Studies show that Coca-Cola Company has many satisfied customers. One of the firm’s core values is to focus on the preferences of the targeted customers. The company has established the best business partnerships with different players in order to support the targeted goals. Coca-Cola has become a preferred supplier in the world. This approach has produced new initiatives and relationships that ensure excellent execution. Coca-Cola’s distribution network continues to support the targeted outcomes (The Coca-Cola Company 2015). Majority of the firm’s customers get quality services and products. This development has improved the level of customer satisfaction. The criteria presented below will be used to examine the effectiveness of Coca-Cola’s distribution system. The presented recommendations will make it easier for the firm to achieve its business potentials.
Analysing Coca-Cola’s Distribution Network
Targeted Criteria
The total-cost approach can be used to describe the effectiveness of every supply chain. The total-cost concept encourages planners to consider the expenditures incurred whenever performing various logistical operations. The approach also focuses on the best systems in order to solve every logistical problem. Companies should ‘ensure their management and transportation functions are coordinated in a proper manner’ (Lopez 2013, p. 8). This combination ensures ‘that the targeted system operates at an optimum level’ (Lopez 2013, p. 8). Logistical managers in a given firm should also ‘identify the least-total-cost design system’ (Christopher 2011, p. 8). Managers should use appropriate coordination strategies in order to achieve the targeted outcomes. The distribution system should also focus on the best practices in order to reduce costs. The above combination is critical towards ensuring the distribution network operates optimally.
The second issue focuses on the role of the supply chain in modern business organisations. For instance, businesses should create the most appropriate distribution networks in order to eliminate unnecessary processes. This strategy is critical towards reducing the costs incurred by the organisation. The important goal is ensuring that the targeted goods are transported to the different markets within the shortest time. This fact explains why firms should make the necessary trade-offs in an attempt to achieve their potentials (Christopher 2011).
The other aspect of the targeted criteria is known as customer service concept. A proper logistical framework will ensure the right services are delivered to the targeted customers. According to Jespersen and Skjott-Larsen (2012), service provision can be very expensive for many businesses. Any attempt ‘to increase on-time delivery of different products and services will increase the level of logistical expenses’ (Lopez 2013, p. 76). The customer service concept focuses on the best practices in an attempt to satisfy the targeted customers. The level of customer satisfaction will make it easier for many companies to achieve their business goals.
Customer service is a powerful concept that makes it possible for many companies to achieve their potentials. The ultimate goal of every distribution network is to provide quality customer services. The distribution network should also improve the speed of delivery. However, effective services require the best tactics in order to achieve the targeted goals. Some of these tactics include ‘expensive transportation networks, modern equipment, proper inventory, and continuous monitoring of orders’ (Jespersen & Skjott-Larsen 2012, p. 42). These practices will support the correctness of the logistical system.
Moreover, a positive distribution framework should deliver the right results. Some practices such as ‘problem-detection, handling of products, and customer support have the potential to attract more buyers’ (Jespersen & Skjott-Larsen 2012, p. 49). Consumers will always be motivated by reliable services. The other consideration is the nature of planning. Logistical planning is an important aspect of every distribution channel. The purpose of logistical planning is to allocate the right resources depending on the targeted outcomes. The Logistics Manager (LM) should also consider various changes that might affect the distribution network (Christopher 2011).
Every firm wants to achieve its competitive excellence. Business organisations should ‘treat competitive excellence as an ongoing process of assessment, improvement, and adjustment over time’ (Jespersen & Skjott-Larsen 2012, p. 129). This fact explains why new changes are unavoidable in every organisation. An effective distribution channel is the one that promotes the day-to-day management of activities. Logistics Managers (LMs) should also gather the required feedbacks and provide appropriate incentives. This approach will eventually produce the best results, practices, and behaviors. The above aspects can be used to identify the effectiveness of a firm’s distribution network. The above criteria can therefore be applied to Coca-Cola’s distribution network. This approach will determine whether it has been operating at an optimal level.
Implementation of the Above Practices at Coca-Cola Company
The Coca-Cola System is very complex. The firm has over 300 bottling partners in different parts of the world. Such partners explain why Coca-Cola has ‘a very extensive distribution system in the whole world’ (The Coca-Cola Company 2015, para. 4). The company operates in over 200 nations across the globe. The firm has been the leading manufacturer of concentrates, syrups, and other raw materials. Such products are then marketed to many customers in different parts of the world.
Coca-Cola Company uses the total-cost approach in order to support its supply chain. The firm has outlined a unique distribution network characterised by different LMs and coordination teams. The firm has invested heavily in one of the best supply chain systems. This system is monitored by different operators. Every problem is identified and addressed immediately. Different teams work together in order to get the best results. The firm has been able to reduce most of the costs incurred throughout the distribution framework (The Coca-Cola Company 2015). This practice explains why Coca-Cola’s distribution network has been performing optimally.
One of the best approaches towards eliminating unnecessary processes is segmentation. This approach can ‘make it possible for a firm to deliver quality services at minimum costs’ (The Coca-Cola Company 2015, para. 7). Segmentation also supports Coca-Cola’s total cost approach. According to the firm, segmentation produces a powerful supply chain that addresses the needs of different customers. This strategy has created smaller supply chains that fulfill the demands of many customers. The concept of segmentation ensures that the right products and beverages are delivered to targeted customers. This network has made it possible for the firm to reduce its wastes (Banutu-Gomez 2012). The firm has also been focusing on the best practices in order to support its customers.
