Sunday, March 7, 2010

Manufacturing And Distribution


Coca Cola manufacturers all their products in Indonesia. The company has been awarded prizes for attaining standards above similar plants located in other parts of the world. Coca Cola falls as a Continuous and Assembly line company. It produces different product lines, about 400 different brands. I requires mass production due to its high demand all over the world. It sells over 1.4 billion beverages servings each day!! The products begin as raw material and go through many stages.
1. Ingredients Preparations
2. Mixing
3. Washing
4. Filling & Capping
5. Coding
6. Inspection
7. Packaging
8. Loading


Coca cola has adopted to different types of mass customization methods. An example is their new "Coca-Cola Freestyle", which is a soda fountain 2.0. The machines found today in fast food restaurants and movie theaters offer five to eight standard beverages – Coke, Diet Coke, Sprite, Fanta, etc. The Freestyle fountain offers 100 different drinks, all mixed on the spot.The Freestyle technology can combine small, exact amounts of concentrated ingredients, stored in cartridges, with water and sweetener to mix a beverage on the spot. Farrell pointed out several advantages that the cartridge-based system offers Coca-Cola and its retail partners over conventional fountains, which simply mix pre-made syrup with carbonated water. The syrup is stored in five-gallon bags that are more expensive to ship and bulky to store, which limits the number of options that each fountain can offer. The Freestyle not only offers more flavors, but gives users the option to customize their drink.

Although coca cola cannot adopt to every type of mass customization method, they improved their technology so that they can bring the product to the customer directly in a unique way. Over the years they have been able to adopt more types of methods, as shown by the new "Coca-Cola Freestyle."

Coca-Cola uses continous and assembly line process because it allows the product to be produced in high volumes. The company has made it a point to reduce the cost of production, and started reusing their products. Cola-Cola has a mass market that it attends to, so it is important that they are able to produce the product for low costs. The product is highly automated and operates at capacity. Continuous process reduces inventories and distribution costs, which then allows the for the total cost of manufacturing to be lowered.

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