Carlos Auguet Linh Thi Thuy Bui Ahmad Fahmy Mateo PrezelusSwati SinghPiyush VirmaniXulun Wang

January 2016 – ICT and Technology for SCM

Final Project: The Coca-Cola Company

Agenda

1. Company and sector description

2. Products, delivery channels & e-commerce

3. Supply Chain Structure

4. The Coca-Cola Company ERP

5. Role of ICT

6. ICT future plans

7. Strategic ICT Advantage

1. Company and sector description (I)

“94% of the world’s population recognize Coca-Cola’s red and white logo”

Founded in 1886 by Dr. John Styth Pemberton

Average servings/day: 9 in 1886 and 1.9 billion in 2015

1. Company and sector description (II)

Mission statement:

- To refresh the world...- To inspire moments of optimism and happiness...- To create value and make a difference.

Vision statement:

- People- Portfolio- Partners- Planet- Profit- Productivity

1. Company and sector description (III)

Sector: Consumer goodsIndustry: BeveragesSub-industry: Soft-drinks

Carbonated Bev

erages

Bottled Wate

r

Fruit/

Vegetable Ju

ice

Ready-t

o-Drin

k Tea

Sports

/Energy Drin

ks$0

$50

$100

$150

$200

$250

$300

$350

What the world drinks?Global market share ($ Bil-

lion)

$341.6 billion

49%

21%

31%

Carbonated BeveragesMarket share

CoCa-Cola Co. PepsiCo Inc. Other

2. Products, delivery channels & e-commerce (I)500+ sparkling and still brands…

…3,600+ drink products sold in 200+ countries…

…and a wide variety of collectibles and gifts

2. Products, delivery channels & e-commerce (II)

BIGMERCHANDISE

2. Products, delivery channels & e-commerce (III)

E -COMMERCE

3. Supply Chain Structure (I)

3. Supply Chain Structure (II) Upstream & Operations

The Coca Cola CompanyGlobal business, local scale

Manufactures and sells concentrates, beverage bases and syrups

Own the brand, do brand marketing initiatives

3. Supply Chain Structure (III) Downstream & Reverse Logistics

250 bottling partnersCoca Cola Refreshments (CCR)15 international bottling partners (BIG)700 associates in the systems

3. Supply Chain Structure (IV) Potential Problems

Information flow between nodes along supply chain when there are many entities involved in.

Management of inventories at bottling partners level requires a delicate system.

Management of safety stock and production when there are aggressive marketing campaigns launched.

Develop system base which has capacity for future expansion in e-commerce and automatic point of sales

4. The Coca-Cola Company ERP (I)

• Earlier SAP R/3 Enterprise system was used together with Oracle database

• Upgrade their SAP R/3 Enterprise system to SAP ERP 6.0

• Decided to engage to a new database platform IBM DB2, instead of upgrading the Oracle Database which would have been expensive.

4. The Coca-Cola Company ERP (II) Implementation process

• DB2 delivered a reduction in storage needs of approximately 40 per cent.

• The duration of manufacturing runs was reduced by more than 65 per cent

• Connect store deliveries with back-end systems.

• Time and cost savings and the opportunity to drive revenues.

• Excellent customer service by providing customer centric procedures like inventory management and invoicing accuracy

5. Role of ICT (I) ICT for Supply Chain Integration

• Accelerator of replacing and minimizing out-of-stocks.

• Optimize the procurement procedure to save costs.

• Intellectualize the nodes in supply chain to optimize the efficiency and minimizing the waste.

5. Role of ICT (II) Electronic Data Interchange

Establishing data contents in EDI context

Invoicing

Payment Orders

Purchase Orders

Shipping & Billing Notice (with/without

prices)

Pre-delivery invoice

6. ICT Future Plans (I)

Digital Technology on Vending Machines Innovation

Intelligent Vending Machines

Cashless Gateway

Mobile Wallets

6. ICT Future Plans (II)

Coca-Cola embarks on green IT strategy

• Targeting technology's energy consumption

• Energy metering and management

• Reducing technology's carbon footprint

• Raising energy efficiency awareness among staff

7. Strategic ICT Advantage (I) Spider-web Analysis

Demand Forecasting

Business Analytics and Reporting

EDI and EDM

Social Networking

Mobile Application DevelopmentSupply Management

Knowledge Management

Customer Engagement Model

Innovation

0

5

10

PepsiCo Coca Cola

Coca Cola vs PepsiCo

7. Strategic ICT Advantage (II) Recommended Strategies

• Although Coca Cola has a bigger fan following on the social media platform, it does not engage in building up loyalty with its customers.

• Social analytics is not part of their business analytics and decision making which makes them vulnerable to the changing customer needs.

• Coca cola can be innovative in its marketing strategies where they can engage with the customers

• To improve demand forecasting, Coca Cola needs to invest in vendor management and retail management to understand the challenges and issues at both ends

Based on Spider-web Analysis

OPENING MINDS TO IMPACTTHE WORLD

THANK YOU FOR YOUR ATTENTION!