Distribution Decision

Which way to go...

DISTRIBUTION NETWORK 

Coca - Cola has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them. A typical distribution chain at Coca Cola would be:

Production---Plant Warehouse---Depot Warehouse---Distribution Warehouse---Retail Stock---Retail Shelf ---Consumer 

DISTRIBUTION ROUTES

The various routes formulated by Coca - Cola for distribution of products in India are as follows:

Key Accounts:

The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month.

Examples:

Clubs, fine dine restaurants, hotels, Corporate houses etc.

Future Consumption:

This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product.

Examples:

Departmental stores, Super markets etc.

Immediate Consumption:

The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace.

Examples:

Small sized bars and restaurants, educational institutions etc.

General:

Under this route, all the outlets that come in a particular area or an area along with its neighbouring areas are catered to. The consumption period is not taken into consideration in this particular route.