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Coca-Cola in China

About The Company:

Coca-Cola is the world's leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups. The company built its first bottling plant in China in the decade following World War I and was the first US company to distribute its products in China after Deng Xiaoping opened the country to foreign investors in 1979.

Coca-Cola's long-term strategies of localizing production and building infrastructure through partnerships with the Chinese government and domestic companies have allowed it to establish nationwide operations and generate a strong market presence

In order to manage the rapid growth in this highly dynamic and competitive market, Coca-Cola felt the need to bring up the level of understanding on the Supply Chain Management within and outside of the company, thus to build a more integrated Supply Chain with its suppliers and customers.

The first phase of journey aims to provide structure, and manage the complexities. The proven SCOR® model based on iCognitive’s two-phase top down approach was used. This consisted of the assessment of the current supply chain (As-Is) and design target (To-Be), with an in-depth and continuous support for implementation and managing sustainability of SCOR® culture. (Please Refer to the attachment for full details.)

Quantitative benefits:

  • Reduction of inventory by 35% (1st year)
  • Reduction of COGS by 4% of  revenue (1st  year)
  • 40% consistent revenue growth
  • Improved order fulfillment results
  • A more balanced level of Cash-to-cash Cycle Time
  • Break department silo, cross-functional supply chain process view
  • Common Supply Chain language and platform for process integration, SCOR® culture throughout whole Coca Cola China  

Qualitative benefits:

  • Break department silo, enable staffs to have cross-functional supply chain process view
  • Provide common supply chain language and a platform for process integration through process mapping and linking company strategies with operations improvement  
  • SCOR® Culture throughout whole  Coca Cola China 

Coca-Cola Case Study