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Ict coca cola-case_study

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ICT in Coca Cola Company

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Ict coca cola-case_study

  1. 1. Carlos Auguet Linh Thi Thuy Bui Ahmad Fahmy Mateo Prezelus Swati Singh Piyush Virmani Xulun Wang January 2016 – ICT and Technology for SCM Final Project: The Coca-Cola Company
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 1. Company and sector description (III) Sector: Consumer goods Industry: Beverages Sub-industry: Soft-drinks $0 $50 $100 $150 $200 $250 $300 $350 What the world drinks? Global market share ($ Billion) 49% 20% 31% Carbonated Beverages Market share CoCa-Cola Co. PepsiCo Inc. Other
  6. 6. 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
  7. 7. 2. Products, delivery channels & e-commerce (II) BIG MERCHANDISE
  8. 8. 2. Products, delivery channels & e-commerce (III) E -COMMERCE
  9. 9. 3. Supply Chain Structure (I)
  10. 10. 3. Supply Chain Structure (II) Upstream & Operations The Coca Cola Company Global business, local scale Manufactures and sells concentrates, beverage bases and syrups Own the brand, do brand marketing initiatives
  11. 11. 3. Supply Chain Structure (III) Downstream & Reverse Logistics 250 bottling partners Coca Cola Refreshments (CCR) 15 international bottling partners (BIG) 700 associates in the systems
  12. 12. 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
  13. 13. 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.
  14. 14. 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
  15. 15. 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.
  16. 16. 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
  17. 17. 6. ICT Future Plans (I) Digital Technology on Vending Machines Innovation Intelligent Vending Machines Cashless Gateway Mobile Wallets
  18. 18. 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
  19. 19. 7. Strategic ICT Advantage (I) Spider-web Analysis 0 1 2 3 4 5 6 7 8 9 Demand Forecasting Business Analytics and Reporting EDI and EDM Social Networking Mobile Application Development Supply Management Knowledge Management Customer Engagement Model Innovation PepsiCo Coca Cola Coca Cola vs PepsiCo
  20. 20. 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