HCCB – Supply Chain Case Study

Welcome to the world of HCCB – a Company that started in 1997 with the simple aim to refresh the world and make
a difference. We are one of the top 5 FMCG companies in India. Our consumers have faith in the quality and purity
of our products, some choose the ones that have nutrition, and others choose pure indulgence. Some prefer the
zing that bubbles in the mouth; others prefer a quiet, serene mouthfeel. Our 16 factories, spread across India,
manufacture the beverages that India wants. And if it is about India, we better make the best of it. With stringent
processes, world-class machines, state-of-the-art equipment, and the best packaging materials, we make 60
different beverage products in multiple categories. In doing so, we strive to leave things better than we first
inherited. Be it by sourcing our energy requirements towards renewable and clean energy, or collaborating with the
local communities, to make their lives better. Returning more water to Nature than we use, is as much a business
priority as is to ensure that the food-grade PET that is used in our product packages gets recycled. Farmers are our
friends connected with us through our sustainable sourcing strategy. The mango that they grow and hence the pulp
that we buy, earns us the distinction of being the largest institutional buyer of mango pulp in the world. The real
fruit in Minute Maid is from the produce these farmers harvest. At last count, there were 6000 employees who were
helping us stand on the podium.

As we continue to create magical beverage moments, we realize that by 2025, supply chain management will be a
whole different ball game. Now is the time to start preparing – in terms of technology, talent, and organization. The
COVID-19 pandemic could in fact be the turning point for the company to quickly respond, recover, and thrive in the
post-crisis era. We have identified Supply Chain trends and innovations as a power force that will shape the supply
chain and logistics decisions of companies over the next few years, impacting strategy, organization, business results,
and more.

1) Purpose-led companies: Purpose-led businesses place their organizational purpose at the core of
everything they do and use it as the compass to guide decision-making and deliver wider stakeholder value.
With the rise of generations Y and Z, and societal challenges such as climate change, the focus of companies
and talent (as well as consumers) is shifting towards topics such as ESG and sustainability (e.g. reduction of
CO2 emission and plastic waste). This impacts decision-making for resource allocation, business strategy,
and people development.

Disrupt case challenge #1:

The Coca-Cola Sustainability strategy recognizes our responsibility to help solve complex plastic waste challenges
facing our planet and society. Our ambitious strategy to drive change through a circular economy for our packaging
is called World Without Waste. This strategy is a global sustainable packaging platform focused on these
fundamental goals: https://www.coca-colacompany.com/reports/business-and-sustainability-report

a) Design: Making 100% of our packaging recyclable by 2025—and using at least 50% recycled material in our
packaging by 2030.
b) Collect: Collecting and recycling a bottle or can for each one we sell by 2030
c) Partner: Bringing people together to support a healthy, debris-free environment.

• The Disrupt Case Challenge requires the team to propose a sustainable packaging solution for HCCB aligned
with our strategic goals and targets and the Indian regulatory requirements.
• The winning team will come up with a cost-effective, circular economy, innovative solution that will include
all stakeholders of the plastic value chain.
• The team will also propose a campaign or communication plan that will engage with the consumers of HCCB
on sustainable packaging.
 2) The Factory of the Future: The factory of the future is an inspiration for manufacturers to envision enhancing
production by improving economic and ecological efficiencies in plant structure, plant digitization, and
production processes. The factory of the future could be a more flexible, multidirectional layout, with a
modular line setup and environmentally sustainable production processes. The use of digital technologies,
robotics, smart automation, production simulations, etc. is escalating efficiencies across production
processes. Lean manufacturing coupled with a fully integrated value chain based on customer centricity will
reduce costs, and improve production flexibility, quality, and agility.

Disrupt Case Challenge #2:

With HCCB, manufacturing milestones are aplenty! As India’s leading beverage manufacturer, we recently hit yet
another home run when it comes to digital manufacturing. What started with our factory in Sanand as a
manufacturing technology milestone for the beverage industry, has resulted in another digital marvel at our
Kanchenkanya factory in Siliguri – which is now smart, digital, and future-ready. HCCB partnered with IBM to institute
Maxpro or the Manufacturing Automation and Excellence Programme, a collection of several IT tools to digitally
connect all the equipment and machines. Maxpro also features IoT card-based dashboards to visualize live data from
machines. This displays the real-time performance of the shop floor based on our KPIs and allows for predictive
troubleshooting in case of machine issues.

