Coca-Cola case study: Optimal drinks deliveries in a complex market

August 9, 2021 Gavin Wilkinson

Coca-Cola case study: Optimal drinks deliveries in a complex market

Coca-Cola HBC worked with firstBit | NFP to optimize its extensive delivery network in the CIS region. Using anyLogistix supply chain software, they tackled five key business challenges in logistics and created a solution that accommodates over 200,000 clients.

Coca-Cola HBC's supply chain is complex, with variable transportation and storage costs, as well as seasonal demand variations. This complexity was preventing effective analysis and the holding back the possibility of cost cutting.

The solution to analyzing this complex supply chain was to capture it in a model. NFP Consulting were contracted to create a supply chain model that would help:

  • Reduce complexity
  • Reduce goods movement and processing costs
  • Calculate optimal safety stocks for given service levels

The project began with the development of a concept model based on the current supply chain’s performance data and metrics. This defined the scope of model development and moved the project to a prototyping phase, where testing was carried out based on limited data. Based on the results of the testing, the team validated the model and could estimate the risks of further scaling the model.

In the final phase of development, the model scaled to represent a supply chain of 200,000 clients with considerations for routing, fleet availability, and load capacities. With this model built in anyLogistix and with access to its supply chain specific experiments, it became possible to exclude economically inefficient routes and to better optimize suitable routes regarding vehicles and their loading.

Overall, the developers used the supply chain model to tackle five key business challenges:

  • Production strategy selection
  • Supply chain master planning
  • Warehouse location
  • Last-mile delivery strategy
  • Safety stock calculation

The outcome of the project was a supply chain decision support system for managers from Coca-Cola HBC. With it, they can manage their supply chain, allowing for different planning horizons, test logistics and production hypotheses, and support decision making for delivery managers.

You can read more about the project in our case study Supply Chain Design and Optimization for Coca-Cola HBC.