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Essay / Research Paper Abstract
This 3 page paper examines the supply chain of Coca Cola around the world and considers why PepsiCo has a better logistics system than Coca Cola. The bibliography cites 4 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEcokeSC.rtf
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Unformatted sample text from the term paper:
nature of the chain, due to the underlying production structure, is the complication that leads to inefficiencies that are not seen with companies such as rival PepsiCo. To
consider the supply chain and the reason behind the fragmentation the scale has to be appreciated, each day Coca-Cola delivery more than a billion servings of their drinks across more
than 200 countries (Kyle, 2006). To make these supplies the drinks are manufactured in more than 860 facilities, which are spread across more than 150 countries and has a total
of more than 10,000 suppliers to deal with as well as the management of the outputs (Kyle, 2006). Fort PepsiCo there is a limited production system, there are licensing
agreements and the use of international facilitates, but there is a centralized system for each area. If we look at Coca-cola there is a more complex structure that fragments the
supply chain and the ability to manage the logistics. The strategy has been to maximise presence whilst minimising exposure. The use of
a range of companies bottling and licensing agreements sees Coca-Cola Company retain control of the empire while many of the companies that bottle the product carry the majority of the
costs. To assure success Coca-Cola may underwrite some of the loans but the financing is raised externally by these trading partners. This leaves Coca-Cola more able to concentrate on issues
such as product development, marketing and strategies to increase and maintain market share managing the support functions rather than the actual logistics of each area.
For example, of we look at Mexico there are a total of 13 franchisee bottlers, then there are 60 production facilities and 428 production centres (Mireles, 2005).
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