Business & Investment

Coca Bottling takes a holistic approach to supply chain resilience

Coca-Cola Bottling Co., Ltd. consolidated Over the last 18 months, we have faced many unforeseen challenges as the pandemic has caused havoc in the national economy. However, the company, the largest coca-colabotler in the United States, has found that taking a holistic approach to supply chain decision-making has helped it survive the storm.

During an educational session at Supply Chain Management Expert Council EDGE Conferences and ExhibitionsDave Cruz, director of logistics, said of the company’s wild rides:

  • Dramatic changes in demand. When all but significant businesses are closed due to a pandemic, Coca-Cola Consolidated will be completely depleted of demand for what is classified as “immediate consumption” (such as the purchase of sodas and single bottles). I saw you do. However, demand for what the company calls “future consumption” (such as in the case of cans) has increased. With the resumption of businesses such as restaurants, consumption demand has recovered for the time being, but at the same time, future consumption demand will continue to grow. Coca-Cola Consolidated is struggling to keep up with demand.
  • There may be a shortage. The shift in demand to cases meant that bottlers increased the need for aluminum cans rather than PET bottles. This phenomenon occurred throughout the beverage industry, resulting in a national shortage of cans. Interestingly, this was not due to a lack of raw materials. Rather, it was a matter of capacity. For some time, Coca-Cola Consolidated was actually importing cans from Brazil and South Korea to meet demand. The can shortage is beginning to ease as the can industry begins to operate more production lines.
  • Worker turnover rate. The company’s biggest challenge is finding and retaining a workforce, especially in the position of a merchandiser. This includes inventory of products in stores. These jobs are physically demanding and usually include 12 to 13 hours of working days. As a result, sales reps and management are helping to perform merchandising.

The company has determined that the key to successfully responding to these changing situations is to create an agile response team consisting of a senior vice president of supply chain, a vice president of marketing, and a vice president of revenue growth management. bottom. According to Cruz, all three executives have strong personalities, but have agreed to leave their ego on the door. Instead, they make data-driven decisions and have a holistic view of what’s best for the entire organization (and not just specific parts of the organization). (See slide above.)

Initially, the company set up this team to address issues related to the early days of the pandemic. However, this “portfolio solution team” proved to be so successful that it became a permanent part of the organization and is now being replicated at the lower levels of the business.

Coca Bottling takes a holistic approach to supply chain resilience Coca Bottling takes a holistic approach to supply chain resilience

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