Essay on Operations and Supply Chain at Coca-Cola Company
Number of words: 2389
Coca-cola Company has established itself as a global brand in the provision of soft drinks. Through the years, the company has establishments, plants and operational units in almost all parts of the world. In terms of providing soft drinks, coca-cola company is probably is one of the world’s most powerful brands. Through use of modern technology, use of feasible operational strategies as well as a structured supply chain, the company has made tremendous profits. In the United States as well as other developed economies, companies use innovative practices. In this period of social development, one cannot ignore the fact that even industries in third world economies use innovative operations and supply chain practices.
Operation management consists of various concepts and procedures. Supply chain and operation management are therefore important aspects for organizations. These aspects assist an organization meet market demands. Through the application of concepts such as lead-time, lean production and human resource strategies, organization meet market demands. These concepts further assist an organization overcome market barriers and competition. Operation and supply chain management principles therefore relate to planning, designing, controlling and improvement of the service and manufacturing operations. However, it becomes necessary for organizations to ensure that its operation and supply chain activities are in constant transformation. For instance if the market demand exceed supply, an organization might have to change its production capacity.
The company might acquire new machinery, add new management teams or collaborate with other players. Coca-cola Company is an American multinational company specializing in manufacturing and distribution of nonalcoholic beverages. The company’s best-known product came into the market in the year 1889. Over the years the company has met its customer’s demand using its distribution system dating as far as the year 1889. The company has faces various challenges in its production and supply. To counter these challenges, Coca-cola has transformed its manufacturing process, its supply chain and operation procedures.
Operation and supply management at Coca-cola
Coca-cola is an iconic beverage maker all over the world. The company has had tremendous influence on most individuals. Coca cola’s dominance in the beverage market has made it a leader for almost a century over the globe. Therefore, one can attribute its influence on different societies. From recent data, it has come out clear that Coca-cola company still reigns over various markets. The company has continued with its dominance thus rated top in the market in the year 2011 (Pendergrast, 2000). The company has been able to maintain this position using diverse strategies. One of these strategies is the achievement of its vision and mission statements. The company has maintained its vision over the years. This therefore has seen the company develop frameworks and other policies that ensures excellence in operation.
Operation management entails activities such as engaging employees in production. Operation management on the other hand entails the use of technology and other strategies. In relation to operations, the Coca-Cola Company has teams of managers and employees all over its branches. The company additionally has undertaken various acquisition strategies. These acquisitions include the acquisition of Minute Maid in the year 1960. The company also acquired Thums Up and Barq’s in the year 1993 and 1995 consecutively. Its acquisition strategies further includes the acquisition of Odwalla, which came at a cost of $181million. Other acquisition includes the acquisition of Fuze Beverage at $250 million (Pendergrast, 2000). The company’s strategies have seen it venture into other businesses. In the year, 1982 coca-cola company acquired Colombia Pictures at a price of $692million.
From this investment, Coca-cola company perhaps made one the best strategic decision of the time. It sold the same movie studio to Sony at a price of $3 billion in the year 1989. This strategic operational move meant that the organization had funds to move into new markets. In terms of its operation, Coca-Cola Beverage Company acknowledges that the influence of employees is crucial to its success. Therefore, the company’s strategic goal is to ensure that employee needs satisfaction. In order to meet this need, the organization observes employment rules and policies. Since Coca-Cola Company has a global market, its employment policies vary from regions. However, the organization observes ILO principles of employment and other laws pertaining to countries of operation (Castellanos et al 2005). In order to remain relevant in the market, Coca-Cola Company has replaced its old systems with new ones.
