Coca Cola Supply Chain Management Analysis

Table of Content


The significance of supply chain management in the business industry is crucial. Various sectors, including Public v Private Primary, Secondary, Tertiary sectors, Financial, Retailing, Manufacturing, Wholesale trades, Construction, Mining Quarrying/Farming, Services, and Transport, all undergo the supply chain process. Supply chain management is an integral part of receiving our products, everyday goods, raw materials, packaging materials, semi-finished goods, finished goods, machines & spares, services, and office equipment. It plays a vital role in the movement and growth of our lives.

Logistics is a process that involves the arrangement, preparation, application, and control of storing goods or services and obtaining information from the original point to the point of development or consumption. This process aims to meet customer’s orders and requirements by coordinating all sectors involved in delivering the inputs, outputs, or outcomes that meet the customer or buyer’s specifications.

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To initiate the purchasing process, the first step is to establish and define the requirements and timeframe. Following that, it is necessary to identify both the item needed and potential suppliers, and proceed with evaluating them. Afterward, negotiate the desired terms and price for placing an order. As a result of this procedure, you will receive the necessary requirements, goods or services. The last phase involves completing the payment procedure, which can be accomplished through either a check or cash. The primary objective is to acquire materials that meet the required quality and quantity from a suitable source at a reasonable cost.


Right Item:

Coca cola engages in material requirements planning and manufacturing resource planning to ensure specificity in ordering supplies and raw materials. They produce and provide a product to their customers, which includes raw materials such as sugar, water, aluminum for cans, and plastic for bottles. Maintaining documentation for every order, purchase, specification, or request is crucial for Coca cola.

Right Place:

It is essential for us to be punctual in delivering the product in order to meet customer orders. Being too early or too late would cause storage problems. Therefore, it is important to be right on time. This is where MRO (Maintenance, repair, operations) can be utilized. The coca cola products must be delivered on time for the Olympic 2012 as it is the official supplier.

In order to meet the requirements and deadline of the Olympic 2012 event, I suggest that Coca Cola implement Just in Time (JIT) manufacturing. This would have a positive impact on Coca Cola’s brand image. JIT is a method used in repetitive manufacturing where products are manufactured repeatedly. The advantage of JIT in this situation is that it can reduce lead time and create a balanced process by linking manufacturing centers together.

Right Quantity:

After placing the order, the next step is to determine the appropriate quantity and quality of supplies. Inaccurate estimation of these factors can have a negative impact on the company by either over or under supplying, ultimately affecting an increase in holding costs. It is crucial to determine the correct number, size, and weight of products in order to meet demand. This information is essential for every stockroom and storage room and can also assist in determining the necessary transportation method. As sponsors of the Olympic 2012, Coca-Cola must ensure they provide the precise quantity of products during this time. It is important to avoid having an excessive or insufficient amount as it may affect price requirements.

Right Quality:

According to Baily, quality is determined by the customer and refers to their perception of the product or service’s quality. Recognizing this concept is essential for businesses as it involves meeting customer needs and satisfying their purchases. Quality encompasses multiple aspects including the actual product, its appearance, taste, service, and delivery time. These elements collectively shape Coca Cola’s brand image.

Coca Cola, a massive brand, has established its own marketing strategy. Consequently, ensuring proper quality is crucial within such a large company. Achieving quality entails two factors: specification and conformance. Specification is especially crucial in the realms of purchasing and supply, as it determines the appropriate materials and workmanship needed for construction, establishment, or manufacturing.

This process is completed in two steps:

  • Decide the requirement.
  • Describe it.

During the Olympic 2012, Coca Cola needs to order the customer’s orders with the correct quantity and requirements. A team approach is essential for conformance, which ensures that both Coca Cola and retailers receive their supplies on time and that the ordered items are received. Conformance is also a measure of Coca Cola’s quality capability to meet customer needs and adhere to acceptable values and standards.

By maintaining specifications for product, plan, and time, ensuring staff contributions, and developing training programs, Coca Cola guarantees supplier capability. They also control statistical processes, such as quantity and quality, to meet customer orders. Once these steps are completed, they confirm quality assurance through effective methods and actions to reduce errors. Quality control is conducted by examining Coca Cola products and supervising activities to maintain control.

Right Price:

After completing all the necessary procedures mentioned above, it is crucial to consider the price, total acquisition cost (TAC), and selling price. The TAC encompasses various aspects such as delivery cost, services, return costs, product inspections, staffing expenses, inventory costs, and handling costs for Coca Cola. The price primarily depends on supply and demand dynamics. If there is a low demand, the price will be low; conversely, high demand leads to a higher price. Similarly, scarcity in supply decreases prices while a surplus increases them. When supply and demand reach equilibrium, their levels are balanced.

Coca Cola can handle additional demand or surplus stock through price adjustments. To do so, they need to strategize the pricing by engaging in negotiations for materials (such as sugar, water, and other ingredients), labor (in Turkish manufacturing companies), and purchased goods and services like transportation.

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Coca Cola Supply Chain Management Analysis. (2018, Feb 04). Retrieved from

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