“UNIVERSITY OF ECONOMICS HO CHI MINH CITY” “SCHOOL OF INTERNATIONAL BUSINESS – MARKETING” THE FINAL TERM PROJECT OPERATION AND SUPPLY CHAIN MANAGEMENT Lecturer Truong Hong Ngoc Class KMC01 – K44 Membe.
“UNIVERSITY OF ECONOMICS HO CHI MINH CITY” “SCHOOL OF INTERNATIONAL BUSINESS – MARKETING” THE FINAL TERM PROJECT OPERATION AND SUPPLY CHAIN MANAGEMENT Lecturer: Truong Hong Ngoc Class: KMC01 – K44 Members: Group Vo Phuong Quynh Huong 31181020073 huongvo128.k44@st.ueh.edu.vn Nguyen Hoai Quynh Nhu 31181021329 nhunguyen275.k44@st.ueh.edu.vn Tong Anh Son 31181024677 sontong511.k44@st.ueh.edu.vn Dang Le Minh Thu 31181022484 thudang57.k44@st.ueh.edu.vn Ho Bao Vy 31181020646 vyho132.k44@st.ueh.edu.vn Ho Chi Minh City, 6/2021 ASSIGNMENT TABLE Part Vo Phuong Nguyen Hoai Tong Anh Dang Le Quynh Huong Quynh Nhu Son Minh Thu ✓ ✓ ✓ Part Part Part ✓ ✓ Part ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Synthesize Contribution Ho Bao Vy 20% 20% 20% ✓ 20% 20% TABLE OF CONTENTS SUMMARY CONTENTS OVERVIEW OF THE INDUSTRY AND COCA-COLA 1.1 Industry: Beverage 1.2 Enterprise: Coca-Cola THREE CORE FACTORS OF COCA-COLA 2.1 Focus on Local Sourcing 2.2 Supply chain visibility 2.3 Direct to Store Delivery (DSD) COCA-COLA'S SUPPLY CHAIN PROCESS 3.1 Plan 3.2 Source 11 3.3 Make 12 3.4 Delivery 14 3.5 Return 17 COCA-COLA DURING THE COVID-19 PANDEMIC 18 4.1 Impact of the COVID pandemic on the operation and supply chain of the industry and Coca-Cola 18 4.2 Projects of Coca-Cola in the COVID-19 pandemic 20 4.3 The reduce of projects in COVID-19 23 Conclusion 24 5.1 Supply chain assessment 24 5.2 Propose solutions for Coca-Cola 26 REFERENCES 27 PLAGIARISM DETECTION RESULT 29 SUMMARY For all businesses in general and manufacturing enterprises in particular, the supply chain is a very important factor Therefore, we did our research and looked at the supply chain process of a business that interests us, the Coca-Cola of the beverage industry This study consists of main parts: Part 1: Overview of the industry and Coca-Cola In this section, we will briefly introduce the beverage industry as well as the Coca-Cola brand Part 2: Three core factors of Coca-Cola We will highlight the opportunities and challenges of these three core elements of this supply chain and then present Co-Cola's plan for the challenges they face Part 3: The Coca-Cola's supply chain process of a product The stages of Plan, Source, Make, Delivery and Return will be presented in this part Part 4: Coca-Cola during the Covid-19 pandemic We will analyze the impact of the Covid - 19 epidemic on Coca and advantages/disadvantages of Coca’s supply chain projects Part 5: Conclusion In this part, we will show the advantages, disadvantages, opportunities and challenges of the supply chain process in Coca-Cola company From there, we will propose some solutions for the above problems CONTENTS OVERVIEW OF THE INDUSTRY AND COCA-COLA 1.1 Industry: Beverage The world carbonated liquids market measurement was valued at USD 406.89 billion in 2019 and is anticipated to develop at a compound annual growth rate (CAGR) of 5.1% from 2020 to 2027 Strong recognition of soda drinks amongst the era X and era Y age businesses is anticipated to play a significant function in increasing the market size The customers choose such drinks as they have an acidic chunk and produce a high-quality tingling and provide cooling sensation with each sip Along with these, the product is composed of fruit flavors, which promote the acceptance of such merchandise amongst consumers A carbonated beverage is manufactured using easy water, flavoring factors to set up the taste profile, sugar or different sweeteners, coloring agents, and preservatives that are meant to be added Technology has performed its section in the growing consumption of carbonated liquids with the introduction of glass bottles, cans, plastic bottles, high-speed packaging lines, and evolving packaging systems (Grand View Research, 2020) PRODUCT INSIGHT Carbonated soft drinks accounted for more than 50.0% share of the world income in 2019 Companies have been the usage of a range of techniques for developing a wider penetration of carbonated liquids and sustaining the client base The carbonated sports activities and power drinks section is anticipated to witness the quickest increase at some point of the forecast years with a CAGR of 7.2% from 2020 to 2027 A giant quantity of sports activities and electricity drink producers have been including fizz to the beverage to create freshness In June 2020, VPX Sports launched Noo Fuzion, a new line of carbonated ready-to-drink pre-workout beverages, which is successful in inducing lean muscle growth and has energy-boosting features (Grand View Research, 2020) DISTRIBUTION CHANNEL The on-line shops and D2C phase is predicted to witness the quickest increase at some point of the forecast years with a CAGR of 8.0% from 2020 to 2027 Some of the e-commerce structures supplying carbonated liquids without delay to clients are Amazon, Target, Kroger, Walmart, Publix, and Burger Boss (Mordor Intelligence, 2020) FLAVOR INSIGHTS Cola taste accounted for 55.8% share of the world income in 2019 These merchandises have been playing their lead owing to the first mover’s advantage Furthermore, an excessive degree of innovation deployed with the aid of key manufacturers, which include The Coca Cola Company and PepsiCo, in phrases of the launch of merchandise in zero-calorie and diet-free content material is anticipated to keep the recognition of the cola taste section in the close to future The fruit-based flavors section is anticipated to witness the quickest increase at some stage in the forecast years with a CAGR of 6.3% from 2020 to 2027 (Grand View Research, 2020) REGIONAL Central and South America held the greatest share of over 25.0% in 2019 Brazil is one of the greatest shoppers of carbonated liquids in the region The younger population, along with the availability of merchandise from throughout the globe, is main to a sturdy consumption of carbonated liquids in the region The Middle East and Africa are anticipated to register the quickest CAGR of 6.8% from 2020 to 2027 