DIGITAL TRANSFORMATION

AIBP INDONESIA
August 28th, 2019

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Demystifying digital
(How we look at it)

+ + =
Breakthrough / New / Accelerated scalability Practical application Incremental value
Existing technology

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4 Key Areas of Change

How we communicate
How we sell to How we Sell to How we Partner
with consumers
consumers customers

Online marketing eCommerce and Food B2B eCommerce Customer digital

effectiveness delivery eRTM disruption collaboration
Creative excellence Digital promotions and Passion point owners
Consumer data and sampling e.g., Gaming
segmentation

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 IMPLICATIONS FOR THE
COCA-COLA SYSTEM

RIGHT NOW PRESENT FORWARD FUTURE BACK

SYSTEM enablement needed
for use case that are in-
market today
• UNIFIED PRODUCT MASTER DATA
AND SYNDICATION
• DISTRIBUTION FOR DIGITAL
TRANSACTIONS
What our system could look
SYSTEM capabilities we can
like in 2035 and capabilities,
start building now for imminent partnerships we need to build
use
• IOT – HOLISTIC DEPLOYMENT
• POINT OF INTEREST
INTELLIGENCE

• PACK CONFIGURATIONS FOR

DIGITAL ECONOMY

PEOPLE AND CULTURE

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 1. UNIFIED PRODUCT MASTER
DATA AND SYNDICATION
SKU NOMENCLATURE ACROSS RETAIL, • eCommerce is extremely fragmented in many
ECOMMERCE AND OUR SYSTEM different channels: Retail, Official store on
marketplace, Unmanaged marketplace, Bricks
• Coca-Cola Classic – Case and Clicks, Food service aggregator, etc.
• 320 ML X 24 Cans Classic Regular Coca
Cola Coke Soft Drink (Carton Sale) • Representation matters – not only to drive
• Coca Cola Regular - Case 24 X 330ml
consideration but more importantly to (1)
• Original Coke Soft Drink 24Cans - Long
Simplify search and display and (2) Make
Expiry
• Coca Cola (Coke) -1 Carton Deal (24cans x consolidated reporting possible
320ml)
• Coke Coca Cola 24 can 320ML Carton • Need a unified single source of truth that is
• COCA COLA 1 X 24 CANS 330ML made publicly available, optimized, and
• Coca Cola 24 Cans x 330ml syndicated
• (and many more)

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2. DISTRIBUTION MODEL FOR
DIGITAL TRANSACTIONS
• The price to weight ratio of our products is COKE CLASSIC CASE
amongst the highest of all products available on SHIPPING FEE AS % OF PRICE
eCommerce

• Shipping fees end up being a significant % of the

total cost to consumer – making eCommerce
unaffordable

• We need to engineer / augment existing

eCommerce appropriate distribution models:
1. Reduce Delivery Inefficiencies
2. Consolidate and track orders
3. Achieve Optimal shipping fees
4. Min. SLA: T+1 or T+2 delivery

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 3. ABILITY TO CONFIGURE PACKS
SPECIFICALLY FOR ECOMMERCE
• What sells online is at times quite different to FINDING THE SMALLEST VIABLE PACKS
what sells offline

• 5 specific types of SKUs:

1. Smallest viable pack-size
2. Multi-packs (cases / cartons)
3. Import products, harder to find products
4. Special editions
5. Bundles

• Our supply chain needs to be able to construct

these eCommerce specific packs and maintain
product and delivery quality through to the end
consumer

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4. IOT – HOLISTIC DEPLOYMENT

• Scalable and Affordable: Technology to Network

retrofit coolers and vending machines are Enabled In-built
becoming increasingly affordable camera
Motion
• Obvious Use Cases: Reduced OOS, better Sensors
execution and purity, consumer proximity
push, etc.
Weight
• Actionable Intelligence: Imperative to Sensors
consider existing infrastructure support to ACT
on ‘field intelligence’
• Dynamic Restock Beacon
• Execution Correction
• SMART system to recommend right SKUs
per cooler / vending
• Etc

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 5. POINT OF INTEREST INTELLIGENCE –
APPROXIMATING POTENTIAL
• Location data is becoming available at WED LUNCHTIME
scale: Lat / Long, Traffic Approx, Wifi, OCCUPANCY IN BUGIS, %
SDKs, Mobile Ad Ids, etc.

• Wide Ranging Use Cases:

• Location Base Marketing
• Audience Segmentation
• Movement and Visitation Analyses
• Potential Evaluation

• Paradigm shift in Evaluation of Potential /

Closing the loop: Specifically when it
comes to outlets / retail stores, even more so
for indirect outlets.

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NOT JUST TECH: THE CULTURAL CONTEXT
NEEDS TO SHIFT AS WELL
CONVENTIONAL WISDOM THE NEW DEAL

Vision and Strategic Clarity with Comfort with ambiguity – but

Direction Clear Path of Travel clear vision
Coordination Structured planning cycles, Short Cycles, Cross Functional
and Control Functional Hand-overs Collaboration
Innovation Institutional Wisdom, External Looking, Exploratory
and Learning Structured knowledge and ‘On-the-go’
Management
Culture and Open, Professional, +Curious, Creative, Personal
Climate Collaborative

Leadership Structured, authoritative Topical Leadership,

but supportive Non-hierarchical and
Vulnerable
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END OF END OF
PRESENTATION
PRESENTATION
APAC SUPPLY CHAIN COUNCIL MEETING
JUNE 25, 2019

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