Coca-Cola
Forecasting Demand, Freeing Capital: The Coca-Cola Supply Chain Algorithm
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
The problems
01
Demand forecasting
Improve demand forecasting and better understand the impact of fluctuating promotions, a move that will help reduce safety stock inventory.
02
Revenue and cost
Being able to drive revenue and reduce associated costs.
Our solution
01
Utilising Existing Data
The Data Duck utilised the gold mine Coke have in terms of data in SAP.
02
Forecasting Demand
We created algorithms to be able to anticipate demand.
03
Lean Supply Chain
We created mobility solutions for inventory management.
04
A/B Testing
We started with Karnataka and then moved to Maharashtra and then pan India.
Business impact
We used inventory management to decouple demand and supply, to buffer variability in demand and supply.
Implementing new planning algorithms significantly reduced the uncertainty (the standard deviation of the demand/supply or forecast error) by 53%, making safety stock unnecessary.
53%
Uncertainty
34%
Replenishment Lead Time
10%
Lowered the Bounce Rate
$3,000
Customer Lifetime Value (CLV)
“The Data Duck was a pleasure to work with. Their team worked onsite and offsite without any communication gaps or deployment issues. Their QA team is particularly impressive.”
Murad Moheet
Logistics Manager, Coca Cola