As mentioned earlier, customer service concept is a powerful framework that makes it possible for companies to attract more customers. Coca-Cola always understands the diversity of its customers. The company uses the best filling and packaging methods in order to promote the best logistical operations. This practice is critical because many customers require different products. The firm has the potential to deliver refrigerated products to many customers. Coca-Cola’s refrigerated distribution network satisfies the expectations of its customers (The Coca-Cola Company 2015). This kind of supply chain network supports the company’s goals. Coca-Cola’s supply chain is usually modified depending on the specific attributes of the targeted clients.
The above goal is supported by the firm’s segmentation strategy. Segmentation makes it easier for the firm to understand the best practices that can support the targeted customers. The needs of the targeted customers dictate the nature of supply chain to be used. The firm uses its clients’ portfolios in order to deliver the right resources. This practice has continued to support the company’s goals. These efforts are currently supporting the firm’s customer service concept (The Coca-Cola Company 2015).
The company has many customers in every corner of the world. Most of these customers have their unique expectations and product requirements. Coca-Cola ‘has developed a large Six-Sigma supply chain operation’ (The Coca-Cola Company 2015, para. 3). This market-driven approach leverages the best practices at the company. The role of the firm’s supply chain is to leverage its brand. The LM makes sure every product is aimed at fulfilling the needs of many consumers. The supply chain consists of numerous practices that focus on the best outcomes. The Logistics Manager in every region collects the best feedbacks from different customers. Such feedbacks are used to improve the quality of customer services (Banutu-Gomez 2012).
Coca-Cola’s global system consists of many employees. These individuals work together in order to achieve the best goals. Teamwork is a philosophy of every supply chain team. The individuals in charge of the company’s supply chain understand the importance of high sale volumes. This goal can be achieved through the use of a proper planning strategy. Many people are involved in the planning process. For instance, the LM ‘gathers the right ideas and suggestions from different employees’ (Banutu-Gomez 2012, p. 169). The manager also surveys the appropriateness of every underserved market or region. The manager also identifies the best practices in order to improve the number of beverages delivered to specific clients. This planning strategy has made it easier for the firm to retain its competitive position.
A proper inventory is used to support the firm’s supply chain framework. The inventory determines the kind of beverages to be delivered to specific customers. The inventory also ensures specific products are delivered to the targeted customers in a timely manner. The approach satisfies more customers while at the same time retaining the company’s sales. The practice has been critical towards supporting Coca-Cola’s business goals. This firm also collaborates with different suppliers in order to develop an effective distribution network. The practice has created a powerful strategy thus making the company successful (The Coca-Cola Company 2015).
The firm’s supply chain philosophy is ‘culture and capability’ (Banutu-Gomez 2012, p. 169). To begin with, the firm employs many individuals from various backgrounds. This cultural approach makes Coca-Cola’s supply chain more sustainable. The firm gets the best support from different stakeholders. The logistical manager also promotes a culture of continuous improvement (The Coca-Cola Company 2015). This practice explains why Coca-Cola treats competitive excellence as ‘an ongoing process of assessment, improvement, and adjustment over time’ (The Coca-Cola Company 2015, para. 6). The firm gets new feedbacks in order to achieve its business goals. These strategies will continue to make Coca-Cola one of the leading brands in the world.
Recommendations for Coca-Cola Company
The above analysis shows clearly that Coca-Cola’s distribution system has been operating optimally in terms of customer service and cost. The distribution system supports the needs of many customers. The purpose of this supply chain is to deliver the targeted promises to every customer. The firm has been bringing joy to more customers. The supply chain system has been sustainable. The firm has been reducing its costs through the concept of segmentation. The company believes that productivity is the best promise for an effective supply chain (The Coca-Cola Company 2015). Coca-Cola also works hard in order to eliminate wastes and inefficiencies. This practice makes it possible for the firm to achieve its objectives.
Coca-Cola can also use new strategies in order to strengthen its effective supply chain. Coca-Cola can embrace the use of modern technologies in order to improve its supply chain management system (SCMS). Modern consumers have become aware of their demands. They have been focusing on the best needs in order to achieve their potentials. The use of technology makes it easier for many companies to monitor their supply chain networks. Such technologies can improve the level of coordination. New monitoring practices will reduce losses and risks affecting the firm’s supply chain (Lopez 2013). Marketers and distributors will be able ‘to receive automated notifications in order to increase value for the targeted customers’ (The Coca-Cola Company 2015, para. 8). Modern technologies will ‘improve the level of invoicing and tracking’ (Jespersen & Skjott-Larsen 2012, p. 76).
The above discussion shows clearly that Coca-Cola’s supply chain is one of the best in the world. The firm has been focusing on the best practices in order to achieve its potentials. Coca-Cola has also been using the best logistical practices in order to achieve its goals (Banutu-Gomez 2012). The inclusion of modern technologies will reduce the firm’s costs. This recommendation will eventually result in an effective system that satisfies the targeted customers.
Reference List
Banutu-Gomez, M 2012, ‘COCA-COLA: International Business Strategy for Globalisation’, The Business & Management Review, vol. 3, no. 1, pp. 155-169. Web.
Christopher, M 2011, Logistics and Supply Chain Management, FT Press, New York. Web.
Jespersen, B & Skjott-Larsen, T 2012, Supply Chain Management: In Theory and Practice, John Wiley and Sons, New York. Web.
Lopez, D 2013, Brand Development of Coca-Cola Company (UK), GRIN Verlag Press, London. Web.
The Coca-Cola Company 2015. Web.