The place has been adopting the product unexpectedly and countries, like Nigeria and Kenya, are dominating the industry Youthful population, speedy urbanization, widening economic sectors, and most important producers eyeing the location for product penetration are main to the fast increase of the market (Grand View Research, 2020) COMPETITIVE LANDSCAPE Recognized company loyalty is a massive component of the carbonated liquids industry Frequent mergers and acquisitions are witnessed throughout the industry Some of the most important key players in the carbonated drinks market, globally encompass The Coca-Cola Company, PepsiCo Inc., Parle Agro, Asahi Group Holdings, Ltd., Britvic PLC, SUNTORY BEVERAGE & amp, FOOD LIMITED, amongst others The market leaders in this industry are The Coca-Cola Corporation, Pepsi-Co Inc and Dr Pepper Snapple (Grand View Research, 2020) 1.2 Enterprise: Coca-Cola The Coca-Cola Corporation is a beverage company and global manufacturer, retailer, and distributor of non-alcoholic beverages and syrups headquartered in Atlanta, Georgia, but incorporated in Wilmington, Delaware The corporation is best known for its main product Coca-Cola, which was created in 1886 in Columbus, Georgia by pharmacist John Stith Pemberton Asa Griggs Candler (December 30, 1851 – March 12, 1929) bought the Coca-Cola formula and brand in 1889, and created the Coca-Cola Company in 1892 (The Coca-Cola Company, 2020d) 1919: Candler's heirs sell the Coca-Cola Company to Atlanta banker Ernest Woodruff in 1919 Ernest Woodfuff was chosen Executive Chairman of the Company four years later, kicking off six decades of leadership and propelling the Coca-Cola Company to new heights that no one could have imagined Coca-Cola has been present in more than 200 nations around the world and has grown to become the world's top beverage corporation in many ways after more than 100 years of establishment and expansion (The Coca-Cola Company, 2020d) This brown beverage is consumed by 11,200 people every second This company employs up to 30,000 individuals around the world, not to add the number of business people and exclusive distributors Coca-Cola is always satisfied that the taste and quality of its beverage remains consistent no matter where it is bottled or in which country The wonderful and stunning victory of the most basic consumer item has been chronicled in the history of the inception and growth of this beverage line Coca-Cola used critical marketing, transportation, and supply chain methods to make this seemingly common drink have such a devastating influence North America, Latin America, Europe, Asia, the Middle East, and Africa are the five regions where Coca-Cola operates In Asia, the enterprise operates in regions: China, India, Japan, Philippines, South Pacific & Korea, West and Southeast Asia (The Coca-Cola Company, 2020d) THREE CORE FACTORS OF COCA-COLA 2.1 Focus on Local Sourcing Coca-Cola is probably the most famous brand in the world with global coverage Coca-Cola's products flood the market spanning many distribution channels It's hard to walk into supermarkets and retail stores and not find Coca-Cola products To that end, Coca-Cola has focused on local resources to optimize the company's supply chain and deliver products to distributors as quickly as possible Moreover, by focusing on local resources, Coca-Cola contributes to economic development, creating job opportunities for the country in which Coca-Cola invests (Rahul, 2020) Opportunity: - Supply products fastest, continuously to distributors by sources of raw materials as well as personnel used by Coca-Cola at the factory location, or it takes very little time to supply materials - Create trust and support of local consumers, because Coca-Cola is produced by locally supplied materials and contributes to local economic development - Helps keep supply chains short and fast – critical to being able to keep up with demand Challenge: - The source of ingredients is not suitable for Coca-Cola's recipe - Supply chain can be imitated by competitors - The working culture of each country is different, affecting the quality of work performance Coca-Cola's plan: - Building factories in the raw material supply area for production and processing plants to check the quality and process the finished materials before transferring to the production plant - Establish relationships with raw material supply partners and commit to Coca-Cola's supply chain confidentiality agreement - Human resource policy in accordance with local culture, establishing a professional working environment and good welfare regimes 2.2 Supply chain visibility Real-time supply chain visibility allows Coca-Cola to control and regulate supply chain operations, resulting in better inventory control from beginning to end, allowing Coca-Cola to -Cola sees the full picture of what's happening in the business, making it more cost-effective and ultimately creating a stronger supply chain (Rahul, 2020) Opportunity: - Improve operations and eliminate redundant and inefficient stages - Show orders: Coca-Cola can view the entire backlog of the orders they need to fill This will provide Coca-Cola with the content it needs to plan production and inventory to meet customer demand - Coca-Cola visibility and collaboration: helping to keep trucks from having to wait too long, leading to better performance and transportation costs over time - Control warehouse management: allow warehouse operations team to effectively manage their personnel, so that there are enough workers available to handle deliveries Challenge: - The possibility of supply chain disruption is quite high - The big challenge in sharing information between layers is the problem of data transmission between different information systems Coca-Cola's plan: - Perform risk management Processes need to become more collaborative, with data sharing and planning done across departments as well as across organizations Coordination of sales and supply chain forecasts can assist in helping suppliers predict future demand Organizations need to develop requirements data that can be shared among supply chain partners