This strategy has seen the company maintain its long-term goal, which ensured the company maintains a competitive edge in the market. Companies operating in manufacturing of beverage products undergo various challenges. These challenges include cost factors, logistical influences and ever policy influences. In order to overcome these challenges, Coca-Cola Company has modernized its operation chain. These meant that the company purchases new machinery, advertise products at various platforms and recruited skilled employees. Over the years, the company has been able to transform its manufacturing process through the acquisition of new plants. The company has also ventured into other markets. Its marketing campaign has seen Coca-cola products meet African, America and Europe beverage needs. In the year 2010, the company completed a contract, which saw its products penetrate the European market.
With current technological improvements, Coca-Cola Company has been able to meet its supply chain responsibilities. The company has been on the forefront in utilizing Information Technology in advertising its products. The company uses T.V, the internet and other platforms in ensuring consumer awareness. Moreover, its supply chain responsibility means that the company has to transform its supply chain management policy. As part of its program, the company has transformed its supply chain through its 17 European plants (Pendergrast, 2000).
This has seen the organization use SAP enabled programming in operations. These program coded Genesys integrates the use of Enterprise Resource Planning (ERP) to eliminate traditional CCE’s system. This program is a lead-time strategy since it shortens the time of operation. The system process information for the organization in “order to Cash” “Record to Report” and “requisition to payment fashion. This influence has seen the organization ensure timely payment of suppliers, payment of raw materials and in recording of data.
Operation management in organization has various advantages. Proper operation management principles ensure that organization meet its human resource management needs. Operation management assists in the supply chain activity as well as marketing products. Operation management in organizations is concerned with the designing, overseeing and controlling the process of supplying and production. For manufacturers, sound operation management strategies, ensures that the manufacturing process follow quality standards. The process of manufacturing needs to have skilled work force (Castellanos et al 2005). Operation management additionally is concerned with the responsibility of ensuring that business operations run according to schedule and efficiently.
This therefore will entail the management of resources, management of customer requirements and government policies. Management of operation in organization further relates to the management of information. Information flow in such organization ensures that customers get information on products. Information management also ensures that information flow in organization. In organization such as Coca-Cola Company, information management ensures that customers get information on latest brands. Information is essential in communicating business strategies as well as operational procedures (Castellanos et al 2005). Therefore, operation management assists in the management of factory, production systems, and production control, employee needs and strategic policies. Operation management also assists industry players in cost control, system analysis and production analysis.
Operation management at Coca-Cola Company
Coca-cola is the world’s leading manufacturer, marketer and distributer of beverages. The organization concentrates in the manufacturing of beverage syrup as well as beverages. Coca-cola depends on its management teams, quality control process as well as production policies. With a network of branches and bottling partners, the company produces more than 300 brands across the globe. Its operation on the global arena concentrates in over 200 countries (Pendergrast, 2000). According to its strategy, Coca-cola company members of staff perform their manufacturing function in line with company policies as well as market policies. While operating in these vast markets, Coca-Cola Company provides beverages in accordance with local market preferences.
Through the years, company policies have been targeted towards understanding local cultures and tradition. When a company understands the local culture of the market, it becomes easier to penetrate the market. Understanding of local cultures ensures that the organization provide high quality beverages. On top of these, Coca-Cola Company has contributed to various projects around the world. Their contribution to communities across the globe relates to their strategies in providing health, educational and environmental services.
In relation to quality and design, the Coca-Cola Company has developed various policies over the years and according to environmental needs. These policies are important in ensuring that employee’s perform their duties effectively. Policies of the company ensure that the manufacturing process results in quality products and in time. Since beverage products consumption is frequent, Coca-cola has effective supply chain systems. The world in the year 1886 was introduced to glass bottled beverage from Coca-Cola Company. In the year 1916, multiple bottle designs came into the market. Quality management is perhaps the most important for manufacturing firms such as the Coca-Cola Company. Quality management is an important aspect since it entails various processes (Castellanos et al 2005). These processes begin from products design, production and even marketing.
Coca cola’s quality management activities consist of various processes and procedures. Coca-cola beverages have been packed in glass bottles since its inception. However, as their production process progressed over decades, the company uses glass as well as plastic bottles. Further, due to market preferences the company has to change its bottle designs. By the year 1980s Coca-cola company had already diversified its family brands. The company on the other hand expanded its operation bases in the 1990s.
