What is in this article?:
- Supplier Leadership Award 2012 Winner for DSD Logistics: Coca-Cola Refreshments
- Collaborating With Retailers
SN has recognized Coca-Cola Co.'s direct-store-delivery operations, one of the biggest DSD networks in the world, with its Supplier Leadership Award in the DSD Logistics category.
Coke has cut out-of-stocks with its Demand Signal Repository system.
• Coca-Cola Refreshments employs standardized processes throughout North America.
• CCR collaborated with Kroger to identify optimal display size for Vitaminwater and leverages its database to plan the product mix needed to drive optimal sales, in-stock position and inventory levels.
• CCR employs advanced shipping notices to reduce back-door receiving time.
When the Coca-Cola Co. bought the North American operations of bottler Coca-Cola Enterprises (CCE) in February 2010, the result was a lot more uniformity across the business, including its direct-store-delivery operations, one of the biggest DSD networks in the world.
Coca-Cola Refreshments (CCR), the North American unit created from the merger, now operates a national supply chain organization, as opposed to CCE’s regional business. “Since the acquisition, one of the most important changes has been a drive to employ standardized processes throughout North America,” said Patrick Plunkett, vice president, customer solutions, CCR, which received SN’s Supplier Leadership Award in the DSD Logistics category.
These standards are helping CCR improve execution in inventory planning, transportation and delivery of more than 500 sparkling and still brands, 15 of which are billion-dollar brands, including Coca-Cola, Diet Coke, Fanta, Sprite, Powerade and Minute Maid. “Through continued system improvements and centralized planning, CCR can forecast customer needs and produce the required SKUs, ensuring they are available when and where they are needed while minimizing out-of-stock occurrences on customers’ shelves,” Plunkett said.
CCR has also invested in numerous new systems, planning tools and delivery innovations. For example, telematics, which includes GPS (global positioning system) technology on its delivery trucks “enables the DSD supply chain team to maximize our delivery service,” said Plunkett.
Read about SN's Unsaleables Reduction winner: Mead Johnson Nutrition
The improvements cited by Plunkett helped to drive a recent merchandising partnership with Kroger Co. supporting Vitaminwater products. During the inception of the program, CCR and Kroger collaborated to identify the optimal display size to sustain promotional activities by store. Once that was determined, CCR leveraged Kroger’s database to plan the product mix needed to drive optimal sales, in-stock position and visual inventory levels.
“Our supply chain utilized this information to develop store-specific executional plans ensuring delivery of the right product at the right place at the right time,” said Plunkett. “Coordination across our sales and supply chain teams made possible high sell-through, as well as maximized in-stock conditions for Kroger shoppers.” As a result of the program’s success, Coca-Cola and Kroger will do it again next year.
