TABLE OF CONTENT

B. INNOVATIONS IN
SUPPLY CHAIN
A. OVERVIEW
1. PACKAGING
1. COCA – COLA
HISTORY 2. BLOCKCHAIN
TECHNOLOGY
2. SUPPLY CHAIN
OVERVIEW 3. VENDING MACHINE

THE
THE SUPPLY
SUPPLY CHAIN
CHAIN OF
OF COCA
COCA -- COLA
COLA
A. OVERVIEW

01
COCA – COLA’S
HISTORY
A. OVERVIEW
1. HISTORY
Coca-Cola was originated by
John S. Pemberton

1899
Soaring sales
(9,000 - 370,877)
1886
Coca-Cola signed its first
agreement with an independent
bottling company 1990
 1. HISTORY
First bottle made partially
from recycled plastics
Early 2000s

1992 and
Coca-Cola faced alle-gations Coca Zero!
of illegal soil and water
pollution, human rights
violations.
A. OVERVIEW

02
OVERVIEW
SUPPLY CHAIN
A. OVERVIEW
1. Supplier
Package
Ingredients
- Natural flavor
- Bottles
- Coca Cola leaves
- Chemical compounds - Cartons
2. Manufacturing Procedure
The Coca – Cola The Coca Cola
Company Bottler
Place
3 P's: 
1. Namely Price
2. Product
3. Promotion
 3. Distributors
3 main distribution
centers (Ha Noi, Da Nang
and HCMC) owned by
Coca Cola Vietnam.
Wholesaler

Wholesale
agent
Producer
 3. Distributors
Coca Cola offers many
incentives to attract more
distribution agents

Retailer End customer

B. INNOVATIONS

COCA
01
PACKAGING
1916 – BIRTH OF THE CONTOUR

The Root Glass

Company of Terre
Haute, designed the
famous contour
shape and it was
introduced in 1916.
 2000 – REDUCING WASTE

The ultra-glass Contour Bottle which

is 40 percent stronger and 20 per
cent lighter than the original
Coca‑Cola Contour Bottle with
improved impact resistance, reduced
weight and cost
FURTHER SIGNIFICANT CHANGES IN PACKAGE

The company has also worked with

WRAP to reduce the weight of its 500-mL
PET bottles to just 24g, which will cut the
amount of PET plastic used by 784 tons
per year
 In 2007, Coca Cola Company launched the new,
called “sleek can”. A new shape for the classic - 30 years
old - Coca Cola can: a completely new body, changing
the shape but maintaining the label and the classic design
imposed by the iconic contour bottle

The height passed from 11,5 cm to 14,5 cm and the

diameter was reduced from 7 cm to only 5,8 cm

Two-fold strategy:
- Preserve the environment and reduce the impact on
planet Earth
- A strong marketing mechanism
→ A strong eye-impact, with a big Coca Cola-red spot
that impressively impacts consumers’ perspective of the
shelf and customers’ buying decision process.
B. INNOVATIONS

02
BLOCKCHAIN
TECHNOLOGY
A report by Business Insider on November 6, 2019, reveals that blockchain is being
applied by CONA to manage its supply chain.

Coke One North America

(CONA)
SAP

There are a number of transactions

that are cross-companies and
multiparty, that are inefficient.
They go through intermediaries;
they are very slow. And we felt
that we could improve this and
save some money.

As the report notes, CONA manages a platform to oversee multiple concessions that
manufacture, bottle and ship nearly 160,000 orders of Coca-Cola products/day.
Currently, there are still many intermediaries,
which is slow and costly.

#1 #2 #3
As part of With A transparent,
the SAP technology company blockchain, inter-organizational
collaboration, Coca-Cola wants Coca-Cola is distributed ledger that will
to optimize cooperation with
expected to provide real-time insights into
its partners, create more
reduce order transactions carried out by all
transparency and reduce
costs by using blockchain adjustment time the various bottlers on the
technology from 50 days to network, generating over $21
just a few days billion in revenue per year.
Moreover, Coca-Cola has many reasons to adopt
Blockchain technology

Address Ensure Create

issues of land, workers are more transparency in
child labour, and legally recruitment practices
forced labour compensated
and protected
 How blockchain helps with Coca Cola’s
supply chain
Consequence
speed up the payment
Transparency process and increase
allows franchisors to see bottling efficiency
how many items are
available in different
locations to fulfil ordering
needs Result
higher productivity, cost-
effectiveness and
increased cash flow
between franchisees
 What we achieved here
with blockchain is
creating a document
flow across the supply
chain

—Torsten Zube, head of the SAP Innovation Center Network.

 B. INNOVATIONS
3. COKE’S VENDING MACHINCE
HOW DID THEY
Y DID COKE INNOVATE DO THAT?
VENDING MACHINE ?

THE STAGES OF
THE INNOVATION
THE
EFFICIENCY SOME
SUGGESTIONS

THE
THE SUPPLY
SUPPLY CHAIN
CHAIN OF
OF COCA
COCA -- COLA
COLA
 WHY ?

DIGITALIZATION OF
SUPPLY CHAINS
- FASTER & MORE FLEXIBLE
- MORE ACCURATE &
CUSTOMIZED

TO STAY COMPETITIVE
 Digitize their supply chains by making
use of smart, connected devices.
 HOW ?

The devices provide data on

- Stock levels,
- Customer behavior
- Machine conditions

Smart machines can

- Control temperature
- Keep a history of past transactions
- Allow for dynamic pricing.
THE STAGES OF THE INNOVATION

1. Vintage vending machine

2. Smart vending machine

3. Apply A.I on chatbot

 Act as both an order manager
& customer support

4. Facial recognition software

 Track age, gender, expression of customers
 THE EFFICIENCY

- Customers have receive a more convenient, quick, and

customized experience.
 

- Firms gained a 4.1% increase in efficiency gains and a

2.9% increase in revenue annually.

 Upgrade brand image and liability.

 SOME SUGGESTIONS

A.I and Facial Recognition

 Require good control systems.

Chatbots can easily be annoying to customers

 Privacy issues need to be address seriously.

Cyber security will be critical.

Temple visitors tried to hack the machine.
DEBATE
Q&A