Introduction
Coca-Cola Company is a leading producer, distributor, and seller of non-alcoholic beverage concentrates and syrups globally. The success of Coca-Cola products is mainly derived from the high level of customer satisfaction. Coca-Cola Company satisfied their customer by creating brands they love. They introduced two new products in the market belonging to the category of Coca-Cola flavors such as popsicles and chewing gum.
Capacity management
Capacity management is the process that makes sure that an organization manages its capacity as best as possible at the same time sustaining the level of customer satisfaction. The rapid market changes, make it necessary to deal with the pressure on business efficiently and effectively. The capacity of the supply chain will affect the dynamic change in demand and supply. Each component of the supply chain can affect the organization and requirements of capacity management are calculated in terms of weeks and months. In an organization, changes occur without any warning. Sometimes the organization can earn a huge amount of profit and at other times it may be a slowdown.
“External as well as internal dynamics create the need for constant monitoring and adjustment of capacity levels and policies. Global economic conditions and competitors cause external pressures that challenge current business practices. From price pressures to raw material availability, organizations must be flexible enough to react quickly to these changes.” (Capacity planning, 2009).
Popsicles and chewing gum provide a huge amount of customer satisfaction with high capacity. These two items are favorites of children. In the supply of these items, there is scope for a high rate of return.
The role of E-commerce and supply chain management
E-commerce means an economic activity where purchasing and selling goods and related activities are carried out through computers electronically. “Ecommerce (e-commerce) or electronic commerce, a subset of e-business, is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically.” (Ecommerce definition and types of ecommerce, 2005). The main objective of every business is customer satisfaction. The Coca-Cola flavor maintains this customer satisfaction with the attractiveness of the brand name.
The advent of e-commerce has had a great impact on the supply chain management of companies engaged in the retailing business. Advanced business techniques available in e-commerce helped the Coca-Cola Company to improve its operational efficiency by reducing the operating cost requirements. The retailing business of Popsicles and chewing gum requires keeping a higher-level customer satisfaction for ensuring sustainable business growth. For this cost reduction is an essential factor. Customers always prefer quality products at a reduced cost. So this retailing industry is required to reduce the operating cost. A major part of the total cost requirement in Coca Cola retailing business is related to the supply chain.
The effective and efficient use of supply chain management involves providing the best and suitable goods and services to the requisite place at the right time, in the right quantity, at the right price, and in accordance with the right quality demanded. Supply chain management not only envisages internet business transactions but also encompasses all round efficiencies at all levels. Supply Chain means all inter-linked resources and activities needed to create and deliver products and services to customers. Quick response and just-in-time inventory can be effectively implemented in the supply chain system through the application of e logistics. Efficient communication resulting from the application of e logistics is facilitating to reduce the operating cost to the minimum level.
The supply chain management techniques have to be effectively used for the distribution of new products like popsicles and chewing gum. In order to ensure the quality standards within the time of product distribution advanced product distribution techniques should be adopted. Commercial and quality-approved supply chain management can be effectively employed through e-commerce techniques.
Conclusion
In any strategic management unit, optimization of profit is the ultimate business objective. For these operational costs have to be minimized. Leading companies like Coca-Cola for their original flavor and its new products like Popsicles and chewing gum ensure this through capacity management and e-commerce profitability for their supply chain management system.
References
Capacity planning: A tactical decision with strategic impact. (2009). Insight. Web.
Ecommerce definition and types of ecommerce. (2005). DigitSmith. Web.