Coca Cola Example #2 Essay Example

are under types of bottled water under the Coca cola company. Coca cola began to be sold on a large scale and was in demand by its consumers. By the 1970’s Coca cola began advertizing its product and in 1993 the popular ‘Always Coca cola’ was launched with each advertisement.

Coca cola today is one of the biggest beverage manufacturing industries in the world. Coca cola operates in more than 200 countries such as India, France, Malaysia and Parts of Europe just to mention a few (Coca cola company 2012). Coca cola has numerious drink types, these are energy drinks, juices, soft drinks, sports drinks, water, tea and coffee. Coca cola manufactures more than three thousand beverages world wide this include beverages such as Minute Maid juices, Lima, Schweppes, Vanilla coke and many more. Due to the many health regulations around the world, Coca cola began to manufacture healthier beverages such as pure Minute Maid fruit juices. From orange juice to apple juice and everything in between, this popular beverage comes in a variety of forms, including, pulp-free, not-from-concentrate, from concentrate, frozen concentrate, flavored juice blends (The Coca cola company 2012).

2.2 Coca Cola’s market

The Coca cola company generally targets its products for all consumers. Although there are a few brands that are targeted to specific consumers. Due to some health concerns that were raised about the amount of caffeine in Coca cola, the company went on to produce a de-caffeinated version of coke know as Diet Cola. This created a new market of dieticians for the Coca cola industry. Coca cola has various products for all types of markets. For

example, Coca cola has low calorie beverages to cater for the health conscious market. The famous Coke zero is one of these low calorie bevergaes. To date, Coca cola has more than eight hundred low-and no-calorie beverage products, nearly 25 percent of our global portfolio.

Coca-Cola Zero, now available in more than 130 countries, has been an important addition to these no-calorie beverage alternatives (The Coca cola company 2012). Coca is meant to be served ice cold as it is a refreshing beverage. One of the main markets of Coca cola is in hot countries. This guarantees that its consumers are quenched and can enjoy a cold beverage. In Coke marketing, main idea is to serve it cold, so they focus on hot areas of the world such as the Middle East (Ali S 2011). The Coca-Cola Company is dedicated to offering safe, quality beverages, marketing those beverages responsibly and providing information consumers can trust (The Coca cola company 2012).

3.0 Organization’s Supply Chain

3.1 Production Process

Coca cola goes through a number of steps before it is ready for consumption. Coca cola like many other refreshing beverages are composed of water. The water that is used to purified so as to remove any unwanted odours. Coca cola in made of a syrup which consists of sweeteners and water. The sweeteners and water are combined in a reservoir in readiness of the syrup. After this syrup is formulated, the Coca cola concentrate is addded. This concentrate consists of the secret formula that gives Coca cola its distinct taste. The exact formula of Coca cola is a famous trade secret. The original

copy of the formula is held in Suntrust Bank’s main vault in Atlanta (Bemisal et al 2009).

The syrup and water is then blended and carbon dioxide is added. After everything is mixed together, carbon dioxide is added to the mix to make the drink fizz (Coca cola Hellenic 2012). During the process of making Coca cola, the bottle and cans are cleaned in a chemical solution. They are then rinsed with water to remove all traces of the solution. Clean bottles are filled and final scanning is conducted to check the fill level and again for dust particles (Bemisal et al 2009). After each bottle and can is filled with the Coca cola liquid it is then packed. Glass bottles that have been filled are stacked into wodden boxes while can and plastic bottles are wrapped in foil then into the packages. The stacks of packages are then loaded in the trucks and are ready to begin their journey of distribution to various outlets nationwide (Coca cola Hellenic 2012).

3.2 Packaging

Coca cola is packaged in glass bottles, plastic bottles and cans. The cans go through a process of scanning, filling and inspection before they are finally ready for transporting. The cans are delivered in bulk and are shaped like a cup, open at the top. After the washing and scanning of the cans, the Coca cola is filled into the cans. The cans are then bonded with the ring pull which opens the can. As the cans move along the production line, they are seamed to include the ring pull end and produce the finished can. The ends are inspected

to make sure they are smooth and do not have any gaps or leaks (The Times100 2000).

The bottles start out as test tubes which are eventually blown up like a balloon until they reach the customed bottle size. Coca cola uses the just in time method in preparing its goods. Materials arrive just in timeand are processed and delivered to meet the needs of th retailers. This way Coca cola is able to cut down on carrying huge amounts of stock. The ideal solution is to make sure that the inputs for the process arrive 'just-in-time' so they can be transformed into a finished product ready for transportation 'just-in-time' to meet the needs of the retailers (The Times100 2000).