Link: https://www.hccb.in/blog/innovations/Kanchenkanya-factory-is-now-digitally-ready

• The Disrupt Case Challenge requires the team to analyse: What will the HCCB factory of the future look like
with respect to its structure, technologies, and processes?
• What enablers will the company need in terms of strategy and leadership, employee skills, and IT
infrastructure to make it a reality?
• Create a Project design for a HCCB ‘Factory of the Future’ that incorporates the latest plant structure,
technologies, and production processes.

3) The Exponential Age: Technological innovations are crossing new frontiers that can support agile and
resilient manufacturing, packaging, and supply chain processes. Many technologies, AI, machine learning,
IoT, cloud computing and data availability, nanotech, 3D printing, green hydrogen, etc. are maturing and offer
more capabilities at lower cost than before. As a leading beverage manufacturer, HCCB has always been
committed to technological innovation. From automation and robotics to data analytics and artificial
intelligence, we have harnessed the power of technology to drive innovation, efficiency, and growth in our
manufacturing processes. We look forward to the future and remain steadfast in our commitment to
leveraging cutting-edge technologies to bring the best possible products and experiences to our customers.

Disrupt case challenge #3:

When Hindustan Coca-Cola Beverages was challenged with keeping smaller-sized products fresh and affordable, the
innovators with the Company (HCCB) created what may possibly be the lightest bottle in the world for fully
carbonated products. , The “Affordable Small Sparkling Package"(ASSP). Proprietary Coca-Cola computer simulation
methods were used to design the package using one-third less plastic than a standard plastic bottle in India (wt 15.5
gm) and an incredibly thin barrier layer was added to the bottle walls to prevent carbonation from
escaping. https://www.hccb.in/blog/products/ASSP
 • Like the ASSP innovation, The Disrupt Case Challenge requires the team to ideate and propose a breakthrough
technological innovation or process that can revolutionize manufacturing, packaging, sustainability, or
logistics functions.
• The team will create a Project Directive (See recommended format) that will solve a critical problem or
bottleneck that the company faces/ or will face in the future with a unique, efficient, and scalable solution.
• The winning team will be judged on the four key elements of innovation: Collaboration, Ideation,
Implementation, and Value Creation.

4) The war on talent: Talent is already hard to find and attract. While technological capabilities and consumer
expectations continue to advance, supply chain teams need people who are even harder to find, with skills
that are fundamentally different from what was expected from planners up till now. These new hires are
people who are able to think on a strategic and tactical level, in scenarios and risks, with analytical as well as
communicative skills, and who are market-oriented.

Disrupt Case Challenge #4:

We are proud to share that our efforts have been certified a Great Place to Work for the 3rd year in a row, and also
accredited for Inclusive Practices by the Workplace Inclusion Index, a Diversity, Equity & Inclusion initiative by Great
Place to Work® Institute India. A key imperative to our vision as India’s leading beverage manufacturer is to create a
workplace that addresses unconscious bias, promotes diversity, equity, and inclusion, and encourages policies that
support work-life balance and career development for all employees – right from factory floors to the markets. As a
purpose-driven company, we help create a better-shared future for everyone our brands and business system touches
by working to provide access to equal opportunity and fostering belonging both in our workplaces and the
communities we serve. We approach our Diversity Equity and inclusion (DEI) strategy through the lens of three core
ambitions: ASPIRE TO CREATE a workforce that mirrors the markets we serve. ENABLE an inclusive culture where our
employees thrive. ADVANCE equity within our business, communities, and the marketplace.

• The Disrupt Case Challenge requires the team to strategize and propose a DEI plan to attract and retain talent
in the supply chain and manufacturing functions of HCCB.
• The plan will focus on investing in the future with details of organizational design, skill sets, competency
development, motivation, and budgetary requirements across levels and functions.
• The winning team will also propose a campaign/ communication plan to attract and retain young talent at
HCCB.

While some trends will be more durable than others, each of them provides a window of opportunity for the company
to refresh its strategy with sustainability at its core.

In this competition, every team is expected to choose and leverage one of the above trends that could open
opportunities for HCCB to improve cost and resource efficiencies, implement green initiatives, and co-create many
more real magical moments for our consumers.

