Coca Cola Company headquartered in Atlanta, GA is a great example
of an organization that creates value through outsourcing supply
chain. Coca Cola owns more than 500 soft drink brands and has a
presence in more than 200 countries. This profitable expansion
required excellent supply chain management and outsourcing of
bottlers. This has become known as the Coca Cola System which
created a franchised model. In this model Coca Cola Company sells
concentrated syrup to independent bottlers who combine it with
other ingredients to produce their famous soft drinks. This allows
Coca Cola Company to cut off costs including manufacturing,
bottling, storing, and establishing local distribution networks around
the world.
The Coca Cola system helps create value developing a network of
bottlers and the opportunity to distribute their products at extremely
high volumes. This system also provides flexibility to adapt to local
conditions and cultural impacts. Ultimately Coca Cola uses
outsourcing bottling and production to focus on the company’s
strength which is the production of their concentrated syrup.
Value is created for all; the organization, the franchised bottlers as
well as the customer by making its products readily available
worldwide.
Upfblog. 2019. Matrone, Mayor & Posh. Is Outsourcing a Good
Strategy for Coca
Cola? https://operationsmanagementblog.home.blog/2019/05/27/is
-outsourcing-a-good-strategy-for-coca-cola/