to execute demand planning - Coca-Cola implements innovations such as cloud computing and data collection and analysis software that are now powering supply chain control towers, allowing the company to more accurately manage demand signals, Respond to customer requests faster and smooth the effects of demand variability 2.3 Direct to Store Delivery (DSD) Coca-Cola implements delivery method directly to convenience stores and retail stores instead of through agents and distributors in the area Market surveyors visit each convenience store to inspect products, present product stalls, and plan replenishment orders After day, the orders will be delivered to convenience stores and retailers, the delivery staff will arrange to fill the coolers at the store Frequency of doing times a week and may be more frequent depending on each store has different product consumption needs (Rahul, 2020) DSD always makes sure that Coca-Cola products are always in stock and displayed to promote sales and increase sales Convenience store owners, retailers also receive monthly gifts from Coca-Cola and are rewarded with commissions when sales increase Opportunity: - Coca-Cola products are placed in a conspicuous position in stores, giving priority to customers to choose, helping to increase sales - Convenience store and retail staff understand the delivery time of Coca-Cola to organize the warehouse, helping to reduce the time of stay at the store of Coca-Cola delivery staff Challenge: - Competition for product display positions at the store with competitors - Good relationship with the shop owner Coca-Cola's plan: - Continuously offer promotions and discounts for each convenience store, retail - Establish a good relationship with the shop owner by sending gifts from the brand, with a reasonable commission COCA-COLA'S SUPPLY CHAIN PROCESS 3.1 Plan 3.1.1 How has Coca-Cola planned The success that Coca-Cola has achieved globally as well as in the Vietnamese market is due to the great contribution of the business plan Planning for both the process as well as for each specific stage will help Coca-Cola balance, calculate and ensure the necessary elements for the supply process as well as optimize the supply capacity The proposed policies and plans will help Coca-Cola regulate supply and demand in the market, limiting the risks of disrupting the supply chain Most recently, during the COVID-19 pandemic, Coca-Cola has established business continuity plans at facilities around the world to ensure the continuity of the company, while taking all necessary steps to keep strong and safe for employees’ healthy (Coca-Cola Việt Nam, 2020) The input of strategic planning must consider the factors of production business strategy, market demand, current resources of the supply chain When planning, Coca-Cola will have to some specific things Starting from forecasting demand, to planning supply strategy for suppliers, planning production strategy, distribution strategy and even product return strategy products so that resources can meet market demand About forecasting market demand: Coca-Cola must regularly research and forecast market demand in order to be able to come up with a production plan in reasonable quantities and respond promptly to consumer changes As Coca-Cola realizes the worldwide consumer demand for safe and healthy products tends to increase, Coca-Cola has taken steps to reduce the amount of sugar in its products Besides, Coca-Cola is applying a transnational strategy Therefore, in addition to working closely together in the system, Coca-Cola is also doing well in adapting products to the market The demand for coffee in the Vietnamese market is quite high, so Coca-Cola also launched the Coca-Cola product line with added coffee for the Vietnamese market After forecasting the market demand, Coca-Cola next will have to carry out planning steps related to the supply of materials, the production process and distribution to customers At this stage, CocaCola will have to find answers to questions such as: is there a need to increase supply? At what capacity should manufacturing and distribution plants be operated? Does the product list need to be adjusted? Self-produced or outsourced? In addition, another important element of the planning stage is the development of a supply chain monitoring data system, to be able to ensure efficiency and optimize supply performance From Concentrate operations to Bottled operations and Customers all need a suitable management monitoring system DOIP (Dial Other Internet Providers), VMI (Vendor managed inventory), ECR (Efficient Customer Response) and CPFR (Collaborative Planning, Forecasting and Replenishment) are ways to assist Coca-Cola in managing the planning process 3.1.2 Advantages and disadvantages of its sales planning process Advantages Disadvantages Coca-Cola has captured and processed The monitoring data system seems to have information quickly Coca-Cola regularly not been implemented well, leading to the researches and captures the market to subjects not being able to capture timely data implement the plan quickly and on time information The good implementation of the long-term plan along with appropriate strategies has helped Coca-Cola achieve undeniable successes Because planning is the first and 10 - Cons: The transit times of this mode are slow and it may take longer than other transportation Moreover, there are some large areas of the world that are not directly accessible to water carriers because they not have seaports Air: Coca-Cola uses Hartsfield Jackson International Airport to transport goods to another country This type of transportation is also of concern when using - Pros: It is the quickest transportation to deliver the products between two completely different countries Therefore, this type of transport will take less time than other types The small, lightưeight and expensive things are most appropriate for this transportation - Cons: However, it takes a really high cost and it is expensive for business to transport products Rail (trains): Although Coca-Cola transports most of its products by highway, it also uses the trains to