10 Apr 2022

82

How Coke Warehouses its Resources and Products

Format: APA

Academic level: Master’s

Paper type: Case Study

Words: 1041

Pages: 4

Downloads: 0

Coke is one organization that believes in quality as a means of relating to its customers and ensuring their satisfaction. Among the critical areas that the organization takes a keen interest in is the storage. Warehousing or storage is an important aspect of an industry, especially in ensuring that the quality goods produced maintains their state until delivery is made to the clients. The efficient handling and storing of goods and products remains vital to every organization. Improper storage of goods usually results in damages, which eventually results in costly effects for the company. A look into Coke clearly reveals that through its appropriate organization, it has established one of the best warehousing strategies, thus stores its resources and products efficiently.

The effective storage of Coke’s products does not only involve placing them within an enclosed area awaiting distribution. However, but it also involves the consideration of various perspectives. Storage in the case of Coke starts way from the packaging of the products after production. For every packaging bottle that Coke uses for its products, there is usually a story behind. The main story in each case involves an increase in efficiency, innovation, passion for the promotion of renewable materials, and a vision for a long term zero waste (Banutu-Gomez, 2012). The use of appropriate packaging materials makes storage of Coke’s products easy. Storage aspect in the case of Coke is very important considering that the organization deals with beverage products, which are equally perishable. The aspect of storage has always been one of Coke’s major concerns. The organization has since enhanced the development of appropriate storage facilities, necessary for ensuring efficiency in the whole production process (Stopford, 2011). 

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Based on the significance and importance of a quality warehouse and storage facility, Coke took a longer period in making all the necessary considerations before coming up with the most appropriate storage facility that would ensure quality maintenance of the stored products (Rupp, 2009). Despite the fact that Coke ended up with one of the modern storage facilities, the development of such a facility was never the original idea leading to its occurrence. The major problem that Coke faced was the need to erect a modular office in the production facility, as a means of ensuring that the managers and supervisors were near the production sites. The proximity to the production sites enable for a closer monitoring of the bottling and filling lines (Banutu-Gomez, 2012). 

The solution provided for the identified problem after its assessment was the development of a vision tower, which would provide an all-round surveillance for the managers and the supervisors in monitoring production. The result of such an occurrence is that Specialized Storage Solutions, the contracted organization to facilitate the project included the installation of casework, cabinets, and modular toolboxes among others. From the good performance, it was realized that indeed there was a need for a quality storage facility that would be used to keep the produced products before distribution to the consumers. 

Coke being the most important producer and distributor of its products in the global platform, there are various aspects that the organization must put in good order as a matter of ensuring further profitability as it has previously been experiencing. While the expiry dates of Coke products number into months, good storage practices enhances further the durability of the Coke products (Stopford, 2011). Cokes usually last for shorter periods provided that they are open or stored inappropriately. To eliminate the chances of products having reduced life-spans as attributed to poor storage facilities and practices, Coke has established significant investment project in its storage facility leading to the establishment of a storage system features thermohall technology (Banutu-Gomez, 2012). Thermohall technology is a recently developed storage technology that allows for the ease of dissembling and relocation to another position without any complications (Rupp, 2009). 

With enhanced quality of production and demand for the products globally, Coke has established a modern warehouse that would ensure a smooth facilitation of products between production and delivery to customers. However, before such a development, various considerations are necessary for ensuring that quality is not compromised. Storage of aseptic beverages such as Coke products through conventional storage requires the large size of space, which is costly as a means of reducing incidences of stalking the products together, considering their lowered resistance. In addition, the storage facility should include sufficient space for the loading bay, as most of the products are usually transported in trucks thus, the necessity for larger loading bays (Banutu-Gomez, 2012). Efficiency is of the great essence for modernized storage facilities. As such, Coke has established two cranes with the ability to carry up to a maximum weight of 900 kg to facilitate the loading and offloading of products into and out of the facility with ease (Stopford, 2011). 

The inside of the warehouses is well developed with provisions that keep the stored products away from light, heat, temperature variations, dirt, and moisture. While storing its products, Coke makes varied considerations depending on the kind of packaging materials it uses. The packaging material is an important aspect of consideration towards the attainment of efficiency in the storage of Coke products. Coke believes on the philosophy that management of packaging is a management of risks to a significant level (Banutu-Gomez, 2012). Contrary to common perceptions that beverage container has little to do with the business risk, an in-depth analysis has revealed that appropriate packaging material that meets the strict quality requirements ensures for safe storage and delivery of products (Rupp, 2009). Packaging materials used, should, therefore, provide minimum alterations to the storage conditions and be those that are easy to handle to minimize damages during transportation into and out of the warehouses. As such, despite having glass as one of its packaging materials, Coke ensures that they are of the best quality to minimize damages associated with storage and transportation (Stopford, 2011).

Despite having the appropriate establishments and systems necessary for effective and efficient storage of products, it is equally of vital importance to address the aspects of safety and health, especially for the workers in the warehouses. Coke has, therefore, developed some safety and regulatory measures that every employee in the storage facilities and warehouses must adhere to for the enhancement of safety and health of the individuals (Rupp, 2009). Employees in the storage facilities undergo some special training and orientation programs to enhance their skills and abilities of effectively handling the products under storage. Storage is considered the final stage in the process of production before the product finally leaves the production facility. Any damages caused during the time could grossly affect the organization regarding costs. Coke, therefore, ensures that all the storage aspects run as efficiently as possible as a new strategy of establishing a competitive advantage over the other competitors (Banutu-Gomez, 2012).

References

Banutu-Gomez, M. B. (2012). Coca-Cola: International business strategy for globalization.  The Business & Management Review 3 (1), 155. 

Rupp, J. (2009). Coca-Cola Hellenic reputation case study.  Reputation Capital,  325-338 

Stopford, M. (2011). Reputation Management at Coca-Cola and Beyond.  Reputation Management,  201-214

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StudyBounty. (2023, September 14). How Coke Warehouses its Resources and Products.
https://studybounty.com/how-coke-warehouses-its-resources-and-products-case-study

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