coca cola inventory management case study

Coca Cola Operations Management and Inventory Report

Executive summary, introduction: how does coca cola manage their inventory, coca cola operations management, coca cola inventory management, conclusions, reference list.

Coca-Cola has a long history that allowed the company to optimise its operations and achieve success on a global scale. Its operations and inventory management are rooted in a framework of operations management that is targeted at increasing the value of shareowners over time. This is done through the continuous cooperation with business partners that help the company distribute its products through a global system of brands. The key to the company’s inventory and operations management is a three-way collaboration between key suppliers, Coca-Cola, and customers that deliver beverages to end consumers.

Coca-Cola is a world-renowned brand that produces non-alcoholic beverages. It was first created in 1886 by a chemist Dr. John S. Pemberton, who first used Coca-Cola (at that time, it was called Cola) as an oral medication. However, after Asa G. Candler purchased Coca-Cola, the shift in the marketing tactics led to the domination of the beverage in the non-alcoholic beverage industry of the twentieth century (Figure 1). This was accomplished through the incorporations of the Coca-Cola company in 1892 and the expansion of the distribution of the concentrated syrup used for making the beverage. First marketing efforts were associated with giving away free vouchers on drinks and equipping pharmacies with soft drink fountains that had Coca-Cola branding on them. Today, Coca-Cola is available to people in more than two hundred countries, while the company expanded the selection of products and now owns four hundred brands (Feloni 2015).

Operations management encompasses a range of procedures associated with the use of available productive resources, the system or production, design, product management, supply chain management, as well as other processes. Mostly, operations management is needed for considering the acquisition, development, and use of resources (including materials and ingredients) needed for delivering a product that customers desire. Coca-Cola, being one of the most popular companies in the world, has a complex operations management system, which includes a network of bottlers and production and distribution systems.

Thus, operations management at Coca-Cola is done with the help of multiple players. The company “does not own or control its bottling partners,” which means that the system operates through multiple channels ( The Coca-Cola system 2016, para. 2). Coca-Cola manufactures and sells “concentrates, beverage bases and syrup to bottling operations, owns the brands and is responsible for consumer brand marketing initiatives” ( The Coca-Cola system 2016, para. 3). However, when it comes to the production of the soft drink and other products that the company owns, it is Coca-Cola’s bottling partners that play the final role in manufacturing, packaging, merchandising, and distributing final products that are delivered to customers.

Regarding Coca-Cola’s 4Ps, the following aspects should be considered:

The company has a wide product range;
The marketing mix uses a 2nd-degree price discrimination approach – charging different prices for products in various segments;
Worldwide distribution network: shops, restaurants, entertainment places, and others;
Traditional and online promotion strategies.

Usually, bottling customers deliver final products to vendors that then sell beverages to customers. All bottling customers that purchase resources necessary for the production of beverages closely work with convenience stores, restaurants, grocery stores, amusement parks, movie theatres, and other parties that sell drinks to physical customers. Because such operations are localised, it means that the company works in partnership with its bottling customers for executing region-specific strategies.

When it comes to suppliers, Coca-Cola works with businesses that provide materials, ingredients, packaging, as well as other goods and services necessary for producing the final beverage. The company’s Supplier Guiding Principles are focused on maintaining high standards of quality and responsible workplace and environmental policies. At a minimum, the policies and practices established by Coca-Cola’s suppliers must be applicable to their national laws and regulations concerning such issues as forced labour, child labour, abuse of labour, wage and benefits, fair compensation, reasonable working hours, as well as safe and healthy practices of environmental preservations. It should be mentioned that Coca-Cola expects its bottling partners to meet the same standards of quality and corporate responsibility ( Supplier and customer partnerships 2016).

In the discussion about Coca-Cola’s operations management, it is also important to mention total Quality Management (TQM) as a fundamental approach that the company uses for achieving long-term success. Because the company has close relationships with suppliers and customers, TQM is used as a principle that ensures the participation of all relevant players in improving existing processes, services, products, and the overall culture. The global nature of the corporation encourages the company to use The Coca-Cola Management System (TCCMS) for holding all operations at the same high level of quality to ensure smooth production and distribution. TCCMS requires every supplier and customer of the company to establish, implement, document, and maintain high quality and safety standards: ISO 9001 quality, ISO 14001 environmental, ISO 22000 food safety, and ISO 26000 social responsibility (Lambert 2012). It is also important to note that the implementation of TQM has made it possible for Coca-Cola to consider the circular economy system starting from raw materials and ending with reused materials that are reprocessed to make new products, as shown in the diagram (Figure 2) below:

It has been identified that Coca-Cola itself does not source ingredients and materials, nor does it produce beverages that are then delivered to customers. The established relationship between the company, its suppliers, and customers helps Coca-Cola to focus on marketing and expanding the shareholder value through delegating other responsibilities to its key partners. According to Journey Staff (2016) in the About our suppliers report for Coca-Cola, the company recognises that its suppliers are vital to continued success because it is them that deliver required services and products. Similarly to the relationships that Coca-Cola has with suppliers, the company has also worked with establishing a smooth chain of operations with vital suppliers, without whom the company will have to restructure its entire process of getting products delivered to final consumers. Key Coca-Cola customers include large international retail chains, local and global restaurant chains, as well as small independent businesses. It is important that the layout that Coca-Cola established allows the company to work with both small and large customers on an equal basis for creating a mutual benefit ( Supplier and customer partnerships 2016). Overall, the relationships that Coca-Cola created with its key partners is the key to ensuring that the company’s products get delivered to consumers.

Coca-Cola is a company with a rich history and is recognised by consumers around the world. Starting as a small pharmacy brand, it evolved into a multi-national corporation that owns hundreds of brands. The key to the company’s inventory and operations management is a three-way collaboration between suppliers, Coca-Cola, and its customers. Coca-Cola purchases products necessary for the syrup production and sells the recipe and syrups to its partners that produce, package, merchandise, and distribute beverages among retailers, which then deliver beverages to end consumers. Currently, the company is focused on maintaining high standards of quality and corporate responsibility, aiming at reaching a circular economy.

Feloni, R 2015, 7 brilliant strategies Coca-Cola used to become one of the world’s most recognisable brands , Business Insider. Web.

Lambert, G 2012, Coca-Cola and management systems . Web.

Staff, J 2016, About our suppliers . Web.

Supplier and customer partnerships . 2016. Web.

The Coca-Cola Company stock split history n.d. Web.

The Coca-Cola system . 2016. Web.

Towards a circular economy n.d. Web.

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IvyPanda. (2023, October 30). Coca Cola Operations Management and Inventory. https://ivypanda.com/essays/coca-cola-operations-and-inventory-management/

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Bibliography

IvyPanda . "Coca Cola Operations Management and Inventory." October 30, 2023. https://ivypanda.com/essays/coca-cola-operations-and-inventory-management/.

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How does coca cola manage their inventory

Have you ever wondered how a global brand like Coca Cola manages to keep its products stocked on store shelves all over the world? From the bustling streets of New York City to the remote villages of Africa, Coca Cola’s inventory management system is a well-oiled machine that ensures the availability of its products to millions of consumers every day. In this article, we’ll take a closer look at how Coca Cola manages its inventory, and why it’s important for readers to understand the inner workings of this key aspect of the company’s operations. So, grab a cold Coke and let’s dive in!

Introduction

When it comes to refreshing drinks, Coca-Cola is undoubtedly one of the most popular brands worldwide. The company’s products are sold in over 200 countries, and their inventory management system is one of the reasons why they have been so successful. In this article, we will dive into how Coca-Cola manages its inventory and what makes it stand out from other companies.

What is Inventory Management?

Firstly, let’s understand what inventory management is. Essentially, inventory management is the process of overseeing and controlling the ordering, storage, and usage of a company’s goods. The goal of inventory management is to ensure that a company has the right amount of stock at the right time to meet consumer demand. By doing this, companies can reduce costs, increase efficiency, and improve customer satisfaction.

How Coca-Cola Manages Its Inventory

Coca-Cola has a sophisticated inventory management system that is designed to handle the company’s vast product range. The company has a central warehouse where products are stored before being distributed to retailers and other outlets. The warehouse is equipped with state-of-the-art technology to ensure that all products are tracked and accounted for.

Utilizing Technology

One of the ways that Coca-Cola manages its inventory is through the use of technology. The company has implemented a system that uses real-time data to track product levels and demand. This allows the company to make accurate predictions about what products will be needed in the future and how much of each product needs to be produced.

Collaborating with Suppliers

Another key aspect of Coca-Cola’s inventory management system is its collaboration with suppliers. The company works closely with its suppliers to ensure that they have the necessary raw materials to produce products. By doing this, Coca-Cola can maintain a steady supply of products, even during times of high demand.

Optimizing Distribution

Coca-Cola also optimizes its distribution channels to ensure that products are delivered efficiently. The company uses a combination of its own delivery trucks and third-party logistics providers to ensure that products are delivered on time. This allows the company to meet consumer demand while minimizing transportation costs.

Forecasting Demand

One of the most critical aspects of inventory management is forecasting demand accurately. Coca-Cola uses a combination of historical data and market trends to predict consumer demand. This allows the company to adjust production levels and inventory levels to meet consumer demand accurately.

The Benefits of Effective Inventory Management

Effective inventory management can have a significant impact on a company’s bottom line. By ensuring that the right amount of stock is available at the right time, companies can reduce costs associated with excess inventory or stock-outs. Effective inventory management also leads to improved customer satisfaction, as products are available when consumers want them.

In conclusion, Coca-Cola’s inventory management system is one of the reasons why the company has been so successful. By utilizing technology, collaborating with suppliers, optimizing distribution, and forecasting demand accurately, Coca-Cola can ensure that products are always available to consumers when they want them. Effective inventory management is a crucial element for companies looking to reduce costs, improve efficiency, and increase customer satisfaction.

Challenges of Inventory Management

While Coca-Cola has a highly sophisticated inventory management system, it is not without its challenges. One of the most significant challenges is managing inventory across different regions and countries. Each country has its own unique consumer demands and supply chains, which can make it challenging to maintain consistent inventory levels.

Another challenge is the shelf life of some of Coca-Cola’s products. Some products, such as soft drinks, have a limited shelf life, which means that inventory levels need to be carefully managed to avoid waste.

Future of Inventory Management

As technology continues to evolve, the future of inventory management looks promising. Advancements in artificial intelligence and machine learning have the potential to revolutionize the way companies manage their inventory. These technologies can analyze large amounts of data to make accurate predictions about consumer demand and optimize supply chain operations.

Another trend in inventory management is the use of cloud-based systems. Cloud-based inventory management systems allow companies to access real-time data from anywhere in the world, making it easier to manage inventory across different regions and countries.

In conclusion, effective inventory management is essential for companies looking to reduce costs, improve efficiency, and increase customer satisfaction. Coca-Cola’s inventory management system is a prime example of how technology, collaboration with suppliers, optimizing distribution, and accurately forecasting demand can lead to success. While there are challenges associated with inventory management, advancements in technology and the use of cloud-based systems offer promising solutions for the future.

Frequently Asked Questions

How does coca cola manage their inventory.

Q: What methods does Coca Cola use to manage their inventory? A: Coca Cola uses a computerized system to track their inventory levels and to reorder products when inventory levels fall below a certain threshold. They also use a just-in-time (JIT) inventory management system which allows them to manage their inventory levels more efficiently.

Q: How does Coca Cola ensure that their products are always in stock? A: Coca Cola works closely with their suppliers and distributors to ensure that their products are always in stock. They use data analytics to predict demand and ensure that their products are available when and where they are needed.

Key Takeaways

Coca Cola uses a computerized system to manage inventory levels
They also use a JIT inventory management system
Coca Cola works closely with their suppliers and distributors to ensure products are always in stock

Overall, Coca Cola is able to effectively manage their inventory levels by using a combination of computerized systems and JIT inventory management. By working closely with their suppliers and distributors, they are able to ensure that their products are always in stock and available to consumers. This allows them to maintain their position as one of the world’s leading beverage companies.

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Automated Warehouse System at the Coca Cola Bottling Production Plant

Case Study Content:

How it works

Full-time on-site maintenance.

Dematic partners with Coca Cola to create an automated warehouse system at the Coca Cola Cincinnati bottling production plant.

The automated warehouse stores product by removing palletized loads from the end of the bottling line with Automated Guided Vehicles (AGVs) that transport the loads to one of eight pallet rotators.

The load rotator changes the orientation of the pallet 90 degrees prior to induction into the automated storage and retrieval system (AS/RS) where the storage and retrieval machine (SRM) picks up the pallets and places them into storage location in the rack structure.

Warehouse Management System (WMS) software manages orders and selects which pallets fulfill order requirements. There are two different ways in which pallets are processed through the system:

The SRM retrieves a pallet from a storage location in the rack structure and transports it to a load rotator where an AGV pick it up and takes it to the shipping dock where it is placed on a delivery stand. A fork truck then loads the pallet onto a delivery truck.
The SRM brings the pallet to stands located at the end of each aisle on the mezzanine level.
The SRM brings the pallet to a storage location in the rack structure on the mezzanine level that serve as gravity fed pick faces.

Pallets deposited on the mezzanine level are used to pick to pick product to build mixed pallets and less than full pallets. Completed mixed pallets are transported to the shipping dock by an elevator.

Coca-Cola contracted Dematic for full-time, on-site equipment maintenance for its Cincinnati facility, which provides Coca-Cola a direct link to the full suite of Dematic customer support resources. A full maintenance crew of trained Dematic technicians handle planned and unplanned maintenance for the system. The technicians perform preventative maintenance and manage spare parts inventories.

This facility operates 365 days per year, 24 hours per day, and this full-service option ensures the highest possible system reliability. The contract at Coca-Cola includes an uptime performance guarantee, and uptime has averaged 99.01% to date.

