Where does coca cola get its raw materials

Providing A Framework

Part 1

Create Section 6 of your Supply Chain Process Improvement Proposal: Measurement and Management.

Describe how supply chain performance is measured, presenting the various measures used in each organization or function.
Part 2

Create Section 7 of your Supply Chain Process Improvement Proposal: Global Supply Chain.

Describe international trade and the supply chain role in globalization as it applies to the organization you have selected.
Share the company’s current process.
Provide recommendations for the company that you have chosen.
Your instructor will provide feedback. Use this feedback to improve your plan and prepare your final Supply Chain Process Improvement Proposal.

SUPPLY CHAIN MANAGEMENT 4

Supply chain process improvement proposal

Calvin Blount

CTU

06/03/20

SUPPLY CHAIN PROCESS IMPROVEMENT PROPOSAL

Several functions take place within a typical supply chain. These functions are; planning, control, and execution of the flow of products, from the phase of procurement of raw materials up to the point of delivery of finished product on the marketplace. Processes within the supply chain must be streamlined to achieve maximum cost-effectiveness in their operation. There are an integrated design and implementation process in the supply chain process (Sharma & Singh, 2018).

The supply chain management processes are essential because they improve the material flow, financial assets, and information within the various operational areas. In a nutshell, areas of a supply chain include demand planning, material sourcing, manufacturing, transport, warehousing, and stock control.

In the modern world, organizations are actively using supply chain management to improve business processes. Coca Cola is a classic example of multinational corporations that are increasingly employing the supply chain management process in their daily operations. Primary functionalities of Coca Cola are; sourcing of raw materials and transporting them to the production line for the manufacture of concentrated syrup, and redistributing it to Coca-Cola Enterprises and other bottling companies. Coca Cola Company has several production lines spread across six continents. The Company sells products through the standardized supply chain (Banks, 2016).

Coca Cola Company was founded in the U.S in 1886 and has rapidly spread its operation within America and in over two hundred countries globally. Coca Cola Company manufactures its products within its areas of activity. The Company also transports the final products to foreign territories. The distribution networks of Coca Cola Company covers the six continents. The ultimate goal of thCompanyny is to position itself as the leading producer of soft drinks globally.

Coca-Cola Company has more than nine hundred bottlings, and production plants spread across the globe. The functionalities within Coca Cola Company include planning, organizing, and product distribution and managing the supply of final goods to the target market. Currently, Coca Cola offers more than five hundred product varieties across two hundred countries. ThCompany's's signature lines of distribution apart from Coca-Cola are; Minute Maid Fanta, Sprite, Del Valle, coke zero, and many other soft drink brands. In summary, Coca Cola coordinates, sourcing and distribution of raw material, conversion of ingredients into consumable products as well as marketing the final product across Coca Cola target market (Halder & Singh, 2016).

Third-party logistics service

Third-party logistics service providers are businesses specialized in logistics services and supply chain management. Gibson & Bardi (2011) describe 3PLs as "an independent firm contracted to provide the Company's logistics functions. Services offered by 3PLs include warehousing, transportation, financial services, transport, and inventory management. Businesses usually utilize single service providers, like warehousing and transport services. Such service providers can provide multi-phase services in the form of an extensive service provision strategy. 3PLs is a critical enabler of customer demand by transferring the products from the retail outlet or distribution company to the customer's location. Companies can agree with the Third Party Logistics Company to supply the products to the intended destination. Third-Party Logistics is known to be highly effective in delivering goods to customers outside the jurisdiction of the manufacturing sector (Tontini & Zanchett, 2017).

The use of third party Logistics by Coca Cola Corporation has gained ground globally. Coca Cola functions entail converting raw material into finished products, and the Bottling services are subcontracted to third party logistics. The packaging services and the distribution of Coca Cola services are outsourced to third party Logistics (Jiang & Liu, 2016).

Coca Cola hire 3PLs services to source raw materials and distribute them to production plant. Third-Party Logistics offers specialized services, especially in the regions which do not have Coca Cola manufacturing plants. It is undeniable that the integration of 3PLs in Coca Cola Company's in day to day operations is gaining ground. A typical example of how Coca Cola is employing 3PLs is evident in the Philippines. Coca-Cola Bottlers Company in Philippines is increasingly adopting 3PLs services to streamline its transport and storage services. Other examples of Third-party logistics providers outsourced by Coca Cola are, Seaboard Corporation, FEMSA Logistics, Alico Inc etc (Jiang & Liu, 2016).

The use of 3PLs is vital, especially where the Company is dealing with products which are delicate and need needs specialized services offered by 3PLs, especially outside their areas of operation. It is also undeniable that the use of 3PLs reduces transportation costs, improves delivery times and therefore gives thCompanyny a competitive edge.

Conclusively, Coca-Cola cannot cover an extensive global market alone. As such the Company requires the service of 3PLs especially in specialized services such as transportation glass bottles. Third-party logistics offers unique that unavailable outside coca-cola territories. Even though coca stores their brands in the manufacturing plants, the services of 3PLs are essential in the distribution of the final product to retail store and wholesalers. Third-party logistics have and continue to strengthen Coca Cola’s Company supply chain in the region with a high demand for Coca Cola products. Consequently, this continues to give Coca Cola a competitive in its distribution channels.

Reference

Sharma, N., & Singhi, R. (2018). Logistics and Supply Chain Management Quality Improvement of Supply Chain Process Through Vendor Managed Inventory: A QFD Approach. Journal of Supply Chain Management Systems, 7(3).

Coyle, J. J., Novack, R. A., Gibson, B., & Bardi, E. J. (2010). Transportation: a supply chain perspective. Cengage Learning.

Halder, S., Ganguly, D., & Singh, V. P. (2016). Design Process and Its Application on the Improvement (Re-Design) of the Coke Bottle. International Journal of Advanced Packaging Technology, 4(1), 185-199.

Banks, H. (2016). The business of peace: Coca-Cola's contribution to stability, growth, and optimism. Business Horizons, 59(5), 455-461.

Jiang, L., Wang, Y., & Liu, D. (2016). Logistics cost sharing in supply chains involving a third-party logistics provider. Central European Journal of Operations Research, 24(1), 207-230.

Tontini, G., Söilen, K. S., & Zanchett, R. (2017). Nonlinear antecedents of customer satisfaction and loyalty in third-party logistics services (3PL). Asia Pacific Journal of Marketing and Logistics.