You are on page 1of 7

COCA COLA TRANSPORTATION

Introduction

Transportation of any company has been one of the major reasons for them to prosper in the most
appropriate way. Most of the companies are basically reliant on the fact that how the process of
transportation and distribution occurs. With the help of this, it becomes an important aspect for
the companies to make sure that they come up with a strategy where all the process of
transportation is executed in the most effective manner. No organization can survive without any
transportation. Its the backbone of any supply chain management of any organization.
Transportation helps in the distribution of various products not only within the region but also
outside the border of a country. Hence, proper types of carriages should be designed for proper
transportation of products of a company.
In our example, the company as selected is basically Coca-cola, one of the leading brands in the
beverage industry. The Coca Cola Company is a listed American Multinational organization and
biggest beverage Company which has its headquarters in Atlanta, Georgia. It was incorporated in
the year 1892 by Asa Griggs Candler who bought this company from a pharmacist early in
1800s. The most popular product of Coca Cola Company is Coca Cola which is a black coloured
carbonated drink.
The Coca Cola Company holds strong beliefs and ethics. It believes in bringing constant
Innovation so as to survive in the market. Its mission is to bring forth refreshing products and at
the same time maintaining the quality of the product is given utmost importance. It also believes
in bringing happiness in every home with its product and hence the tagline Open Happiness. It

has strong values such as being competent, having passion and dedication towards work, being
an excellent leader to shape up the bright future.
Coca Cola Company is associated with the production of non-alcoholic beverages and it has its
presence in more than 200 countries.
Other than its usual and most preferred beverage, Coca Cola, there are other brands too such as
Diet Coke, Sprite, Fanta, Minute Maid, Fuze tea, Glaceau Vitamin Water, Fresca, Simply
Beverages, Dasani, Powerade.
The organizational strategies include being extremely focused and taking immediate action,
expanding its reach through various marketing tools and strategies, being innovative, working
efficiently and acting responsible towards ones work.
The Coca Cola Company is a leader in the beverage industry and the most valuable brand in
2015. Its global net operating value is more than 45 million U.S. dollars and Coca Cola
Companys market share in the soft drinks market is more than 26% and employs around
130,000 employees around the world.
The main competitors of Coca Cola Company are Pepsico, Dr Pepper Snapple Group, Monster
Beverage, Nestle Tea, etc.

Incoterm selection considerations

For a fact that coca cola is basically one of the largest producers of beverages, it is important for
us to analyze the whole scenario in order to provide the people and other related matters to the
company. For the people to avail the benefits of the product, it is an important aspect for the
company to make sure that these products are effectively reached to the desired customers. In the
initial stages, it is important to basically effectively use the infrastructure of the economy, where
they actually wish to operate their activities. The management of the company will have to make
sure that the whole scenario should be judged in an appropriate manner for the betterment of the
society and the economy. Once the company has adopted the best possible way to implement the
process of transportation and distribution, it becomes a necessary aspect for the company to
deliver the same. In order to implement these transportation aspects, the management of the
company will have to determine the core areas where they will actually have to employ their
resources, in order to process the transportation activities. This leads the company to have a
major significance to deliver their respective goods in the desired locations and countries. Not
only this, the management will have to determine whether there is demand for their product in
any particular area or not. Once that is determined, the company can actually arrange for the
process of transportation and execution if the distribution processes. The process of selection
becomes a really important aspect for the company as in the presence of the same, the company
will be able to survive and prosper. There are certain modes of transportation and distribution
3

which are supposed to be followed by the management of the company. The only reason as to
why so much of importance is being given to the process of transportation and other matters
related to the processes.

