Coca Cola Supply Chain Analysis
Downstream: Products are delivered to the stores, the company also has a role in ensuring that bottles make it all the way to the shoppers’ fridges.
Upstream: All raw ingredients and materials are transferred from raw material suppliers to manufacturers and bottling partners
Typically: products move down through the supply chain
Information flow: Down stream: The company’s marketing departments has exceptional relationships with retailers to ensure that in-store merchandising makes Coca-Cola products easy to find.
Upstream: Coca-Cola provides all necessary information to its bottling partners, who then manufacture, package, distribute and sell products for local consumption. Diverse information includes bills of raw material, delivery
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Throughout the supply chain, it’s important that Coca-Cola communicate with our retail partners, especially because sales volume can be unpredictable and even the smallest changes, such as the weather, can affect consumer behaviour. Coca-Cola’s production systems are networked to allow them to raise or lower capacity and meet demand peaks (expected or unexpected) by flexing up production at several sites if needed. Coca-Cola can fully prepare for exceptional levels of demand, for example during Christmas or major sporting events like the Olympics.
Second, Coco-Cola could improve reliability of the supply chain. Reliability is one of the most important factors which have its impact on the supply chain management. With the strong collaboration with the supply chain partners, the company could ensure that the key suppliers have sufficient raw ingredients to meet the requirements of all the manufacturers and bottling partners on the required dates as well as utilize the resources in an effective way on the
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Political risk: Due to the changes in legislation of environment protection of Vietnamese government in the recent years, Coco-Cola needs to pay more attention on their supply chain process to ensure waste minimization and conserving natural resources.
2. Operation risk: Coca-Cola has large operation systems based on the advance technology in Vietnam. There are risks related to the failure or breakdown of the system or production lines, which could severely impact the supply chain operations
3. Demand risk: The uncertainty in demand could be considered as risks for the Coca-Cola’s supply chain management. Customer demand is unpredictable in Vietnam market, so it could be very costly for Coca-Cola to adjust their product capability if the integrated information system with their downstream partners does not work in an accurate
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