Paper Example on Transportation Improvement Plan - Coca-Cola

Published: 2021-07-10 13:57:21
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Business plan
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Coca-Cola is one of the global organizations that deal with soft drinks. In the United States of America, this is one of the most prominent companies that deal with beverages (Labelle, 2014). The origin of this firm is based in this nation, and branches have been introduced globally. Its headquarters is located in Atlanta, Georgia. Though the company deals with different products, its primary product is the Coca-Cola soft drink, which was invented by Griggs Candler. This corporation specializes in the manufacture of a syrup concentrate which is afterward distributed to different branches throughout the world. At the moment, this firm deals with more than 600 brands, and it has branches in more than 200 countries worldwide.

Coca-Cola deals with different products and services, and as stated earlier, more than 600 brands have been introduced by this firm. Its primary product, however, is the Coca-Cola brand. Other examples include Pepsi, Fanta, and Sprite. Production of more than 600 brands makes this organization the best in the world when it comes to the production of soft drinks. It offers stiff competition in the market due to its global domination. The markets of this firm are in nearly all continents with America, Europe, and Asia serving as the primary consumers. Regarding distribution, Coca-Cola is considered to be among the best since it represents an approximately 20 percent of sales in most countries. According to Lu & Tiwana (2015), about 1.9 billion products of the Company are sold around the globe every day. One of the strengths Coca-Cola Company is that its able to capture emerging markets by introducing new brands to fulfill different requirements of consumers. This ensures that Coca-Cola is always informed in case there is an emergence of new consumer preference in the market. This has been facilitated by the facts that it operates at a community level in every region that it sells its products.

Supply chain strategies of Coca-Cola are led by professional experts who have a clear understanding of the global market. This means that these experts can carry out detailed research on the market concerning the needs of the consumers. With the use of improved technology, Coca-Cola has been able to serve nearly all the requirements of different customers concerning the taste, look among other details in the products of the firm. Quality is the major factor that is considered in Coca-Cola. Production of quality products ensures that the enterprise can maintain its consumers as well as attract new ones. The supply chain strategies of the company dictate that all the goods should meet the required food safety standards. The suppliers of the business that are located in different continents have to qualify for the standards that are laid out by this firm, and as a result, Coca-Cola continues to be the leading corporation globally when it comes to beverages (Lu & Tiwana, 2015). The Company has been able to create a global reach by focusing on locals due to the strength of the system that comprises of itself and more than 250 bottling partners that are distributed worldwide.

The system has many and managerial legal sections and departments that are all independents from each other. Additionally, it does not control or own all its bottling partners globally. Currently, many people believe that the Coca-Cola Company runs all its operations worldwide. However, this process is executed through various channels where it is operating. All bottling partners ensure they work in close collaboration with suppliers- convenience stores, restaurants, grocery stores, among others. This strategy ensures they implement localized plans developed in cooperation with Coca-Cola. To be precise, the company operates globally, but its products do not travel far to arrive at the final consumer (Labelle, 2014). This makes its product more local than anyone can imagine to fits the needs and preferences of the local market where it is being sold. The business of the partners is local operation meaning the products are not transported or shipped more than a few kilometers away from where they are based. The partners mostly rely on being responsive to the consumers needs and local tastes and preferences of the clients in each market. The firm sells its goods to bottling and canning bodies, wholesalers, distributors, and fountain retailers (Lu & Tiwana, 2015). These entities then distribute the products to the retail outlets, restaurants, corner stores, and many others.

Currently, compared to other companies producing the same beverages, the distribution system of Coca-Cola Company is one the best planned and implemented. The company has a significant impact on consumers such that distributors and wholesalers require the products for their business to thrive. The position of Coke in the consumers mind makes it crucial for wholesalers and retailers. Due to high visibility and availability of its goods worldwide even in remote areas, the Company has been able to achieve its goal. The Company also has vending machines that ensure the products available anywhere anytime it is required. The innovation ensures that the product is available at the right moments and in quantity required.

