Coca-Cola Distribution System Business & Marketing Essay (Essay Sample)

Coca-Cola Distribution System
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Coca-Cola Distribution System
Coca-Cola company is one of the largest companies on the globe that makes and distributes cold beverages and other products. It has one of the largest distribution systems as it deals with bottling plants, distributors, wholesalers and retailers. The company has continued to expand its marketing as it uses two strategies in distribution; direct and indirect selling. In the direct method, the company transfers products directly to retailers such as restaurants and retail stores. On the other hand, indirect distribution involves using distributors that in turn transfer the products to smaller retailers and consumers. This distribution system can be greatly improved with the use of IT. It is not that Coca Cola company does not use technology, but the existing available technologies can be improved and scaled up to include current technologies that would make the distribution process even better.
To begin with, the company faces challenges in the distribution because it incurs heavy costs in the process. Also, there are challenges in the communication process because there is a lack of internal communication that affects its operations. Furthermore, they can add a customer a loyalty points system that will award points to loyal customers. All these can be improved with the use of IT. For the distribution system, the company can use sophisticated distribution systems that will manage the inventory, orders for shipment, customers’ management, order status, an electronic map of their distribution points and customer base, and accounts collection and payment. All these can be achieved by using Enterprise Resource Planning systems such as SAP that will help the company to streamline its operations.