deliver Now, Coca-Cola is also working with Tesco on a dedicated rail-freight route - Pros: This is a fairly low-cost, effective and efficient alternative to move products from a place to another place Besides, rail transportation is a friendly environmental type of transport compared to others For some nations such as Europe, Japan and China that have fast rail links and highly developed infrastructure, it makes this transportation become more attractive and effective - Cons: The transit times of this transport will be long and may be subject to variability For some countries such as the United States, its railroad infrastructure has declined over the last 50 years, making it less enticing Therefore, it will waste a lot of time for business 3.4.2 Designs of its warehouses There are many types of warehouses such as Bonded, Bulk, Specific and General storage and refrigerated warehouses Moreover, the place of warehouse can be a centralized and decentralized warehouse or they can also use third party logistics and so does Coca-Cola Coca-Cola is using the decentralized warehouse and it has more than 120 storages all over the world Besides, Coca-Cola uses a third-party logistic warehouse to store its goods There are many large companies that also use this kind of warehouse such as Honda, Pepsi etc Coca-Cola is outsourcing a part of their supply chain of the warehouse and transportation of finished products to DB Schenker Logistics in Poland - Pros: Because Coca-Cola has more than 120 warehouses in the world, it can easily meet the needs of customers In any country, Coca-Cola can serve their consumers better positioning by reducing the time required to ship their products This will increase the loyalty and relationship with customers Moreover, a decentralized warehouse can easily make decisions to solve the problem faster as it does not need to wait for the parent company Therefore, Coca-Cola will save on freight charges because of bulk handling On the other hand, using a 15 third-party logistic company can help Coca-Cola reduce the cost of warehouses and paying for customers - Cons: Having lots of warehouses sometimes makes Coca-Cola find it hard to manage and supervise Moreover, outsourcing the third-party logistic warehouse is not completely safe because Coca-Cola may not know all the goods, employees as well as data that its third-party logistic company holds Along with that, whenever a business hires services such as recruitment, logistics, they also face the risk of exposing confidential business information and security technology to third parties 3.4.3 Arrangement of the enterprise's logistics facility Proximity to customer: Coca-Cola has built their factories near the customers in order to provide them as soon as possible For example, Coca-Cola Vietnam currently has factories located in Ho Chi Minh City, Da Nang and Hanoi, which are large cities and densely populated - Pros: Building factories in the large cities and near the customers helps Coca-Cola to meet customers' needs easily Moreover, it can easily increase its revenue by the purchasing of customers - Cons: However, placing the factory next to densely populated areas makes the surrounding neighbors feel uncomfortable because of emissions, dust, and noise pollution from the factory Infrastructure: Coca-Cola has used its road, sea, air and rail transportation in an adequate way to deliver to customers the best products Moreover, Coca-Cola is a large business with standard quality facilities, which are regularly monitored and maintained; tables, chairs, electric lights, etc are suitable and ensure the health of employees Besides, the office is also divided into a working area, pantry area, and entertainment area The large, open, undivided working area, rooms between departments, offices at Coca-Cola have many small meeting rooms for about 6-8 people to discuss together as well as large rooms for large meetings Pantry area for each working area, with coffee, milk, sugar, tea machines, etc In particular, the entertainment area has a place for yoga, table tennis, lunch break, etc - Pros: Having infrastructure with different modes of transportation helps coca-cola reach consumers faster At the same time, with the quality of the working environment at the company, which Coca-Cola focuses on promoting, with a comprehensive compensation system, creating opportunities for employees to develop to their fullest in a comfortable, creative, and rewarding environment evaluate, reward and enjoy benefits commensurate with capacity thereby increasing the employee's love for your company, more motivated to work - Cons: However, not all countries and establishments of Coca-Cola receive such investment attention, especially in undeveloped countries, so there is no uniformity between regions causing controversy 16 Quality of labour: The education and skill level of employees is extremely important, especially for large companies like Coca-Cola Therefore, every year, Coca-Cola spends a lot of money to train employees, helping them to achieve higher qualifications Specifically, Coca-Cola always gives priority to improving local human capacity, building a team of high-quality professionals according to global standards For example, in Vietnam today, every year, businesses invest more than 1.4 million USD (equivalent to more than 30,000 billion VND) in recruitment and human resource development activities in the country - Pros: Focusing on training costs to get many qualified employees, helping the logistics process in particular and coca in general achieve better results - Cons: Spending too much money on labor will cause some other deficits for production and logistics work Supplier: Coca-Cola considers its suppliers as essential partners, conducive to the continuing and property success of its business As an essential part of the price chain, the Coca-Cola’s performance of suppliers directly affects the property performance and commitments of Coca‑Cola HBC Under a unified procural framework, Coca-Cola tends to section its offer a base universe of around 19500 suppliers into direct and indirect pay suppliers (actively