Niyamath Parveez

All about Outsourcing

Archive for August 20th, 2009

Coca Cola takes the outsourcing route

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Coca Cola is one of the most famous brands in the entire world and any news story surrounding them is of great interest to many people. Like so many top brands, Coca Cola have managed to transcend the fact that they are a drinks manufacturer and have a fan base that is devoted as any sports fan. This can be seen in the merchandise for the company with people wearing t-shirts with the logo splashed over it and have their house full of products. Some people can’t see the company doing any wrong but it is inevitable that they will occasionally receive bad publicity. One of these instances has arisen recently with the news that Coca Cola are looking to outsource an element of their production.

Given the current economic climate, no one wants to lose their job and the local economy could be greatly affected by these outsourcing moves.
The thing that gets most people is the fact that they will believe that Coca Cola will be making more than enough money as it is. For small firms, it is easy to see that outsourcing is extremely important and taking these steps may be the difference between the firm surviving or going to the wall. However, when people consider the size and stature of Coca Cola, they will start to struggle with the concept that they need to improve their financial status. It is important to realize though that companies like Coca Cola didn’t get to their current status by making bad decisions. They know that if they can make improvements to their production facilities or make a further saving, they will do so. This is exactly what is happening in Ireland at warehouse and distribution outlets. If the outsourcing plan goes ahead, areas like Dublin, Cork, Tuam, Tipperary, Waterford and Killarney will be affected by these outsourcing plans.

A total of 130 jobs are likely to be affected and given the current levels of unemployment in Ireland, these figures are not a small matter. Any small economy would miss this level of jobs and again, the fact that it is a company like Coca Cola that is making the layoffs happen makes it more difficult for many people to comprehend. The news has not been well received and this has led to the announcement that current staff are looking to strike in protest against this decision. As always, whenever strike action is mentioned, there is usually a trade union close behind and this is the case in this latest development.

Whether these latest actions will be enough to keep people in a job or will only be enough to earn a better severance package, it is no doubt a very trying time for all concerned. It is not likely that this move to outsourcing is going to affect the sales of Coca Cola around the world but it is fair to say that the drink will be leaving a bad taste in the mouth of those affected by this latest outsourcing decision.

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Written by Niyamath Parveez

August 20th, 2009 at 4:18 pm