Coca-Cola as a brand has been iconic to the world in many ways. Right from its marketing strategy to its supply chain, it has shown the world ways in which challenges can be transformed into newer opportunities of growth. With footprints in every possible country marked on the globe and with over 225 bottling units worldwide, the supply chain strategies of Coca-Cola is a case study of an operational framework built on innovation, sustainability, technology and superior analytics.
Let’s deep dive to understand the winning Supply Chain Management Strategies of Coca-Cola
1. Focusing on Local Supplier and Manufacturer Relationships for Seamless Functioning
Coca-Cola's greatest challenge lies in establishing a solid bond with the suppliers. It is very crucial to understand that the entire operation begins with the procurement of raw materials at the local level. So, every local partner is treated as a key stakeholder in the organization.
Using the raw materials, a concentrate is created that is mixed with water and carbon dioxide in the bottling plants around the globe. Mind it, the recipe for the concentrate is a well-guarded secret since the production began. So every raw material supplier and beverage manufacturer at local levels is well connected to the central thought leadership. This is the beauty of Coca-Cola’s supplier manufacturer foundation.
2. Leveraging IT for Increased Automation
Use of newer technologies for process automation was one of the great focuses of the Coca-Cola Corporation. One such is the implementation of blockchain technology by SAP to improve supply chain management. Coke One North America (CONA) manages the humongous Coke bottling plants thereby has to collaborate and coordinate with multiple franchises.
With the unbelievable number of orders to be shipped across Coca-Cola product range, the intermediaries were weighing down the speed and the resources. The main challenge was to bring down the time for order reconciliation. The implementation of blockchain technology not only gave them real-time insights about transactions made across the multiple verticals but also gave the stakeholders in the supply chain, a great deal of process transparency.
3. Making Innovation as Organizational Cornerstone
Coca-Cola as a brand is synonymous with path-breaking innovation. In 2019, Coca-Cola introduced the touch screen soda fountain, known as Coca-Cola Freestyle to send waves of a surprise to the entire market. The touch screen soda fountain machine used micro-dosing technology to create penultimate flavour mixes across its un-ending line of beverages. To top it all, the organization has worked its way to create a separate supply chain mechanism to automate the reporting process regarding dispenser replenishment.
4. Customized Packaging for Improving Market Reach
Coca-Cola is known for creating amazing user experiences. One such initiative is its ‘Share-a-Coke’ campaign that was launched way back in 2013. The entire strategy revolved around using names of celebrities in the place of its logo. This was to create a bond between the brand and the people of a particular geography. This initiative brought great success with almost 19% increase in their annual sales revenue.
5. Focusing on Business Analytics for Goal Tracking
Calculating lead times is critical in any supply chain and for Coca-Cola it meant a huge undertaking daily. With business ecosystems becoming complex, the company needed to master the market analytics and for that, it partnered with FourKites for market analytics especially for tracking shipments and predicting lead times for process improvement.
To be able to assimilate and learn from the market leaders, it is important to enrol in a professionally tailored course focusing exclusively on the supply chain. One such deemed course is Advanced Programme in Supply Chain Management by IIM Calcutta. This course in particular trains a supply chain personnel to open his or her mind to identify unending possibilities for innovation and collaboration during tougher times.
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