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International Journal of Finance and Accounting

p-ISSN: 2168-4812 e-ISSN: 2168-4820

2018; 7(4): 83-96

doi:10.5923/j.ijfa.20180704.01

Impact of Inventory Management on Firm Performance: A Case Study of Listed Manufacturing Firms in Ghana

Suleman Bawa 1 , George Effah Asamoah 2 , Ernest Kissi 3

1 Student Graduate/CEO Bonkanzo Ltd, Leeds University Business School, University of Leeds, Leeds, United Kingdom

2 Senior Accountant, Finance Office, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

3 Lecturer, Department of Building Technology, College of Art and Built Environment, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

Despite numerous research on inventory management on firm performance, and manufacturing firm’s contribution to the Ghanaian economy, its contextual impact still need much investigation because of lack of clarity and divergent findings. The study aims to investigate the impact of inventory management on firm performance of listed manufacturing firms in Ghana. The study used a cross sectional secondary data designed to test whether there is any relationship between inventory management and firm’s performance of listed manufacturing firms in Ghana. The sample of this study included 140 firm-year observations from 14 listed manufacturing firms in Ghana Stock Exchange (GSE) over a 10-year period, from 2007 to 2016. Measures of firm performance which were profitability and operating cash flows were examined. Regression equations stated in the form of return on assets and operating cash flow was used in analysing firm performance data. Pearson correlation and multiple regression analysis was also used as proxies in relatedness to effective inventory management. The empirical results provided evidence that the main variable, inventory management have no effect on firm’s performance and is insignificantly related to firm performance of manufacturing firms in Ghana.

Keywords: Ghana Stock Exchange, Firm performance, Manufacturing firms, Inventory management, Profitability, Operating cash flow

Cite this paper: Suleman Bawa, George Effah Asamoah, Ernest Kissi, Impact of Inventory Management on Firm Performance: A Case Study of Listed Manufacturing Firms in Ghana, International Journal of Finance and Accounting , Vol. 7 No. 4, 2018, pp. 83-96. doi: 10.5923/j.ijfa.20180704.01.

Article Outline

1. introduction, 2. previous studies, 3. theoretical literature review, 4. empirical literature review, 5. methodology, 6. data analysis and discussion, 7. interpretation of findings, 8. conclusions, 9. recommendations, 10. limitations.

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Coca-Cola Supply Chain and Case Study

Posted by Matt Cross | Featured

Coca Cola Supply Chain – It is no secret that Coca Cola is one of the biggest and most successful companies in the world. With a company of this size, supply chain sets forth unique challenges that Coca Cola must face. Learn more about their strategy and how they successfully distribute their products across the world.

What is the supply chain of Coca-Cola company

The supply chain of the Coca-Cola Company is a complex and extensive network that involves various stages, from sourcing raw materials to delivering finished products to customers. Here is an overview of the typical supply chain for Coca-Cola:

The supply chain begins with the sourcing of raw materials, such as water, sugar, and various ingredients needed to produce Coca-Cola beverages. The company may source these materials from different suppliers worldwide.
Once the raw materials are sourced, they are transported to Coca-Cola’s manufacturing facilities. The company has numerous bottling plants and production centers around the world.
At these facilities, the ingredients are mixed to create the various Coca-Cola products, which include carbonated soft drinks, juices, and other beverages.
After the beverages are manufactured, they are packaged in bottles, cans, or other containers. Coca-Cola uses a variety of packaging options to meet consumer demands and market preferences.
Once packaged, the products are transported to distribution centers and warehouses. Coca-Cola’s extensive distribution network ensures products are readily available to retailers and consumers.
Coca-Cola products are distributed to a wide range of retailers, including grocery stores, convenience stores, restaurants, vending machines, and more. The products are often sold through both direct and indirect channels.
Finally, consumers purchase Coca-Cola products at various retail locations, either to consume on-site or take home.

It’s important to note that the Coca-Cola Company operates a highly integrated supply chain, often collaborating closely with its network of bottling partners. These bottling partners are typically responsible for producing, packaging, and distributing Coca-Cola products in specific geographic regions. The company works to ensure the availability of its products in nearly every corner of the globe.

Coca-Cola also uses advanced supply chain management and technology to optimize inventory levels, production efficiency, and distribution, ensuring that its products remain fresh and available to consumers worldwide. This supply chain network is a critical component of the company’s ability to deliver its beverages to a global market.

Does Coca-Cola own their supply chain

The Coca-Cola Company owns a significant portion of its supply chain, but it is important to note that Coca-Cola operates a unique business model that involves a combination of company-owned operations and a network of independent bottling partners.

Company-Owned Operations: Coca-Cola operates its own manufacturing facilities, distribution centers, and warehouses in various regions around the world. In these areas, the company has direct control over the production and distribution of its beverages. These operations are typically referred to as “Company-Owned Bottling Operations” and are a crucial part of the supply chain.
Bottling Partners: In addition to its company-owned operations, Coca-Cola works with a network of independent bottling partners, which are separate legal entities. These bottling partners are responsible for manufacturing, packaging, and distributing Coca-Cola products in specific geographic territories. The bottling partners have agreements with Coca-Cola to use its brands, formulas, and marketing materials. While they operate independently, they maintain a close working relationship with Coca-Cola.

Coca-Cola’s use of independent bottling partners is a key feature of its business model, as it allows the company to leverage the local expertise of these partners while expanding its reach into diverse markets. The Coca-Cola Company provides brand consistency, marketing support, and quality control standards to ensure uniformity in the products, but the bottling partners handle the day-to-day operations.

This combination of company-owned operations and independent bottling partners allows Coca-Cola to maintain control over its supply chain while also adapting to the unique characteristics of different markets. It is a key strategy that has contributed to Coca-Cola’s global presence and success.

What would be some of the challenges that Coca-Cola’s supply chain would face

The Coca-Cola Company’s supply chain, like any large and global operation, faces several challenges. Some of the key challenges that Coca-Cola’s supply chain may encounter include:

Supply Chain Complexity: Coca-Cola operates in numerous countries and regions with varying regulatory requirements, consumer preferences, and infrastructure. Managing this complexity while ensuring product consistency can be challenging.
Logistical Challenges: Transporting raw materials to production facilities and finished products to various distribution points requires a well-organized logistics network. Delays, disruptions, and bottlenecks in transportation can impact supply chain efficiency.
Quality Control: Maintaining product quality and consistency is critical for Coca-Cola. Any deviation from the established product standards can damage the brand’s reputation.
Environmental Concerns: Sustainability is a growing concern in supply chain management. Coca-Cola, like many other companies, faces increasing pressure to reduce its environmental footprint, which includes minimizing plastic waste, conserving water, and reducing carbon emissions.
Regulatory Compliance: Different countries have various regulations and standards regarding food and beverage safety, labeling, and advertising. Staying compliant with these regulations can be challenging, especially when they change or differ from one market to another.
Global Sourcing: Coca-Cola relies on raw materials from around the world. Ensuring a stable and sustainable supply of these materials, such as sugar, is essential. Changes in commodity prices, trade restrictions, or crop failures can disrupt the supply chain.
Consumer Preferences and Health Concerns: Consumer preferences are constantly evolving, with growing concerns about health and wellness. Coca-Cola needs to adapt to these changing preferences, which may require reformulating products or offering healthier alternatives.
Competition: The beverage industry is highly competitive. Coca-Cola faces competition from other beverage companies, new market entrants, and changing market dynamics. Staying competitive requires innovation and flexibility.
Seasonal Demand: Certain products may have seasonal demand patterns, which can impact production and distribution planning.
Global Events: External events, such as natural disasters, pandemics (e.g., COVID-19), and geopolitical issues, can disrupt the supply chain. For example, the pandemic disrupted production, distribution, and consumer behavior in many markets.
Technological Advancements: The integration of technology and data analytics in supply chain management is rapidly evolving. Keeping up with the latest technology and leveraging it for better decision-making is a constant challenge.

To address these challenges, Coca-Cola invests in supply chain optimization, sustainability initiatives, risk management strategies, and continuous innovation. The company also collaborates closely with its bottling partners and suppliers to ensure the smooth operation of its supply chain.

How has Coca-Cola overcome supply chain challenges

The Coca-Cola Company has implemented various strategies and initiatives to overcome supply chain challenges and ensure the smooth and efficient operation of its global supply chain. Here are some of the ways in which Coca-Cola has addressed these challenges:

Diversified Supply Chain: Coca-Cola has a diversified supply chain that includes company-owned bottling operations and independent bottling partners. This diversification helps spread risk and allows for better adaptation to regional market conditions.
Advanced Technology: The company leverages advanced technology, including data analytics, to optimize its supply chain operations. This includes demand forecasting, inventory management, and route optimization to minimize costs and maximize efficiency.
Sustainability Initiatives: Coca-Cola has implemented various sustainability initiatives to address environmental concerns. These initiatives include water stewardship, plastic recycling programs, and energy-efficient production processes.
Risk Management: The company has comprehensive risk management strategies in place to identify and mitigate potential disruptions, such as natural disasters, geopolitical issues, and supply chain interruptions. These strategies involve contingency planning and redundancy in the supply chain.
Local Adaptation: Coca-Cola adapts its products to suit local tastes and preferences, ensuring it remains competitive and appealing in different markets. This flexibility allows the company to respond to changing consumer demands.
Regulatory Compliance: Coca-Cola closely monitors and complies with the diverse regulatory requirements in various countries. The company works to ensure that its products meet the necessary standards and regulations in each market.
Supplier Partnerships: The company maintains strong partnerships with its suppliers to ensure a stable and sustainable supply of raw materials. Collaborative relationships with suppliers are essential for maintaining the quality and consistency of Coca-Cola products.
Continuous Innovation: Coca-Cola invests in research and development to innovate and adapt to changing market dynamics. This includes introducing new products and packaging, including healthier beverage options, to meet evolving consumer preferences.
Global Footprint: The company’s extensive global presence and distribution network help mitigate risks associated with regional disruptions. The ability to shift production and distribution to different locations can help maintain supply chain continuity.
Employee Training and Development: Coca-Cola invests in training and development for its employees to ensure they have the skills and knowledge necessary to manage complex supply chain operations effectively.
Community Engagement: The company engages with local communities and stakeholders to build strong relationships and address social and environmental concerns, particularly related to water usage and environmental sustainability.

Coca-Cola’s ability to adapt and innovate in response to supply chain challenges has helped it maintain its position as one of the world’s leading beverage companies. By combining these strategies with a commitment to quality and sustainability, Coca-Cola continues to address and overcome various supply chain challenges.

Coca-Cola Supply Chain Case Study

A case study of Coca-Cola’s supply chain can provide a detailed look at how the company manages its complex and extensive supply chain operations. Here is a simplified case study overview:

Title: Coca-Cola’s Global Supply Chain Management

Background: The Coca-Cola Company is one of the world’s largest and most recognizable beverage companies, operating in over 200 countries. It has a highly integrated supply chain, which combines company-owned operations and independent bottling partners to meet the diverse demands of its global customer base.

Key Points:

Diversified Supply Chain Model: Coca-Cola uses a dual supply chain model that includes both company-owned bottling operations and independent bottling partners. This diversification allows the company to adapt to regional market conditions and spread risk.
Local Adaptation: The company adjusts its product offerings to suit local tastes and preferences. This flexibility is a key strategy for remaining competitive in different markets.
Advanced Technology: Coca-Cola leverages technology for supply chain optimization. This includes demand forecasting, inventory management, and route optimization, which help minimize costs and enhance efficiency.
Sustainability Initiatives: Coca-Cola places a strong emphasis on sustainability, with initiatives like water stewardship, plastic recycling programs, and energy-efficient production processes.
Regulatory Compliance: The company closely monitors and complies with diverse regulatory requirements across various countries to ensure its products meet necessary standards and regulations.
Risk Management: Comprehensive risk management strategies are in place to identify and mitigate potential disruptions, such as natural disasters, geopolitical issues, and supply chain interruptions.
Supplier Partnerships: Coca-Cola maintains strong relationships with suppliers to ensure a stable and sustainable supply of raw materials, contributing to product quality and consistency.
Innovation: Coca-Cola invests in research and development to introduce new products and packaging to meet changing consumer preferences and market dynamics.

Challenges Faced:

Complex and diverse global operations.
Environmental sustainability concerns.
Evolving consumer preferences.
Regulatory variations in different markets.
Supply chain disruptions from global events (e.g., pandemics, natural disasters).

Outcomes and Successes:

Maintains a leading position in the global beverage industry.
Adapts to regional variations and changing consumer preferences.
Demonstrates a commitment to sustainability and environmental responsibility.
Successfully manages supply chain disruptions through risk mitigation strategies.
Continues to innovate and expand product offerings.

This case study highlights how Coca-Cola’s supply chain management strategies, including diversification, technology adoption, sustainability initiatives, and global adaptation, have contributed to the company’s success in managing a complex and highly visible supply chain operation on a global scale.

