Logistics Management of Coca-Cola Company | Free Essay Examples (2024)

As long as the firm is functioning well in these two critical areas, the company’s cost may be reduced. The method through which a business moves or transports its goods or products from one location to another is known as transportation. Companies use warehousing to store their goods and other items. The warehousing and transportation will also include incoming and outbound shipments. Therefore, if a firm chooses the improper transportation method for delivering its products, it will cost the company more money in the long run. By water, air, train, and road, the Coca-Cola Company moves its products worldwide. According to the report, besides Oracle Transportation Management and ORTEC, Coca-Cola employs several 3rd-party logistics companies for transportation(Claire,2002,p.25). A company’s most adaptable alternative for transportation may be by road. In addition, the trucks it uses have reduced exhaust emissions, so it is more environmentally friendly. Additionally, the Coca-Cola Company is fighting aids by providing career possibilities. International Trade relies heavily on the transportation of goods and services. Import and export operations of a corporation may be made more efficient and less expensive by selecting the appropriate method of transportation. The Coca-cola company has a profound and well-established logistic management system to provide a positive customer experience.

In the soft-drink industry, Coca-Cola bottling facilities produce over nine million bottles every day. Logistics play a crucial part in Coca-business Cola’s cycle. The company’s excellent logistical divisions allow it to satisfy the needs of its clients. Traveling “continuously” and ensuring that the logistics management strategy optimizes economic advantages and lowers transportation expenses is the company’s willingness. Transport planning will help Coca-Cola optimize routes and efficiency(Hendricks & Singhal,2003, pp. 501). The Coca-Cola warehouse processes products following product specifications under optimal circ*mstances. During the processing of the goods, conditions such as humidity, temperature, a controlled atmosphere, and light are considered(Norman & Lindroff,2004, pp. 14). Decrease the number of times items must be transported using warehouse operations and warehouse architecture to reduce transportation costs. Coca-Cola’s network monitors more than 3,000 pallet placements. Powerful and tidy, the pallet-handling system is. The company’s overall storage capacity is 36,000 pallets. They can handle up to 280,000 cases a day on these pallets(Kangongo,2013). In order to reduce shipping costs for retailers, Coca-Cola has built a warehouse facility. In order to make distribution more efficient, warehouses in the firm are now constructed with high racks. By water, air, train, and road, the Coca-Cola Company moves its products worldwide. According to the report, besides Oracle Transportation Management and ORTEC, Coca-Cola employs several 3rd-party logistics companies for transportation(Jutner et al.,2003). The most flexible method of transportation for a company is via road. The corporation may organize the delivery day with the help of road transport, which has a vast network of roads to deliver the goods. In addition, the corporation can choose the best mode of transportation for the product and trace the whereabouts of the items. The Coca-Cola Company uses the Interstate Highway System in the United States to carry its products throughout the country and deliver them to customers in every corner of the country. According to online sources, most Coca-product Cola’s is transported by truck(Jiang,2003,p 203). Because of this, the corporation strives to minimise the environmental impact of its products. Compared to a regular diesel truck, the carbon footprint of As an additional benefit, shipping containers may be utilized to deliver goods to their final destination by road or rail. Documents like the bill of lading and letter of credit must be considered while deciding on maritime transportation. To send Coca-Cola goods to foreign nations, Coca-Cola uses the Deepwater Ports. Moving firm items from one location to another may be as simple as taking the train. It is both affordable and efficient. As a result, countries like Europe, Japan, and China will reap the benefits. When compared to other means of transportation, rail is the most ecologically friendly. When it comes to transporting their products, Coca-Cola and Tesco work together on a particular rail-freight route, although most of their products are transported by road(Lambert & Pohlen,2003,p.3).

Warehouses and storage are acts of assorting and storing completed items to maximise temporal usefulness at the lowest possible cost of operation. These include general, specific, bonded, and bulk storage warehouses as well as chilled warehouses. Additionally, warehouses may be categorized as centralised or decentralised based on their location. Third-party logistics warehousing is another option available to the company(Nadern & Badernhost,2013). The Coca-Cola Company is using the decentralised warehousing system. More than 120 Coca-Cola warehouses throughout the globe allow the company to better serve customers by reducing the time it takes to deliver their items. It, in turn, improves customer relations. The mechanism by which a business may keep track of the location and status of its goods in transit is a component of logistical communication technology(Nyangara,2011). In addition, if the logistics department is well-coordinated, the organisation will save money. According to the story, using GPS-based fleet monitoring, the Coca-Cola bottling company could save costs by 20% while also winning a fleet management competition. Using GPS in a truck or fleet may enhance the driver’s safety and the product’s ability to arrive at its destination(Mensah,e.al,2014,p. 5). For example, if the driver attempts to accelerate up on the road, the GPS will advise the driver to slow down. Coca-Cola also supplied a monitoring system (RFID) for customers or clients to monitor their shipments so that they could keep an eye on them. As of 2014, the Coca-Cola Company’s tracking system can tell them whether the goods have arrived at the warehouse. For example, Coca-Cola uses Speedyred to let customers monitor their purchases or shipments online.

Logistic systems are increasingly vital in society, and transportation and storage play a significant part. A robust logistic strategy cannot reach its full potential unless transportation and storage are linked. A firm that does not have well-developed transportation systems will see a rise in costs and a decrease in profits since transportation accounts for a more significant part of the company’s logistics costs. Coca-Cola’s well-designed transportation system has helped improve logistical efficiency, lower operating costs, and improve the quality of a company’s services over the years. An efficient transportation system may help a firm save money by delivering items to the correct location at the right time, and it can also enhance customer relations by ensuring that things are delivered on time. As a result, storage is an integral part of the transportation supply chain.

References

Claire, R. (2002), The changing face of distribution: as all players in the supply chain work to reduce their costs and improve their efficiency, distribution has come increasingly under the spotlight during the past year,Food Engineering & Ingredients, Vol. 27 No.2, pp.25-6.

Hendricks, K. & Singhal, V. (2003). The Effect of Supply Chain Glitches on Shareholder Wealth. Journal of Operations Management,21, pp 501-522.

Jiang, B., (2003) What Pulled Sony out of China?Supply Chain Management Review, Jan/Feb 2003, pp. 23-27.

Juttner, U., Peck, H. & Christopher, M. (2003). Supply Chain Risks: International Journal of Logistics6, 197-210.

Kangogo, J., Wario, G., Bowen, M., & Ragui, M. (2013) Supply Chain Disruption in the Kenya Floriculture Industry: A Case study of Equator Flowers.European Journal of Business and Management, ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.7, 2013.

Lambert, D.M., and Pohlen, T.L. (2001), Supply chain metrics,International Journal of Logistics Management,Vol. 12 No. 1, pp. 1-19.

Mensah, C., Diyuoh, D., & Oppong, D. (2014) Assessment of Supply Chain Management Practices and its effects on the Performance of Kasapreko Company Limited in Ghana.European Journal of Logistics Purchasing and Supply Chain Management,Vol.2, No. 1, pp.1- 16, March 2014

Naude, M.J. & Badenhorst-Weiss, J.A. (2011) Supply Chain Management Problems at South African Automotive Component Manufacturers.Southern African Business ReviewVolume 15 Number 1 2011

Norman, A. & Lindroth, R., (2004).Categorization of Supply Chain Risk and Risk Management, in Supply Chain Risk,C. Brindley, Editor, Ashgate, pp 14-27.

Nyangara, C. A., & Aila, F. O. (2011).Adding customer value through effective distribution strategy: the case of Coca-Cola’s Equator Bottlers Limited, Kenya.Saarbruecken: VDM Publishin