Coca Cola adopted SAP Blockchain to enable it to enhance its supply chain process and productivity, hence reducing operating costs. According to a report on Business Insider, the project hopes to streamline the relationship between all 70 franchised bottling companies.
Coke One North America (CONA), which is the tech partner of about 12 of the franchisees, implemented the project. By using SAP’s Chain, the Coca-Cola Company was able to increase transparency and efficiency in their supply chain process.
CONA is in charge of the digital platform that manages the Coca Cola supply chain. On the other hand, Coca-Coca stays in charge of recipes, marketing, and budgeting.
When combined with all the different private bottlers across the U.S., it is a very complicated supply chain. The SAP Blockchain project adopted by Coca-Cola hopes to improve distribution for all parties.
The move allows all manufacturers to access a permissioned Blockchain that contains each other’s orders, capabilities, and requirements.
The SAP Blockchain provides a perpetual inventory to store information in a distributed ledger on the platform. It is, therefore, allowing a clear record of stock, which entails ease and reliability in filling orders.
Moreover, It reduces the reconciliation time as CONA hopes to minimize the traditional 50 days to barely a week. The SAP Blockchain solution initially experimented with two bottling franchises, Coca-Cola United and C.C. Clark, before scaling to 70 franchises upon the success of the trial experiment.
The Coca-Cola company is reportedly saving millions of dollars in revenue because it adopted SAP Blockchain for its supply chain. Consequently, their supply chain operations are worth $21 billion.
The SAP’S Blockchain Applications
SAP Blockchain helps entities to simplify multi-party processes with the sole purpose of creating trust among participants. The company is a multinational software corporation building enterprise software products and solutions.
Although its headquarter is in Germany, SAP has regional offices in about 108 countries around the world. However, it will interest you to know that about 77% of the world’s transaction revenue goes through the SAP system.
The company has different Blockchain services, including the following:
The cloud Blockchain service provides Blockchain-as-a-service (BaaS), low-cost and low-risk business transactions to companies. You can integrate this technology into your business to leverage its massive and huge potentials to your business.
If you already have a system utilizing Blockchain, then the HANA Blockchain could be an addition. It provides cutting edge analytical and developmental capabilities while dealing with Blockchain data.
The HANA Blockchain services include hybrid deployment, integration of enterprise and Blockchain data, and monitor and analyze Blochcian data in real-time.
Applying Blockchain In Supply Chain
Despite the many successes in the traditional supply chain, there is bureaucracy in the systems due to third-party, delays in issuing a letter of credits, among other challenges.
Therefore, persistent research suggests optimizing the supply chain. However, Coca-Cola adopts SAP Blockchain to enable it to enhance supply chain processes, thereby indicating the potential of Blockchain in supply chain processes.
What better way to revamp and streamline the supply chain industry than the use of Blockchain technology is a question-begging an answer if it can help Coca-Cola save millions of dollars?
The adoption of the SAP Blockchain into the supply chain architecture of Coca-Cola suggests that we can achieve a lot in the supply chain industry using the Blockchain. So, it is now evident that Blockchain is not only deployed in the creation of Cryptocurrencies or Fintech but can solve other industrial needs.
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