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CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY Companies face a dilemma in today’s competitive marketplace, where on one hand, customer demand customized products and services and require that their orders are filled quickly, but on the other hand they do not want to pay a premium for this customization and availability (Vohra 2008). Therefore, organizations are exploring ways towards postponement strategy in response to constantly changing demands. Vohra 2008 argued that today, the cost of holding, extensive product proliferation and the risk of obsolescence, especially in rapidly changing markets, make the expense of holding large inventories of finished goods excessive and that high demand items naturally have safety stock assigned to them, but in many organization there are so many very-low-demand items that keeping any stock of these items is unreasonably expensive, so they argue that companies must now provide good services while maintaining minimal inventories. Therefore, inventory management approaches are essential aspects of any organization. In traditional settings, inventories of raw materials, work-in-progress components and finished goods were kept as a buffer against the possibility of running out of needed items. However, large buffer inventories consume valuable resources and generate hidden costs. Consequently, many companies have changed their approach to production and inventory management. Since at least the early 1980s, inventory management leading to inventory reduction has become the primary target, as is often the case in just-in-time(jit) systems, where raw materials and parts are purchased or produced just in time to be used at each stage of the production process. This approach to inventory management brings considerable cost savings from reduced inventory levels. As a result, inventories have been decreasing in many firms (Sawaya Jr.and Grauquw,2006),although evidence of improved firm organizational productivity is mixed(Tement et al(2010). The role inventory management is to ensure faster inventory turnover. It increases inventory turnover by ten(10) and reduce costs by 10% to 40%. The so called inventory turnover is not yet right to sell product on the shelves based on the principle of fifo cycle (Kenneth lyson sans Moore et al,2003). Inventory is classified basing on the business undertaking from organization to organization. Common criteria used and are nature of inventory for example manufacturing, sale or retail, purpose for which inventory is being held in stock or function and the related usage in the supply chain. Typical classifications are raw materials (items in unprocessed state awaiting conversion e.g. timber, steel and coffee seeds), components and sub-assembles. These are for incorporation into the end product e.g. side mirrors,glasses for car assembling company and monitor or keyboards for a computer assembling company), consumable ( all supplies in an undertaking which are classified as indirect and which do not form part of saleable product.(divided into production, maintenance, office and welfare). Proper classification of inventory and its control improve the financial position of a business (David Jessop and Johnson,2008). Inventory management is primarily about specifying the size and placement of stocked goods. Inventory management is required at different locations within a facility or within multiple locations of a supply networks to protect the regular and planned course of production against the random disturbance of running out of material or goods for improved organizational productivity (Essary 2010). The scope of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting(Vohra 2008:427). Inventory management involves the planning, ordering and scheduling of the materials used in the manufacturing process. It exercises management over three types of inventories that is raw materials, work in progress and finished goods. Purchasing is primary concerned with management over the raw materials inventory, which includes; raw materials or semi-processed materials, fabricated parts and items (maintenance, repair and operations) Jonah 2011. STATEMENT OF THE PROBLEM Inventory management at Coca cola Port Harcourt plant is mostly seen in arrangement of crates at the plant, bottles packing, buying of raw materials, supply of customers, issuing of raw materials for use in the plant departments. This is because the company uses different systems in inventory management including integrated system(system application and products) responsible for management information system which helps to make serious decision son stock, material requirement points, and over stock brands for the fast moving products. However these techniques for inventory management at coca-cola, organizational productivity of the company had reduced from 80% to60% in the years 2014 and 2015 respectively. Basing on the above information, coca cola Port Harcourt plant has registered decline in sales organizational productivity over time (Arinaitwe, 2009). The study was set to investigate the relationship between inventory management on organizational productivity of coca cola plant-port Harcourt. 1.2 OBJECTIVE OF THE STUDY The objective of the study was to find out the inventory management and organizational productivity of private organizations in Nigeria while considering coca cola plant-port Harcourt: 1. To examine the technique of inventory management in coca-cola company port Harcourt. 2. To identify the relationship between inventory management and organizational productivity. 3. To examine the problems associated with inventory management in coca-cola company port Harcourt. 4. To examine how effective inventory management improved organizational productivity in coca-cola company port Harcourt. 1.3 TEST OF HYPOTHESIS Ho: There is no significant relationship between inventory management and organizational productivity. H1: There is a significant relationship between inventory management and organizational productivity. 1.4 RESEARCH QUESTION 1. What are the techniques of inventory management used in coca- cola port Harcourt branch? 2. What is the relationship between inventory management and organizational productivity in coca-cola company port Harcourt branch? 3. What are the problems associated with inventory management in coca-cola company port Harcourt branch on inventory management? 4. To what extent inventory management improve organizational productivity? 1.5 SIGNIFICANCE OF THE STUDY The study findings may be significant in the following ways; it is hoped that study findings may be used as basis for further research and investigations in form of literature. The findings may provide information to managers in different organizations especially on knowing how to compare actual organizational productivity and inventory management. The findings may also be beneficial to other upcoming researchers to investigate further about the impact of inventory management on organizational productivity of other organizations other than coca- cola plant-port Harcourt. The study may further encourage government to set up educational institutions to provide training on how to manage inventory in organizations. 1.6 SCOPE OF THE STUDY The scope of this study borders on inventory management and organizational productivity, case study of coca cola its effects on the performance of business organization and manufacturing industries in particular. Also, many areas such as inventory management systems, contribution of efficient inventory management to productivity, material issues, costs minimization and economy of operation, the impact of efficient inventory management especially as it concerns the area of study. 1.7 LIMITATION OF THE STUDY Limitations and factors and this research study are as follows: the time required for the research and the submission of this work is very short and the researcher was unable to go through all organizational productivity companies. Limited Exit:- due to the fact that exact is very difficult to get and school, proper research was not carried out and this affected the integrity of the results achieved. The management of coca cola breweries prohibited its employees from giving out and information about the company to outsiders without adequate permission from the management and even when this permission was obtained at the long run, many vital and formation were not revealed because they were regarded as the privacy of the company. 1.8 DEFINITION OF TERMS Inventory: Is the amount of goods, materials or part carried out in stock or store house for example, work in progress (w.i.p), raw materials, financial goods resale more items. Productivity: The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input. Organization: An organized body of people with a particular purpose, especially a business, society, association, etc. Inventory management: Inventory management is a science primarily about specifying the shape and placement of stocked goods. It is required at different locations within a facility or within many locations of a supply networks to precede the regular and planned course of production and stock of raw materials.

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THE IMPACT OF INVENTORY MANAGEMENT AND PERFORMANCE OF PRIVATE ORGANIZATIONS IN UGANDA. A CASE STUDY OF COCA- COLA MBARARA PLANT IN MBARARA MUNICIPALITY

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ABSTRACT The research study focused on the inventory management and organization efficiency in Ibanda District local Government t. The study was guided by the following objectives; to analyze the inventory management practices used by Ibanda District local Government, to find out the methods used in performance measurement and its contributions to organization’s efficiency and to find the importance relationship between inventory management and organization’s efficiency to Ibanda District local Government. The study used a descriptive survey method. By use of simple random sampling, 100 respondents from the departments of store, purchasing, top management and others were selected from the area of study. From each department respective officers took part in the study. In all a total of 100 respondents took part in this research study. The study used closed ended questionnaires to collect data. The study reveals that Ibanda District local Government holds stock that is used to satisfy current and future needs of the people of Ibanda District local Government. The district carries out monthly stock taking of items in stores and stock is inspected for quality and right specifications. The methods that are used by Ibanda District local Government to manage inventory are stock valuation where by the system used FIFO to record the value of the stock that is held at a particular period for accountability purposes and writing of final accounts to be submitted to the Ministry of Health . The organization has a strong data centre for its stock such as receipts, invoices which help in keeping record of all the relevant prices so as to carry out a stock valuation. Basing on the findings, Inventory management helps organizations to cut down costs incurred by an organization. It can therefore be concluded that inventory management practices are related to performance of an organization, corporation or business as regards service delivery From the findings, it was evident that inventory management leads to efficiency and effectiveness by avoiding over stocking and under stocking. To ensure this stock taking is carried out to determine the stock levels and hence determine the organizations worth. It also helps to determine the balance of stock and check for any variances and make reconciliations to make sure that the physical stock corresponds with what is within the records. This helps management to detect for any variations and consider possible solutions to solving these problems.

Wilfred Ukpere , ogbo I ann

This study took into consideration the relationship between effective system of inventory management and organization performance in the seven-up bottling company, Nile Mile Enugu. The researchers were motivated to embark on this study, in order to bring to fore the importance of effective inventory control system on organizational performance as it relates to the bottling company. A total of eighty-three respondent constitute the sample for the study. Four research questions and Four hypotheses were generated and tested at 10% (that is 0.10) significant level using descriptive statistics and non-parametric test (chi-square that is, 􀁆􀬶). The result of the analysis showed that flexibility in inventory control management is an important approach to achieving organizational performance. It was found that organizations benefits from inventory control management by way of easy storage and retrieval of material, improved sales effectiveness and reduced operational cost. The study also found that there is a relationship between operational feasibility, utility of inventory control management in the customer related issues of the organization and cost effectiveness technique are implemented to enhance the return on investment in the organization. Effective inventory control management is recognized as one of the areas management of any organization should acquire capability. It is recommended that organizations should adopt the inventory keeping method that best suit their operations.

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강원랜드주가〃〃GCN333。COM〃〃슬롯머신배팅방법

강원랜드주가〃〃GCN333。COM〃〃슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-강원랜드주가-슬롯머신배팅방법-

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Areez Samith

Journal of the American Chemical Society

John Markley

The structural mechanism by which Hsp70-type chaperones interact with Hsp40-type co-chaperones has been of great interest, yet still remains a matter of debate. Here, we used solution NMR spectroscopy to investigate the ATP-/ADP-dependent interactions between Escherichia coli HscA and HscB, the specialized Hsp70/Hsp40 molecular chaperones that mediate iron-sulfur cluster transfer. We observed that NMR signals assigned to amino acid residues in the J-domain and its "HPD" motif of HscB broadened severely upon the addition of ATP-bound HscA, but these signals were not similarly broadened by ADP-bound HscA or the isolated nucleotide binding domain of HscA complexed with either ATP or ADP. An HscB variant with an altered HPD motif, HscB(H32A,P33A,D34A), failed to manifest WT-like NMR signal perturbations and also abolished WT-like stimulation of ATP hydrolysis by HscA. In addition, residues 153-171 in the C-terminal region of HscB exhibited NMR signal perturbations upon interac...

Coca-Cola case study: Optimal drinks deliveries in a complex market

August 9, 2021 Gavin Wilkinson

Coca-Cola HBC worked with firstBit | NFP to optimize its extensive delivery network in the CIS region. Using anyLogistix supply chain software, they tackled five key business challenges in logistics and created a solution that accommodates over 200,000 clients.

Coca-Cola HBC's supply chain is complex, with variable transportation and storage costs, as well as seasonal demand variations. This complexity was preventing effective analysis and the holding back the possibility of cost cutting.

The solution to analyzing this complex supply chain was to capture it in a model. NFP Consulting were contracted to create a supply chain model that would help:

Reduce complexity
Reduce goods movement and processing costs
Calculate optimal safety stocks for given service levels

The project began with the development of a concept model based on the current supply chain’s performance data and metrics. This defined the scope of model development and moved the project to a prototyping phase, where testing was carried out based on limited data. Based on the results of the testing, the team validated the model and could estimate the risks of further scaling the model.

In the final phase of development, the model scaled to represent a supply chain of 200,000 clients with considerations for routing, fleet availability, and load capacities. With this model built in anyLogistix and with access to its supply chain specific experiments, it became possible to exclude economically inefficient routes and to better optimize suitable routes regarding vehicles and their loading.

Overall, the developers used the supply chain model to tackle five key business challenges:

Production strategy selection
Supply chain master planning
Warehouse location
Last-mile delivery strategy
Safety stock calculation

The outcome of the project was a supply chain decision support system for managers from Coca-Cola HBC. With it, they can manage their supply chain, allowing for different planning horizons, test logistics and production hypotheses, and support decision making for delivery managers.

You can read more about the project in our case study Supply Chain Design and Optimization for Coca-Cola HBC .

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Statistics And Probability
Biostatistics

Inventory Management: A Tool of Optimizing Resources in a Manufacturing Industry

Inventory Management:

A tool of optimizing resources in a manufacturing industry, a case study of coca-cola bottling company, ilorin plant.

S. L. Adeyemi* and A. O. Salami**

*Department of Business Administration, University of Ilorin, P.M.B 1515,

Ilorin, Kwara State, Nigeria

**Department of Management Science, Ladoke Akintola University of Technology, Ogbomoso,

P.O.BOX 4000, Oyo State, Nigeria

KEYWORDS Optimization. Resources. Efficiency. Economic Order Quantity. Demand and Sales. Production

ABSTRACT Inventory constitutes the most significant part of current assets of larger majority of Nigerian manufacturing industries. Because of the relative largeness of inventories maintained by most firms, a considerable sum of an organization’s fund is being committed to them. It thus becomes absolutely imperative to manage inventories efficiently so as to avoid the costs of changing production rates, overtime, sub-contracting, unnecessary cost of sales and back order penalties during periods of peak demand. The main objective of this study is to determine whether or not inventories in the Nigeria Bottling Company, Ilorin Plant can be evaluated and understood using the various existing tools of optimization in inventory management. The study methods employed include the variance analysis, Economic Order Quantity (EOQ) Model and the Chi-square method. The answer to the fundamental question of how best an organization which handles inventory can be efficiently run is provided for in the analysis and findings of the study. Consequently, recommendations on the right quantity, quality and timing of material, at the most favourable price conclude the research study.

1. INTRODUCTION

Inventory management is pivotal in effective and efficient organization. It is also vital in the control of materials and goods that have to be held (or stored) for later use in the case of production or later exchange activities in the case of services. The principal goal of inventory management involves having to balance the conflicting economics of not wanting to hold too much stock. Thereby having to tie up capital so as to guide against the incurring of costs such as storage, spoilage, pilferage and obsolescence and, the desire to make items or goods available when and where required (quality and quantity wise) so as to avert the cost of not meeting such requirement.

Inventory problems of too great or too small quantities on hand can cause business failures.

If a manufacturer experiences stock-out of a critical inventory item, production halts could result.

Moreover, a shopper expects the retailer to carry the item wanted. If an item is not stocked when the customer thinks it should be, the retailer loses a customer not only on that item but also on many other items in the future. The conclusion one might draw is that effective inventory management can make a significant contribution to a company’s profit as well as increase its return on total assets. It is thus the management of this economics of stockholding, that is appropriately being refers to as inventory management. The reason for greater attention to inventory management is that this figure, for many firms, is the largest item appearing on the asset side of the balance sheet.

Essentially, inventory management, within the context of the foregoing features involves planning and control. The planning aspect involves looking ahead in terms of the determination in advance:

(i) What quantity of items to order; and (ii) How often (periodicity) do we order for them to maintain the overall source-store sink coordination in an economically efficient way?

