Chain: What Makes It

So Remarkable?
Coca Cola’s VP of Customer Logistics Wendy Manning once said the company is able
to deliver a drink from a factory to a local store within 48 hours. The secret behind this
impressive figure is local sourcing, meaning that most of the drinks are manufactured
directly in the country where they are sold.

Coca-Cola has more than 900 bottling and manufacturing facilities across the world,
and its factories have some of the world’s fastest production lines. It’s not just about the
sheer number of facilities, though.

These are other things that contribute to Coca-Cola’s supply chain:

1. Innovation

Coca-Cola Enterprises seamlessly integrates modern technologies into its supply chain.
For example, it uses 3D printing to manufacture bottles and cans for its drinks.

2. People

Coca-Cola’s logistics team consists of more than 100 people who ensure the safe
journey of each bottle from factory to fridge. 

3. Long-term relationships with retail partners

Over the past few decades, Coca-Cola has proven to be one of the most valuable and
reliable suppliers for its retail partners. One example is that the company has been
growing together with McDonald’s since 1955.

4. Supplier relationship management program

Helen Davis, VP of Coca-Cola Supply Chain in the US, conducts supplier innovation

days. During these events, the company’s procurement and marketing teams present
the company’s market needs while the suppliers also present their own latest
innovations. The program also involves quarterly meetings with key suppliers, where a
mutual performance review takes place.
5. Strict quality control

Coca-Cola has strict quality requirements on its manufacturing practices. For

example, Coca-Cola HBC, a bottling franchise partner of Coca-Cola Enterprises,
requires quality, environment, and health safety certifications from its suppliers.

6. Global Supply Chain Council

The beverage giant established the Global Supply Chain Council, which consists of
subcommittees that focus on adhering to established Coca-Cola supply chain strategy.
The Council has its own centralized portal where the employees and supply chain
participants share their experiences and best practices.

7. Close collaboration with bottlers

The Coca-Cola Company provides a standard set of guidelines for all of its bottling
partners and suppliers. As a result, most of the strategic decisions are centralized. The
headquarters controls most of the bottling partner’s operations, so each bottling partner
services the respective geographical area through a head office.

The bottler’s office works in tight collaboration with a regional office under the direct
supervision of The Coca-Cola Export Corporation (TCCEC). The bottler’s head office
connects the production plant with different distribution and sales centers across the
world, forming a coherent supply chain.

All of these aspects make Coca-Cola supply chain management one of a kind.
Coca-Cola Supply Chain: How It Works?
In a nutshell, Coca-Cola beverages go through the following destinations in their
journey:

 Manufacturer
 Distributor
 Retailer
 Consumer

Now let’s take a closer look at this journey.

The typical workflow within Coca-Cola supply chain:

The Coca-Cola Company headquarters in Atlanta manufacture the concentrated syrup

and sell it to Coca-Cola Enterprises (CCE) or another bottling partner, which is
responsible for selling the product in North America and Canada.

The bottling partner sends it to a manufacturing facility, which mixes the syrup with
other ingredients, such as filtered water and sweeteners. After that, the bottler packages
the final product and distributes it to retail partners (stores, restaurants, vending
machines, etc.)

The Coca-Cola Export Corporation (TCCEC) partners with local bottlers across the
world and distributes the drink to the corresponding local markets.

Coca-Cola Logistics
Logistics is an integral part of any supply chain, and Coca-Cola’s logistics
expertise definitely contributes to its supply chain success. Here are some
of the logistics-related best practices implemented by Coca-Cola:

 Manufacturing products on a more frequent basis, e.g. once a week

 Implementing weekly meetings between the teams worldwide

 Moving the production plants closer to customers

 Introducing daily interaction between the main sites

 Introducing seamless processes that are shared between all supply

chain participants