Coca-Cola’s “System” is a very unique approach to supply chain and distribution management. The company leveraged the success of its bottler systems to expand throughout the world quickly and with limited penetration issues. Coca-Cola’s supply chain includes partnerships with over 275 bottlers worldwide. This system allows them to operate globally but think locally. Coke generally manufactures and sells the concentrate to the bottlers. Coke is responsible for the brand marketing but the bottlers manufacture, package, merchandise and distributes the final product to the vending partners who then sell the final product to the consumers.
Coca-Cola started as a regional manufacturer and they made a strategic decision in 1899 to form bottler relationships in order for the company to focus its efforts in their core strengths. Coke is the most recognizable brand in the world because instead of worrying about the capital investment required to purchase machinery and plants they spent their time and money on marketing and brands image.
The soft drink industry is a low-margin game so it is important for organizations to streamline their supply chain and find efficiencies in any area possible. Coke is on a mission to modernize its supply chain. They understand that for long-term, sustainable growth they must replace their dated systems and modernize platforms across markets to create a cohesive view of metrics and processes