(ii) How often (periodicity) do we order for them to maintain the overall stock coordination in an economically efficient way?

The control aspect, which is often described as stock control involves following the procedure, set up at the planning stage to achieve the above objective. This may include monitoring stock levels periodically or continuously and deciding what to do on the basis of information that is gathered and adequately processed.

Effort must be made by the management of

136 any organization to strike an optimum investment in inventory since it costs much money to tie down capital in excess inventory. In recent time, attention was focused on the development of suitable mathematical tools and approaches designed to aid the decision-maker in setting optimum inventory levels. Economic order quantity model

(EOQ) has thus been developed to take care of the weaknesses emanating from the traditional methods of inventory control and valuation, which to some extent has proved useful in optimizing resources and thus, minimizing associated cost.

Financial analysts have sounded enough warning on the danger expose to the long run profitability as well as continuity of business concern when its inventories are left unmanaged.

First, a company, which neglects it management of inventory, runs the risk of production bottlenecks and subsequently unable to maintain the minimum investment it requires to maximized profit. Second, inventories that are inefficiently managed may apart from affecting sales create an irreparable loss in market for companies operating in highly competitive industry.

Invariably, a company must neither keep excess inventories to avoid an unnecessary tying down of funds as well as loss in fund due to pilferage, spoilage and obsolescence nor maintain too low inventories so as to meet production and sales demand as at when needed. Therefore, the mere fact that ineffective inventory management affects virtually the organizational objectives necessitates this type of research work.

The researcher has taken Nigeria Bottling

Company as a case study so as to clearly see if their resounding success can be attributed to the kind of inventory system the company embarks on. Since their production process requires a lot of raw materials and despite the economic condition of the country at any given time, production has never ceased and their products have never been scarce.

The objectives of this study are as follows:

(i) To describe the inventory management procedures currently in use in Nigeria

Bottling Company, llorin Plant

(ii) To determine whether or not inventory management in the Nigeria Bottling Company can be evaluated and understood using the various existing tools of optimization in inventory management and,

(iii) To determine the optimality in the company inventory policies.

S. L. ADEYEMI AND A. O. SALAMI

2. INVENTORY MANAGEMENT:

DEFINITIONS AND CONCEPTS

There is need for installation of a proper inventory control technique in any business organization in developing country like Nigeria.

According to Kotler (2000), inventory management refers to all the activities involved in developing and managing the inventory levels of raw materials, semi-finished materials (workin-progress) and finished good so that adequate supplies are available and the costs of over or under stocks are low. Rosenblatt (1977) says:

“The cost of maintaining inventory is included in the final price paid by the consumer. Good in inventory represents a cost to their owner. The manufacturer has the expense of materials and labour. The wholesaler also has funds tied up”.

Therefore, the basic goal of the researchers is to maintain a level of inventory that will provide optimum stock at lowest cost.

Morris (1995) stressed that inventory management in its broadest perspective is to keep the most economical amount of one kind of asset in order to facilitate an increase in the total value of all assets of the organization – human and material resources.

Keth et al. (1994) in their text also stated that the major objective of inventory management and control is to inform managers how much of a good to re-order, when to re-order the good, how frequently orders should be placed and what the appropriate safety stock is, for minimizing stockouts. Thus, the overall goal of inventory is to have what is needed, and to minimize the number of times one is out of stock.

Drury (1996) defined inventory as a stock of goods that is maintained by a business in anticipation of some future demand. This definition was also supported by Schroeder (2000) who stressed that inventory management has an impact on all business functions, particularly operations, marketing, accounting, and finance.

He established that there are three motives for holding inventories, which are transaction, precautionary and speculative motives. The transaction motive occurs when there is a need to hold stock to meet production and sales requirements.

A firm might also decide to hold additional amounts of stock to cover the possibility that it may have under estimated its future production and sales requirements. This represents a precautionary motive, which applies only when future

INVENTORY MANAGEMENT demand is uncertain. The speculative motive for holding inventory might entice a firm to purchase a larger quantity of materials than normal in anticipation of making abnormal profits. Advance purchase of raw materials in inflationary times is one form of speculative behaviour.

2.1 Inventory Model: The Economic Order

Quantity (EOQ) Model

Undoubtedly, the best-known and most fundamental inventory decision model is the

Economic Order Quantity Model. Its origin dated back to the early 1900s. The purpose of using the

EOQ model in this research is to find out the particular quantity, which minimize total inventory costs that is the total ordering and carrying costs.

2.1.1 EOQ Assumptions

The EOQ has been previously defined by

Dervitsiotis (1981), Monks (1996), Lucey (1992), and Schroeder (2000) as the ordering quantity which minimizes the balance of cost between inventory holding cost and re-order costs. Lucey

(1992) stressed further that to be able to calculate a basic EOQ, certain assumptions are necessary:

(i) That there is a known, constant, stock holding costs;

(ii) That there is a known, constant ordering costs;

(iii) That the rates of demand are known

(iv) That there is a known constant price per unit

(v) That replenishment is made instantaneously, that is the whole batch is delivered at once.

(vi) No stock-outs are allowed.

It would be apparent that the above assumptions are somewhat sweeping and that they are a good reason for treating an EOQ calculation with caution. Also, the rationale of EOQ ignores buffer stocks, which are maintained to cater for variations in lead-time and demand. The above assumptions are wide ranging and it is unlikely that all could be observed in practice. Nevertheless, the EOQ calculation is a useful starting point in establishing an appropriate reorder quantity.

The EOQ formula is given below; it’s derivation and graphical presentation.

EOQ = 2CoD …….. (1)

Where Co, Cc and D denote the ordering costs, carrying cost and annual demand respectively.

Note also that Annual stock = Q/2, Total annual carrying cost = CcQ/2, Number of orders per annum = D/Q, Annual ordering costs = CoD/

Q and Total cost = CcQ/2 + CoD/Q..(2)

In the above formula, Q is defined as the result of the calculated EOQ.

The order quantity, which makes the total cost

(TC) at a minimum, is obtained by differentiating with respect to Q and equating the derivative to zero the above total cost equation 2. Thus, dTc/ dQ = Cc/2 – CoD/Q 2 is at minimum.

and when dTc/dQ = 0 cost

DCo/Q 2 = Cc/2

Q 2 = 2DCo / Cc and Q which represent the

EOQ formula would now be

Graphically, the EOQ can be represent in the

Carrying Cost

Ordering Cost

Inventory Level

Fig. 1. Presentation of EOQ graphically

Source: Lucey T 1992. Quantitative Techniques. 4 th

3. METHODOLOGY

Research methodology represents the strategies involves in collecting and analyzing data collected, in order to have meaningful interpretations of the research findings. This section attempts to give an insight into the way and manner in which this research was carried out. This includes the mode of data collection, how these data were analyzed and the research design.

3.1 Brief History of the Nigeria Bottling

Company, Ilorin Plant – The Case Study

Nigeria Bottling Company came into existence

138 on 8 th may 1886. Late A. G. Leventis founded the company and was the first in this country to be offered franchise by an international “soft drink firm”. The first plant, which was sited in Lagos, went into operation in March 1953. Coke was the first soft drink to have its own designed shaped bottles, which was different from the common trade bottles. In 1972, the company went public by the issue of 372,580 ordinary shares of 50 kobo each. This was in compliance with the Nigerian

Enterprise Promotion Decree of 1972.

Some years after the Ibadan Plant was opened

(though later shut down due to non-availability of good water in Ibadan metropolis) that of Port-

Harcourt was established and many others followed of which Ilorin Plant came into existence in April 1979 so as to be able to meet the demands of the consumers in the region. Ilorin Plant was mainly established to meet the needs of the people in Bida, Jebba, Ogbomosho, Okene, Oshogbo,

Kontagora, Ijagbo, Offa, Lokoja and Ilorin metropolis. The plant has 8 managers.

The range of soft drinks bottled by Nigeria

Bottling Company, Ilorin Plant includes Fanta orange,

Coke, Sprite, Krest, Bitter Lemon, Ginger Ale and

Eva water. In terms of sales, the company enjoys a wide acceptance of its products. Ranging NBC Plc as a whole, its performance is highly appreciated.

3.2 Methods of Data Collection

Essential information for this research work were collected through primary and secondary sources the combinations include:

(i) Interview with some key personnel in the stores, purchasing, production and inventory departments of the company.

(ii) Observation of the production process was done to see the flow of goods in the conversion process. Materials handling and storage were also observed and so was the patrol / inspection procedures.

(iii) Record analysis of relevant data was obtained from the company’s annual report and journals.

(iv) Theoretical background information was gathered through review of related literature on inventory management.

3.3 Research Hypothesis

The following hypothesis was tested in this research work:

H0: Coca-Cola Bottling Company does not make use of Economic order quantity [EOQ] optimization model to evaluate their inventory

H1: Coca-Cola Bottling Company makes use of Economic order quantity [EOQ] optimization model to evaluate their inventory

3.4 Method of Data Analysis

The data collected were analyzed using three major quantitative instruments. The simple variance method, the EOQ model and the chisquare distribution method.

The simple variance analysis was used to describe the data presented. The EOQ model was used to determine the optimum inventory level per year, which were considered as the expected value of inventory in the chi-square calculation.

The chi-square technique was used to draw inference about the variance of distribution with each distribution determined by the degree of freedom.

4. DATA PRESENTATION, ANALYSIS AND

4.1 Inventory Policy and Stores Function of the

Nigeria Bottling PLC, Ilorin Plant

The inventory policy of Nigeria Bottling

Company PLC, Ilorin can only be appreciated in the context of its peculiar circumstances as the leading soft drink bottling company and one of the seventeen functional plants of the company within the country. It then implies that whatever policy is adopted at the plant level must take into consideration the overall company’s objectives.

The main determinant of the company’s inventory policy is the national economy itself in which the demand of their product stands as another factor.

According to Ilorin Plant managers, the company is constantly reviewing performance as a unit of the economy; thus what happens in the economic environment affects the policies and strategies of the company as a whole and the llorin plants as subsets.

The company’s objective is to maintain quality, increase market shares and profitability.

This implies that enough inventories should be available to enhance continuos production. This fact also determines the levels of inventory, which the company keeps. Storage space is no barrier to operational activities of the industry as it has a

INVENTORY MANAGEMENT very large storage space located within the plant premises. Orders for materials are obtained by request or by direct allocation from the headquarters office in Lagos.

The company operations three sets of stores, the raw material stores the finished goods stores and the spare parts machinery stores. A store manager who operationally works in conjunction with production manager, since most of the products are used by his department alongside with bottling department heads the raw material store. However, the store manager is responsible directly to the plant manager and the bottling manager.

The finished goods store is headed by the sales manager assisted by the bottling manager.

The bottling manager helps to confirm the total of bottles produced on regular basis. The sales manager takes responsibility as soon as production is completed.

The spare parts store is headed by the Plant engineer, the raw materials that are stored include the following: -

(a) Sugar: This is obtained locally from Dangote

Nigeria Ltd. And sometimes imported from oversea if need be. They are stored in bags, which are stacked in pollets arranged in such a way as to facilitate easy stock taking. A maximum of 10,000 bags of sugar can be stored. Insectucotors are installed in the store keep off bees and other insects.

(b) Concentrates: The concentrates are got from

Coca-Cola international while their chemicals are imported from Leventis London. They come in syrup forms stored in bottles and put in worms, which are built within the materials store at temperature of between 40 c and 100 c .

Crown Product Limited, Ijebu-Ode. The

Crown Corks are kept in polythene bags and tore in cases, safe from dust and moisture, which bring about rusting.

4.2 Data Presentation and Interpretation

The preceding section dwells on quantitative information of the plant. Here the data are entirely quantitative as collected from the accounts department, bottling department and the store.

Table 1 show the total sales of the company in Naira value for five years (2000-2004). The company witnessed a surplus for the five years

Table 1: Sales (in Millions of Naira)

Years Budgeted Sales Actual Sales Variance (N) in millions ( N) in millions (N)

Source: Production Department, NBC Ilorin Plant 2005 understudy, because there was a positive variation in each of the years. Positive variation indicates good performance on the part of the company while negative variation indicates poor performance, since the basic objective of any profit-making company is to maximize sales.

Table 2 show the volume of production of the brands of the company's products that is coke, fanta, and sprite. The variance reflects the inability of the company to meet its target for a period of four years (2001-2004) out of the five years understudy. Upon interview, the operations manager explained that this had no negative impact on the overall profit, as it is part of the company's policy to plan in excess of forecast so that even when actual production does not equal budget, it is of no negative consequence.

Table 2: Sales in creates (Volume of Production)

2000 4,500,000

2001 4,750,000

2002 4,900,000

2003 4,950,000

2004 5,150,000

3,756,621 -1,193,397

5,100,000 -50,000

Source: Production Department, NBC Ilorin Plant 2005

Table 3 show the overall production cost in naria value. It reveals that the actual cost of production for the five years under study were above the budgeted cost. This was due to increase in the prices of raw materials, incessant increase in fuel price, technology and labour and the resulting effect of inflation in the Nigeria

Economy. This has gone a long way to affect

Table 3: Production cost (in Millions of Naira)

140 company's profit negatively during those periods of sky-rocketing inflation level.

4.3 Data Analysis and Hypothesis Testing

The data in tables 4, 5, 6 show the usage rate of Nigeria Bottling Company's raw materials (that is sugar, concentrates and crown cork / bottles).

The data were used to determine the observed frequency value using the economic order quantity (EOQ) formula. The expected frequency was determined by finding the average of all the observed frequency. The chi-square value was then determined at 5% confidence level and 4 degree of freedom, see tables 4, 5 and 6.

Raw Materials Requirements : Using sugar as parameter, table 4 depicts the

2 calculated value of 0.3095, which of course is lower when compared with table value of chi-square (

9.488. The null hypothesis was thus accepted this

Coca-Cola Bottling Company does not make use of Economic order quantity (EOQ) optimization model to evaluate their inventory specifically using sugar components as a parameter for measurement.

