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Coca-Cola Europacific Partners (CCEP)
When it comes to optimizing procurement, driving business value is critical. It means, for example, creating tools that allow teams to make smart sourcing decisions, find new sourcing opportunities, both strategic and tactical, and to manage and nurture supplier relationships. Underpinning this drive towards business value is the need for actionable insights drawn from high-quality data that is consistent across all spending categories.
As Vice President of Procurement of Coca-Cola Europacific Partners (CCEP)—a global beverage company serving more than 600 million customers across 29 markets—Ralf Peters knew that problems with data transparency and consistency were holding back his team’s efforts to find and act on the insights buried in the spend data. Not to mention the considerable time and effort required to establish the necessary baselines for sourcing decisions.
Back in 2017, CCEP articulated its vision centered on AI-powered analytics to drive business insights and value. That’s when CCEP engaged IBM Consulting® as a strategic partner to help in its procurement transformation journey.
Through the travails of Covid, broken supply chains, rising commodity prices and geopolitical instability, the relationship between CCEP and IBM Consulting has evolved to that of trusted allies.
Using the AI-powered IBM Procurement Analytics as a Service solution and the deep operational expertise of IBM Consulting, CCEP has been able to drill deeper into its procurement data to extract strategic insights that have helped achieve a whole new level of optimization and propel business value.
Take, for example, all-important category strategies. With a deeper and far more granular view of its spend data, the solution is now used to classify and analyze more than 98% of direct and indirect spend. CCEP is now able to uncover new opportunities for savings and value creation across its procurement categories.
Like its relationship with IBM, CCEP’s procurement capabilities have evolved, matured and yielded returns over the last six years. AI-powered analytics has been at the center of that evolution. CCEP’s commitment to building AI momentum is also being realized through its recent decision to pilot a new solution using the IBM watsonx™, the company's portfolio of AI products.
CCEP’s transformation efforts have produced more than USD 40 million in overall business benefits, including USD 5 million in annual cost and avoidance savings from improved category management and sourcing made possible through AI-powered analytics.
To Peters, these benefits are a testament to the value of CCEP’s seamless collaboration with IBM. “Through our partnership with IBM, we’ve made huge strides in uncovering and exploiting value creation opportunities across procurement,” he explains. “It has provided us with a foundation for AI-driven innovation that we continue to build on.”
With USD 18.3 billion in sales in 2023, CCEP (link resides outside of ibm.com) is the world’s largest Coca-Cola bottling company in the world, by revenue. The UK-based company serves about 600 million consumers in 29 markets in Western Europe and the Asia Pacific region.
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