In January 2013 Coke began selling taller, thinner cans. Why? Almost certainly it is a marketing idea. Coke hopes it is something that will make all of you want to buy more Coke. It is almost certainly NOT something that made their Supply Chain people happy. Why?
- The taller cans don't fit the same way as the smaller cans. Coke's trucks are designed to carry traditional sized cans and it is likely that they can't fit quite as many of these cans on a truck. Also, I have noticed that Carrefoure and Lulu have trouble with cans because they spaced their shelves apart for the size of the old cans. It means these stores can't keep as much inventory out there as they used to and that means they have restock more often.
- As you learned in geometry, a tall thin can will require more aluminum than a shorter, bigger can. This increases the cost of inputs
- The new can contains 355ml instead of the traditional 330ml. This also means the costs of inputs (aluminum and the flavored water will be higher). As an American this makes me happy. 355ml is the same as 12 ounces - which is what every soda can in the US has. In the UAE I feel like they are ripping me off when I get only 330ml.
So is it a good idea? I don't know. I doubt Coke will increase its sales enough to justify the problems. I love my Coke (notice the Coke placemat, Coke napkins and even Coke salt & pepper shakers in the picture above), but this seems like a dumb idea.
Related vocabulary:
Stock - the product... to have something "in stock" means it is available for the customer to buy right now.
Inventory - The product is available for the customer to buy right now. It is another way of saying it is "in stock".
Stockout - the product is not available.
Economies of scale - As production increases the cost per unit decreases.