The Coca-Cola Company: From Alignment to Algorithms: System Perspectives on Digital

Research evidence excerpt

The Coca-Cola Company: From Alignment to Algorithms: System Perspectives on Digital

Barclays | The Coca-Cola Company

supply chain, ranging from more accurate demand forecasting that improves inventory turns

and working capital to integrated planning systems that better align production schedules with

real-time sales trends. Lastly, we’d note several bottlers have dialed up their shared services

functions, enabled in part by harmonized data sets and automation technology – and, in

keeping with the vein of learning from each other, these shared service hubs are discussed at a

round table between KO and a few anchor bottlers.

Unified, not uniform

Digital is a universal priority across the System, but local execution remains deliberately

tailored – reflecting freedom within a framework in order to leverage global scale yet

maintain local agility. System leaders understand that while core digital priorities are shared

(e.g., using data to better segment and serve customers and consumers), one-size-fits-all

solutions would be a hindrance rather than a help. Instead, it appears to us that flexibility in

approach is built in by design. We believe the focus is on digital components that can be

adapted as necessary across geographies based on differences in channel mix or market

structure (e.g., prevalence of traditional vs. modern trade), with KO’s primary role to ensure

alignment on identifying what problems to solve. In some cases, KO may present a base tool,

while in other cases the solution is bottler-led, but it’s important the tools can be customized to

better suit a given market.

In general, we see this hearkening back to a “don’t reinvent the wheel” ethos that we had

identified in our initial System deep dive of the more networked model. In an ideal scenario,