used for obtaining transactions in 2019) Its suppliers include direct and indirect pay suppliers Direct pay suppliers embrace ingredients and packaging suppliers while indirect pay suppliers embrace IT, production instrumentality, maintenance services, Moreover, suppliers also include concentrate, CDE and trade goods suppliers (Coca-Cola HBC, 2021) - Pros: Having many suppliers will diversify Coca-Cola's products, making them change continuously without becoming boring to customers - Cons: Having many suppliers will sometimes mess up the product, and Coca-Cola also does not manage in detail all the harmony that the supplier brings 3.5 Return 3.5.1 The enterprise's policies of goods return According to Coca-Cola, if customers are not satisfied with their order, they can contact Coca-Cola within 15 days after receiving their goods However, Coca-Cola usually does not accept the return on consumers’ customized goods if the goods not materially differ from what was ordered on the website or it may be flawed Besides, if customers return their products after 15 days of receipt, CocaCola also does not accept their request If the customers are eligible for a refund, Coca-Cola will reimburse the price which they have paid for those goods or goods onto their debit card or credit card that they paid Besides, Coca-Cola can also give customers coupons or vouchers if they want to and resend the merchandise free of charge However, please note that these ways of refund can not be done together Customers can not both 17 get paid and get vouchers or coupons and resend items In case the fault is a result of customers’ action, they will not receive the refund such as product misuse or if personalization is misspelled Therefore, Coca-Cola totally has the right to refuse a refund request Moreover, if consumers request a refund for three separate orders, Coca-Cola will not accept the request of the third order 3.5.2 The processes of goods return When customers want to return their products, they have to contact Coca-Cola’s Customer Service Team by calling 1-800-557-4616 or using the Contact Us form After that, customers need to provide their order number and the details of what problems the products have with the order Within working day, Coca-Cola will acknowledge any complaint of consumers and its best to resolve the problem within the next 28 days (The Coca-Cola Company, n.d.-b) In case that consumers want to request a refund, they also have to the same as return products Customers need to contact Coca-Cola’s Customer Service Team by calling 1-800-557-4616 or using Contact Us form If they have their own created account, they can also request a refund online in order history and Coca-Cola will confirm whether this request is reasonable After that, Coca-Cola will refund to consumers as soon as possible (The Coca-Cola Company, n.d.-b) COCA-COLA DURING THE COVID-19 PANDEMIC 4.1 Impact of the COVID pandemic on the operation and supply chain of the industry and Coca-Cola 4.1.1 Industry 18 COVID-19 has had an impact on all aspects of the global supply chain such as distribution and packaging, in addition to raw materials sourcing Transportation of packaged foods, prepared ingredients, and non-alcoholic and alcoholic liquids was disrupted by lockdowns, and some enterprises were forced to close for up to two weeks for cleaning Weersink et al also identifies capacity constraints in the place of business as a result of social distancing, which leads to operational issues Due to the decreasing restaurant demand, operational problems include the form of packaging The disruption of the global supply chain has emphasised the risk of excessive opportunity outside dependence on crucial objects (Telukdarie et al., 2020) According to Mr Nguyen Van Phung, Director of the Tax Administration Department of Large Enterprises, General Department of Taxation (Ministry of Finance): “Enterprises in the beverage industry have been affected by a number of policy regulations and impacts negative effects of the COVID-19 pandemic Leading to consumption decreased, inventory increased, competition pressure was great In addition, consumption trends are changing and this will lead to many unpredictable consequences for this industry group.” (Kim Dung, 2020) In addition, Mr Nguyen Van Viet, Chairman of the Vietnam Beer, Alcohol and Beverage Association said that the beverage industry in recent years has faced many difficulties in both domestic and export markets Production and business activities of enterprises decreased significantly, in which revenue and profit decreased by an average of 20-40% over the same period last year, respectively Beverage consumption index in the first months of 2020 is just over 89% over the same period Particularly, the country's beer production in the first months of this year decreased by more than 18% over the same period In addition, domestic enterprises also face difficulties due to competition with smuggled goods and goods of unknown origin (Kim Dung, 2020) 4.1.2 Coca – Cola On March 20, 2020, Coca-Cola made a decision to stop the company's advertising activities in Vietnam and throughout Southeast Asia for at least one month On July 21, 2020, Coca-Cola announced a sharp drop in second quarter 2020 profit due to a large decline in consumption activity at outdoor meeting events, especially at the time of the blockade to prevent the Covid-19 epidemic from peaking Coca-Cola's net profit was only $1.8 billion, down 32% in the second quarter Corporate sales fell 28% to $7.2 billion.In April, Coca-Cola sales bottomed with a 25% drop However, businesses said the decline gradually improved and dropped to 10% in June when the social distancing order was eased At this time, sales of Coca will increase thanks to the reopening of cinemas and entertainment venues In the report, Coca-Cola said its sales performance was boosted by the improvement in trends in the outdoor channels, along with the steady increase in sales in the home channels 19 Advertising budgets and resources will be redirected to COVID-19 prevention and control, while supporting the most impacted communities According to Ms Vu