Carrier Selection Criteria

Transportation plays an important role in the distribution of products of such a company which
works on a franchise model. Being such a huge company and having such a vast presence in
various countries, its distribution network should be very strong. Any wrong delivery or any
wrong product can cost company a lot in terms of its customers, goodwill, brand loyalty, etc.
There are a lot of ways for products to be transported from one country/region to another. The
question is how to make the products reach effectively and efficiently to the customers of
respective countries.
One of the major things in the various forms of business has been the effectiveness of the process
of transportation and distribution. The process of transportation has been one of the major
reasons for the companies to make sure that they can actually aide the people to get educated
regarding the product. It is due to these reasons, the product is actually delivered in its desired
location to customer or the retailer who has ordered the same. There are certain companies,
which are even obligated to make sure that they provide proper details to the people about the
products as offered by them. As the company is operating its activities across the world, it is a
necessary aspect for the company to give emphasis on the process of transportation and
distribution.

So, considering all this, there are various factors which are to be considered when selecting
carriers for the distribution purpose which are as follows:
1. Environment plays an important role of every economy. The environmental conditions
should be analyzed properly and the damage caused by the transport should be assessed
beforehand.
2. Emissions of carbon done by the carrier should be kept in check. The level of carbon
emissions should be within the prescribed limit so as not to contribute to pollution which
in turn increases the global warming levels all over the world
3. The carrier should be such which incurs less transportation costs and costs are managed
4.

efficiently.
Carrier should be such which can run on renewable sources of energy and more
investment should be made in such energy sources that lead to less depletion of coal,

fossil fuels, etc. This reduces carbon emission levels too.


5. Carriers should be selected depending on the size of the load. If the load is less, then
small carriers should be equipped for that purpose and large carriers for bigger loads
6. The distance also plays an important role while choosing the type of carrier required. If it
requires crossing national boundaries and various different countries then flights may be
preferred over trucks and railways.
7. Electricity consumption also plays an important role. In many developing countries,
electricity is still a problem for the masses so such electric vehicles so equipped for
transportation should not pose a threat to such under-developed countries.
8. Carrier selected should be such that it is able to distribute and deliver even in rural
regions. These kind of vehicles help reach the product in every nook and corner of the
country and builds brand loyalty.

Carrier Relationship Management


1. There are various freight charges which must be kept in mind before buying carriers.
2. Contract prices should be negotiated
3. Opportunity cost should be considered of a carrier when choosing carriers among
various other alternatives
4. Carriers chosen should align with the goals of customers and the product should reach
them at a proper time
5. Carriers should be chosen in such a way that they help in optimizing cost
6. Carriers should be well equipped so that they maintain a record of freight charges
incurred at any point of time.
7. Internet should be linked with carriers which can help them in locating routes while
driving.
8. It is important that carriers chosen for a particular organization should be properly
chosen and checked from time to time to avoid any wastages.
9. Carriers should be chosen in such a way that does not cause damage to the products
during loading and also does not hamper the quality of the products.
10. Shippers may require shorter or longer schedules than their usual schedules.

Conclusion

As stated, Transportation is an important part of any supply chain management. It is with due
help of transportation that distribution of products becomes possible. Companies that are
6

huge and have a vast presence require access to various modes of transportation. Their
products require crossing of national boundaries of one nation so to make the products reach
another country. They make use of various modes of transportation like trucks, railways,
carrier flights, electronic vehicles, vehicles that run on renewable sources of energy, etc.
These transportation systems should be well put in place so that costs can be optimized and it
helps in reducing transportation charges too. However, the types of carriers chosen by an
organization depends on various factors such as size of the organization, national presence of
the organization, transportation goals, etc. Such factors must be properly analyzed.
Transportation system, if designed properly, can really benefit the organization. In case of no
transportation system, it would be so difficult to expand globally. It would be difficult to
make the brand aware and make it reach to the rural areas. Systems should be properly built
in place so that the customers get the maximum benefit out of it and enjoy.

1.
2.
3.
4.
5.

Referencing
(Coca Cola Company, 2015)
(Cola life, 2010)

(Logistics viewpoint, 2010)


(Cerasis, 2015)
(Transportation Insight, 2014)