In this past week’s Wall Street Journal Today’s Top Supply Chain and Logistics from WSJ, I see this interesting tidbit:

Coca-Cola Co. is overhauling its U.S. supply chain. The WSJ’s Mike Esterl and Chelsey Dulaney report that the beverage giant will sell all nine of its production plants in the country and consolidate the business with three large bottling partners.

The move extends a redrawing of its distribution system that Coke began in 2013, when the company began getting rid of warehouses and delivery trucks. The idea is to get out of managing production and distribution so the company can focus more completely on what Coke says is its core business—selling the beverage concentrate and marketing the drinks.

That may create some opportunity for new logistics partners, but Coke says it still expects the bottlers to operate as “one highly aligned” unit.

Interesting but not surprising. Will Coca-Cola maintain the product execution control they have enjoyed over the years? That will be the real test of this change in strategy. This strategy appears to be sound.

Thought for the week:

“Whenever or wherever dignity is denied, we’re called to care…and we’re called to work to change” —U.S. Vice President Biden at the Global Citizen Festival

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What do you think? I welcome your comments!
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Dave Gardner

Dave Gardner is a management consultant, speaker, author, and blogger based in Silicon Valley. He's been in the front row for the birth and evolution of Silicon Valley, the innovation capital of the world. Since 1992, Dave Gardner focuses on making the complex simple around people, process and technology. Dave is the author of Mass Customization: An Enterprise-Wide Business Strategy - How Build to Order, Assemble to Order, Configure to Order, Make to Order, and Engineer to Order Manufacturers Increase Profits and Better Satisfy Customers.

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