Thanh Truc, Head of External Relations and Sustainable Development - CocaCola Indochina, in the context of the spreading COVID-19 pandemic, in addition to suspending advertising activities, the company also proposed preparedness plans at facilities around the world to ensure continued operations and take all necessary steps to keep employees healthy and safe (Khánh An, 2020) Along with recommendations on minimizing large meetings and distancing from crowded places, Coca-Cola is also asking many office workers to work remotely For markets with no travel restrictions, Coca-Cola has asked all employees to consider the necessity of travel and to speak with their immediate supervisor to determine if travel is urgent or could be postponed For major events, Coca-Cola said it is following guidance from relevant government agencies and event organizers In addition, Coca-Cola has also activated its Worldwide Incident & Crisis Management (IMCR) team These groups will focus on coordinating the activities of each team in the company and with the partners providing bottling services 4.2 Projects of Coca-Cola in the COVID-19 pandemic 4.2.1 GLOBAL COMMITMENT, LOCAL ACTION Globally, The Coca-Cola Company and The Coca-Cola Foundation together with Coca-Cola HBC and all other bottling partners provided a $120 million support package in 2020, focused on the people and organizations engaged in the frontline fight against COVID-19 This is for the purchase of grants and upgrades of medical equipment (Coca-Cola HBC, n.d.) In addition, Coca has so far donated almost million liters of beverages to support the work of hospitals, foodbanks, testing centers and NGOs in the countries in which they operate Advantage Disadvantage Coca - Cola support for the fight against Coca has paid a large amount of money to Covid - 19 will be spread to the community support when the economic situation is still and from there, Coca - Cola will be greatly not very positive Although Coca-Cola has appreciated for its contributors, making calculated, it will also affect the business users more trust and support the brand In budget addition, the prolonged Covid pandemic, the inventory remains a lot, this will be an opportunity Coca uses to rotate its inventory Besides, the support work for 20 Covid - 19 also helps the company's operations become better when employees feel safe and secure when their own businesses also care about this great service 4.2.2 PROJECTS TO SUPPORT CUSTOMER The customer landscape changed dramatically in the second quarter of last year and throughout the pandemic Many customers switch from shopping at stores and supermarkets to online shopping Coca provided the best support they can offer as customers face their own challenges caused by rapidly shifting demand patterns (Coca-Cola HBC, n.d.) The Wabi App: COVID-19 lockdowns placed exquisite pressure on all stores, especially small, independently operated stores in high-density city regions that depend almost solely on foot traffic The Wabi app, an online platform established at Coca-Cola Argentina's request, allows operators to stay open and securely serve clients throughout the epidemic without having to physically operate When a customer uses a free mobile app to place an order, the platform alerts neighboring shops The products are delivered to the shopper's home in 30 minutes or less by the first store that accepts the order Wabi is currently available in 23 Latin American cities, as well as Kenya, Vietnam, and Malaysia (The Coca-Cola Company, 2020a) Delivery: To limit strain on some supermarkets’ grant chains, in some instances Coca - Cola organized direct deliveries to shops as an alternative than to the customers’ central warehouses When necessary, enterprise redeploy salespeople from the out-of-home to at-home channels and have expanded the faraway promoting competencies of our income teams In parallel Coca has accelerated our things to in e-commerce, mainly on their very own ordering platform for their customers, partnering with meals transport structures and working with their wholesale clients to strengthen direct-to-consumer offerings (Coca-Cola HBC, n.d.) Advantage Disadvantage Make shopping more convenient for This is a challenge for Coca when it customers Before the Covid-19 comes to a new division Running a epidemic took place, Coca's supply chain delivery department is no easy task often needed distribution places such as From packaging, delivery and customer supermarkets, stores and retail points care, all represent a brand Even a small This will lead to Coca's dependence on glitch can be a big problem It will take these places During the pandemic, Coca some time for this new division to has implemented delivery projects for become 21 more widely known to customers These can be delivered from customers and work flawlessly If Coca Coca's main warehouse, helping to only focuses on delivery and does not reduce shipping costs and advertising care about big customers, the business and import costs Worry about inventory will face many difficulties in the coming is reduced even though it can't be time compared with previous sales This is possible thanks to the fact that Coca will link up with e-commerce platforms and provide customers with products with the best quality and price 4.2.3 Leveraging Coca-Cola’s Supply chain Coca-Cola teams throughout the world are finding innovative methods to apply their production facilities and supply chains to provide and transport wished clinical substances to the COVID-19 the front traces Bottling and concentrate plants, for instance, are running to fulfill a important delivery gap by quickly shifting production to make hand sanitizer for donation to hospitals, clinics and nursing houses (The Coca-Cola Company, 2020a) Coca-Cola Midi immediately recruited technical personnel and equipment to figure out how to make hydroalcoholic gel at its southern France factory A volunteer crew worked over the weekend to make and bottle an 800-kg batch of gel that complied with national and international regulatory criteria In partnership with local health authorities and other partners, Coca-Cola bottlers