Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 1 Organization: Supply Chain Management on "The Coca Cola Company" Course Name: Supply Chain Management Instructor Name: Sir Shoaib Ahmed Course Code: MGT-518 Semester: Summer-2014 Batch B.B.A (Hons.) Group Members: 1. Talha Hassan BB-2131 2. Saad Mussarrat BB-2359 3. Shahzaib Malik BB-2116 4. Maaz Uddin BB-25227 Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 2 Acknowledgement First of all, we are thankful to Almighty Allah (The most gracious and the most powerful, the knower of whats seen and unseen), forgivingusthecourageandpowertolearnandtoapplyour knowledge for the benefits of mankind. Wewouldliketoexpressprofoundgratitudetoourinstructor orteacherSirShoaib,fortheirsupport,encouragement, supervision and useful suggestions throughout this project work. Wewouldnothavebeenabletofinishthiswonderfulproject withouthissupportandguidance.Thankyouforpatiently guiding usthroughout this project andmotivating usto work at ourbest.GroupmembersareShahzaibMalik,SaadMussarrat, TalhaHassanandMaazUddinforthecourseofsupplychain managementandtheorganizationorcompanyisthecocacola company. Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 3 Introduction CompanyProfile:TheCoca-ColaCompany isanAmerican multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups,whichisheadquarteredin Atlanta, Georgia. Thecompanyisbestknownforits flagshipproduct Coca-Cola,inventedin1886bypharmacist JohnStith Pemberton in Columbus, Georgia. TheCoca-Colaformulaandbrandwasboughtin1889 by AsaGriggsCandler (December30,1851-March12,1929),whoincorporatedTheCoca-Cola Companyin1892.Thecompanyoperates a franchised distributionsystem datingfrom 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughouttheworldwhoholdanexclusiveterritory.TheCoca-Cola Companyownsits anchorbottler inNorthAmerica, Coca-ColaRefreshments.Itsstockis listed on the NYSE and is part of DJIA, S&P 500 index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and CEO is Muhtar Kent. Coca-Cola currently offersmorethan500brandsinover200countriesorterritoriesandservesover1.7 billion servings each day.Over 146,000 employees around the world More than 1.7 billion servings per day More than 3500 kinds of beverages Sponsorship: Olympics, FIFA, EURO etc. Charity and contributions 1% from the total income The Coca Cola Foundation, 1984. Financial support for improving society. 2002-2010 more than $690 millions of contribution and charity. The biggest contributions: Africa 11 millions China Youth Development 6 millions Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 4 United Nations 2 millions Vision To become the best place to work for people To present the world a quality beverage brand. To make a difference by helping, building and supporting sustainable communities. Being highly effective and fast moving organization Mission To refresh the world and inspire moments of happiness and optimism. To create value and make a difference.Values Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 5 Images of few of "The Coca Cola Company" Brands Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 6 Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 7 upp|y cha|n Accord|ng to "1he Coca Co|a Company Internat|ona|" Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 8 Market Share by Coca Cola World Wide Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 9 Competitive Strategy Focus on aggressive marketing has been the cornerstone of the culture and strategy of its business. Coca-Cola always made expansion efforts. Coca-Colanotonlyproducessoftdrinksbutitalsoservesenergydrinks,tea,juice drinks and water. Acquisition for gaining competition advantage. The most important factor of the Coca Cola Company is its employees. Coca-Cola is selling its product to the multinational organizations like MC Donald's, KFC, Sub-way, Dunkin Donuts and also keeping local market in focus. Coca-Cola is focusing on public by charitable contributions. Coca-Co|as va|ue and future deve|opment p|ans |ead to |ncrease |n the |nterest are holders.They are operating through push strategy of supply chain worldwide in the beverages industry. Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 10 Global Presence till 2012 Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 11 Global business is organized into six geographic Operating departments: 1. Africa 2. Pacific3. European Union4. Latin America5. Asia6. North America Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 12 Organization Structure Global Decision Making Process Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 13 Coca Cola Supply Chain Process Supply Chain Stages A typical supply chain may involve a variety of stages:Customers Retailers Wholesales/distributors Manufacturers/ Plants Component/raw material suppliers Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 14 Inventory and Warehouses system A-B-C classification Studying the demand and finding the best method for forecasting. Studying the inventory problems. Building the dynamic inventory model. Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 15 Determination of economic order quantity.Determination of stock level.Determination of safety stocks.Selecting the proper system of ordering for inventory. Ending up with the final inventory model, which will be solution for our problem with numerical example. Information Flow SystemStudying the information flow system of the company.Detecting and identifying the problems and the area for improvement. Build the information system for the company with the improvements and modifications. Ending up with final information flow system, which will be the solution for our problem.The information model deals with the integration of supply chain members and concentrates on the flow of information among the chain members. Information technology plays a vital role for increasing collaboration among supply chain members. From the information point of view the effective supply chain management must provide the right amount of relevant information to the right person at the right time. Information is the key to successful supply-chain management because no product flows until information flows. Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 16 Benefits of Information Technology Higher visibility Reduced transportation spend Immediate availability of information Greater accuracy More economic Better customer service Higher productivity Reduced paper work Faster processing Increase on-Time Deliveries Improved Capacity Utilization Information Requirements To ensure that valuable, actionable knowledge readily flows across the supply chain, information must beAccessible Relevant Accurate Timely Transferable Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 17 Suggested Improvements Electronic pick slip report for the warehouse/ transportation Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 18 Radio frequency identification (RFID) Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 19 Positioning of the coca cola company Coca co|a owns more than x of the wor|ds beverages.Coke is affordable in all the countries. It was not out of the price range for an afternoon snack.Coke comes in a variety of sizes worldwide so you can use it for a crowd or as a personal snack drinkCoca-Co|a |s recogn|zed by 94 of the wor|ds popu|ation TARGET MARKETCokes commercials basically based on young generations, so, the young generation is thetargetmarketofCokebecausetheywanttorepresentCokewiththeyouthand energybuttheyalsoconsiderabouttheoldpeopletheytakethenasaco-target market. MAJOR SEGMENTS Majorsegmentsarebasicallythosepeoplewhotakethisdrinkdailyandthoseareas wherethedemandarehigherthantheotherareas.Therearesomanypeoplewho take this drink daily and those people who take weekly and those who take less often are always there as well. So, their basic segments are those people who take this drink regularly. FACTORS EFFECTING SALES There are so many factors, which affects the sale of coke. Here we are discussing three major factors which effects coke.Per capita incomeCompetitorsWeather Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 20 PER CAPITA INCOME I|rstwew|||d|scussabout"ercap|ta|ncome".1h|s|sma[orfactorthataffectsthesa|eof this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spendheavilyonrents,utilities,andeducationandbasicnecessitiesandafterthatwhen theyget extramoneytheythink about this soft drink.Sothedecreasingpercapita income effectsbadlyinsellingandproductionofthissoftdrink.Andtogetthroughwiththis difficultythereisneedtoincreasethelevelofpercapitaincomeofPakistanbecauseitis much lesser than the rest of the countries. FEATURES

Coke is having difference in taste than Pepsi due to having difference in ingredients.Coke has maintained global leadership in soft drink industry.Coke is trying to focus on worldwide expansion of the cola market.Coke must try to focus on its relationships with bottling subsidiaries.Coke is facing a major challenge in developing countries that their regional bottlers may not have the financial resources to continue expansion.Thebrandsaretryingtocreateworld-wideeconomicdevelopmentandpopulation growth to sustain sales and profits Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 21 c) PRODUCT REVIEW Coca-Colahas,andstill,continuedtoreignintheconsumersmarketstunningother companies with their artistic and viewer-friendly commercialsCoke is having difference in tasteCoke has maintained global leadership in soft drink industryCoke is trying to focus on worldwide expansion of the beverage market d) Competitive Review BUYERS/CUSTOMERS Coca-Colahasthreemajorandlargecustomersinthemarket,foodstreet60,000cerates /year, McDonalds 40,000 cerates/year and Pakistan Railways who buy 50,000 cerates /year.However,thesethreecustomersbeinglargeandpowerfulareinaninfluentialand bargainingpositiontheycandemanddiscountorothersfacilitieslike(boards sign/freezers/coolersetc.)andimposeathreattoswitchtotheirclosestrivaland competitor Pepsi. SUBSTITUTES Nestleproductslikejuices,coffee,mineralwateretc.andShezanjuicesaresubstitutesof Coke for health conscious people and other fresh juices. Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 22 RIVALS/COMPETITORS DIRECT COMPETITORS The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola international) thereisalwaysongoingtuffcompetitionbetweenthesetwoarchrivalswithPepsileading with54%marketshareandCokegraduallygrowingandcatchingup36%marketsharein Pakistan. Howeverongloballevelthe situation is reverse. Bothcompaniesoften engagein price cut wars, prize scheme wars and sponsorship wars to win over each other customers. INDIRECT COMPETITORS TheseincludeNestleandShezanjuicesthatdonotposeathreattoCokeasyetbut has the potential to do so as it is exploiting the natural aspect and health issues more andmoretomakepeop|econsc|ousaboutphys|ca|f|tnessCokehas|aunched"D|et Coke" to counter the phys|ca| f|tness demands. BUFFERING AND SMOOTHING For beverages like Coke the buffering and smoothing policies doesnt matter and they dont apply anymore because Coke remains in demand all the year round in festivals, parties, events, meetings sports etc. SUPPLIERS

Coca-Cola has authorized suppliers and which do not pose a threat to it. Anyhow Coke doeshaveaqualitycheckproceduresinitsplantstoensurethattheygettheright kind of ingredients from suppliers. Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 23 NEW ENTRANTS Coca-Cola is not afraid of competing .it doesnt fear losing its share to Mecca- Cola or othernewentrants.Thecompanymanagementbelievesthatnewentrantsprovoke healthycompetition,whichwillprovideCokewithachallengetoholdontoitsloyal customers. Besides it will take a lot of effort on the part of new entrants like Mecca- Cola,Pak-colatofullylaunchitsproductinPakistanandcaptureorevenmotivate people to switch on to their new product from Coke. COMPETITIVE ADVANTAGES BRAND NAME, SYMBOL, BOTTLE SHAPE. Brand name, symbol and bottle shape are distinctive features of Coca-Cola which give it an edge over its competitors. (Even without name people can easily identify Cokes, fantas, and sprites bottle from crowd.) They cannot be copied or imitated by others. Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 24 Images of The Coca Cola Company Timeline Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 25 Plant Bottle Manufacturing Process Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 26 Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 27 Value Chain Process Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 28 Supply Chain Management of Coca Cola Company Institute of Business & Technology (IBT) Page 29