{"id":1129,"date":"2016-07-03T18:21:47","date_gmt":"2016-07-03T16:21:47","guid":{"rendered":"http:\/\/en.advancedfleetmanagementconsulting.com\/?p=1129"},"modified":"2016-07-03T18:21:47","modified_gmt":"2016-07-03T16:21:47","slug":"how-does-coca-colas-supply-chain-management-adapt-around-the-world","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2016\/07\/03\/how-does-coca-colas-supply-chain-management-adapt-around-the-world\/","title":{"rendered":"How does Coca Cola\u2019s supply chain management adapt around the world?"},"content":{"rendered":"<p><a ref=\"magnificPopup\" href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/01\/coc-cola.jpg\"><img loading=\"lazy\" class=\"aligncenter wp-image-1133 size-full\" title=\"How does Coca Cola\u2019s supply chain management adapt around the world?\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/01\/coc-cola.jpg\" alt=\"How does Coca Cola\u2019s supply chain management adapt around the world?\" width=\"650\" height=\"355\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/01\/coc-cola.jpg 650w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/01\/coc-cola-300x164.jpg 300w\" sizes=\"(max-width: 650px) 100vw, 650px\" \/><\/a><\/p>\n<p>Coca-Cola is one of the most renowned and powerful brands of\u00a0the world, but it\u2019s power doesn\u2019t only come from its brand &#8211; which, undoubtedly, is it&#8217;s primary asset &#8211; but the way it&#8217;s <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/02\/21\/essential-keys-to-choose-the-right-metrics-for-your-logistics-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">logistics<\/a><\/strong><\/span> and <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/02\/28\/what-variables-should-you-measure-to-optimize-your-supply-chain\/\" target=\"_blank\" rel=\"noopener noreferrer\">supply chain network<\/a><\/strong><\/span> works in collaboration, and its constant adaptation to local contexts.<\/p>\n<p><span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/www.statisticbrain.com\/coca-cola-company-statistics\/\" target=\"_blank\" rel=\"noopener noreferrer\">At a global level, the brand \u00a0has<\/a>:<\/strong><\/span><\/p>\n<ul>\n<li>146,200 worldwide employees<\/li>\n<li>3,500 different products<\/li>\n<li>8 billion coke bottles sold each day<\/li>\n<li>275 global Coke bottling companies<\/li>\n<\/ul>\n<p style=\"text-align: justify\">In local operations such as Spain, the company delivers <a href=\"http:\/\/www.embonor.cl\/wps\/wcm\/connect\/embonor\/Sitio\/Home\/Nuestro_Negocio\/Logistica\/\" target=\"_blank\" rel=\"noopener noreferrer\">within 24 hours<\/a>. In large scale operations such as Europe, the company can get drinks from its factories to supermarket shelves <a href=\"http:\/\/www.manufacturingglobal.com\/lean\/358\/From-factory-to-fridge:-Inside-Coca-Cola%27s-supply-chain\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"color: #0000ff\"><strong>within 48 hours<\/strong><\/span>.<\/a><\/p>\n<p style=\"text-align: center\"><span style=\"color: #0000ff\"><strong>FLEET MANAGEMENT \u00a0GROUP<\/strong><\/span>\u00a0<a href=\"https:\/\/www.linkedin.com\/groups\/8603639\"><img loading=\"lazy\" class=\"aligncenter size-medium wp-image-1686\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/09\/Logo3-300x167.jpg\" alt=\"Logo3\" width=\"300\" height=\"167\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/09\/Logo3-300x167.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/09\/Logo3-1024x569.jpg 1024w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a>In this group, you can know and share knowledge, experiences and meet people interested in Fleet Management over the world. Each week we publish posts, conferences, news, scientific papers, and technology related to Fleet Management.<\/p>\n<p style=\"text-align: center\"><span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"https:\/\/www.linkedin.com\/groups\/8603639\" target=\"_blank\" rel=\"noopener noreferrer\">JOIN TO THE FLEET MANAGEMENT GROUP<\/a><\/strong><\/span><\/p>\n<h4 style=\"text-align: center\"><strong>What makes its <span style=\"color: #0000ff\"><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/03\/03\/how-the-internet-of-things-can-develop-your-supply-chain\/\" target=\"_blank\" rel=\"noopener noreferrer\">supply chain management<\/a><\/span> so different?<\/strong><\/h4>\n<p style=\"text-align: justify\">There are several different innovations from the company around the world. But what do they have in common?<\/p>\n<p style=\"text-align: justify\">Let\u2019s learn from a Philanthropist. In 2010, Melinda French Gates spoke at a Ted conference in New York about <strong><span style=\"color: #0000ff\"><a style=\"color: #0000ff\" href=\"https:\/\/www.ted.com\/talks\/melinda_french_gates_what_nonprofits_can_learn_from_coca_cola?