5) Supply Chain agility: Supply chain agility is set to become one of the key focuses of logistics trends in future
as businesses strive to satisfy the ever-increasing demand for products and services. Agility will enable
businesses to quickly and efficiently respond to fluctuations in supply and demand while also reducing costs
and increasing efficiency and is therefore an essential part of staying competitive in today’s ever-changing
market.
Disrupt Case Challenge #5:

HCCBPL’s current Logistics (Transportation, Warehouse, and infrastructure) operations are on the verge of getting
maximum utilized as per the current design of the plants/depots. In the next 3 years, the company is looking to
double its volume while improving efficiencies and costs. The company has invested in its manufacturing facilities by
increasing the capacities to deliver double the volumes while minimizing costs and retaining existing infrastructure.
For one of our facilities, we have the following infrastructure which we use for handling volume for dispatches. The
total MHE’s used is 20 (5 Reach Trucks & 15 Forklifts), the Total bays available for loading are 5, total bays available
for unloading are 2. Approximately there are 500 movements of trucks within a day (i.e., 250 in, 250 out), Loading a
truck usually takes 30 minutes, and lead time is 1.5 hours for its readiness, unloading a truck usually takes 1 hour.
Turnaround Time is 6 hours and TTAT is 42 hours. Currently, the total manpower used in shipping operations is 50
head count and the average per day volume dispatch is 2.82 Lakh unit cases. Current Asset utilization stands at 75%.
HCCBPL is looking to reduce its risk of handling the volume in the next 3 years, by having the same infrastructure and
doubling the volume by keeping the logistics constant as of today in line with its sustainability targets.

• The Disrupt Case Challenge requires the team to be part of the Logistics Team of this company and to propose
alternatives to mitigate this risk. Below are the points to consider:
• Alternative ways to improve manpower productivity. Consider and plan for consistency of supply and quality
and ways to improve asset utilization and bay productivity.
• Newer technologies for storing, loading & unloading, and their application, are to be explored with timelines
along with risks involved. And methods to improve loading time, lead time, reducing TAT, and TTAT.

The team is also required to consider the following points:

• The company’s sales are growing at a CAGR of 20-30 %, and there will be a commensurate increase in truck
movements with market availability.
• HCCBPL is open to changing its way of storing, staging, and loading/unloading if it improves efficiency, safety,
and sustainability.

The key deliverables for the winning team are listed below :
What should HCCBPL Beverages do in this dynamic post-COVID environment to de-risk and reign in the growing
volume by having the same infrastructure and doubling its volume in the next 3 years?
a) Qualitative inputs on the kind of technology/innovation HCCBPL can take up in the strategy.
b) Base case scenario of company’s logistics target, keeping the same infrastructure and doubling the volume
within the next 3 years (considering growth) and post-implementation of recommendations, Timeline of
implementation of the recommendations.
c) Cost impact of implementing the suggestions along with potential risks involved.

As a first step, you are required to submit a 2-slider pitch, excluding the cover page (as per the details mentioned)
to the evaluating team to get an idea of your understanding and direction of your strategies.
 sustainability targets.

STAGES OF COMPETITION:

1) TASK 1: EXPLORATION

Executive Summary Round: Team to submit the Executive Summary in 2-Slider PPT Format.

Explore the above trends and how they impact the business of HCCB. Each trend may lay out certain
opportunities that HCCB can seize or open problem areas that we need to solve. Then you need to tell us:

a) Which Disruptive Case Challenge you would like to work with and the reason for choosing this
trend for your project?
b) Tell us about your team composition and how your team is competent to address this Disruptive
Case challenge.

2) TASK 2: IDEATION
Detailed Summary Round: Team to submit the Detailed Summary in 5-Slider PPT Format and 1-min video.

Lay out the following salient parts :

a) Who are the internal and external stakeholders and what is the problem that they face? State the problem
in a clear and actionable way. Why is it important to solve this problem?
b) Give an outline of the solution with key impact indicators.
c) What is the expected change or transformation that this solution will bring to the company. Please quantify
as far as possible.

3) TASK 3: PILOTING
Grand Finals: Team to submit the refined Project Directive (Detailed submission) in 5-Slider and 1-min video
Prepare a Project Directive that will help in piloting this idea. What would the Project entail? Give details of the
following.
a) An overview of the solution: technical/ behavioural/ logistics etc.
b) Project deliverables: qualitative and quantitative.
c) Project Resource requirements: Financial and human resources.
d) Project Timelines and milestones.
e) Project risks and opportunities.
f) Collaboration and partnerships.
g) Communication strategy (internal and external)
h) Transformation and deployment.