A Coca-Cola bottler in a demanding market will optimize its supply chain with AI-powered tech, which could ensure better product availability for consumers and lower business costs.
As Supply Chain Digital detailed, Coca-Cola Bottlers Japan, Inc., has enlisted the help of o9 Solutions to streamline its day-to-day operations.
In order to accomplish this, CCBJI will use o9's Digital Brain platform, whose patented Enterprise Knowledge Graph — powered by artificial intelligence and machine learning — can assist companies with risk assessment and decision-making with its up-to-date, streamlined raw data.
CCBJI handles roughly 90% of Coca-Cola system products sold in Japan, which Supply Chain Digital describes as "one of the most complex supply chain environments in Asia."
In addition to dealing with geographic diversity and volatility, CCBJI must adhere to strict expiration requirements — the proper management of which prevents unnecessary waste.
According to the report, CCBJI anticipates the use of Digital Brain will lead to lower storage costs, more accurate delivery windows, and fewer logistical bottlenecks.
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It also believes the Dallas-based company's "mathematical optimization" will improve the efficiency of its supply routes. This, in turn, may reduce harmful pollution associated with transport. While Coca-Cola has incorporated electric semis into its delivery fleet in various markets, it still has dirty fuel-guzzling vehicles on the roads, including in Japan.
However, the project may not be without its pitfalls. For one, powering AI requires massive amounts of energy, which can stress electrical grids and generate large volumes of pollution. While o9 increased its clean energy consumption in 2023 and says it is committed to further slashing carbon pollution, only 31% of its power came from renewable sources.
With further progress, though, CCBJI's use of o9's AI-powered tech may be a sustainability win for Coca-Cola, which has come under scrutiny for quietly backing out of promises to reduce plastic use.
The company remains one of the world's top plastic polluters, though it has phased out some plastic packaging components at select facilities.
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Yes 👍 "We are honored to support Coca-Cola Bottlers Japan in their efforts to transform their supply planning," o9 co-founder and CEO Chakri Gottemukkala said. "By leveraging our platform to streamline planning processes and optimize supply planning, we will strongly support Coca-Cola Bottlers Japan's transformation."
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