\" target=\"_blank\" rel=\"noopener noreferrer\">what nonprofits can learn from Coca-Cola<\/a><\/span>.<\/strong><\/p>\n<p style=\"text-align: justify\">In her concise, 15-minute presentation, the co-chair of the Gates Foundation enlightened the audience with some of the most important values that the company was promoting in the African continent.<\/p>\n<p><strong>Firstly, they take real-time data and immediately feed it back into the product. \u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">According to Ms. Gates, the company has a &#8220;very continuous feedback loop.\u00a0They learn something; they put it back into the product,\u00a0and they put it back into the market.\u00a0They have a whole team called &#8220;Knowledge and Insight.&#8221;\u00a0It&#8217;s a lot like other consumer companies\u201d, she says.<\/p>\n<p style=\"text-align: justify\">\u201cSo if you&#8217;re running Namibia for Coca-Cola,\u00a0and you have a 107 constituencies,\u00a0you know where every can versus bottle\u00a0of Sprite, Fanta or Coke was sold,\u00a0whether it was a corner store,\u00a0a supermarket or a pushcart.\u00a0So if sales start to drop, then the person can identify the problem\u00a0and address the issue.\u201d<\/p>\n<p><strong>Secondly, they tap into local entrepreneurial talent.<\/strong><\/p>\n<p style=\"text-align: justify\">In 1990, the company started training local entrepreneurs and provided them with small loans.\u00a0\u201cThey set them up as what they called micro-distribution centers,\u00a0and those local entrepreneurs then hire sales people,\u00a0who go out with bicycles and pushcarts and wheelbarrows\u00a0to sell the product.\u201d, she explains.\u201d\u00a0There are now some 3,000 of these centers\u00a0employing about 15,000 people in Africa.\u201d<\/p>\n<p><strong>This feedback loop and entrepreneurial talent search has expanded into its worldwide operations.<\/strong><\/p>\n<h2 style=\"text-align: center\"><strong>Periodic meetings<\/strong><\/h2>\n<p style=\"text-align: justify\">In France, for instance, <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/www.beveragedaily.com\/Processing-Packaging\/New-logistics-practices-drive-improved-Coca-Cola-distribution-stats-in-France\" target=\"_blank\" rel=\"noopener noreferrer\">Beverage Daily<\/a><\/strong><\/span>\u00a0speaks about\u00a0the number of changes the company made to reduce carbon emissions and improve its distribution service. The company not only began manufacturing products more frequently and modifying production lines. They put in place fixed daily journeys between primary sites, with weekly meetings between European teams and their local counterparts to \u201canticipate production and travel needs in the medium term\u201d, \u00a0according to the publication. This includes\u00a0common journey indicators that are shared by all actors in the supply chain.<\/p>\n<h2 style=\"text-align: center\"><strong>Customized trucks<\/strong><\/h2>\n<p style=\"text-align: justify\">In <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"https:\/\/logisticsviewpoints.com\/2010\/04\/15\/coca-cola-enterprises-better-trucks-happy-drivers-lower-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">Atlanta<\/a><\/strong><\/span>, they had the pallets of their delivery trucks transformed. Instead of side-load trucks filled with several full pallets of the same products and units, they built mixed pallets to fit various products in the right quantities to fulfill particular stores\u2019 orders, reducing times and effort from a traditional approach.\u00a0According to the site <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/logisticsviewpoints.com\" target=\"_blank\" rel=\"noopener noreferrer\">Logistics Viewpoints<\/a> <\/strong><\/span>this was done by using the intelligence data from Advanced Shipping Notices (ASNs).<\/p>\n<h2 style=\"text-align: center\">\u00a0<strong>Networked capacity to adapt<\/strong><\/h2>\n<p style=\"text-align: justify\">In several operations of Western Europe, they\u2019ve developed systems to work in close collaboration with customers. Wendy Manning, vice president of customer logistics at Coca-Cola Enterprises, tells <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/www.manufacturingglobal.com\/lean\/358\/From-factory-to-fridge:-Inside-Coca-Cola%27s-supply-chain\" target=\"_blank\" rel=\"noopener noreferrer\">Global Manufacturing<\/a><\/strong><\/span> that production systems \u201care networked to allow us to raise or lower capacity, allowing us to meet demand peaks (expected or unexpected) by flexing up production at several sites if needed. And we\u2019re fully prepared for exceptional levels of demand, for example during Christmas or major sporting events like the Olympics,\u201d she says.