Coca-Cola: Supply Chain Risks Coursework Sample

Paper Instructions

Academic level – Undergraduate 1-2
Type of paper – Coursework
Topic Title – Coca-Cola: Supply chain risks
Instructions:

Using your chosen company (Coca-Cola), describe the types of supply chain risks it faces. Include the following in your essay:

• Identify the risks in the different parts of the supply chain.
• Describe some of the downsides of not mitigating those risks.
• Describe the type of actions you think a supply chain manager would need to take in order to control or eliminate the risks.
• Coursework Sample

Paper Sample

Coca-Cola is one of the most recognizable and popular international companies in dozens of countries worldwide. The company has established a complex supply chain to meet all its consumers’ demands and ensure efficient operations. However, it is also associated with various risks on different supply chain stages that can disrupt a company’s processes.

As one of the world’s leading beverage companies, Coca-Cola operates a complex and global supply chain, exposing the company to various risks that can affect its performance and reputation. Coca-Cola’s supply chain consists of four major stages, procurement, production, and distribution, that present various risks to the company’s performance and reputation (Meier, 2020). For instance, external suppliers that provide Coca-Cola with raw materials, such as sugar, water, and packaging, can disrupt the procurement stage due to local malfunctions. The production stage also implies unique risks, including technical errors, delays, and quality concerns that may not meet customers’ demands or the brand’s terms and standards (Scott et al., 2018). Distribution is one of the most high-risk stages in the Coca-Cola supply chain because the company relies on its vast network with multiple parties involved. As an example, a logistics company can face delivery delays, inventory management challenges, or other local disruptions that will be detrimental to the whole batch’s profitability. Thus, despite Coca-Cola’s well-designed and extensive supply chain, its complexity may result in various risks throughout the system.

Neglecting the supply chain risk jeopardizes the company’s financial situation, reputation, and market share, negatively affecting all company’s operations. Financial loss is associated with potential product shortages and increased delivery costs due to procurement and distribution change disruptions, while regulatory fines may arise from improper manufacturing processes (Scott et al., 2018). Coca-Cola may also face legal liabilities and lawsuits from customers and stakeholders who suffered from the company’s supply chain disruptions. These issues may not be directly caused by the company but arise from political instability, natural disasters, or human errors.

Nevertheless, the company can undermine its reputation due to quality issues, negative publicity, or unavailability of products. Losing customers will eventually decrease market share because they will look for alternative products from competitors (Meier, 2020). Hence, the company should carefully analyze and constantly evaluate its supply chain to improve it and avoid associated risks with finances, reputation, and market share.

Coca-Cola’s supply managers must take proactive measures to monitor and eliminate potential supply chain risks constantly. Fostering collaboration is the most effective way to mitigate numerous risks in the procurement and distribution stages. Managers can regularly share information with suppliers, distributors, and retailers to be aware of constantly changing prices, trends, and the environment, adjusting organizational processes accordingly (Meier, 2020). The company can avoid unexpected delays, stockouts, and excess inventory by collaborating with external and internal stakeholders. Simultaneously, adequate contingency planning will help address supply chain emergency disruptions without losses. According to Scott et al. (2018), developing these backup strategies is paramount for ensuring response protocols, alternative sourcing, and transportation. Finally, the company must optimize and strictly regulate its manufacturing processes to maintain stable high quality and consistently comply with quality standards. Complex proactive measures can help Coca-Cola mitigate current supply chain risks and prepare for future challenges to avoid supplier unreliability, production delays, quality issues, inventory problems, and reputational damage.

Coca-Cola’s supply chain is a complex global system involving various stages and actors. However, this system also exposes the company to risks that can harm its performance and reputation. That is why Coca-Cola’s supply managers must proactively monitor and eliminate potential supply chain disruptions. These measures can help Coca-Cola ensure its supply chain efficiency and reliability and maintain its competitive advantage in the beverage industry.

References
Meier, K. (2020). Additive manufacturing – driving massive disruptive change in supply chain management. Journal of Work-Applied Management, 12(2), 221–231. https://doi.org/10.1108/jwam-05-2020-0024

Scott, C., Lundgren, H., & Thompson, P. M. (2018). Guide to strategy in supply chain management. In Springer eBooks (pp. 129–142). https://doi.org/10.1007/978-3-319-77185-4_7