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Introduction
A supply network refers to interrelated business processes whose main aim is successful delivery of products or services of an organization to its end users or consumers. The aim of this task is to identify and describe the total supply net work of the Coca Cola Corporation and to identify factors that have influenced its determination of the parts of business to outsource or keep in-house.
The Supply Network of the Coca Cola Company
Coca Cola Company is one of the biggest multinational companies in the world, with business operations in virtually all independent nations. Busa and Wright (2007, p. 92) states that Coca Cola Corporation has for over a century been manufacturing and selling bottled beverages.
They further add that the actual manufacturing and bottling of its beverages is carried out by its world wide system of business partners. The Company has local bottling branches in various countries world over where its products are made and packaged for markets in the immediate environs.
In reality, success of the production network of a company like Coca Cola which acts globally relies mainly on how well the logistics collaboration between partners is working Stangford-Smith, et al. (2002, p. 640).
These authors argues that the Coca Cola Company maximizes the possible saving possibilities within the European food processing sector through an enhanced collaboration in production systems Stanford-Smith et al. (2002, p. 640). With respect to the supply section the company has automated order taking processes especially in the developed countries.
For instance, in USA its sales agents does this by entering sales on transportable terminals while out in the field which are in turn transferred automatically to the companies main database Scott (1986, p. 33).This enables the company to maintain a superior customer service and satisfaction.
Factors Affecting Coca Cola out Sourcing Decisions
Business out sourcing process refers to situation whereby an organizations part of its business is done by another partner as opposed to its actual employees. For example, a company can seek I.T services for its business from another organization specializing in provision of services in that field.
An organizations decisions regarding business process out sourcing is influenced by many factors which can be economic, social, and political in nature. Russell and Taylor(2005, p. 245) for instance argues that the Coca Cola Company can not in its endeavors to out source reveal its formula to another partner even under circumstances where secrecy is guaranteed.
Most of the factors that have influenced Coca cola Corporation decisions on what parts of its business to out source and which to keep in-house are socioeconomic in nature in that most of the services outsourced are geared towards cutting the cost of operating and enhancing a superior customer service that guarantees satisfaction.
The company for instance aims at reducing its labour and distribution costs through partnership with companies that specialize in certain kind of business processes like distribution. Government policies also play a critical role in determining how Coca Cola Company makes its decisions regarding business out sourcing process.
How Coca Cola Company Has Planned for Location of its Capacity
Coca Cola Company capacity is largely hinged on its ever expanding global market floor space and other competitive strategies such as purchasing of own premises like warehouses in its operational bases. In addition to expanding, the company partners with other organizations whose business activities impacts directly upon its activities.
United Nations Economic Commission for Latin America for instance points out that various companies in the food and beverage sectors have been breaking into new markets by either competing or partnering with MNCs like Coca Cola UNECLA 2008, p. 67).
Reference
Busa, R. and Wright. N. (2007) Total Supply Chain Management. London: Butterworth-Heinemann.
Russell, R. S., Taylor, B. W. (2005) Operations management: quality and competitiveness in a global environment. New York: John Wiley.
Scott, K. (1986) Data to go: Portables a profusion of portables permeate the market place, Net work World. Vol. 3, No. 23, p.33
Stanford-Smith, B., Chiozza, E. and Edin, M. (2002) Challenges and achievements in E-business and E-work. New York: IOS Press.
United Nations Publications, United Nations: Economic Commission for Latin America and the Caribbean (UNECLA) (2008) Foreign Investment in Latin America and the Caribbean 2007. New York: United Nations Publications.
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