in Uganda, Ethiopia, Germany, Kenya, South Africa, Turkey, Belgium, and the United States are also creating and/or bottling sanitizer (The Coca-Cola Company, 2020b) Coca are additionally leveraging the abilities of their personal provide chain to guide the provision of protecting and scientific equipment In Russia, Nigeria, Poland and Romania, Coca used their 3D printing functionality to produce defensive face shields In Ireland Coca have produced 10,000 different bottles for fitness authorities to use for the dispense of hand sanitizer In Romania Coca are loaning one of our microbiological detectors to assist laboratory trying out for COVID-19 and in Czech and Slovakia various merchandising machines provide masks in purchasing department shops and smaller cities, with proceeds donated to charity All of these thoughts and probabilities are being shared throughout their markets to amplify the possibility Coca and their companions have to supply direct and sensible assist and Coca are opening up their logistics and transport infrastructure for authorities and these turning in to the vulnerable (Coca-Cola HBC, n.d.) Advantage Disadvantage 22 This is a highly humane and respectful The loan of machines by Coca-Cola is a act of Coca-Cola This action of commendable thing However, Coca still enterprises will greatly support when the has to ensure that its machinery is always epidemic is complicated in many in the best condition so that it can countries The epidemic has happened continue to maintain and when the and it is certain that Coca products and disease is under control, it must masstheir supply chain will be greatly produce products Lending machines reduced Instead machines alone, epidemic areas of leaving Coca and helped created their could leave Coca with a supply chain the deficit and potentially slow production more as the pandemic situation gets better practical products This has shown that Coca's supply system is capable of many things Lending machines will also help Coca gain the credibility of more organizations 4.3 The reduce of projects in COVID-19 Along with the implementation of the above projects, Coca Cola also has to cut other costs Firstly, the cost for marketing plans, namely cutting advertising activities and using that budget to carry out community support activities during the COVID 19 epidemic When the epidemic has been partly resolved, then Coca Cola gives priority to the project that has been implemented since 2018 until now, the strategy "World Without Waste - For a world without waste", sustainable development including collection, recycling waste and promoting the use of recycled materials (Linh Anh, 2020) Secondly, as a result of the coronavirus epidemic, Coca-Cola will eliminate thousands of jobs and reduce the number of business units The move comes in the context of this soft drink manufacturer having to accelerate its restructuring efforts because many places selling Coca-Cola products such as cinemas, bars and stadiums are closed because of the COVID-19 The corporation intends to cut the number of operational units in those areas from 17 to nine, based on their present total of 17 enterprises in four geographies Coke is concentrating on its most popular sectors, which include its flagship Coca-Cola brand as well as sports drinks, coffees, and teas It also intends to develop in emerging categories like sparkling water and plant-based beverages (The Business Standard, 2020) In general, besides existing projects, during the COVID 19 pandemic, Coca Cola promoted community-oriented activities even though it had to cut other costs In addition, realizing the change of consumers, businesses have introduced methods to reach customers' consumption more quickly In particular, Coca Cola has taken below measures to support the needs of our customers, consumers, employees and optimize the operation and supply chain (The Coca-Cola Company, 2020c) 23 Employee Health and Well-Being Protection: The first focus is the safety of Coca-Cola system employees To ensure the health and safety of employees in offices, production, distribution, and retail sites across the world, local teams have rigorously followed guidelines from health authorities Prioritizing Safety in Production and Distribution Facilities: They have adopted additional cleaning and sanitization protocols, focused on high-touch areas, and taken precautions to limit visitation to our facilities since the coronavirus epidemic began Delivery drivers in certain areas not exit their vehicles, decreasing face-to-face encounters To eliminate shift-to-shift interaction, certain industrial firms have employed split shifts Serving Customers and Consumers: - They have been focused on ensuring their items are delivered securely to the retailers and communities who need them since the coronavirus epidemic began, while also taking every measure to safeguard our employees' health - During this difficult time, local grocery shops, retailers, and restaurants are working hard to ensure that families have access to the food, beverages, and supplies they require We're doing everything we can to help these companies and the people they help Ensuring Product Safety and Availability: - From production facilities to client outlets, we are taking extra efforts to guarantee that products are handled hygienically at every stage Employees will be given alcohol wipes and hand sanitizers, temperature screens will be installed in select offices and production facilities, and health-monitoring measures will be set up in impacted areas - They establish business continuity strategies to manage any supply chain difficulties that may develop in order to assure the availability of our products Conclusion 5.1 Supply chain assessment 5.1.1 Strength (Advantages) - Good supply chain planning and management has helped Coca-Cola to make specific and timely plans to respond to changing consumer needs Thanks to good planning, Coca-Cola was able to take advantage of all resources to reserve raw materials, manage finances closely to be able to invest most effectively - Make use of the most of the supplies in the supply chain