<\/p>\n<h2 style=\"text-align: center\"><strong>A nationally spread software with \u00a0optimized\u00a0delivery routes \u00a0<\/strong><\/h2>\n<p style=\"text-align: justify\">In <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/mhlnews.com\/global-supply-chain\/across-border-coca-cola-mexico-things-go-better-logistics\" target=\"_blank\" rel=\"noopener noreferrer\">Mexico<\/a><\/strong><\/span>, according to <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/mhlnews.com\/global-supply-chain\/across-border-coca-cola-mexico-things-go-better-logistics\" target=\"_blank\" rel=\"noopener noreferrer\">Material Handling &amp; Logistics (MH&amp;L)<\/a><\/strong><\/span>, the <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/7-challenges-logistics-managers-face-everyday\/\" target=\"_blank\" rel=\"noopener noreferrer\">logistics<\/a><\/strong><\/span> system has 13 franchised bottling companies, 60 production plants and 428 distribution centers (DCs).\u00a0 An umbrella organization in Mexico City controls the distribution network, handled locally by the franchises. The central office designs point-of-sale service management tactics, with computing systems which \u201cwithin a few hours, review all routes and sales territories,&#8221; Antonio Grife, Coca-Cola Mexico&#8217;s supply chain, warehousing and transportation officer, told MH&amp;L.<\/p>\n<p style=\"text-align: justify\">&#8220;Truck and workload scheduling for point-of-sale distributors used to take months but now are fully sensitive to real-time market demands,&#8221; he says. That way, the company delivers local bottlers planning processes developed for the entire supply chain. These are not compulsory, but bottlers design their own distribution schemes.<\/p>\n<p style=\"text-align: justify\">Computer software also works in distribution plans to forecast demand and route optimization. This data is analyzed periodically for the planning processes.<\/p>\n<p style=\"text-align: justify\"><strong>Reverse Logistics<\/strong><\/p>\n<p style=\"text-align: justify\">We&#8217;ve spoken before about this issue. At a global level, the different distribution centers of this brand work in close collaboration with retail companies and local dealers in order to have recyclable\u00a0bottles returned, sanitized and repurposed. This adds to the brand value and maximizes \u00a0their local <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/fleet-management-best-practices\/\" target=\"_blank\" rel=\"noopener noreferrer\">fleet management<\/a><\/strong><\/span> capacity \u00a0in the return of bottles.<\/p>\n<p style=\"text-align: justify\"><strong>With closed-loop reporting and local integration<\/strong>, Coca-Cola has enabled its supply chain network worldwide to adapt to the constant changes in their surrounding environments, and face competition.<\/p>\n<p style=\"text-align: justify\">What lessons would you take from this company? How does your business adapt to local contexts or integrates reports to improve?<\/p>\n<div class=\"blog-section\">\n<div class=\"blog-post-wrapper cell-wrapper\">\n<h4 id=\"hubspot-topic_data\"><img loading=\"lazy\" class=\"alignleft\" title=\" Francisca Howard\" src=\"https:\/\/cdn2.hubspot.net\/hubfs\/1546224\/team\/francisca.jpg?t=1466869571349\" alt=\"Francisca Howard\" width=\"253\" height=\"250\" \/>Writen by\u00a0Francisca Howard<\/h4>\n<\/div>\n<\/div>\n<div class=\"about-author-sec row-fluid\">\n<div class=\"span10\">\n<p style=\"text-align: justify\">Francisca is a commercial engineer by University Adolfo Iba\u00f1ez. She worked 10 years in the retail industry and the last few months she has been working as a business developer for\u00a0<span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"https:\/\/www.driv.in\/\" target=\"_blank\" rel=\"noopener noreferrer\">Drivin<\/a><\/strong><\/span>, a\u00a0SaaS solution that allows to distribution companies to reduce its transport costs as well as increase the service quality of their final clients.<\/p>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coca-Cola is one of the most renowned and powerful brands of\u00a0the world, but it\u2019s power doesn\u2019t only come from its brand &#8211; which, undoubtedly, is it&#8217;s primary asset &#8211; but the way it&#8217;s logistics and supply chain network works in collaboration, and its constant adaptation to local contexts. At a global level, the brand \u00a0has:&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[50],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/1129"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=1129"}],"version-history":[{"count":0,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/1129\/revisions"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=1129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=1129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=1129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}