Using concentrates as parameter, table 5 depicts the

2 calculated value of 2.5646, which of course is lower when compared with table value of chi-square (

2 ) of 9.488. The null hypothesis was thus accepted Coca-Cola Bottling

Table 4: Sugar

Years Annual No. of Materials Ordering Carrying demand in orders unit cost per cost as a

(000) cost order

Source: Raw materials stores unit NBC 2005.

(000) (000)

(O - E)2 (O - E)2

Table 5: Concentrates

Years Annual No. of Materials Ordering Carrying demand in orders

cost cost per order cost as a

Table 6: Crown Cork/Bottles

INVENTORY MANAGEMENT

Company does not make use of Economic order quantity [EOQ] optimization model to evaluate their inventory using concentrates as parameter for measurement.

Using crown cork /bottles as parameter, table

6 depicts the

2 calculated value of 1.0765, which of course is lower when compared with table value of chi-square (

Company does not make use of Economic order quantity [EOQ] optimization model to evaluate their inventory using crown cork / bottles as parameter for measurement.

4.4 Findings

The findings as presented above in all the three cases show that we should reject the alternative hypotheses and accept the null hypotheses. Our analysis also shows that the company operates a policy of making orders on a quarterly basis within a period of one year. Also it can be as well observed that the company does not always adopt the EOQ model in placing orders for its raw materials and this account for the variations between the calculated EOQ and the expected order sizes of the company. For at least three years out of the five years under study, the expected value was greater than the observed value for each product. This implies that the

Nigeria Bottling Company, Ilorin Plant has excess investment in inventory. We also observe that there is a positive correlation between sales and inventory usages. We, thus, concluded that inventory usage depends on sales that means as sales increases, inventory usages should also be on the increase.

Therefore, inventory management is a must for the continuity and survival of any goal focused manufacturing organization.

5. CONCLUSION AND

RECOMMENDATIONS

Inventory management has become highly developed to meet the rising challenges in most corporate entities and this is in response to the fact that inventory is an asset of distinct feature.

The inventory management situation of the

Nigeria Bottling Company, Ilorin Plant has been revealed using the EOQ model. It was also seen that the company through a well-built policy is able to handle its idle stock without incurring

141 unnecessary costs. A basis for inventory planning and control was also provided in this study.

Though looking through the inventory policy of the company, it can be said to be dynamic to some extent but the analysis and findings have revealed the need to remedy some situations in the company's management of inventory.

The study thus suggests some recommendations to remedy certain defects in the company inventory policy and if these recommendations are implemented, the company's inventory management situation will attain a greater height.

First, emphasis should be normally placed on the economic order quantity model because it was seen to be in the best interest of manufacturing companies to maintain an optimal level of materials in store, the level that minimizes total cost of investment in inventory. To achieve this successfully, different costs, which are associated with inventory, should be segregated and accumulated in such a way that EOQ can be easily determined.

Secondly, in the analysis we also mentioned that there was a positive relationship between inventory and sales and between inventory and production cost. This does not imply that inventory automatically determines production costs or sales and vice-versa. However, it does show that inventory levels can be a useful indication of what level of sales to expect. It is thus recommended that the sales and marketing department of the company should pay closer attention to the growth pattern of inventory usage and incorporate it in sales forecasting technique.

Lastly, materials management unit should also pay attention to sales growth over the years and thus take into consideration, the apparent relevance of sales and production cost in making decision with regards to inventory.

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Coca Cola Change Management Case Study

Change is an inevitable part of running a successful business, and companies must adapt to remain competitive. However, managing change can be a daunting task, especially for large organizations.

One company that successfully navigated the challenges of change management is Coca Cola. Over the years, Coca Cola has undergone several significant changes, ranging from product diversification to restructuring its organizational structure.

In this blog post, we will take a closer look at Coca Cola’s change management journey, exploring the strategies the company used to overcome challenges, and the successful outcomes that resulted from these efforts.

The blog post aims to provide valuable insights for businesses looking to implement change management strategies, exploring the importance of effective communication, strong leadership, planning, and implementation, and the role of employees in the change management process.

Background and History of Coca Cola

Coca Cola is one of the world’s most recognizable brands, known for its signature soft drink, which was first introduced in 1886 by a pharmacist named John Pemberton.

The original formula for Coca Cola included coca leaves and kola nuts, which gave the drink its name. The company quickly gained popularity, and by the early 1900s, Coca Cola was being sold in every state in the United States.

Over the years, Coca Cola has expanded its product line to include a variety of beverages, including Sprite, Fanta, and Dasani. Today, the company operates in more than 200 countries and has over 500 brands under its umbrella.

Coca Cola has also undergone several significant changes in its organizational structure, including the creation of a global business unit system in 2007, which aimed to streamline operations and improve efficiency.

Despite its success, Coca Cola has faced several challenges over the years, including changing consumer preferences, increased competition, and shifting market trends. To remain competitive, the company has had to adapt and implement change management strategies to navigate these challenges effectively.

Coca Cola’s need for change

As a large and established company, Coca Cola has faced numerous challenges that have necessitated change. One of the most significant challenges the company has faced is the changing consumer preferences, particularly in the area of health and wellness.

Many consumers are seeking healthier alternatives to sugary drinks, which has led to a decline in sales of Coca Cola’s traditional soft drinks.

To remain competitive, Coca Cola has had to diversify its product line, introducing low and no-sugar options, such as Diet Coke and Coca Cola Zero, and expanding its portfolio to include juices, teas, and water. This diversification has required a significant shift in the company’s product development and marketing strategies, as well as changes to its supply chain and distribution networks.

In addition to changing consumer preferences, Coca Cola has also faced increasing competition from other beverage companies, including PepsiCo and Nestle. These companies have developed their own product lines and marketing strategies, posing a significant threat to Coca Cola’s market share.

To remain competitive and meet the changing demands of its consumers, Coca Cola has had to implement change management strategies to navigate these challenges effectively. These strategies have included restructuring its organizational structure, investing in research and development, and leveraging technology to improve efficiency and streamline operations.

Change Initiatives the Coca Cola successfully implemented in the past

Coca Cola has implemented several successful change initiatives over the years to remain competitive and adapt to changing market trends. Some of these initiatives include:

Diversification of product line: Coca Cola has expanded its product line to include a variety of beverages, including low and no-sugar options, juices, teas, and water, to meet changing consumer preferences and compete with other beverage companies.
Restructuring of organizational structure: In 2007, Coca Cola implemented a global business unit system, which aimed to streamline operations and improve efficiency. This restructuring allowed the company to respond more quickly to market changes and better meet the needs of its customers.
Leveraging technology : Coca Cola has leveraged technology to improve efficiency and streamline operations, including the use of automation in manufacturing processes, the implementation of digital marketing strategies, and the use of data analytics to inform decision-making.
Investment in research and development: Coca Cola has invested heavily in research and development to create new products, improve existing ones, and remain competitive in the market. This investment has included the development of new sweeteners, packaging innovations, and sustainability initiatives.

Change Management Strategies of Coca Cola

Implementing successful change initiatives requires effective change management strategies. Coca Cola has implemented several strategies to manage these changes, including:

Clear communication: Effective communication is essential in managing change. Coca Cola has made a concerted effort to communicate changes clearly to its employees, customers, and stakeholders. This communication has included regular updates on the progress of change initiatives, explanations of why changes are necessary, and the benefits of the changes.
Strong leadership: Strong leadership is critical to the success of change initiatives. Coca Cola has emphasized the importance of leadership in driving change, providing training and development opportunities for leaders, and setting clear goals and expectations.
Planning: Effective planning is essential in managing change. Coca Cola has developed comprehensive plans for implementing change initiatives, including timelines, budgets, and milestones. These plans have been regularly reviewed and adjusted as necessary to ensure that they remain on track.
Employee involvement: Engaging employees in the change process is crucial for success. Coca Cola has encouraged employee involvement in change initiatives, seeking input and feedback on proposed changes and involving employees in the planning and implementation process.
Continuous monitoring and evaluation: Monitoring and evaluating the progress of change initiatives is essential in ensuring their success. Coca Cola has established monitoring and evaluation mechanisms to track the progress of change initiatives and adjust them as necessary to ensure that they remain on track and achieve the desired outcomes.

Challenges in implementing change initiatives

Coca Cola has faced several challenges in implementing change initiatives. Some of the most significant challenges include:

A. Resistance from employees: Change initiatives can be met with resistance from employees who may be hesitant to change established work processes or fear that the changes may affect job security. Coca Cola has addressed this challenge by emphasizing the benefits of change to employees, providing training and development opportunities to equip employees with the necessary skills and knowledge, and involving employees in the planning and implementation process.

B. Difficulty in changing company culture: Company culture can be difficult to change, particularly in large and established organizations like Coca Cola. The company has addressed this challenge by implementing change initiatives gradually, ensuring that the changes align with the company’s values and vision, and involving employees in the process to create a sense of ownership and accountability.

C. Technological challenges: Implementing new technologies can be challenging, particularly in an industry as complex as the beverage industry. Coca Cola has addressed this challenge by investing in research and development to identify and implement new technologies, partnering with technology companies to develop and implement new systems, and providing training and development opportunities to employees to ensure that they are equipped to use new technologies effectively.

D. Addressing these challenges: To address these challenges, Coca Cola has developed strategies to manage change effectively, including clear communication, strong leadership, effective planning, employee involvement, and continuous monitoring and evaluation. By implementing these strategies, Coca Cola has been able to navigate these challenges and successfully implement change initiatives to remain competitive in the beverage industry.

Final Words

The importance of change management in large companies cannot be overstated. Change is a necessary component of growth and competitiveness, particularly in today’s rapidly changing business environment. Effective change management strategies are essential to ensure that change initiatives are successfully implemented, and the desired outcomes are achieved.

Coca Cola’s change management journey is an excellent example of how large organizations can navigate change successfully. The company’s commitment to effective change management strategies has enabled it to remain competitive in the beverage industry, adapt to changing market trends, and continue to grow and innovate. Overall, Coca Cola’s journey underscores the importance of effective change management in achieving long-term success in today’s business environment.

About The Author

Tahir Abbas

Beckhard and Harris Change Formula Explained

20 Best Change Management Tools

How to Write a Business Case for Funding? – Explained

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Q1 2024 coca-cola co earnings call, participants.

James Robert B. Quincey; Chairman & CEO; The Coca-Cola Company

John Murphy; President & CFO; The Coca-Cola Company

Robin Halpern; VP & Head of IR; The Coca-Cola Company

Andrea Faria Teixeira; MD; JPMorgan Chase & Co, Research Division

Bonnie Lee Herzog; MD & Senior Consumer Analyst; Goldman Sachs Group, Inc., Research Division

Brett Young Cooper; Senior Analyst & Managing Partner; Consumer Edge Research, LLC

Bryan Douglass Spillane; MD of Equity Research; BofA Securities, Research Division

Callum Elliott; Analyst; Sanford C. Bernstein & Co., LLC., Research Division

Carlos Alberto Laboy; MD, Global Head of Beverages Research and Senior Analyst, Global Beverages; HSBC, Research Division

Christopher Michael Carey; Senior Equity Analyst; Wells Fargo Securities, LLC, Research Division

Dara Warren Mohsenian; MD; Morgan Stanley, Research Division

Filippo Falorni; VP & Equity Research Analyst; Citigroup Inc., Research Division

Lauren Rae Lieberman; MD & Senior Research Analyst; Barclays Bank PLC, Research Division

Peter K. Grom; Director of Equity Research & Analyst; UBS Investment Bank, Research Division

Robert Bain Moskow; Research Analyst; TD Cowen, Research Division

Robert Edward Ottenstein; Senior MD and Head of Global Beverages & Household Products Research; Evercore ISI Institutional Equities, Research Division

Stephen Robert R. Powers; Research Analyst; Deutsche Bank AG, Research Division

William Bates Chappell; MD; Truist Securities, Inc., Research Division

Presentation

At this time, I'd like to welcome everyone to the Coca-Cola Company's First Quarter 2024 Earnings Results Conference Call. Today's call is being recorded. If you have any objections, please disconnect at this time. (Operator Instructions) I would like to remind everyone that the purpose of this conference is to talk with investors, and therefore, questions from the media will not be addressed. Media participants should contact Coca-Cola's Media Relations department if they have any questions. I would now like to introduce Ms. Robin Halpern, Vice President and Head of Investor Relations. Ms. Halpern, you may now begin.

Robin Halpern

Good morning, and thank you for joining us. I'm here with James Quincey, our Chairman and Chief Executive Officer; and John Murphy, our President and Chief Financial Officer. We've posted schedules under Financial Information in the Investors section of our company website. These reconcile certain non-GAAP financial measures that may be referred to this morning to results as reported under generally accepted accounting principles. You can also find schedules in the same section of our website that provide an analysis of our growth and operating margins. This call may contain forward-looking statements, including statements concerning long-term earnings objectives, which should be considered in conjunction with cautionary statements contained in our earnings release and in the company's periodic SEC report. Following prepared remarks, we'll take your questions. (Operator Instructions) Now I will turn the call over to James.

