In the global economy, many manufacturing companies have tried to ensure fair and efficient delivery and distribution of their products today. Therefore, they have come up with different strategies that will increase effective supply to meet customer needs. Also, lessen the various risks that may occur. Supply chain management has been one of the main strategies used by various companies today (Lee & Katzorke, 2010).
This research paper will demonstrate, describe and explain using relevant illustrations and examples to show how the Coca-Cola company uses supply chain management to meet customer demand. Also, the paper will present how the company addresses associated risks.
Coca-Cola is a worldwide leader and distributor of beverages, among of which are brands such as fruit juices, soft drinks, sports drinks and much other beverage (Li, 2007). John Pemberton was the Founder of Coca-Cola in the 19th century. Asa Griggs Candler then bought it in the 20th century after which, its dominance increased In the world of soft-drinks (Lambert, 2006).
Contends that Coca-Cola’s global chain distribution is a highly complex and intricate system that composes of bottlers, plants, customers and warehouses, along with many different lines of product that support multiple series stores with a different objective. The following is some of the common strategies used by Coke.
Firstly, they sell their products to entertainment events such as in areas where there are events such as sports. In this case, they target the young age which forms the highest population in the whole world. This is one of the major reasons as to why Coca-Cola products do not wait for long in stock due to strong sales volume (Mentzer, 2004).
Secondly, Coca-Cola has established retail stores all over the world where its products can be bought in bulky. Coca-Cola has established retail stores even in remote areas where their prices vary concerning time and place (Wisner, Tan & Leong, 2005). This has not only promoted a good customer relationship, but also it enhances fast customer delivery of their products.
Thirdly, to fit customer convenience, coca-cola came up with vending machines. The structure enhances the delivery of their products in organizations such as offices and learning institutions. This creates confidence in supplies as there is less chance of theft and disorder. Thus, the possibility of loss is minimized and provides customer convenience thus meeting customer demands.
Fourthly, to create awareness of their products to their customers, Coca-Cola uses commercial agents to attract many customers to liking their products. Some of these agents include the use of media such as radios, newspapers, use of promotional trips to various areas. For instance, in the year 2010 where the Coca-Cola company was a key promoter of the world cup.
Here, coca-cola strategized in associating their business with the tournament (Lee & Katzorke, 2010). Therefore, many people became aware of many other new Coca-Cola products during events. Through such practices, it creates a good relationship to its customers who will, in turn, be glued to their products.
Fifthly, Coca-Cola Company also operates in multiple channels where it sells beverages bases, syrups and concentrates to bottling companies enhancing the customer’s marketing initiatives. Bottling companies enable merchandise, manufacturing, package, and distribution of Coca-Cola products to the vending partners and customers who finally sells products to the final consumers (Bidgoli, 2010).
In a bid to meet consumer demands along with minimizing risks, Coca-Cola uses such tools as selling goods in entertainment areas, operating in multiple areas, advertising its products, uses machines such as vending machines, and finally majoring in the formation of retail stores. This strategy has been one of the keys to the success of Coca-Cola.
Bidgoli, H. (2010). The handbook of technology management. Hoboken, N.J.: John Wiley & Sons.
Lambert, D. M. (2006). Supply chain management: processes, partnerships, performance (2nd ed.). Sarasota, Fla.: Supply Chain Management Institute.
Lee, W. B., & Katzorke, M. (2010). Leading effective supply chain transformations: a guide to sustainable world-class capability and results. Ft. Lauderdale, FL: J. Ross Pub..
Li, L. (2007). Supply chain management: concepts, techniques and practices enhancing the value through collaboration. Singapore: World Scientific.
Mentzer, J. T. (2004). Fundamentals of supply chain management: twelve drivers of competitive advantage. Thousand Oaks, Calif.: Sage Publications.
Wisner, J. D., Tan, K., & Leong, G. K. (2005). Principles of supply chain management: a balanced approach. Mason, Ohio [u.a.: Thomson South-Western.