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COCA-COLA’S SUPPLY CHAIN Group Members: Dang Uyen Nhi Ton Nu Hoai An Do Thuy Anh Truong Thi Hoang Van 07 12 2021 Contents: Introduction Coca-Cola’s supply chain Describe flows in the The Advantages & Describe the components supply chain Disadvantages Proposal 01 INTRODUCTION About The Coca-Cola The Coca-Cola Company, headquartered in Atlanta, Georgia, incorporated in Wilmington, Delaware A beverage company and manufacturer, retailer and promoter of beverages and American syrup non-alcoholic multinational Coca-Cola was founded in 1982, operating in over 200 countries around the world In Asia, the company operates in regions: Worldwide Coca-Cola operates in territories: North America, Latin America, Europe, Asia, the Middle East and Africa ★ China ★ India ★ Japan ★ Philippines ★ South Pacific and Korea ★ West and Southeast Asia (SEWA) Main products Vision “Our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit And done in ways that create a more sustainable business and better shared future that makes a difference in people’s lives, communities and our planet.” Mission Since its establishment, Coca Cola has always followed a great mission and fulfilled their long-term goals: Entering the market and introducing new products to the world Delivering inspirational messages Generating fresh and unique potential value Achievements Coca-Cola accounts for 3.1% of total beverage products worldwide Among 33 famous non-alcoholic beverage brands in the world, Coca-Cola owns up to 15 brands Coca-Cola is now present in all continents of the world and is widely known by the majority of the world population 02 COCA-COLA’S CHAIN NETWORK SUPPLY SECTION BREAK SLIDE TITLE Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed eiusmod tempor incididunt ut labore et dolore magna aliqua 03 THE COMPONENTS COLA’S SUPPLY CHAIN IN COCA- Suppliers ★ Product ingredients C02 ★ Food coloring (Caramel Color E150d ★ Sourizer (Phosphoric Acid) - E330 ★ Caffeine, Packing ★ Supply of bottles ★ Supply of packing boxes Devices ★ Production system ★ Control and management system ★ Warehouse system ★ Water treatment system Manufacturers ● TCC (The Coca Cola Company): responsible for water production and supply Coca-Cola core for factories, responsible for promotion and management trademark ● TCB (The Coca Cola Bottler): responsible for production, distribution and provides services for Coca Cola products warehousing, Distributors ● In Vietnam, Coca-Cola has main distribution centers located near production plants in Ho Chi Minh, Da Nang and Hanoi ● To be able to become a direct distributor of Coca-Cola, the distributor must ensure and fulfill a number of commitments with the company Retailers ● Coca-Cola goods can be found in all retail outlets Restaurants, commercial centers, shopping centers, retail stores, refreshment bars, and other similar establishments are included ● For retailers Coca-Cola uses a strategy of “wide distribution” ❏ Personal customers: Those who buy products for consumption, for personal purposes Individual customers here are individuals who want to buy from coke bottles and cans from supermarkets, grocery stores, etc Customers ❏ Institutional customers: These people buy goods to use for activities organization's activities, may purchase products to combine with their other products to sell Customers organized here can be cafes, beverage shops, restaurants, hotels, 04 INFORMATION/PHYSICAL/ FINANCIAL FLOWS IN THE SUPPLY CHAIN Physical Flow Coca-Cola uses two types of parallel distribution channels: one-level and two-level Coca-Cola uses exclusive distribution agents and wholesalers to bring goods to retail intermediates and from retail points To promptly supply products to the market, the corporation hires three major carriers: Dai Thanh, Binh Vinh, and most recently, Phinapco Financial Flow Final consumers of small retailers will pay the wholesaler in cash at the time of delivery or at the end of the month, depending on the terms of their agreement Coca-Cola will be paid for via transfer by wholesalers, supermarkets, and key accounts Information Flow The company will provide information to distribution intermediaries The company also receives input from the remaining channel members in order to promote itself or identify and address its flaws The data system can be passed directly from one component to the next 05 THE ADVANTAGES & DISADVANTAGES OF COCA COLA’S SUPPLY CHAIN ANY PROPOSALS? Advantages Disadvantages ■Coca-Cola can reduce the cost of international freight service by sea by using domestic resources The production line system is simple and reliable throughout the manufacturing Contact with end-users on a regular basis -> better understand their needs, tastes, and purchasing habits ■ The supply chain of required materials (coca leaves and coca seeds) and generating coca syrup has been disturbed due to the COVID-19 pandemic Cost for the traditional operation of the production system will require an investment Conflict of interest Proposals Enhancing the innovation of warehousing, transportation, forecasting problems A Investing in product development research To resolve conflict of interest, Coca- and changing design Cola must have proper policies E Before product reaches the buyers, it should be thoroughly examined B D C Control product quality from supplier THANK YOU Do you have any questions? ...Contents: Introduction Coca- Cola’s supply chain Describe flows in the The Advantages & Describe the components supply chain Disadvantages Proposal 01 INTRODUCTION About The Coca- Cola The Coca- Cola... COMPONENTS COLA’S SUPPLY CHAIN IN COCA- Suppliers ★ Product ingredients C02 ★ Food coloring (Caramel Color E150d ★ Sourizer (Phosphoric Acid) - E330 ★ Caffeine, Packing ★ Supply of bottles ★ Supply. .. one component to the next 05 THE ADVANTAGES & DISADVANTAGES OF COCA COLA’S SUPPLY CHAIN ANY PROPOSALS? Advantages Disadvantages ? ?Coca- Cola can reduce the cost of international freight service