James Robert B. Quincey

Thanks, Robin, and good morning, everyone. We're off to a good start this year as our first quarter results continued the momentum we've been building by executing our all-weather strategy. The operating backdrop differed greatly across our markets once again, but our powerful portfolio, coupled with our systems capabilities, equip us with the agility we need to deliver on our 2024 guidance, which we are updating today. This morning, I'll discuss the drivers in the quarter and how we use our scale and growth mindset to deliver these strong results. Then I'll highlight how we continue to meet consumer needs and grow our total beverage portfolio. Finally, John will discuss our financial results and updated 2024 guidance. In the first quarter, we grew volume and expanded comparable margins, and we continued to invest across the business. We're managing currency fluctuations to deliver earnings growth as shown by the 7% comparable earnings per share growth despite 9% currency headwinds, and we gained value share in both at-home and away-from-home channels. Across the world, we're continuing to win in the market by leveraging our scale and relying on our local expertise of our bottling partners. In Asia Pacific, momentum continued across a large portion of our business, including Japan and South Korea, Philippines and Thailand. We gained traction in Indonesia with a return to volume growth. India's momentum was impacted by some temporary factors that recovered at the end of March. In China, retail sales growth continues to improve, but consumer confidence is still below 2019 levels. We remain optimistic about the many opportunities ahead of us, and we're stepping up our execution in a number of ways. For example, greater focus on our core business for a more segmented market approach and more surgical horizontal market and execution. In EMEA, we're seeing gradual improvement in macro trends in Europe, leading to improved consumer confidence. We paired Sprite with spicy new locations to drive momentum in away-from-home channels. Fuze Tea and POWERADE also generated strong performance, and Jack Daniels and Coca-Cola expanded to 6 more European markets during the quarter. Africa saw continued volume momentum from last quarter, while navigating a number of markets with significant currency devaluations. Geopolitical and economic challenges in Eurasia and the Middle East continue to affect our business in the region. We are working closely with local partners to manage these challenging dynamics, and we're committed to investing behind the strength of our brands for the long term. North America volume had a slow start to the quarter before posting sequential improvement in each of the last 2 months of the quarter and elasticities remain favorable, leading to ongoing share gains. The launch of Coke Spiced featured compelling in-store displays. Across our sparkling softdrink brands, Zero Sugar sugar performance was strong, and we introduced 12-ounce slim cans to further drive premiumization. Value-added dairy continued across fairlife and Core Power in sports drinks, notwithstanding the noncash impairment charge that John will speak to in more detail. We believe our 2-brand strategy with POWERADE and BODYARMOR is gaining traction, and we've seen improved share trends. While we still have work to do, the stepped up execution by our dedicated sales force in driving improved on-shelf execution and we're encouraged by the continued growth in sports water and the more recent BODYARMOR innovations, including Zero Sugar and Flash I.V. While inflation has moderated and wages continue to trend upward in North America, we're closely monitoring consumer sentiment and traffic trends between at-home and away-from-home consumption. In Latin America, volume momentum continued. Performance was driven by strength in Mexico, Brazil and Colombia, while Argentina continued to experience high inflationary conditions. We have quality leadership across our portfolio in Latin America, with Coca-Cola Zero Sugar continuing its strong performance. Sparkling flavors, sports, juices and alcohol ready-to-drink also performed well during the quarter. Commercial initiatives are driving improved shelf space and basket incidence supported by ongoing outlet digitization. We have suggested order capabilities in digital platforms that reach more than 3 million customers in the region. Across developed markets, the overall inflationary environment is normalizing. However, across developing emerging markets, there continues to be a handful of markets that are experiencing intense inflation, which is driving elevated pricing, offset by incremental currency headwinds. We're proactively managing these volatile environments, and we feel confident we have the playbook to navigate challenges locally, while continuing our momentum at a consolidated level. We're continuing to spin our strategic flywheel faster across total beverage portfolio. And as discussed at CAGNY, we're building loved brands and innovating and delivering bigger, bolder bets. In the first quarter, we launched K-Wave as part of the Coke Creations platform in markets across 5 operating units. K-Wave celebrates Korean pop or K-pop fans, includes a global collaboration with 3 K-pop groups and an AI-based fan experience. Our growing number of Coke Creations are different with each iteration and, by design, are only available for a limited time. This generates buzz and excitement building relevance for the brand and reconsideration for Coke with Gen Z drinkers. We also know that sometimes the most successful lasting innovation is simply improving the taste of existing drinks. Using our deep in-house flavor expertise and understanding of the science of taste, we have worked to refine the recipes for Fanta and Sprite to meet consumer preferences across many markets. These changes bring new consumers to our brands as well as remind current consumers what drew them to their favorite beverages in the first place. The strong Fanta performance in markets from Brazil to Germany to the U.S. this quarter is largely due to this type of innovation, which was supported by marketing messages focused on taste and on tying the brand to snacking occasions at local festivals, like Carnival in Brazil. Elsewhere in our total beverage portfolio, Minute Maid Zero Sugar kicked off its global campaign in North America, leveraging influencers, social media and connected commerce activations with key customers. We're building on our innovations by driving awareness and excitement through an increasingly digital marketing media mix. Our total beverage portfolio plays a lead role, as shown by the New Guy campaign in the U.S. this quarter, which featured multiple grounds across categories. Innovation is woven into the fabric of our culture, and we're encouraged by our innovation pipeline as we look forward to the rest of 2024. Moving across the flywheel, we're leaning into integrated execution to drive basket incidence and create incremental value for customers. We work closely with our bottling partners and went bigger with in-store displays to inspire transactions around key events like NCAA March Madness in the U.S., and we'll do this again later this summer with the Olympic and Paralympic Games. As a system to improve quality availability, we increased outlets by 2%, added more than 600,000 cooler doors and increased our share of cold space and overall shelf space in stores. We benefited from global scale, while maintaining local relevance by tying our brands to regional meals occasions. For example, in Japan, we've associated Coke with Wagyu and Yakiniku through the path to purchase, using end-to-end consumer messaging and partnering with key customers in the modern trade and convenience retail. We have seen strong Coca-Cola revenue growth in Japan. While we continue to grow our business, we also strive to positively impact the communities we serve. We do this by focusing on the issues that matter most to our system, and we share our status and learnings each year when we publish our business' sustainability report. Putting it all together, it's early in the year, but we're off to a good start. We have confidence we will achieve our guidance for the year. With that, I'll turn the call over to John.

John Murphy

Thank you, James, and good morning, everyone. Our first quarter results marked a continuation of the underlying momentum in our business, driven by a strong and focused system. We delivered another quarter of volume growth, even as we cycled strong results. Additionally, we completed the refranchising of several bottlers during the quarter, leading to further comparable margin expansion. We progressed on our refranchising agenda, while making sure we best position our system to deliver long-term growth, and we earn a fair return on our investments. We continue to invest behind our portfolio with discipline and flexibility, thanks to our enhanced resource allocation agenda. During the quarter, we grew organic revenues 11%. We had 1% unit case growth. Concentrate sales were behind unit case volume by 3 points, driven by 1 less day in the quarter and the timing of concentrate shipments, primarily in Mexico and the Middle East. Our price/mix growth of 13% in the quarter was driven by approximately 6 points of intense inflationary pricing across a handful of markets to offset significant currency devaluation, pricing actions across a number of markets and a couple of points of favorable mix. Excluding impacts from intense inflationary pricing, organic revenue growth in the first quarter was at the high end of our long-term growth algorithm. Comparable gross margin for the quarter was up approximately 130 basis points driven by underlying expansion and a benefit from bottler refranchising, partially offset by the impact of currency headwinds. Comparable operating margin expanded approximately 60 basis points for the quarter. This was primarily driven by strong top line growth and bottler refranchising, partially offset by currency headwinds and an increase in marketing investments. Markets experiencing intense inflation represent only a single-digit contribution to our volume, but continue to have an outsized impact on the shape of our P&L. Putting it all together, first quarter comparable EPS of $0.72 was up 7% year-over-year, including 9% currency headwinds, which were driven by currency devaluation in markets experiencing intense inflation. Free cash flow was approximately $160 million, an increase from the prior year. Before moving on, I want to discuss 2 items that are included in our first quarter reported results, a $765 million charge related to the remeasurement of our contingent consideration liability for our acquisition of fairlife. Our final payment related to the fairlife acquisition will take place in 2025. This payment has grown as fairlife has outperformed. We continue to be encouraged by our ability to scale fairlife organically. Secondly, a noncash impairment charge of $760 million related to BODYARMOR. While we are taking a charge to reflect revised projections and a higher discount rate since the acquisition date of BODYARMOR, we believe in the power of our 2 sports brand strategy with POWERADE and BODYARMOR. We're taking actions to help create long-term value, and we're seeing signs that this strategy is working. Our balance sheet remains strong and our net debt leverage of 1.6x EBITDA is below our targeted range of 2 to 2.5x. This gives us ample capacity for potential upcoming payments in 2024 related to the IRS tax case, which we continue to vigorously defend, and the upcoming fairlife payment in 2025. We continue to remain consistent in our approach to prioritizing our capital allocation. We're committed to investing to drive growth and to support our dividend, which we have raised for 62 consecutive years. We're confident our business model has the flexibility to allow us to deliver on our overall objectives. Our updated 2024 guidance reflects the underlying momentum of our business, and we now expect organic revenue growth of 8% to 9%, and comparable currency-neutral earnings per share growth of 11% to 13%. Our revised top line guidance is solely driven by higher-than-expected inflationary pricing in a handful of markets, which we expect to moderate throughout the year. Bottler refranchising is still expected to be a 4- to 5-point headwind to comparable net revenues and a 2-point headwind to comparable earnings per share, but will have a positive impact on both our margins and the return profile of our business. Based on current rates and our hedge positions, we anticipate an approximate 4- to 5-point currency headwind to comparable net revenues, and an approximate 7 to 8-point currency headwind to comparable earnings per share for full year 2024. This increase in currency headwind is driven by intense inflationary markets, while the rest of the currency basket is relatively neutral to our results. Our underlying effective tax rate for 2024 is now expected to be 19%. All in, we continue to expect comparable earnings per share growth of 4% to 5% versus $2.69 in 2023. There are some considerations to keep in mind. We estimate the ongoing conflict in the Middle East had approximately 1 point of impact on volume growth during the first quarter of 2024. It's unclear how long this impact will last. The cadence of structural impact will be larger in the second and third quarters due to the timing of transaction closing during the first quarter and the seasonality of the businesses we refranchised. Finally, there will be 2 additional days in the fourth quarter. To sum it up, and as James said, the year has started off well. We remain focused on the execution of our all-weather strategy. And thanks to the partnership of our system and the ongoing dedication of our people, we're confident we can create value for our stakeholders and deliver on our guidance for the year. And as we said at CAGNY, we're primed for performance in 2024 and over the long term. With that, operator, we are ready to take questions.

Question and Answer Session

(Operator Instructions) Our first question comes from Bryan Spillane from Bank of America.

Bryan Douglass Spillane

John, I wanted to ask a question about gross margins. In the quarter, there was about a 100 basis point tailwind from structural benefits and then also -- or structural change and then, I think, 60 basis points benefit underlying. If we kind of take that first quarter performance and kind of think about it over the balance of the year, can you just give us some context of how we should be thinking how much of that we should extrapolate going forward? Maybe what some of the headwinds, tailwinds would be? But just given the gross margins were so much better, our gross profit dollars were so much better than we were all modeling. I just want to kind of get a sense of how much of that we should bank in our estimates going forward.

Thanks, Bryan. So as we think about the full year, we're going to continue to have a tailwind from the refranchising work that we have discussed. And so I think that's going to flow through throughout the year. We expect to continue to have some expansion as reflected in our ongoing and the growth model, driven by both positive impacts and some productivity fee. The input horizon is more normalized. We do have some elevation on juice and sugar, which we'll continue to have. But the net of it all is that we'll have some tailwinds in the underlying area. Currency will continue to be a headwind, and you can kind of extrapolate that out for the year. So the net of it all is it will be primarily driven by the refranchising efforts positively, some underlying expansion, offset by the currency headwind. And as we reflected in our guidance, the top line growth continues to be a primary driver and the quality therein will -- I think will ensure that on a sustained basis, that expansion. Albeit not as potentially aggressive every quarter, but that expansion will be in our favor going forward.

Our next question comes from Dara Mohsenian from Morgan Stanley.

Dara Warren Mohsenian

So I was just hoping you could give a bit of a deeper dive into North America, a, just wanted to get an update on what you're seeing from the consumer? Any channel shifts in terms of away-from-home versus at-home and the sequential improvement you discussed within Q1, is that something that's expected to continue going forward? And then just b, price/mix was very strong at 7% in North America, can you unpack that between mix and pricing and just how you think about the balance between pricing mix and volume going forward in the balance of the year in North America?

Sure. Overall, in terms of the consumer and how that fed into the channels, the U.S. still remains in good shape. There is some purchasing power compression in the lower-income echelons. And I think it's quite clear that there's some behavioral shift there looking for value. I think that has led to a marginal channel weighting or shift, if you like, with slightly more at-home volume versus away-from-home. I would emphasize this is at the periphery rather than a big shift. But the margin, slightly more value seeking, slightly more at-home, slightly less away-from-home. And so we've been stepping up our RGM efforts, our packaging efforts and executing against that, so that we have continued to gain share in the quarter. As it relates to pricing, of the 7 points in the first quarter, approximately 2 of those are mix or timing related, the rest is pricing, and we expect that to moderate as the year goes on. And we expect to see 2024 be in a much more normal year in terms of pricing, it's largely going to be as it was pre-COVID. So we're expecting to see 2024 end up with a much more balanced growth equation over the rest of the year.

Our next question comes from Lauren Lieberman from Barclays.

Lauren Rae Lieberman

I wanted to talk a little bit about how the company manages when the dollar is strong. So outside of the markets with extreme inflation, we know from a strategic standpoint, of course, the ongoing RGM efforts and pack and channel and so on. But just sort of from a more tactical standpoint, when you're in a strengthening dollar environment, I was curious if you could share a bit more about how you manage that at a local level. Because the delivery of dollar-based EPS has become a key focus and hallmark, frankly, in the last couple of years, and I thought a bit more color on how you go about that in a more tactical sense could be helpful.