Organizational leaders at the company understand that quality differentiates them from competitors. Therefore, to meet their quality needs the company introduced Coca-cola Quality System in the year 1995. The system coded TCCQs, has seen the organization meet quality environmental standards as well as internal standards. The system has been effective ever since in ensuring the guidance of corporate activities as well as meeting customer needs. However, while promoting such a strategy. Management teams in the organization have to undergo diverse operational challenges. These operational standards relate to the organizational structure, resource challenges and challenges resulting from external standards.
Coca-cola quality assurance principles ensure satisfaction of company is operational and meet supply chain needs. This quality management principle has been important in ensuring that company policy, assurance and control meet regional as well as global standards. In relation to policy, the management teams of the company concentrates on ensuring that employee needs, manufacturing process as well as supply chains meets customer needs. The policy statement of the company concentrates on safety, environment and on product quality.
In relation to Assurance, the company has management systems that ensures compliance, adherence to procedures by employees and in ensuring consistency of production. Controlling process on the other hand relates to inspections and testing procedures. By ensuring good manufacturing practices, Coca-cola has been able to customer needs. As a result of maintain good manufacturing processes, Coca-cola company attained a profit margin of $173.05 according to Forbes data (Pendergrast, 2000). Moreover, the company has an operating committee under the leadership of the C.E.O. The operating committee ensures effective coordination of activities as well as assists in decision-making.
Supply Chain at Coca-cola
Supply chain management has been an important aspect in today’s organization. Supply chain management ensures timely delivery of products and information. Since it involves managing the flow of goods, raw materials as well as final products need to be part companies’ strategies (Lambert,2008). In relation to the Coca-Cola Company, supply chain management involves formulation of supply chain strategies. The company’s strategy in relation to supply chain has seen the organization open branches all over the globe. The company supplies its beverage products in Africa, Europe, America and other regions of the world. Its supply chain system is structure to ensure that products reach the market. It is the policy of Coca-Cola Company to ensure that customers purchase quality products. Coca-cola supply chain management begins from acquisition of raw materials, processing to distribution of finished products.
The company ensures that products reach customers in time. In order to meet these goals, the organization has opened numerous manufacturing branches. Each of these branches needs to meet local demand needs. Distribution of these products on the other hand, becomes part of the company’s supply chain needs. Coca-cola Company manages its supply through personally distributing products or using other businesses such as stores. In order to meet its supply chain needs, the company employs competent workforce, uses integrated management systems as well as IT frameworks (Pendergrast, 2000). The company therefore has integrated SAP into its management practice. On the other hand, the company utilizes Enterprise Resource Planning software. In order to fill the between supply and demand the firms utilizes internet as well as other platforms in marketing.
Coca-cola Company has dominated the beverage industry. However, there has been growing competition from other players. This competition contributes to decrease in market share as well as sales volume. To limit such influences, the company needs to acquire other businesses. The company on the other hand might market its products using the internet. The internet can be an important tool for the organization. Its strategy might involve use of social media platforms in marketing and in evaluating customers’ responses. The company might enter into mergers with other organizations. A very lucrative merger would involve mergers with restaurant or bakeries. In addition, in order to meet customer needs the Coca-cola might open distribution shops around neighborhoods
Castellanos, M., Casati, F., Shan, M. C., & Dayal, U. (2005).: A platform for intelligent business operation management. In Data Engineering, 2005. ICDE 2005. Proceedings. 21st International Conference on (pp. 1084-1095). IEEE.
Pendergrast, M. (2000). For God, country and Coca-Cola: the definitive history of the great American soft drink and the company that makes it. Basic Books.
Lambert, D. M. (Ed.). (2008). Supply chain management: processes, partnerships, performance. Supply Chain Management Inst.