Operation and Supply Chain Management of Coca Cola

Operation and Supply Chain Management Term Paper
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Executive Summary
Based on the supply chain management concept, this report looks at how Coca-Cola manages its production through the strategic location of its plants as sustainable sourcing. The firm has a total quality management approach that goes a long way in ensuring the final product is of the right quality through certification of suppliers and employing error-free processes. In addition, investment in efficient technology has enabled the company to automate mass activities and improve customer service quality. Sustainable procurement and supplier management have also helped the firm promote the quality of the business process and identify which suppliers are more important to the company for their effective management.
Concept Introduction (Supply Chain Management)
Coca-Cola HBC has a network of over 2,000 suppliers and a supply chain in more than 50 countries. The firm also has a supply chain management team that ensures it has the necessary raw materials and finished products to meet customer demand. The team works closely with suppliers to ensure they meet Coca-Cola HBC's high standards for quality and safety. Furthermore, the company optimizes its supply chain to ascertain that its products efficiently reach customers' destinations. Adoption of the supply chain concept has a positive effect on the firm's bottom line. Consequently, the company can meet customer demand due to the efficient flow of raw materials and products to their respective points by eliminating delays. Additionally, by optimizing the company's supply chain, the team helps to reduce overall costs and improve efficiency.
Image 1. Coca-Cola HBC Supply Chain Model
Source: /case-studies/supply-chain-design-and-optimization-for-the-largest-beverage-corporation/
Production
Coca-Cola HBC produces its final products from water, sweeteners, beverages, sugar, and beverage concentrates and employs carton or PET resin packages. Being a strategic partner to the parent Coca-Cola Company, one of the world's best supply chain companies, the firm from plant and logistics assets allow it to produce, package, and deliver the merchandise according to customer requirements or demand. In addition, the company promotes efficient use of materials it sources by adopting sustainable or environmentally friendly practices. The entity has manufacturing plants in 23 out of 28 countries where it supplies its merchandise, owing to the dynamic and fast-paced business environment (Coca-Cola, 2022). Therefore, Coca-Cola HBC's primary production strategy is local sourcing, which implies that it manufactures quite a number of its products in the countries it conducts business (Ivanov et al., 2018).
Image 2: Coca-Cola HBC production line
Source: -colahellenic.com/en/about-us/what-we-do/supply-chain
Total Quality Management
Coca-Cola HBC remains committed to meeting customers' expectations by ensuring product safety through adopting quality management techniques in its production. The company has adopted quality at the source as it has re-state and encouraged zero tolerance to meet standards. Therefore, the entity has rigorous processes to reduc...