Sure. So markets outside the U.S. will roughly break down into 2 types. There'll be those perhaps typified by Europe, Japan, Australia, some of the obvious ones, where the competition and the economic dynamics of the marketplace are predominantly local currency. And so in these markets, our approach is to compete locally in the local currency given the cost structures in those areas. And we generally marry that with a long-term currency hedging or selling forward program, such that we can have a clear anticipation during the course of the year as to what that's likely to turn into. So that's one set of markets. And we essentially have put ourselves in a position through the hedging program that we can compete locally and do what's necessary to continue to win in those marketplaces, which is generally what happens. The second bucket of countries, and that's much more apparent in recent quarters than even historically, where you have higher -- whether you want to say the chicken and the egg, a higher level of devaluation and a higher level of inflation. These tend to be more emerging market economies where there is less availability of economically attractive hedging programs. And so we tend to have hedged them. But also given the elevated nature of the dynamic between the inflation and devaluation, we do -- we obviously are competing locally. So for example, in the Argentinas of the world, we're competing predominantly locally to win in that marketplace and set ourselves out for the long term. And the inflation -- it's very cyclical as these markets cycle through higher inflation and high devaluation. Sometimes, the dollar value of those businesses shoots up. And sometimes it shoots down. At the moment, they're in as of shooting down in dollar terms. So they're declining in dollar terms, even though they're growing a lot in currency neutral. But we look at it on a long-term basis to win using the RGM and all the other investments we make in the business. And of course, they're not all in sync with each other. So it's a portfolio management question. And then overlay that is, of course, a corporate approach in terms of prioritization, where and how to invest, whether it's a lean in and lean in with what sorts of investments, such that we are able to deliver on our corporate level commitment to make sure that the end of it, the sum of all the competing locally, is more than the sum of the parts, such that we can deliver a consistent level of U.S. dollar EPS growth.

Our next question comes from Steve Powers from Deutsche Bank.

Stephen Robert R. Powers

James and John, you both mentioned incremental progress on the 2-brand strategy and sports drinks with BODYARMOR and POWERADE. I was hoping you could expand a bit more on what you're seeing there that gives you that encouragement and what you see as the key initiatives for that strategy as we go forward.

Sure. Clearly, we haven't progressed as fast as we would like with regard to BODYARMOR, notwithstanding the step-up in the discount rate, and that's reflected, as John talked earlier, in the charge. Notwithstanding that, we do see long-term value in the dual strategy, particularly in the U.S. between POWERADE and BODYARMOR. We're off to a good start with some of the plans the Zero Calorie version is ahead of expectations. The Flash I.V. has got some double-digit share. And the Sport Water version is one of the fastest-growing premium water brands. So some product innovation is getting some traction, a new partnership with NHL on the marketing front. And on the execution front, a stepping up of the merchandising and sales force focused directed just at the sports drinks category, which is helping improve the share trend in the category. Although not at the rate we had hoped initially, but we think we are in good shape going forward. Obviously, we'll have an opportunity with the Olympics to really continue to step that up. So plans in place across the product innovation, the marketing and the execution, and we think this will come to fruition over the course of the year.

Our next question comes from Bonnie Herzog from Goldman Sachs.

Bonnie Lee Herzog

I was hoping for a little more color on your performance in Asia in the quarter, and then whether it met your expectations or possibly fell short. Also, you mentioned that declines in China more than offset growth in some of your key markets in the region. So maybe just hoping for a little bit more color on your business in China, and how quickly you expect the market will recover, again, given the broader macro challenges in the region.

Sure. We'll let us go around Asia quickly. I mean China, we are cycling in the first quarter a very strong Chinese New Year first quarter from 2023. So I think we had a solid a solid quarter in China. We focus very well on having a good Chinese New with sparkling, which was good. We deprioritized some of the lower-value water in order to do so. And as we commented earlier, the Chinese confidence isn't as strongly rebounded as some of the other markets versus 2019. And so we see an overall environment where there'll be growth, perhaps not at the top historic levels, but there'll be growth. And so we're there we're very much focused on what we can control and the things we need to do. There's still huge opportunities in the Chinese marketplace, notwithstanding the macros. And there's a lot we can execute against in the marketing, in the innovation, in the execution in the marketplace, in the stores and with RGM. So there's a lot for us to achieve that's within our control in China. In the rest of Asia, we had a good quarter in Japan and South Korea. Good share gains, really starting to pick up the pace. Also, likewise, we had a strong performance in the Philippines, which is an important market for us, and so that was good in the quarter. The one that was atypical or at least compared to recent quarters was India had a slower start in January and February. As we've talked in previous calls, we're very bullish on the long-term prospects for the Indian business. And we're also very clear it's not going to be a straight line of metronomically consistent growth. And so it wasn't in the first quarter. It was a little softer January, February, but March and April have now bounced back. And so we expect to see India continue to have a strong year this year.

Our next question comes from Andrea Teixeira from JPMorgan.

Andrea Faria Teixeira

So can you comment on EMEA? You called out Nigeria, Germany and South Africa growing unit case and driving the growth in volumes. But if my math is correct, ex-inflationary countries, your price/mix in the rest of EMEA was about 7%. So can you comment on the state of the consumer there similar to what you said about the U.S.? And if you feel the 7% price/mix is more stable countries, sustainable going forward?

Sure. EMEA, also this quarter had a whole series of moving pieces. As you started on price/mix, clearly, there's a number of countries in there with very high inflation. Not just Nigeria, but also Turkey and somewhat mathematically unlikely, some of the smaller African countries given the level of inflation can also make a difference to the pricing lever in the EMEA segment. So the EMEA segment has a substantive piece of pricing that is the inflationary marketplaces, including many markets you wouldn't normally suspect. And so that's a roundabout way of saying, actually, the -- in Europe, our pricing is much more normalized. And a bit like the U.S., we both see improved macros. Actually, I think that, today, a number of the markets came out and said they've come out of recession from the previous quarters. Like the U.S., we see the lower income consumers remaining under pressure. And at the margin, slightly more shift towards value-orientated channels, at-home orientated channels and lesser from the away-from-home. And clearly, that's related to our focus, not just on the marketing and the innovation with the RGM and affordability and driving premiumization. So Europe, not too dissimilar a story compared to the U.S. But the EMEA segment mix is in both the Middle East conflict and quite a number of the high-inflation countries.

Our next question comes from Chris Carey from Wells Fargo Securities.

Christopher Michael Carey

So I want to ask about brand Coca-Cola, Trademark Coca-Cola relative to the sparkling flavor businesses. I think unit case for sparkling flavors outperformed trademark Coca-Cola in 2021 and in 2022, but this normalized into the back half of 2023. That's continued into Q1 of this year. So can you just perhaps expand on whether there's anything distinct that's occurring here between brand or Trademark Coca-Cola and sparkling flavors, regional considerations, brand considerations? I just think it's noteworthy, given the relative outperformance, that has just turned the other way a little bit. So any context would be helpful.

Yes. Look, clearly, both Trademark Coke, original taste, Coke Zero, have been having a good run over the last number of years and really focused on performance. But also perhaps unlike in times more recently passed, Sprite and Fanta have also been doing well. This has been a intentional focus for the company and the bottling system, which historically, we have looked at and managed sparkling altogether. And very deliberately a number of years ago, we separated to really focus in on Coke, Coke Trademark on its own with all the innovations, whether they be things like the K-Wave innovations, or continuing to focus on Coke Zero with updated -- the updated formulas or focusing on original case Coke with the Marvel activations that's just coming out. A real focus on Coke, and that has been part of what has driven success over the last number of years. And ultimately, for the company to do well, Coke has to do well. It's the kind of a mathematical certainty, and that has certainly been what's driving this. And then the separation of Sprite, Fanta and some of the regional brands particularly perhaps some of the Indian soft drink brands like Thums Up, have really got their own deserved focus. Actually, if you put all the flavored sparkling brands together, they would be one of their own big FMCG companies in their own right. And so really, what you're seeing is this focus on the formulas of Fanta and Sprite, really doing much better and being teamed up each time we've brought it to marketplace with a full marketing package. For example, Fanta in the U.S. had a good run as we updated the formula and relaunched the marketing. And so I think the -- it's been doing really well. I think the only a place where we've not succeeded, particularly with some of the flavors are in the Chinese marketplace, for example, given -- and that's really a Sprite question there. That we need to continue to focus on to do better with Sprite in China. But otherwise, Fanta, Sprite and particularly the Indian flavor brands have done very well, and of course, Coke is a pretty broad-based success story.

Our next question comes from Filippo Falorni from Citi.

Filippo Falorni

I wanted to ask on the Latin America business. Clearly, there's a lot of impact from hyperinflation in the market, but the volume trends continue to remain very solid in the region from a unit case standpoint. So maybe can you talk about the consumer environment there. And do you think that you can continue to see volume good in Latin America going forward in some of your key initiatives in the region?

Yes. So the simple answer is yes. We believe the businesses can continue to grow in Latin America, both in volume and revenue terms. It's been a long-term success part of the business with a very strong system between ourselves and the bottlers focused on the marketing, the innovation, the execution on the RGM. We'll continue to build on the recent year's momentum. Performance this quarter was strong in -- particularly in Mexico, Brazil and Colombia. Obviously, Argentina was impacted by the macroeconomic conditions. But we have a very tight system. We're very focused on what needs to be done and continuing to invest in capacity in order to continue to unlock the volume growth.

Our next question comes from Peter Grom from UBS.

Peter K. Grom

I had a question as it pertains to the fairlife liability. Clearly, this is a sign that the underlying business is doing extremely well, but we've also seen kind of the value of this liability increased quite a bit over the last year or so. As we look ahead, is there anything you can share any guardrails you can provide in terms of how we should think about the liability changing as we move through the balance of the year and into '25?

So the liability is very much linked to the ultimate performance. And as we close out this quarter, we're reflecting our latest and best estimates as to what that will be. The momentum of the business has been very strong. And actually, I think it's going to continue. And if anything, there may be some more upside. But for now, we're reflecting our best estimates for what that liability ultimately would be. Just to keep in mind that the liability will be -- it's an early 2025 ending to it. And we'll update as we go through this year in the event that the projections evolve.

Our next question comes from Bill Chappell from Truist Securities.

William Bates Chappell

Just a little bit more question on the innovation side. Certainly, it's been an innovative company over the past 4 or 5 years and more new products out there. But it's tough to kind of track some of these products that have been launched that are still on the shelf a year or 2 years later. So I guess the question is, are there things in place in terms of percentage of sales should come from new products in a certain region in a year or a number of new products that need to be launched per year? I understand you wanting to be more innovative, but just trying to -- what kind of guardrails or what kind of accountability there is around that kind of innovation.

Sure. I think the first thing is to bear in mind a certain segmentation of the innovation. And what I mean by that is you've got a strong focus on a part of the innovation that's around renovation of the core. So you get into kind of a question, okay, well, is the new Coke Zero formula or the updated Fanta formula backed with the new marketing campaign, is that -- you're going to count that as innovation or not. So the first thing is to understand that there's different types of innovation at play here all driving the business. One being. In a sense, the renovation of core brands. Secondly, our launch is intended to be ins and outs. So some of the Coke Creations, where really the focus is on reengaging with consumers in a novel way to drive relevance of the core brand. So you're not expecting it into the last. And then, of course, there are things we're putting into the marketplace that are new innovations, whether it would be something like a Minute Maid Zero Sugar or something like the Absolut SPRITE or the Jack Daniels and Coke. So these things -- and then, of course, you've got nonproduct-based innovation, like it's a new bottle size or a new can size. So we track across all these things. As it relates to product innovation, we have a very clear set of metrics on whether it's still growing on the fifth quarter after its launch. So is it cycling itself and continuing to accelerate. So there's a lot of cliometrics. But we do not set ourselves an artificial strategy objective of it has to be X percent from innovation. As it happens, about 25% of the growth comes from innovation, but it is not set that way. In the end, we are not setting ourselves up to sell what we make. We've got to sell what the consumers want to buy. So it's about doing justice to every brand and every idea and every package and every channel, and then service that resulting demand. If that is led by a great new innovation or by 138th year of classic Coke, then that's the answer.

Our next question comes from Carlos Laboy from HSBC.

Carlos Alberto Laboy

James, market development is a culture, right, it's a philosophy. And it seems to me that so much of what you're doing and what you talked about today is intended to get shelf replenishers to become better market developers for faster growth. Can you speak to how this evolution is going in the system? Are there any regions or countries that stand out for momentum in this system transformation of moving towards richer market development and to less shelf replenishment order taking?

Yes, sure. Look, I think each part of the world is in its journey to continue to add value to the retail. Because in the end, this is about, together with the bottlers, making sure that we are adding value to the retailers business. Our objective at the retail level is to grow the beverage category faster than the average of their business, and for us to grow our portfolio of brands faster than the beverage category. And to do that, we've got to add more value, and that takes different forms in different places. And so as that happens, for example, the pre-sellers, they move from just order taking to account development. As AI comes in, it generates a suggested order for the retail outlet that is demonstrably more efficient in helping the retailer drive sales and then allows the salesperson to do more account development and to expand on different ideas. So at each stage, it's about taking the system capabilities to the next level so that we can continue to add value for the retailer. Everything that was done in the past starts to become the price of entry in the future, and so we need to keep adding value. And so I think there's a strong growth in capabilities all around the world specifically focused on the channel structure that the bottlers have in any given market.

And if I may just add, James, I think one of the big changes in the last 3 to 5 years is that the ambition that we share, respectively, with all of our bottling partners is much more at the high end of what it should be than scattered. So I think that's -- and then it's working backwards from there as to what does it take to deliver that ambition. And yes, some are further along than others, but it's the ambition is that starting point that I think is helping to drive the progress that we're seeing each quarter.

Our next question comes from Robert Moskow from TD Cowen.

Robert Bain Moskow

Just a couple of clarifying questions. James, I think on the last earnings call, you were very clear that you view the business...

You have to speak up. We can't hear you.

My apologies. Can you hear me now?

I think last quarter, you spoke very specifically about the business being a 2% unit volume grower. Given the timing impact, is that still how you would view this year? And then secondly, can you be more specific about those timing differences in Mexico and I think the Middle East between units and concentrate? What causes those discrepancies? And do they naturally reverse in the coming quarter?