including cheap, readily available fuels, abundant labor resources, and well-trained and skilled workers - Develop good relationships with customers when there are policies on returns and incentives, promotions, attractive for customers At the same time, the advertising and marketing are also suitable for Vietnamese culture - The Coca’s distribution network has been known to include some of the most innovative and 24 localized methods of distribution to penetrate its products into some of the most remote areas in the world More than 1.9 billion servings of products from The Coca-Cola company are served every day in 200 countries around the world - Coca has a wide distribution field and has a very efficient distribution system management system The business enterprise relies on a tremendous nearby companion community to make certain expediency and efficiencies when it comes to its distribution system Merchandise from The Coca-Cola Company are disbursed into some of the most remote and opposed markets 5.1.2 Weakness (Disadvantages) - There is no clear link and clarity between factors in the supply chain The links in Coca-Cola's supply chain are still fragmented, leading to disagreements and interests among stakeholders The lack of consistency between Coca-Cola and its distributors and agents led to the lawsuit in 2005 - The information management system in the supply chain has not been updated and effectively implemented through technology Besides, the stages of warehouse transportation, storage, management as well as production supervision have not been closely unified in the supply chain Those two factors have led to information delays, no good coordination between stages Typically, Coca-Cola was once condemned for using ingredients beyond their expiry date 5.1.3 Opportunity - Coca is trying to leverage new technologies such as blockchain technology for its infrastructure and supply chain management The use of cryptocurrencies such as Ethereum will further contribute to the benefits, effectiveness and accountability of the company's networks - Diversification: The offerings of Coca Cola to customers will be improved by diversification in the health and food industries By cross-selling their items, companies will be able to increase revenue from existing clients The same supply chain that distributes their beverages could also distribute these snacks, reducing supply chain costs - Bring in a cutting-edge supply chain system: Coca Cola company is completely reliant on logistics and supply chain Transportation and gasoline prices are constantly rising As a result, coming up with some innovative and improved distribution systems could be an opportunity 5.1.4 Threat - Raw material sourcing – Coca Cola’s only threat is water Coca Cola’s drawback was the possible usage of pesticides or excessive water use The concern here, though, is that water shortages are on the rise With the changing climate and water shortage in several parts of the 25 world, beverage firms may be blamed sooner or later As a result, water source is a sword that can be wielded against Coca Cola at any time Coca-Cola might see a significant drop in revenue and distribution capacity if water is limited or rationed Pepsi, its arch competitor, may suffer the same fate - Pressure is mounting from the market, supply chains, as properly as authorities law in opposition to the incorporation of single-use plastics in The Coca-Cola Company’s manufacturing process In the future, Coca needs to learn and develop a different way of packaging that is attractive enough for customers Its modern-day reliance on single-use plastics is no longer sustainable - Supply from the domestic market is sometimes not guaranteed, disrupting Coca-Cola's supply chain in special situations - Competitive rivalry with Pepsi — Coca Cola's main competitor is Pepsi Coca Cola would have been the clear market leader in the beverage industry if it hadn't been for Pepsi 5.2 Propose solutions for Coca-Cola - Improving its water management system and responding to environmental agencies' objections - Coca- Cola should improve some functional support in the supply chain For example, the stock management, orders for shipment, order status, digital map, clients management, account collection The features may also assist the Coca-Cola organisation in accordance with the orders area to graph the shortest route to supply their productions Moreover, the structures have to have real-time update features due to the fact it is vital for the company’s manager control and communication - Coca-Cola should upgrade the information technology system into the supply chain information management to help the stages receive production information quickly and in a timely manner, avoiding information delay, which is detrimental to both Coca-Cola and consumers - Coca-Cola should expand and maintain cooperative relationships with suppliers as well as regularly check and improve requirements for suppliers to contribute to ensuring the quality of the final product 26 REFERENCES Vietnamese references Coca-Cola (2019) Nhà máy Coca-Cola Việt Nam [Video] Youtube https://www.youtube.com/watch?v=yBQSoh5QKis&t=64s Coca-Cola Việt Nam (2020) Coca-Cola ứng phó với bùng phát dịch COVID-19 The Coca-Cola Company Retrieved June 12, 2021, from https://www.cocacolavietnam.com/news/coca-cola-dang-ung-pho-voi-su-bung-phat-cua-dichcovid-19-nhu-the-nao Công ty cổ phần bao bì Biên Hịa (n.d.) 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Introduction- The KCP Limited Retrieved June 11, 2021, from http://kcp.vn/profile/?lang=en 28 PLAGIARISM DETECTION RESULT 29 ... CHAIN PROCESS 3 .1 Plan 3.2 Source 11 3.3 Make 12 3.4 Delivery 14 3.5 Return 17 COCA-COLA DURING THE COVID -19 ... Hịa 20 21- 06 -11 Retrieved June 11 , 20 21, from http://www.sovi.com.vn/noi-dung/gioi-thieu-303 Khánh An (2020) Coca-Cola ứng phó trước đại dịch Tạp Chí Điện Tử Nhà Đầu Tư Retrieved June 13 , 20 21, from... Coca-Cola has achieved standards such as ISO 90 01: 2 015 (Quality Management System), ISO 14 0 01: 2 015 (Environmental Management System), OHSAS 18 0 01: 2007 (Safety management system), FSSC 22000 V4