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Coca-Cola Supply Chain

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Coca-Cola is the world’s largest beverage company. They employee over 146,000 employees offer over 3,000 products worldwide and operate in over 200 countries. The company was founded in 1886 but it wasn’t until 1891 when an Atlanta business man secured the rights to the company that the vision of Coca-Cola was established and their expansion begun. In 1899 Coca-Cola’s first bottler relationship was established. This bottling relationship allowed the company to grow aggressively and expand into 9 different countries as early as 1920. Coca-Cola’s “System” is a very unique approach to supply chain and distribution management. The company leveraged the success of its bottler systems to expand throughout the world quickly and with …show more content…

Tier 1 – Established Supply Relationship Tier 2 – Monitor Performance and Establish Potential Increases Tier 3 – Commit to Basic Alignment Principles Tier 4 – Engage Business to Business Tier 5 – Plan and Commit Resource to Vision 2020 Coca-Cola’s Innovation Group encompasses about 40% of the companies operating costs (Potisepp). The Innovations Group is responsible for introducing over 500 innovations a year in the areas of product innovations, packaging, sales, marketing and quality control. Coke uses the Stage-Gate Model for its innovation development process. After each stage in the innovations process a gate is either closed or opened to continue to the next stage. The gates also act as quality control points in the process. Initially the Innovations group comes up with the idea by considering technology or market trends, assessing the competition and consumer needs, consumer recommendations or brainstorming. Once the idea is developed they make a business case to evaluate the feasibility, risk, investment required, and brand alternatives. If the business case is approved they bring it to the development stage. This is when supply chain gets involved and a plan is developed to bring the product to production. The supply chain will find ingredient suppliers, conduct supplier quality audits, prepare documentation, and negotiate

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