3.3 Distribution

Coca cola is one of the biggest drink manufacuters in the world. The organization supplies to over a hundred countries worldwide. Given that Coca cola is in such high demand they supply chain needs to be efficient and effective. Coca cola has implemented a way of supplying their products. Coca cola has two key distribution strategies. The first is direct distribution which involves Coca cola utilizing their own transportation to deliver their products to various stores. Using this method Coca cola makes more profit because this process does away with the use of middlemen. This type of supply channel between Coca cola and the vendor gives Coca cola control to manage inventory levels automatically (Pat S 2011). (Refer to appendix for diagram).

The second distribution strategy is indirect distribution. This involves an intermediary of some sort. In this case Coca cola uses a middle man to transport its products

to various stores in various cities. In this situation, Coca Cola cannot reach the goods to its consumer directly from the manufacturer. Therefore, Coca cola uses a middle man to ensure its goods are still able to reach consumers across the nation. For example, Coca Cola (Far East) limited in Shah Alam is a manufacturer of Coca cola. After the goods are ready they move from manufacturer to a wholesaler. Then finally to a store such as tesco. Coca cola uses the multi tier approach to reach the goods to its customers (Pat S 2011). (Refer to appendix two for diagram).

4.0 Process Technology

According to Johnston (2010), Process technology is the ability to understand, operate, shut down, analyze and troubleshoot industrial processes. Process technology is used in company’s entire manufacturing and distribution process i.e. used to create and deliver products and services of Coca Cola Company. Process technology develops new processes and improvements to existing ones, keeping Coca Cola Company’s manufacturing and distribution processes on the cutting edge of technology. The goal of Process technology is to ensure that Coca Cola Company operates efficiently, safely in compliance with environmental standards. Process technology is active in manufacturing and distribution processes of Coca Cola Company products. They involve every step of the production from planning to manufacturing to handling defective goods until goods are delivered to customers (Krajewski, 2002).

Process technology is active in helping for strategic planning and producing customer samples. As a result, several new Coca cola company products such as Coca-Cola Zero have been commercialized with the help of Process technology. For example, Coca-Cola Zero was one of the most

successful products launched in Coca Cola Company history. In 2009, they sold more than 600 million cases globally. As of September 2010, Coca-Cola Zero was available in more than 130 countries (Clancy, 2012). According to deutch4macys.com (2011), the Coca Cola Company welcomes the addition of Minute Maid Pulpy to its roster of brands that have achieved global retail sales of more than $1 billion. Minute maid Pulpy marks the first time that a brand of Coca Cola Company has reached a great success.

4.1 The Manufacturing process

The manufacturing process is mostly done by machines. Only in some parts a help hand of humans are required

4.1.1 Clarifying the water

The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. Coagulation involves mixing a floc into the water. The floc absorbs suspended particles, making them larger and more easily trapped by filters (Avizienis, 2007).

4.1.2 Filtering, sterilizing, and dechlorinating the water

The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water's taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine. The chlorinated water remains in the storage tank for about two hours until the reaction is complete. Next,

an activated carbon filter dechlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station (Avizienis, 2007).

4.1.3 Mixing the ingredients

The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration. The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized.

The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture (Avizienis, 2007).

4.1.4 Carbonating the beverage

Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage. The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine (Avizienis, 2007).

4.1.5 Filling and packaging

The finished product is transferred into bottles or cans at

extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or a steel crown with corrugated edges; twist offs, or pulls tabs. Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them. Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. Cans are generally pre-printed with product information before the filling stage (Avizienis, 2007). Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors.

4.2 New Technologies Process

Technology is the key driver behind developing new manufacturing processes that position Coca Cola Company’s manufacturing plants to be cost competitive. Now days, with the help of machine, it has made a possible enormous number of efficiencies in modern commercial manufacturing and logistics. By using supply chain, an improvement can be made on the whole series of measures. In addition, the improvement also can be done in end costs to consumers and environmental effect from using transportation. By using robots to operate, it can enhance all the process from beginning to end.

Two example of this are new technologies used in Bottle and can processing. In both examples, The CCE Wakefield plant uses a range of programmable control devices, including 93 Siemens S5 PLCs, 11 Siemens S7 PLCs, 20 Allen Bradley (Rockwell Automation) Control Logix

PLCs, 31 Allen Bradley SLC500 PLCs, and 26 universal devices (SCADA In Touch and others). These high-tech machineries at Wakefield enables cans to be produced faster than the eye can see. The plant is capable of producing up to 4,000 330ml cans and 3,280 bottles in a minute (Foodprocessing-technology.com, 2009).