Sure. Yes, timing differences naturally reverse between concentrate units and unit cases. Partly, it happens when there is a different number of days in the quarter, then we have the -- we use the 445 system for all sorts of reasons. And what that causes sometimes is different numbers of shipping days in quarters. And so you undersell when you got less days, like the first quarter. And of course, in the fourth quarter this year when there's 2 extra days, there'll be way more concentrate units than there were cases, relatively speaking. So over the course of time, these anomalies or differences reverse themselves or average themselves out. And then as regards to the 2% volume, yes, look, I have a very strong view that the -- our overall ambition to see our revenue grow at the top end of the algorithm, I'm leaving aside the intense inflation countries for the sake of the argument at the moment, we want to grow at that 5% to 6% range. And we want that to have a balanced contribution from volume and price/mix. So implicitly, looking for 2% to 3% on volume. And I think we talked last quarter that in the current circumstances, that's likely to be slightly less volume and slightly more prices, as price inflation normalizes. And so I think that 2% is still pretty good number. It's certainly been the average growth rate in volume. If you take a compound number over the last number of years, you're going to get something like a 2%. So that seems to be the momentum we're driving. And that -- if you strip away the inflation and the weirdness in the first quarter, what you see is, you got that 1% volume, which given the Middle East headwind of 1% and actually recycling the strongest quarter last year, you can say it's a good volume number. It has good underlying price/mix in the normal countries. So the kind of the normal performance is right at the top end of the algorithm there, and then that feeds its way through to 7% EPS growth. So I think right in there, the main business, notwithstanding the kind of peripheral noise, is humming away right in line with where we said we wanted to be.

Our next question comes from Rob Ottenstein from Evercore ISI.

Robert Edward Ottenstein

I'd just like to drill down both on the U.S. and the volume question. Can you talk about your expectations for volume growth in North America this year? What it will take to get volume growth, is a function of more the economy, more the comps, more of the sectors? And tied to the sectors or categories, I think you mentioned that tea, coffee and water were very weak. Any color around that?

Sure. I mean, clearly, in the case of the U.S., we've commented in previous calls, that our expectation would be modest, flat to modest growth in volume on a long-term basis in North America with good pricing. Clearly, that remains our overall ambition. Whether we get from the flat to something more positive in the rest of the year will obviously be a combination of what we execute against and the trajectory of the purchasing power of the economy in the balance of the year. But we're very focused on continuing to build the business, drive the revenue and continue to win in the marketplace. And we'll see where that nets out, too. And then in the case of where we were doing well and where not clearly, we had a strong quarter in terms of sparkling, in terms of some of the other categories in North America. Dairy, obviously, the fairlife additional charge, as John talked about, as the earnout is in its last year, very strong quarter on dairy, very strong on sparkling, actually good on juice. The water and the tea, and obviously, to some extent, obviously, the sports categories, were a little softer. Some of it on the water was selling less of the kind of the case pack water. And tea, I think it was very much a question, we just need to focus a little more on some of what needs to be done there. But it was more on the kind of the Fuze Tea end of the spectrum rather than the Gold Peak end of the spectrum, which tends to do better.

Our next question comes from Callum Elliott from Bernstein.

Callum Elliott

Great. So I have a slightly longer-term question on gross margins. In 2015, your gross margin was 61%, I think. And you had published a slide at CAGNY in 2016, showing that you expected gross margins to get to 68%, post the refranchising that had been announced at the time. Today, we're still around 60% over the past 12 months. Recognizing you guys weren't in your current seats in 2016 when that slide was published, but my question is what's happened? I'm sure you'll point to M&A cost per BODYARMOR CCBA, et cetera, but I don't think they come close to explaining the 800 basis points of delta and I don't think that FX explains the gap either. But so what else is it? And has refranchising maybe just has not been as margin accretive as you expected? Or is there some kind of other structural drag that haven't been anticipated back in 2016?

Yes. Actually, I think it does explain what's happened. I don't have the breakdown in front of me. But at the gross margin level, when you take into account the impact of currency, of some of the bottlers acquisitions that came back into our portfolio, that we're now in the process of refranchising and some of the other acquisitions, I think they have had a mechanical impact. And we can come back with a little bit more color on that. And then I think when you look at the operating income and how it flows down into operating income line, the primary driver are these items. So yes, I don't have it in front of me. We can follow up in a bit more detail. But yes, that's the story.

Our last question will come from Brett Cooper from Consumer Edge Research.

Brett Young Cooper

Just wanted to ask on your digital experience in B2B. And if you do any quantification as to when you win B2B or you get B2B into more particular retailers? What happens to your space, your share of the category performance and its relative to a base? I think it's not so much a question of the 8% increase in the quarter, but looking back over time.

I don't know if something was up with the line today that was very kind of broken up. But I think, Brett, you were asking about the digital experiences in B2B and what happens in shares in the category. There are multiple -- B2B is not a singular thing and the digital version of B2B is not a singular thing. There is a vast amount of B2B business that has been done for many years with direct order transfers, largely to large store modern retailers where order replenishment has a long-standing track record. And this is really focused on the efficiency of making sure the shelf is not out of stock from products. And it's more a process of support to what already goes on. And so actually, you see it's enabling the physical presence in the kind of the analog world, if you like. Of course, there's other types of B2B, for example, in the mom-and-pop stores, where we have moved heavily from a you have to wait for the pre-seller to appear type of relationship with the mom-and-pop stores to where that is complemented by some sort of ordering and relationship platform. They come in multiple guises, depending on where you are in the world, and the relative need and cost efficiency of doing so. But those platforms allow retailers effectively to be able to order, make additional orders 24/7, maybe even book servicing for their cold drink equipment, follow loyalty programs, et cetera, et cetera. So there's a lot of different types of B2B relationships. Generally speaking, they are supportive of us continuing to grow the relationship and to continue to do well. And -- but they are enabling rather than consumer facing, so the kind of the share is a little trickier to determine. Okay. I think that was the last one. To summarize, first quarter of the year, strong start, and we're confident we can continue to create value for the stakeholders and shareowners and deliver on our 2024 guidance. We'll continue to manage through the many different types of environments out there, but focus on leveraging our capabilities to drive what we can control to make sure we get growth. So thank you for your interest, your investment in the company and joining us this morning.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

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Coca Cola Operations and Inventory Management
Coca-Cola Bottle Inventory System

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COMMENTS

Coca Cola Operations Management and Inventory Report
Coca-Cola has a long history that allowed the company to optimise its operations and achieve success on a global scale. Its operations and inventory management are rooted in a framework of operations management that is targeted at increasing the value of shareowners over time. This is done through the continuous cooperation with business ...
Coca-Cola Leverages AI for Inventory Management
Salesforce shows both the potential and the limits of artificial intelligence in its demonstration of Einstein Vision counting the stock in a Coca-Cola cooler. By 24/7 Staff March 28, 2017. Even though it was intended as a bravura demonstration of the business potential of artificial intelligence (AI), Salesforce today perfectly captured the ...
How does coca cola manage their inventory
Coca-Cola's inventory management system is a prime example of how technology, collaboration with suppliers, optimizing distribution, and accurately forecasting demand can lead to success. While there are challenges associated with inventory management, advancements in technology and the use of cloud-based systems offer promising solutions for ...
Inventory Management: A Tool of Optimizing Resources in a Manufacturing
Inventory Management: A Tool of Optimizing Resources in a Manufacturing Industry A Case Study of Coca-Cola Bottling Company, Ilorin Plant. ... The main objective of this study is to determine whether or not inventories in the Nigeria Bottling Company, Ilorin Plant can be evaluated and understood using the various existing tools of optimization ...
Inventory Management: A Tool of Optimizing Resources in ...
A study on inventory management and a tool of optimizing resources in a manufacturing company (case study of Coca-Cola Bottling Company Ilorin Plant) was conducted by Adeyemi and Salami (2010 ...
(PDF) Inventory Management: A Tool of Optimizing Resources in a
Inventory Management: A Tool of Optimizing Resources in a Manufacturing Industry A Case Study of Coca-Cola Bottling Company, Ilorin Plant . × ... Ilorin Plant can be evaluated and understood using the various existing tools of optimization in inventory management. The study methods employed include the variance analysis, Economic Order ...
How AI helps Coca-Cola boost supply chain procurement
Coca-Cola began using Keelvar two-and-a-half years ago specifically for logistics procurement, and now has incorporated it into its software for direct materials in packaging and ingredients.
[PDF] Inventory Management: A Tool of Optimizing Resources in a
The main objective of this study is to determine whether or not inventories in the Nigeria Bottling Company, Ilorin Plant can be evaluated and understood using the various existing tools of optimization in inventory management. The study methods employed include the variance analysis, Economic Order Quantity (EOQ) Model and the Chi-square method.
PDF Inventory Management and Sustainability in Coca-cola Manufacturing
The topic of the study was "Inventory Management and Sustainability of Manufacturing Companies in Mogadishu, Somalia: A Case Study of Coca -Cola Company." The purpose of the study was to investigate whether there is a relationship between inventory management and sustainability of in coca-cola manufacturing companies in Mogadishu.
Inventory Management and Sales Performance of Entrprises: a Case Study
5.1 Summary of findings The study showed that the common inventory management techniques and sale performance of Coca Cola Business enterprises in Mbarara include; from table 4:6, 56% of the respondents strongly agreed to the notion of up-to- date stores records as one of the types of inventory management method used by coca cola business ...
Unlocking Supply Chain Management: Coca-Cola Case Study
SCM 3 The company was created in 1892; the major headquarters of the company are located in Atlanta, Georgia, USA (Coca-Cola Company, 2016). The company license or owns and market's more than 500 beverage products around the globe. Coca-Cola Company has the largest beverage distribution system. All told, the company is known for operating and distributing its products in over 200 countries.
Automated Warehouse System at the Coca Cola Bottling Production Plant
How it works. The automated warehouse stores product by removing palletized loads from the end of the bottling line with Automated Guided Vehicles (AGVs) that transport the loads to one of eight pallet rotators. The load rotator changes the orientation of the pallet 90 degrees prior to induction into the automated storage and retrieval system ...
Impact of Inventory Management on Firm Performance: A Case Study of
Adeyemi, S.L. and Salami, A.O. 2010. Inventory management: A tool of optimizing resources in a manufacturing industry a case study of Coca-Cola bottling company, Ilorin Plant. Journal of social science. 23(2), pp.135-142. [2] Agus, A. and Noor, Z.M. 2006. Supply chain management and performance. An Empirical Study. A working paper university of ...
Coca-Cola Leverages AI for Inventory Management
Salesforce shows both the potential and the limits of artificial intelligence in its demonstration of Einstein Vision counting the stock in a Coca-Cola cooler. By 24/7 Staff March 28, 2017. Even though it was intended as a bravura demonstration of the business potential of artificial intelligence (AI), Salesforce today perfectly captured the ...
Coca Cola Supply Chain and Case Study
Here is a simplified case study overview: Title: Coca-Cola's Global Supply Chain Management. Background: The Coca-Cola Company is one of the world's largest and most recognizable beverage companies, operating in over 200 countries. It has a highly integrated supply chain, which combines company-owned operations and independent bottling ...
PDF Inventory Management and Business Performance. a Case Study of Coca
inventory management and business performance. a case study of coca-cola limited mbarara branch by agumeabdul bba/44473/143/du a research report submitted to the collge of economics and management in partial fulfilmt of the requirements for the aw ard of bachelors degree in business adminstration (banking and finance) of kampala international
Inventory Management and Organizational Productivity (A Case Study of
Inventory management at Coca cola Port Harcourt plant is mostly seen in arrangement of crates at the plant, bottles packing, buying of raw materials, supply of customers, issuing of raw materials for use in the plant departments. ... The scope of this study borders on inventory management and organizational productivity, case study of coca cola ...
The Impact of Inventory Management and Performance of Private
These approaches was adopted to enable the researcher get and analyze relevant information concerning people's opinions about the impact of inventory management on performance of private organizations in Uganda like Coca-Cola Company. 3.2 Study Area The area of the study was Coca- Cola plant- Mbarara which is located in Mbrara Municipality.
(PDF) Examining the Strategic Impact of Procurement on ...
Bio-note: Researchers specializing in supply chain resilience and performance, focusing on Coca-Cola. Utilized a case study approach and secondary data to highlight the company's sustainable ...
Coca-Cola case study: Optimal drinks deliveries in a complex market
Coca-Cola HBC's supply chain is complex, with variable transportation and storage costs, as well as seasonal demand variations. This complexity was preventing effective analysis and the holding back the possibility of cost cutting. The solution to analyzing this complex supply chain was to capture it in a model.
Inventory Management: A Tool of Optimizing Resources in a Manufacturing
A Case Study of Coca-Cola Bottling Company, Ilorin Plant. S. L. Adeyemi* and A. O. Salami** *Department of Business Administration, University of Ilorin, P.M.B 1515, ... Ilorin Plant can be evaluated and understood using the various existing tools of optimization in inventory management. The study methods employed include the variance analysis ...
Coca Cola Change Management Case Study
Coca Cola Change Management Case Study. Tahir Abbas February 26, 2023. Change is an inevitable part of running a successful business, and companies must adapt to remain competitive. However, managing change can be a daunting task, especially for large organizations. One company that successfully navigated the challenges of change management is ...
Coca-Cola Reports First Quarter 2024 Results and Provides Updated Guidance
Unit case volume declined 2%, as growth in Trademark Coca-Cola and juice, value-added dairy and plant-based beverages was more than offset by a decline in water, sports, coffee and tea.
Coca-Cola CEO: Inflation will normalize throughout 2024
Beyond that, Coca Cola is seeing inflation decelerate, including commodity costs like corn syrup, sugar, and aluminum cans. Coke's stock is down 3% in the past year, while rival PepsiCo's ( PEP ...
Q1 2024 Coca-Cola Co Earnings Call
Shares of Coca-Cola were down 0.6% in Tuesday trading, compared with a 0.9% loss in the and a 0.7% slide in the Prior to the session, the stock had gained 5.3% this year.