Demand Driven Supply Chain Planning is a global leader in demand-driven supply chain planning tools, today announced the signing of an enterprise software agreement with Coca-Cola Beverages Africa(CCBA) to deploying their Replenishment+ demand driven MRP solution to 25 production facilities and 20 supply facilities across 10 countries in sub-Saharan Africa. The companies aim at improving the quality, cost-effectiveness and recovery of costs from beverage processing. This endeavor is part of the company’s broader initiative to improve the quality of its raw materials, processes, and solutions. The beverage company also aims at improving its overall customer satisfaction.
For their part, Cokes aim at improving their overall customer satisfaction by meeting quality benchmarks in terms of quality, safety, operational effectiveness, value creation, and return on investment. The company wants to build an ecosystem of highly skilled work force and work through mutually beneficial partnerships to drive growth and reduce process variability. This initiative will help drive growth in core markets and strengthen their position as a market leader. Ultimately, this demand driven MRP planning initiative will help the company to gain new customers while reducing cost and operational risk.
The core area facing challenges in the African region is in the area of supply. There are two major challenges faced in this region, namely the inability to meet high-level demand and high-level recurring demand. Coke is exploring a number of ways to address these challenges, apart from offering distribution partners flexibility to determine their own selling strategy and ability to manage their sales channels. These include changes in the product portfolio, pricing, and marketing strategy, sharing of technical data and innovation, and collaboration with distributors and retailers. The beverage giant has also signed agreements with Unilever, Johnson & Johnson, and other key distribution partners.
The second challenge faced by the continent is in terms of infrastructure development. As a result of the current drought in the region, there is an acute shortage of fresh water for beverage production. The main water source is Lake Oben which is in severe danger of being dried up. As a result, there is a need to tap into other regional sources for water to ensure adequate supplies. In this regard, a joint venture with Unilever for the purposes of distributing chemicals in addition to water is proposed. This will help the company to address both demand and supply issues.
One of the largest challenges facing the region is in terms of quality of raw materials. Coke has previously signed deals with the likes of Yara and Glencore, a French company that supplies carbonated beverages, to leverage its own carbonation capabilities. This is part of the company’s efforts to increase its carbon footprint and become a more responsible global citizen. This includes its efforts to diversify its carbon footprint as evidenced by its commitment to phase out its use of coal in its production process.
A major challenge is the region’s inability to produce substantial quantities of sodium chloride, a key ingredient in making soda. It has previously partnered with facilities in Australia, South Africa, Spain, Brazil, and the United States to produce sodium chloride. As a result, demand for this product has significantly increased in recent times as a result of the rising population in developed countries. A key solution proposed by the strategic plan is for the beverage giant to look to the emerging markets for growth and consider entering into tie-ups.
In response to the challenge presented by the increasing demand, a number of beverage manufacturers are looking to supply other markets with their products. In one case, the company announced that it would start distribution of its Mexican drink in the country’s 20th century centennial celebration. This follows its acquisition of beverage brand Uno for $3.4 billion earlier this year. Uno is one of the largest beverage brands in Latin America and is seen as providing significant competitive advantages.