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Coca Col A Unique Supply Chain System

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As the largest beverage brand on the world, Coca-Cola has a unique supply chain system. In fact, formula Coca-Cola is held tightly trade secret and cannot know exact ingredients as well as the cost of their supplies. However, some ingredients are known as important components which are used in the manufacturing of syrup such as sugar, Carbonated water, sucrose, high-fructose corn syrup, caffeine, phosphoric acid v. Caramel (E150d) and Natural flavourings. In downstream activities, Coca-Cola uses the franchised distribution system. Excepting some of the largest franchisees like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, almost half of volume sold in the world is produced by …show more content…

They also consider demand forecasting through quarterly sales data to forecast future fluctuation and problems. According to John Gattorna, the Coca-Cola has implemented a combination of distribution channel to develop the availability of the products to attract more customers. Coca-Cola is using brand focused corporate strategy which is known as omnipresent strategy in mass-market to make sure getting high availability of the products. The application of these supply chain strategies in the case of Coca-Cola will require the supply chain to be designed to run in high efficiency and effectiveness. Additionally, excepting physical distribution system, the company has invested in the software control system - known as BASES and some specific modules of SAP, to ensure the efficiency and cost control of the supply chain. This software performs the functions of the entire ERP for the company and its worldwide operations which manage Information related to geographical sales, per capita consumption trends, responding from new product introduction, sales forecasting, and all other related information as well as all query management and customer problems. As a result, Coca-Cola’s succession is in their supply chain what is called a customer-driven supply chain. Buffington said that their business was a local business though Coca-Cola was a global company. They never

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