Coca Cola to restructure its supply chain

Filed in archive News on June 15, 2006

The world's biggest soft-drink manufacturer has changed its century-old supply chain management structure, prompting the need for new software solutions.

According to a news piece from Mikrofax, Coca-Cola has started to deliver its goods to the warehouses of Wal-Mart after complaints that the old method of bottlers supplying individual stores was leaving shelves empty, according to a Wall Street Journal report last week.

By changing supply so that Powerade is delivered directly to warehouses, Coca-Cola has dramatically changed its supply chain Management system. The change of practice is likely to affect distribution across the whole of the USA.

Disclosure of this was made in a lawsuit filed by 55 small bottlers who were unhappy at the change, according to revelations in the paper.

However, Coke claims that it is down to it how it chooses to supply its vendors.

Although Coca-Cola has had its own supply chain management system in place for a 100 years, the journal claims that fears of conflict with Wal-Mart, the world's largest supermarket group, is said to have led to the change in procurement methods.