The Coca Cola Company is the world’s largest beverage company, serving consumers in more than 200 countries. Coca Cola’s Commercial Products Supply group processes more than 400 daily shipments and is responsible for millions of cases in addition to more than 1,000 points of delivery, 4,000 finished goods, and 5,000 ingredients and packaging materials worldwide.
Globally, Coca Cola did not have a standard process for managing transportation. It also needed a better understanding of its freight costs to make decisions that would support its Coca ColaVision 2020 business strategy goals, including reducing inventory and increasing sales volume each year.
The Coca Cola Company selected Oracle Transportation Management and deployed it to manage inbound transportation between supplier networks and its plants. To date, five carriers are fully integrated on the system, and Coca Cola expects to have 15 of its 30 inbound carriers online by the end of the 2011, and all inbound carriers online by the end of the first quarter 2012. The company is concurrently working to deploy the solution for all outbound transportation providers—about 15 carriers who transport products between the plants and bottling partners and customers, worldwide.
With the solution, Coca Cola’s finance team can audit 100% of the invoices and approve them in record time. Oracle Transportation Management also enhances visibility into freight locations by generating status messages from carriers when they pick up and deliver products. Coca Cola has also started to track carrier performance—including on-time deliveries and pick-ups—to enable the company to make more informed decisions regarding consolidation to improve efficiency and reduce freight costs—supporting Vision 2020 goals.
“We chose Oracle because our North American business had already done its homework, researched the various available systems, and selected Oracle due to its comprehensive functionality,” said Ken Morrison, director of logistics for commercial product supply, The Coca Cola Company. “It made good business sense to use the same system.”
Coca Cola began scoping the project in late 2009, and it brought Oracle partner MavenWire on board to support the implementation in April 2010. The companies worked together to design the solution, and Coca Cola implemented the fully-integrated system, including electronic data interchange, freight payment, and reporting, by the end of June 2011. The company continues to bring inbound and outbound carriers online.
“MavenWire was very involved in the design portion of the implementation,” Morrison said. “The organization had the global knowledge and solution expertise we needed.”