My Coke Express: Restocking Merchants On-Demand
Transforming Resupply From Multi-day to Same/Next day Delivery
This case study is a summary of the presentation given by Jose Roberto Mallmann, Global Sales & Commercial Solutions Group Director at Coca-Cola, and Raanan Cohen, CEO at Bringg, at the Dynamic Distribution Disruption Retail US event (New York City, May 2017).
Ho Chi Minh city is the biggest city by population in Vietnam, as well as the leading economic center. It’s a key strategic market for The Coca-Cola Company, but also a demanding one in terms of distribution due to the very large number of retail outlets.
Coca Cola’s Challenge
The main challenge for Coca-Cola’s logistics and distribution team was to serve all retail outlets as quickly and as efficiently as possible in order to ensure they never run out of stock. The Bringg platform presented a pioneering solution to this issue by enabling retailers to order the products they’ve run out of and quickly receive them, without having to wait for the periodical visits they received from Coca-Cola’s sales reps.
With a simple and easy-to-use interface, small restaurants and retailers are now able to place an on-demand order from their Coca-Cola app and receive any items they have run out of in 3 hours at most. The ability to supplement sales reps visits provides both Coca-Cola and the retailers a way to eliminate out-of-stock situations so that consumers can always enjoy their favorite drink.
With Bringg’s technology, after retailers place the order they have full operational visibility regarding the driver’s location with real-time tracking – bringing them an unprecedented level of transparency, speed and convenience. The user-friendly interface was designed to let retailers put an order in three clicks – choose from a full catalogue and place their order in order to receive it in under 3 hours.
To roll out this new technology, Coca-Cola ran a pilot with a single distributor with about 100 customers, and then scaled it up to a single district, before implementing it across the entire city.
By transforming the resupply process to an on-demand experience, they were able to reduce the delivery time by 85% (from 3-5 days to less than 3 hours) and increase the number of recurring orders by 91%. Retailers also benefited from the ability to place their orders at any time of the day, and to choose from a fully stocked and priced catalog.
In addition, Coca-Cola was able to increase their overall revenues by significantly decreasing the need for sales reps to visit their retailers. This enabled the company to quickly reach ROI, even when they reduced product prices, due to lower delivery costs (requiring far fewer of the more expensive truck deliveries) and a larger number of orders (due to the ease of placing them).
Based on the success of this project, Coca-Cola identified additional initiatives that can be handled by the Bringg platform in various countries around the world, including different B2B scheduled models and on-demand B2C deliveries.