Supply Chain Management

High-Level Supply Chain Flowchart for Coca-Cola

Introduction

Coca Cola markets nearly 2,400 beverages products in over 200 geographic locations. As a result development of a superior value system is imperative to their operations. Throughout this paper we will analyze their value system by using Michael Porter's value chain analysis model. In an attempt to paint a current picture of the non-alcoholic beverage industry we will assess the market activity by using mergers, acquisitions and IPO'S as our benchmarks to determine if the market is growing or contracting.

Value Chain Analysis

A company’s value chain model is utilized to divide an organization into constituent tactically activities which facilitates the opportunity to evaluate the contributing actions of the company’ performance. In the course of completing the model analysis, the team has the opportunity to gain an insight on how the company produces their competitive lead and shareholder value. For Coca- Cola and any other non-alcoholic beverages industry, the value chain of providing non-alcoholic drinks consists of five important activities including the supplier (inbound logistics), operations, buyers/customers, marketing/sales and most important customer service.

Inbound Logistics (Suppliers)

Some of Coca Cola's most notable suppliers include Spherion, Jones Lang LaSalle, IBM, Ogilvy and Mather, IMI Cornelius, and Prudential. These companies provide Coca Cola with materials such as ingredients, packaging and machinery. In order to ensure that these materials are in satisfactory condition, Coca-cola has put certain standards in place which these suppliers must adhere to (The Supplier Guiding Principles). These include: compliance with laws and standards, laws and regulations, freedom of association and collective bargaining, forced and child labor, abuse of labor, discrimination, wages and benefits, work hours and overtime, health and safety, environment, and demonstration of...