Four-Year Action Plan

The Company has to changes it distribution network for the next four years in order to remain relevant in the market. Currently, the Company mostly adapts the available transport networks that are available within the target market. The Company has to adopt means of transportation that are carbon freely while trying to penetrate in every corner of the world. The Company has to develop a system that is energy efficient and will protect the climate for future generation. The company has to focus mostly on areas where it can bring positive changes in the society while it continues with its operation. The company should incorporate fuel-efficient modes of merchandise delivery and decrease transportation emission in all part of the world. Although the company has been striving to improve environmental performance through it refrigeration equipment, the company has to do more on the sector of energy conservation. The company can adopt the following means of transport to ensure they are economical and environmentally friendly.

Fleet Drives

The company should be using huge heavy-hybrid commercial fleet in most of the parts in to save on energy. The trucks decrease emissions by about 30% and consume approximately 30% less fuel than other standard delivery trucks. In developed countries, the company should adapt the use of electric, zero-emission trucks as alternative fuel vehicles. The company should also start using natural gas and light-duty propane as alternative sources of fuel. The company should ensure all its drivers are trained on eco-driving techniques such as early gear change and minimal braking. This can be achieved through coming up with custom-designed company programs such as Smart-driver. The corporation should also make use of the emerging technology to reduce fuel gallons and idling as well as reduce carbon footprint (Company et al., 2017). Since the firm is leading beverage sales globally, it should be leading in innovation and use of technology for the clean and sustainable transportation system.

Power Sourcing

As stated earlier the firm should come up with cleaner and more efficient power sources to ease their operation and decrease carbon emission. The should start using fuel cells that can convert natural gas and other hydrocarbons into utilizable energy like electricity and heat without combustion. The firm should start using fuel cells that can be run by redirected biogas. The company has big potential to utilize this form of energy that can supply about 30% of the firms power requirement and decrease the carbon emission by 35% (Company et al., 2017).

Risk Management

The firm should consider the global, sustained volatility, rapid change, and complexity to ensure it manages risks that might arise. The company should utilize supply chain design technology to examine how the supply chain will work on a broad range of market environments and analyze the trade-offs between services, cost as well as the risk. Maintaining digital models will enable the company to curb business risk via the design of supply chain operation and deal with supply chain disruptions in the most efficient manner ("Nine Ways Food and Beverage Companies," 2017). This will give the company significant and sustainable advantages over its competitors.

Coca-Cola Company is the biggest beverage companies in the world, and it is committed to ensuring it keeps on expanding to all corners of the world. It will be able to achieve this goal by ensuring its competitors do not get a chance to outdo them. The company will be required to commit most of its resources researching on the changing customers tastes and preferences. Additionally, it has to ensure that it continues to carry out a vigorous campaign to remind the customers of its existence. It also has to comply with international policies of using sustainable energy sources and transport system that environmentally friendly.

References

Company Mission (2017). Coca-Cola's Commitment to Energy Efficiency and Climate Protection. The Coca-Cola Company. Retrieved from http://www.coca-colacompany.com/our-company/sustainability-update-energy-efficiency-and-climate-protection

Labelle, M. J. (2014). De-coca-colonizing Egypt: globalization, decolonization, and the Egyptian boycott of Coca-Cola, 196668. Journal of Global History, 9(01), 122-142. doi:10.1017/s1740022813000521

Lu, L., & Tiwana, S. (2015). The Coca-Cola Companys distribution strategy. Marketing Management Blog T1 2015. Retrieved from https://mpk732.wordpress.com/2015/05/17/the-coca-cola-companys-distribution-strategy/

Nine Ways Food and Beverage Companies Can Use Supply Chain Design to Drive Competitive Advantage. (2017). Llamasoft.com. Retrieved from http://www.llamasoft.com/nine-ways-food-and-beverage-companies-can-use-supply-chain-design-to-drive-competitive-advantage-white-paper/

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